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Can you update the balanced scorecard for Hilton worldwide (attached) and ensure that it answers


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Can you update the balanced scorecard for Hilton worldwide (attached) and ensure that it answers all questions outlined in the Week 10 Summary (attached)?



Running Head: Hilton Worldwide Assignment Grading

 

Course: Name

 

Balanced Scorecard ? Hilton Worldwide

 

Your name

 

Professor?s Name [optional]

 

University Hilton Worldwide Table of Contents

 

Executive Summary...................................................................................................................3

 

Balanced Scorecard for Hilton Worldwide - Figure...................................................................4

 

Balanced Scorecard for Hilton WorldWide................................................................................5

 

Financial Perspective.............................................................................................................5

 

Customer?s Perspective..........................................................................................................6

 

Internal Perspective................................................................................................................6

 

Learning & Growth:...............................................................................................................7

 

Strategic Objectives...................................................................................................................7

 

Continue its growth................................................................................................................7

 

Expansion Plans of worldwide...............................................................................................8

 

Maintain liquid cash...............................................................................................................8

 

Secondary Objectives.................................................................................................................8

 

Speed to market......................................................................................................................8

 

Introduce the lifestyle brand...................................................................................................9

 

3 specific objectives within each perspective............................................................................9

 

Conclusion................................................................................................................................12

 

Reference..................................................................................................................................13 Hilton Worldwide Executive Summary

 

The balanced scorecard is the methodology that enables organizations to implement

 

strategies and achieve their vision and mission. In this paper Balanced Scorecard for Hilton

 

Worldwide is discussed and every perspective is discussed.

 

Hilton Worldwide is a global leader in the business of Hotel and Resorts which was

 

established in 1919 by its founder Conrad Hilton. In the 96 years of journey the Hilton Hotel

 

went through several Mergers and Acquisitions and today it is operating successfully in 92

 

countries. Hilton Worldwide is one of the organizations which adopted Balanced Scorecard

 

Methodology as the Strategic Management System and in 2 years have astonishing results in

 

customer satisfaction and Market Revenue Index (Kaplan, 1998).

 

In this paper, focus is given to the organization?s objectives and how successfully

 

Hilton Worldwide has adopted Balanced Scorecard to bring changes and achieved its primary

 

and secondary objectives. Quantitative metrics analysis is provided for better understanding

 

of the targets achieved and sections which need improvement in a long run. Hilton Worldwide Financial Perspective Balanced Scorecard for Hilton Worldwide - Figure Shareholder's Profit

 

Growth Productivity Growh ng and Growth Perspective

 

Internal Process Perspective Customer Perspective Decreasing Cost and

 

Optimization Revenue Growth Developing New

 

Revenue Sources Improving Current

 

Profitability, Working

 

on customer Value

 

Proposition Add and Retain High

 

Value Customers0 Achieve and Retain

 

Win Win Partner

 

Relations Room Excellence Improve online Booking Modify Existing Rooms Brand Campaign Hilton Worldwide What Additional

 

Service Guest

 

Might need Room Quality Learn High and Low

 

Scoring Factors Hilton Worldwide

 

Vision Statement

 

To fill the earth with the light and warmth of hospitality (HiltonWorldWide, 2015).

 

Mission Statement

 

To be the preeminent global hospitality company - the first choice of guests, team members,

 

and owners alike (HiltonWorldWide. 2015).

 

Values

 

Following are the values of Hilton Worldwide: Hospitality, Integrity, Leadership, Teamwork,

 

Ownership and Now. This is made to appear as definition out of acronym HILTON. Balanced Scorecard for Hilton Worldwide

 

Financial Perspective Objectives: Productivity growth and revenue growth, which is possible only by

 

capacity utilization, capability utilization and making the best out of the

 

established brand image. Secondary objectives are - maximizing the hotel?s assets

 

and find new investors. Measurement: Room utilization, Percentage booking in comparison with

 

competitors, increase in assets, improvement in efficiency, potential of new

 

investors. Target: New hotels added in the chain, getting certified as a best hotel in the city,

 

increasing revenue every year, increasing investor and customers. Initiative: Monitoring. Hilton Worldwide

 

The overall motive of financial perspective is to improve shareholder values, for

 

which revenue growth is essential, which can be attained by increasing customers and

 

introducing value added services. Hilton hotel continuously revises its cost structure and

 

improve asset values by Mergers and Acquisitions all around the world, especially in the

 

USA, which works as a productivity strategy for Hilton Hotels.

