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Business Organisation And Environment In Global Context

Globalization has opened doors for opportunities for all the organization and provided a medium for sellling products and services to a large consumer base. Present report describes about significance of globalization and its impact on the working of diverse industries and organization. Moreover globalization referes to procedure under which exchange of goods, services, individual and capital takes place among different countries (Charles, 2007). It has supported organization for enhancing their existing consyumer base and identifyng potential con sumers for buisness. Productions and manyfacturing activities have incresed in companies for meeting the challenges that have been imposed by global market.

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There are various factors that affects the activities of gloabalization and it includes social, cultural, technical, economical, environmental and political elements. Operatioanl activities of the company gets affected due to these elements and overall working of enterprises gets impacted due to these elements. All the countries have different policies and regulations that are formed by government of state and they give impact on execution of business functions in new country. Furthermore trends, values, beliefs and other systems that are running in an enterprise gives impact on working of an enterprise (Kirca, Jayachandran and Bearden, 2005). It is required that while carrying out business functions considerations should be given on all these elements so that required functions can be executed effectively. International borders have reduced and less barriers are faced while selling services and commodities in different countries. In addituion to this globalization also provided a medium for reducing overall investment cost for manufacturing products. Raw material and basic equipments can be purchased from different markets and advantage of price differentiation can be taken.

Task 1: Reasonable proce products at superior quality

PESTEL analysis is a significant tool that aids in doing analysis of external business environment and it also provides a effective medium for making strategies and policies for the enterprise. Six significant elements that are included under PESTEL analysis are as described :-

Political :- Government of country formulates various strategies and policies that are required to be followed for all the organization that are carrying their business activities in the nation. Taxation policy is made be government which support for gaining financial revenues and all the business houses are required to pay taxes as per decided by government (Charles, 2007). Resources are also allocated in category of land, labour, capital and revenues. Interest rate controls is also done by government and changes in political conditions of a country also gives impact on working of organization. Different policies such as foreign trade policy, labour law policy, taxation policy and environmental related rules and norms are made by state which are necessary to abide by all the companies.

Economical :- Economic conditions such as inflation and deflation, economic situations of market and GDP which is defined as gross domestic product of a country also gives impact on working of companies. Impact of these elements needed to be considered while doing PESTEL analysis.

Social :- Trends, cultures, values, beliefs and social norms are studies under this so that better policies and strategies for running operational activities of enterprise can be formed. Social trends directly gives influences on buying behaviour of consumers (Avlonitis and Indounas, 2006).

Technical :- Regular advancement and innovations happening in technical fields are studied under this so that modifications in the existing structures and cultures should be made for adding new attributes and features in existing products and services of the company.

Environmental :- Different environmental elements such as pollution, climatic conditions and other elements gives impact on working of enterprise and it is required to consider impact of these factor.

Legal :- Different rules and regulations formed by state for health and safety regulations and business related laws are needed to be followed.

TASK 2 History And Development Of Hilton Hotel

Hilton hotel is a global restaurant and hotel chain which operates in different countries at global level. Inception of the enterprise took place on May 31, in the year 1919 and it was founded by Conrad Hilton. Total 570 hotels are working under this group and operations of the group are spread in more than 85 countries. It is one of the largest hotel group that offers superior quality hospitality services for its consumers. In the year 2009 Canada's tallest hotel with 58 stories was opened in Niagara Falls, Ontario.

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Hilton group has globalized its operations in more than 85 countries and more than 504 hotels are providing services to consumers in diverse countries. Hilton is an American multinational company that deals in hospitality sector. Subsidiary companies of the group are running their operations by Hilton name. Company has its Hotels in Australia, Canada, Norway, South Africa, United Kingdom, Scotland, United states and Veitnam etc.

Hilton hotel has proved its business growth by gaining huge profitability and success. It shows capability of business growth. Hilton group is also planning for expand their operations in new market areas including Argentina, Armenia, Turkey, India, Kenya and Saudi Arabia. Moreover company is planning to expand their business in existing countries including United states, Romania, Panama and Poland. Management of group is trying best possible efforts for increasing operations of group to global level and being the top service provider of the Hospitality industry.

