Marriot Hotels: Expanding into Netherlands through Foreign Direct Investment

Business
Organisations in a
Global Economy

Contents
INTRODUCTION...........................................................................................................................1
Details and summary about Marriot Hotels.....................................................................................1
Overall details and data of the Business Environment at Netherlands............................................2
Evaluation of the Business Scenario................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment refers to the collection of internal and external factors of enterprise
that impact its overall functioning. In modern times, it is imperative for organisations while
moving into a new country to consider these factors so as to facilitate easy growth and expansion
of business. In globalised economy, there are various macro environmental factors like political,
legal, social, environmental, technological etc. that affect business during expansion (Henry,
Foss and Ahl, 2016). The present report is based upon Marriot Hotels which is a company
headquartered in Washington, United States. The company is looking for opportunities of
Foreign Direct Investment (FDI) and planning to move into Netherlands. This report will take
into account the background information in relation to various macro environment factors in
Netherlands which will be considered while facilitating expansion. Also, it will include the
analysis of business scenario in global context. Furthermore, it will assess main issues that were
encountered by company along with some recommendations in relation to scenario.
Details and summary about Marriot Hotels
Marriot Hotels is one of the most renowned hotel and deals in accommodation and
hospitality sector across the globe. Marriot Hotels operates in 28,218 locations of the world. As
per data of 2016, company workers 2,38,000 people in all its outlets across the globe. Globally,
the hotels and units of company offer a range of beverages and measl such as hot and cold
drinks, French, Itanliam, continenat called VIA Besides this, enterprise also offers certain items
including beverages, pastries and snacks that are either seasonal or exclusively available in
selective locations (Shahriar, Schwarz and Newman, 2016). Also, many hotels and units also
offer dining, café and other srvices. Exclusive locations of company also provide alcoholic
beverages inclusive of beer, appetizers as well as wine. Company's bottled drinks, ice cream
along with are also available at grocery hotels and units globally. Marriot Hotels is the prime
representative for 5 Star hotels which helps the entity in differentiating itself from other big
names in hospitality industries in terms of quality, experience gained by customer, taste in order
to make the services and qualities more famous in marketplace.
Marriot Hotels follows a corporate structure which helps the company in facilitating the
operations of business across globe. Enterprise makes use of its organisational structure so as to
ensure growth and development of company along with overall industry. Company's corporate
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has an effective impact upon various areas of function like incorporating change, execution of
growth and expansion along with daily management of activities. Company ensures that its
structure is specific to needs of entity. These adjustments give a strategic edge to company and
assists in easier expansion of entity across different parts of world (Tukker and Tischner, 2017).
Being a well renowned brand across different parts of world, company keeps in
consideration satisfaction derived from consumers. The brand focuses upon creating such an
experience for consumers that they place trust in company and remain loyal towards brand. They
believe in recognising the importance of human resources within (staff) and outside the
organisation (consumers). As a result of this, the corporate image and position of Marriot Hotels,
over years, has been quite high in market and can be seen to the extent that company earned
revenue of US$22.387 billion in 2017.
Overall details and data of the Business Environment at Netherlands
Marriot Hotels is a famous brand with various outlets across the globe. Company is
considering to explore the option of Foreign Direct Investment (FDI) in Netherlands so as to
expand its operations there. The company offers a wide variety of high quality snacks, appetizers
and beverages. Marriot’s major aim is to sell and associated products of finest quality so as to
derive a positive customer experience and ensure widespread acceptability from public
worldwide. Top management of company recognises the need for reaching the consumers spread
across different parts of world so that it can become the leading brand in and relative products
industry (Storey, 2016).
Company's core competency values are based upon effective management of human
resources along with building healthy and strong relationship with suppliers such that company
can easily enter a new market and enjoy the benefit of its large scale networking. Also, the
destination chosen by company for expansion is Netherlands wherein company by way of
foreign direct investment will carry out expansion of its operations. For this, manager of Marriot
Hotels has conducted PESTEL analysis. This is a strategical tool which helps an entity in
assessing the external environment of business so that entity can move in to a new place feasibly.
The PESTEL analysis of Marriot Hotels in relation to expanding into Netherlands is as follows:-
Political Factors: These factors determine the extent of government intervention in
operations of company. Political factors include aspects like government policies and legislation
including tax and workerment laws (Westhead and Solesvik, 2016). Netherlands is situated in
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