 

Customer?s Perspective Objectives: Meet customer?s satisfaction level, add new loyal customers, improve customer service.

 

Measurement: Number of new loyal customers involved, retaining old loyal

 

customers, good response to the service provided all over the chain. Target: Static data of old and new customers. Initiative: Monthly monitoring of sales and service, investment in lifestyle

 

segment. The hotel is known for its premium service and quality, which is non-negotiable and

 

price is not a concern for Hilton hotel. The focus always remains on the quality of service,

 

which can never be compromised. Strategies are implemented to develop and maintain long

 

lasting relations with loyal customers, heading by the public relation officer.

 

Internal Perspective Objectives: Retain the skillful employees and staff; improve management and

 

Human Resource team, faster implementation of new policies. Measurement: Number of retained employees by re-contract, performance

 

appraisal, benefits because of new policies, etc. Hilton Worldwide Target: Retaining top quality staff, increasing development graphic, reduce the

 

difference in the number of new employees for old branches per year. Initiative: Cross audits, weekly follow-up, defensive implementations, facility

 

readiness and certifications. Internally hotel chain wants to be as strong as a Goliath, for this Hilton tries to adopt

 

latest technology, update their services, improve customer management process, achieve the

 

excellence and optimal level of service and become a socially responsible brand name in

 

Hotel segment.

 

Learning & Growth: Objectives: Sustainable human resource, healthy relationship with investors and

 

customers. Measurement: Eligibility for certifications, license and technical standards,

 

performance evaluation. Target: Attain best license in industry, all employee participation in training and

 

development program, implement the best technology in market to facilitate

 

customer and employees. Initiative: Training and skill building programs, Set-up new technology to support

 

human capital, communication programs to better serve the customers. Hilton Worldwide knows that having motivated team and employees will only serve

 

and take the brand to the new heights, to achieve this corporation invest millions in training

 

and maintaining the quality. It?s important to have every kind of license to provide A to Z

 

facilities in their premium selected hotels. Hilton Worldwide

 

Strategic Objectives

 

Continue its growth

 

Hilton Worldwide has generated 4,322 properties in overall 94 countries which

 

comprises of 715,000 rooms, which showcase the financial strength of the hotel chain. The

 

objective is to retain the momentum of this exponential growth.

 

With the clear objective, the strategy is to keep adding the assets under the brand

 

name to attract investors and is mentioned in the balanced scorecard as ?developing new

 

revenue resources.?

 

Expansion Plans of worldwide

 

The market of UK and China are facing issues because of economic uncertainty and

 

new projects are stuck in pipelines. Because of interdependency the issue can lead to

 

compromise with quality of service functionality. With the clear objective of expansion, the

 

hotel group is focusing on retaining the service standard worldwide, by having enough funds

 

and investors in hands to secure the future.

 

Maintain liquid cash

 

With the expansion all over the world and several pipeline projects in Pacific Asia,

 

company is focused to have liquid cash in hand and minimize operational cost in every

 

department. The cash will help to pay down outstanding debt which is supported by policies

 

aimed to preserve the capital. The current asset to current liability ratio of corporation is 1.11

 

in comparison with 1.20 of 2012, because of current expansion investments. Hilton Worldwide

 

Secondary Objectives

 

Speed to market

 

The secondary objective of the corporation is to improve public relations, with the

 

help of media and entering into a new segment of marketing - social media. To achieve the

 

objective, the research team collects the information and feedback from reporters, bloggers

 

and members of the other global PR team.

 

With the help of successful implementation of Hilton Global Media Center, Hilton

 

Hotel started collecting big data from 530 micro sites and managed media contacts which

 

proved out to be the driving factor in the success run.

 

Introduce the lifestyle brand

 

Hilton Hotels have always lacked behind in the budget of lifestyle brand and is losing

 

out lot of opportunities, but with the help of balanced scorecard Hilton Hotel has successfully

 

taken the first step and launched Canopy representing more accessible lifestyle which is to

 

target more upper upscale price point segment class. This new category is known for its

 

hybrid of local culture and world class service. 3 specific objectives within each perspective

 

Financial

 

1. Acquire more resorts in different countries.

 

Target

 

8

 

Performance

 

6

 

Difference

 

-2

 

2. Revise supply chain; promote local level investments for basic needs for cost cutting.

 

Cost Cutting Target

 

Performance

 

Difference

 

3. Invest in Asia Pacific. 10%

 

8%

 

-2% Hilton Worldwide

 

Target

 

64,000 Rooms

 

Performance

 

45,000 Rooms

 

Difference

 

19,000 Rooms

 

Organization is working on all from last 5 years and is leading the industry. There are

 

thousands of rooms under construction that will make Hilton the largest Hotel Chain in

 

coming years.

