Lowest guaranteed price across the globe. Get upto 50% off ! Book Now

Varies Functional Units in Iceland Food Limited

University: UKCBC College

  • Unit No: 7
  • Level: Undergraduate/College
  • Pages: 9 / Words 2165
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 1557
Question :
Business environment is mainly the combination which pertains the internal and the external environment in the company. It can there by effect the survival and profitability in the company. Iceland Food Limited is the famous supermarket retailer chain which is situated in United Kingdom, they use to sell the frozen foods which includes prepared meal and vegetables. Kindly do answer all the learning outcomes mentioned below: -
  • Explain the types, purpose and scope of organisations.  
  • Elaborate the varies functional units in iceland food limited and also involve the organisational structure.
  • What are the impact of external factors, with all the link it with the Iceland Food Limited business operations.   
  • Explain the Internal Factor Of Iceland Food Limited and connect it with macro factors.
Answer :
Organization Selected : Iceland Food Limited


Business strategy is a policy and approaches which are undertaken by a business so that competitive advantage in the market could be achieved. It is mainly developed so that company can run their operations and activities in an effective and efficient manner leading to attainment of business objectives (Aithal and Aithal, 2016). This helps the company to manage the tasks in proper way. The chosen organization for the given report is Hilton Hotel & Resorts which is a global renowned brand of full-service resorts and hotel under the flagship of brand Hilton. The main purpose of this report is to apply strategic management techniques to the organization and critically evaluate its application along with its key strength and weakness.


Strategy is determining the scope and direction of an organization on a long term basis (Johnson, Scholes and Whittington, 2011). It is helpful in determining the manner in which resources in context of a business could be utilised. Resources are to used in effective manner so that they can fulfil the needs of all stakeholders. Strategy is all about integrating business activities and allocating scare resources in an optimum manner within the organizational environment in order to meet present objectives effectively. In short, it bridges the gap between “where the company is” and “where it want to be”. Here, the chosen strategic management technique is Ansoff Matrix which is mainly used by firms in order to identify future growth opportunities.

A) Ansoff Matrix

It is a strategic planning tool that help companies to chalk out different strategies for market and product growth. It is very useful in determining growth opportunities. Successful leaders understand that for attaining long term growth, company can stick with “business as usual” mindset, even when things are going well. In short, firm need to discover better approaches to expand profits and achieve new clients or customers. Basically this matrix presents the market and product choices available to an organization. Here, market refers to the customers and products are the items sold to end-users. It involves assessing the options available to the company from a wider prospective (Smink, Hekkert and Negro, 2015).

In simpler words, Ansoff's Matrix is a marketing planning model which helps a organisation to determine their market growth strategy.

Strength And Weakness

One of the main strength of this matrix is it force management and market planners to think about the anticipated risk of moving in a particular direction. It is always presented to many stakeholders and thus they can easily satisfy all staff members in company. Through Ansoff matrix company can easily evaluate all alternatives and thus they can choose best option. With this matrix, company can easily predict the risks and they can reduce the risk by using this process It also provides a direction to company to create effective and efficient strategies and thus they can easily accomplish the objectives. It can easily put pressure on the management staff to predict the expected risks and can create effective and effective policies.

On the other hand, it's key weaknesses include it fails to present the market development and diversification strategy can bring change in company and thus they cannot operate their function in an effective and efficient manner. It is only a theoretical model which do not present the activities of all competitors (Basco, 2015). It only present the transferable skills. Thus it is not so much useful and relevant for the company. Accurate predictions are difficult to forecast. Thus company cannot see the unforeseen events. Hence it is difficult for company to create various strategies and policies related to future events. There are conflicting objectives of many stakeholders. Thus it is difficult for hotel industry to satisfy all needs and requirements of all people.

Application Of Ansoff Matrix

It is an effective and efficient tool which provides help to executives, senior management by creating effective strategies for business. It is divided into four parts:

Market penetration: Hilton hotels and resorts is a global brand which has it headquarters in United Kingdom and operates in multiple countries. Market penetration occurs when an organization penetrates a market with its current products or services (Temminck, Mearns and Fruhen, 2015). Hotel can increase their market share through using this concept as their existing products or services has already captured huge market share. Thus it is crucial for hotel that it can use this strategy as they can enhance their products and can satisfy more people.

Application: This strategy is mainly used by businesses in order to increase sales volume without drifting from the original product market strategy.  To further penetrate in the market, this hospitality institution possess a division goes by the name of Hampton by Hilton which is known to price services which are moderately priced along with providing Food & Beverage Facilities. Ansoff's matrix is a model which helps in preparing various marketing strategies such as promotions and off-season offers due to which organisation is able to promote their products and services effectively which results in gaining huge customers  Rival hotels i.e. Holiday inn, ibis and Marriott who are not performing at premium level are known to counter their seasonal threat through undertaking of market penetration approach along with an attempt to improve the quality of their products and their processes. In this, competitors lower down prices of their products and offering services at affordable prices to penetrate the market. Companies often do market penetrate in one of three ways i.e. improving level of service or product quality, gaining competitors customers and attracting non-users of product so that they can extensively use company's product (Ghezzi, Cortimiglia and Frank, 2015). This approach is not been selected by Hilton Hotels & Resorts as it is a 5 star luxurious hotel which offers high quality services to its customers. Penetration strategy is adopted to create niche in existing market. If organisation implement this strategy, they need to reduce prices of their services in order to capture large market share. This will significantly impacts on their profit margins in negative manner so, this strategy is not appropriate for Hilton Hotel in terms of its growth.