TASK 3 Role of Various Regional Committee

Economy development of Canada :- There are various regional committee working in Canada that provides support for ensuring economic development of nation. These committee provide funding for starting a new business and improving productivity of an existing business. Moreover support is also provided for enhancing market share and starting business in new market areas. For example Canada

Economic development (CED) is formed by government of Canada for promoting long term growth and economic development of the country (Pouder and Clark, 2009). Special focus is given by CED for improving structure of areas which are showing slow growth rate. Moreover opportunities are provided to people for getting employment and also programs are run for making significant improvements in existing skills and capabilities of people.

Regional development agencies are formed by Government of Canada for ensuring and promoting economic development of the nation. CED also provides support for economic development of communities that are living in various regions. In addition to this Industrial and Technological benefit policy has also been formed by state for promoting trade related activities in nations (Andersson and Servais, 2010). Moreover Mandate is Innovation, science and economic development department of Canada works with the objective to foster fast growing and competitive economy in Canada. It gives attention for making the economy of Canada more productive and effective. In addition to that various community development programs are also launched in Canada by government which aids for doing economic growth of nation.

Financial system in correlation with other factors :- Financial system is defined as system formed for ensuring effective exchange of finance and funds. Various individuals are included under Financial systems and it includes borrowers, investors and money lenders. Market and financial institution supports for developing a better infrastructure for ensuring smooth and transparent exchange of funds and revenues among individuals (Pitta and Scherr, 2009).

Proper and effective Financial system supports for allocating funds and investing funds in a systematic and organized way. Various financial institution includes Banks, Financial markets, loan companies, Mutual funds and insurance companies. In an particular organization financial system comprised of different accounting documents, balance sheets, revenues and profit and loss statements etc (Avlonitis and Indounas, 2006). In context of companies financial system is defined as procedures and practices adopted by an organization for regulating financial activities. Financial system of Canada supports for national growth by ensuring proper flow of funds and balancing supply and demand with in economy. This system also helps in growth of business and entrepreneurship as individual gets opportunity for getting funds for investing in operations of business. If financial system of Canada will not be effective than it will give impact on growth of trade and negative correlation will exist. Whereas effective and organized financial system will support for ensuring growth and development of business opportunities and hence positive correlation exist in this situation.

Canada vs world's economy :- Economic position of Canada is strong and it is closely tied with economy of U.S.A. Moreover population of Canada is 35.5 million and GDP is growing at the rate of 2.5% which depict strong financial position of nation. In addition to this economy is growing at the rate of 2.6 % and per capita income is $44,843 which shows high purchasing power of people . Inflation rate in Canada is 1.9 % which is much lower than other regions of U.S.A. Public spending is high and due to that industries including oil. Mineral, auto-mobile and goods manufacturing sectors are getting huge financial revenues and profitability. In addition to this FDI inflow in the country is approximately $53.9 billion and it also supports for ensuring long term economic growth of the country.

Public finance of Canada is well managed and less fiscal constraints and less trade barriers are faced. Open market policy is followed in the country and free movement of goods, trade and people is ensured under this economic system of Canada. Global financial crisis and market challenges are well managed in Canada and admirable resilience has been shown against international financial challenges. On the other hand GDP growth rate of world's economy is 3.4 % and per capita purchasing power of people is $10,857. world economy is economy of the world and it comprised of exchanges of goods and services among different countries. Unemployment rate in the world economy is 5.4 % which is higher as compared to economic growth of Canada.

TASK 4 Services Offered by Leading Hospitality Group

Hilton group is leading hospitality group that renders services to millions of consumers by providing superior quality services. Canada's hospitality industry offer huge success and growth opportunities and may players are entering in market for taking advantage of this. Globalization has opened doors for travel and tourism industry and millions of travellers are visiting at different tourism locations. Hotel industry of Canada is fastest growing industry and some facts and figures of this industry are as described :-

Occupancy rate is more than 64 % which shows high success and growth rate of this industry.

Total accommodation revenue in the year 2016 was $18.4 billion as per the data revealed by National accommodation revenue. In addition to that average daily rate is $141 and total 447586 rooms are available in hotels that are working across Canada

All the data and figures have been released by Hotel association of Canada and the data is for year 2016. in addition to this tourism industry of Canada is vary impelling and attractive and millions of people comes every year for visiting the nation. Hospitality industry of Canada is growing at faster rate and it provides opportunity for Hilton hotel to expand their operations and add new features in the existing products and services offered by them (Kirca, Jayachandran and Bearden, 2005). More resorts and hotels can be opened so that more number of customers can be provided with services. It will support for enhancing financial revenues and profitability of the enterprise. Special rates and attractive offers can be provided on accommodation and food services of the enterprise. Moreover locations such as Atlanta, Boston, Washington D.C., Phoenix, Paris and Orland and many other locations. Hilton hotel can open its branches in may other areas where presently its operations are not existing. Segmentation of market can also be done for identifying new target market areas and assessing potential consumer base for the enterprise (Greenberg, 2010). Demographic segmentation can be done where consumers will be divided on the basis of location and in addition to this psychographic segmentation can also be done on the basis of age, education, financial status, and middle and lower income group consumers can be targeted (Market segmentation criteria – Five essential criteria. 2014).