 

Customer

 

1. Open hotels, meeting the cultural demands of the local country, without compromising

 

the standards.

 

Target

 

2 new Cultural Hotels

 

Performance

 

Canopy & Curio

 

Result

 

Success

 

Hilton hotel successfully launched Canopy and Curio to meet different customers? demands

 

regarding unique hotels with their own history and character (Annual Report, 214)

 

2. Improve food and beverage by introducing new options and cultural food.

 

Target Launch new food

 

segment

 

Performance

 

Canopy implemented

 

the strategy

 

Result

 

Success

 

3. Implement latest technology to make stay of customers most convenient.

 

Target

 

Performance

 

Result Implement latest

 

technology

 

Implemented in 45

 

hotels

 

Partial Success Internal

 

1. Hire the best staff.

 

Target

 

Flexible

 

Performance

 

157,000 employees

 

Result

 

Success

 

2. Increase salary to make it best in the market.

 

Target Based on Performance

 

Evaluation Hilton Worldwide

 

Performance

 

Result

 

3. Benefit Plans

 

Target

 

Performance

 

Result More than 30%

 

Partial Success

 

Reward employees with

 

benefit plans

 

Covered everyone

 

Success Learning and Growth

 

1. Regular training and development programs.

 

Target Contract with

 

Franchisee

 

Performance

 

Regular

 

Implementation

 

Result

 

Success

 

2. Third party contractual employees.

 

Target

 

Performance

 

Difference

 

3. Job training intercourse

 

Target

 

Performance

 

Difference Successful Franchisee

 

Model

 

Several Hotels

 

implemented the policy

 

Success

 

Tie-Ups for training

 

staff of different

 

branches

 

Regular Training

 

courses

 

Success Hilton needs to carry on with its marketing campaigns, especially for its new brand

 

hotels Canopy and Curio. It?s very near to its competitors Marriot and Starwood. The hotel

 

chain is determined to take advantage of emerging market; in the long term the hotel chain is

 

destined to grow wealthier.

 

The success of implementation strategies with the help of the balanced scorecard was

 

seen by Hilton Hotels after 2 years, when 50% of the customers in their database were the Hilton Worldwide

 

repeated loyal customers. With the 44 million customers at present, Hilton Hotel is leader of

 

hotel business all over the world.

 

The balanced scorecard also helped Hilton Hotel to implement technology to improve

 

customer experience. The corporation is first to launch Hilton HHonors mobile app to checkin and select a room of their choice. All the amenities and check can be done with the app.

 

The app can also work as room key to bypass front desk formalities. All this is possible

 

because of clear vision and goal of providing best service to customers. Conclusion

 

The senior management of Hilton Worldwide earlier known as Hilton Hotels has

 

successfully applied BSC (Balanced Scorecard Methodology) and has seen results in all the

 

four perspectives. The objectives are more clear now which would be soon achieved by the

 

strategic management under balanced scorecard.

 

By combining all the perspective, balanced scorecard helped in the smooth growth of

 

the organization just like any other. The success driving factor for Hilton is a clear vision and

 

strategy which they followed. All the functional barriers were crossed and now the expansion

 

plan and customer service is the top priority of the hotel group which is supported by

 

improved decision making and reliable information. Hilton Worldwide Reference

 

Amaratunga, D, Baldry, D, & Sarshar, M, (2001). Process improvement through performance

 

measurement: the balanced scorecard methodology, Work Study, vol. 50, no. 5,MCB

 

University Press. pp. 179-188.

 

Hilton Worldwide (2014). 2014 Annual Report. pp 7, 65, 75

 

Figg, J, (2000), ?Balanced scorecards receive high marks?, The Internal Auditor, vol. 57, (2),

 

p. 16.

 

R. S. Kaplan, D. P. Norton (1996). Using a balanced scorecard as a Strategic Management

 

System. Harvard Business Review. pp.19, 20.

 

Vitale, M, Mavrinac, S & Hauser, MC (1994). ?New process/financial scorecard: a strategic

 

performance measurement system?, Planning Review, 4(22), pp. 12-16.

 


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