Market development: When company adopt this growth strategy, it moves beyond its existing customer base towards attracting new consumers for its existing goods and service. In this hotel can target to new segments through offering the existing products. This helps the company in targetting to new people in minimum time (Akter, and et. al., 2016).

Application: With the application of this strategy, Hilton Hotel focus on increasing its sales by expand its business operation across international boundaries and develop strategies which has primary aim of increasing revenue with introducing more services such as tour packages, premium stay camps etc. Hilton Hotel can easily expand their activities and tasks by using this matrix in the untouched international market. This helps the hotel to generate more revenues and counter economic fluctuation which emerge in the form of recession and inflation.

Market development strategy is not appropriate for Hilton Hotels & Resorts as it is already established in more than 85 countries. So, development of another new market is not possible for hotel which is the main reason behind not being selected this strategy by management of Hilton.

We tend to help you at every step regarding Academic Assistance

Get your Assignments Now!

Product development: This growth strategy is usually opted by firms when it develop new products or services and cater to same market. In this hotel can develop new products and can target to existing market segments. This helps the company to maintain brand loyalty among all customers (Basco, 2015).

Application: The product development approach focuses on adding value to the existing product which are offered by hotel such as children's menu, room service, lounge, meeting rooms, high chairs, food etc. so that more and more customers are persuaded to avail this opportunity. For example: Hilton Hotel can use Helicopter Transportation facilities for special guests from airport to the hotel (Hilton Head Helicopter Tours, 2018). As the hotel offers its services in more than 85 nations, it implies that Hilton invest much in Research & Development which depicts as the main reason behind success organisation. Product development is implemented by organisation by extending their available product range to existing market of firm. Management of Hilton Hotel invest high amount of money in developing new product. High investment in product development saw in the form of its tallest building hotel in Canada. It is situated in Niagara Falls, Ontario, which has 58 stories. In year 2010, hotel announced its name change from Hilton Hotel to Hilton Hotels and Resorts along with its new logo design which is a part of rebranding effort. In year 2013, organisation announced that with 300 room hotel in Yangon, it would be for the first time entering Burma. Approximately 20 Hotels and Resorts were conscripted by Hilton into Historic Hotels of America in year 2015. All this depicts about the high investment of firm in product development. So, in order to attain high growth in market, product development is appropriate strategy for Hilton Hotels & Resorts as development of new product or service provides an advantage to organisation in terms of attracting large number of customers and gaining competitive edge in market.

Diversification: Hotel can diversify to new products by creating new products and offering superior services to all people. Thus it can easily increase the market share. Hence as a result they can maintain good and unique image in market.

Application: Diversification can be done by Hilton Hotels & Resorts by entering into new market with new products and services. Through Ansoff matrix Company can select the option which is best suited to them, for Hilton the best approach is diversify their products and can be venture into offerings creative and premium F&B services to people in the chosen target market.As Hilton Hotels & Resorts performs its operations in hospitality sector, it is not easy for organisation to diversify its business in another sector. Possibilities of getting success in another sector is also less so, diversification strategy is not appropriate for Hilton in terms of attaining high market growth and capturing large market share.

Above mentioned are the strategies that are include in Ansoff's growth matrix. By analysing all the strategies, it can be said that product development strategy is the most appropriate and profitable approach for Hilton Hotels & Resorts as it helps organisation in attaining high competitive edge in market. Development of new products and services can assists hotel in attracting large number of customers. It helps Hilton Hotel in providing value to customers which assists organisation in keep growing. New products and services can ensures continued existence of hotel and its growth in market. High quality goods of hotel supports in maintaining its strong brand image and provide competitive edge over its rivals that are exist in market place. In addition to this, it will provide opportunity to Hilton Hotel & Resort to generate additional revenues by offering enough value to society from its new and innovative products and services. Therefore, it is the main reason why Hilton Hotel adopt product development strategy.

Read Also: Y/508/0540 Identifying Entrepreneurial Opportunities


It can be concluded from above report that hospitality industry has to create effective and efficient policies for their business. In this project report history of Hilton hotel is mentioned along with definition of strategy according to Gerry Johnson and the diversification and expansion strategy. Ansoff matrix is applied and their application on the hospitality industry. Their strengths and weakness are applied in organization. If you face any problem in assignment writing taske then take our affordable online assignment help. Application of Ansoff matrix is applied so that Hilton Hotel can easily create effective and efficient strategies. It also helps the hotel to attract more visitors and results in increasing the satisfaction level of all people. Various competitors of Hilton hotel are there in market. Hence company has to create effective and efficient polices so that they can beat the competitors. This helps the hotel to generate more revenues and can also increase the market share. This helps the Hilton Hotel to give strong competition to other hotels. Hotel Hilton have opted to use Ansoff's matrix as it has several elements such as diversification, market penetration etc. which are applied and most suitable approach in context of growth is being chosen.

Download Full Sample
Boost Grades & Leave Stress

Share Your Requirements Now for Customized Solutions.

Lowest Price



    Seasonal seasonal-mobile

    Our unique Features

    24/7 Customer Support

    100% Customer Satisfaction

    No Privacy Infringement

    Quick Services

    Subject Experts

    Innovative Documents

    100+ Qualified Writers

    For Best (Accounting) Assignment Help

    Lara Price
    450 - Completed Orders
    Lara PriceView Profile Hire Me
    Ivor Hale
    921 - Completed Orders
    Kylie Novak
    1789 - Completed Orders
    Kylie NovakView Profile Hire Me
    Charlie Smith
    180 - Completed Orders
    Charlie SmithView Profile Hire Me
    View All Writers
    IAH whatsapp

    Limited Time Offer

    Exclusive Library Membership + FREE Wallet Balance