Business opportunity for Hilton hotel :- Hospitality industry in Canada is fastest growing sector and offers advantage for huge growth rate and success. New hotels and resorts can be opened in premium locations and it will aid for providing services to millions of people that comes for visiting Canada for tourism and visiting purpose. Unique travel packages can be designed by targeting specific consumer segments and attractive discounts can be offered so that potential consumers can be attracted for selling the services and commodities offered by the enterprise. As per the data and figures revealed by Hotel association of Canada hotel industry is growing at faster rate (Cao, Yong, and Thomas, 2005). Attractive tourism packages can be offered to consumers and in addition to that options can be provided for arranging business meetings and seminars and conferences. Wi-fi, attractive holiday packages and gourmet can be offered to clients.


Aforementioned report concludes that globalization has opened doors for carrying out business at international level. Hilton Hotel is a leading hotel group which is operating in more than 84 countries across globe. Company can take advantage of globalization opportunity for expanding existing operations of business and adding new consumer base for selling hospitality services of the enterprise. Canada is premium tourism location where millions of consumers comes every year for availing tourism and Hilton hotel can take advantage of this opportunity. In addition to this new hotels and resorts can be opened at new locations of Canada where presently Hilton hotel is not providing services. New features and attributes can be added in the existing hospitality services and it will aid in attracting more consumers towards selling services of the enterprise.

Recommendation :-

Canada offers huge success opportunities and new hotels can be opened in new undiscovered areas. New resorts and hotels can be opened and it will support for providing services to many consumers.

  1. Website of the Hilton hotel can be well developed so that consumers can access the required information from the site of the enterprise (Pitta and Scherr, 2009)
  2. Information about different packages, accommodation services and other additional services provided by the company can be uploaded on the website.
  3. Middle income group consumers can be targeted and attractive holiday packages can be offered to them.
  4. Use of social networking platform can be taken for making consumers aware about different hospitality services offered by the enterprise. Attractive images and videos can be uploaded on You-tube, Instagram Facebook and other social sites. It will aid in attracting consumers towards the services offered by Hilton hotel. Consumers can be attracted from from global borders and it will aid for enhancing financial revenues and profitability of enterprise (Greenberg, 2010).
  5. New and attractive features such as The Hilton Gift card, earning points and other services can be offered.
  6. New features can be added in existing holiday packages such as Family fun packages, weekend getaway package and other holiday packages can be modified by adding new features in them. Some addition services such as free breakfast and Wi-fi services can be offered to consumers.


  • Andersson, S. and Servais, P., 2010. Combining industrial buyer and seller strategies for international supply and marketing management. European Business Review. 22(1). pp.64–81.
  • Avlonitis, G. and Indounas, K., 2006. Pricing practices of service organizations. Journal of Services Marketing. 20(5). pp.346–56.
  • Cao, Yong, and Thomas, S., 2005. Reducing adverse selection through customer relationship management. Journal of Marketing. 69. pp.219–229.
  • Charles, W. L., 2007.International business: competing in the global marketplace.New York: McGraw-Hill.
  • Chung, H. F. L., 2007. International marketing standardisation strategies analysis: A cross-national investigation. Asia Pacific Journal of Marketing and Logistics. 19(2). pp.145–167.
  • Greenberg, P., 2010. The impact of CRM 2.0 on customer insight. Journal of Business & Industrial Marketing. 25 (6). pp.410 – 419.
  • Kirca, A., Jayachandran, S. and Bearden, W., 2005. Market orientation: a meta-analytic review and assessment of its antecedents and impact on performance. Journal of Marketing 69(2). Pp. 24–41.
  • Pitta,A. D. and Scherr, G. B., 2009. The product strategy for seasonal products. Journal of Product & Brand Management. 18(2). pp.152–153.
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