Marriott International Case Study Analysis

This assignment requires a detailed case study analysis of Marriott International. Students are expected to utilize SWOT analysis and the Ansoff Matrix to evaluate the company's strengths, weaknesses, opportunities, and threats in the dynamic hospitality industry. The analysis should also explore Marriott's past performance, current strategies, future plans, and its role as a global leader in the travel and tourism sector.

ESSAY

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Table of Contents
Key performance indicators analysis of Marriott with its competitor’s Hilton and Starwood.................................................................................3
Marriott’s business model canvas............................................................................................................................................................................ 8
4Cs including SWOT analysis.................................................................................................................................................................................. 11
McKinsey’s 7s synthesis framework....................................................................................................................................................................... 13
Ansoff Matrix......................................................................................................................................................................................................... 16
PART 2........................................................................................................................................................................................................................ 17
Two key operational areas of Marriott and developing a process map.................................................................................................................17
Areas of risk........................................................................................................................................................................................................... 18
Risk management plan........................................................................................................................................................................................... 18
REFERENCES.......................................................................................................................................................................................................... 18

Key performance indicators analysis of Marriott with its competitor’s Hilton and Starwood
Key performance
Indicators
Marriott International Corporation 1927
2014 %
change
2013 %
change
2012 %
change
2011 %
change
2010
Revenue 8370782.5 2.48% 8168061.4 9.53% 7457441.8 -2.90% 7680409.3 1.55% 7563537.4
Net profit 456,886.00 14.23% 399,969.20 10.97% 360,436.70 191.93% 123,465.20 -58.33% 296,304.90
Gross profit 1,192,879.
00
5.84% 1127069.8 9.94% 1,025,130.
00
2.62% 998,945.80 4.68% 954,256.90
Gross margin 14.25 3.28% 13.80 0.38% 13.75 5.69% 13.01 3.09% 12.62
Net margin 5.46 11.46% 4.90 1.31% 4.83 200.66% 1.61 -58.97% 3.92
Number of employee 123500 0.41% 123,000.00 -3.15% 127,000.00 5.83% 120000 -6.98% 129000
Revenue per employee 3.70 13.77% 3.25 14.58% 2.84 175.84% 1.03 -55.21% 2.30
ROA 11.03 15.74% 9.53 2.25% 9.32 250.38% 2.66 -50.92% 5.42
EPS 2.54 27.00% 2 16.28% 1.72 212.73% 0.55 -54.55% 1.21
Current ratio 0.76 -8.43% 0.83 0.00% 0.83 -5.68% 0.88 -27.27% 1.21
Quick ratio 0.39 -13.33% 0.45 12.50% 0.4 5.26% 0.38 -33.33% 0.57
Debt to equity ratio 1.57 -17.80% 1.91 -3.05% 1.97 -2.96% 2.03 -8.56% 2.22
Assets turnover ratio 30.79 1.92% 30.21 -7.73% 32.74 -26.23% 44.38 162.91% 16.88
Operating expenditures 7,667,554.
20
1.81% 7,531,049.
70
634.64% 1,025,130.
00
2.62% 998,945.80 -85.96% 7,113,904.
40
Total assets 4,408,497.
20
7.20% 4,112,341.
90
4.45% 3,937,149.
60
3.53% 3,802,844.
10
-33.72% 5,737,553.
10
occupancy % 73.10% 1.81% 71.80% 1.27% 70.90% 0.14% 70.80% - -
Revenue per $ 112.25 -8.23% 122.32 -1.53% 124.22 -3.90% 129.26 - -

Hilton Incorporation, 1919
Key
performance
Indicators
2014 %
change
2013 %
change
2012 %
change
2011 %
change
2010
Revenue 6372134 2.45% 6219968.5 6.26% 5853379 6.88% 5476602.3 4.92% 5219624
Net profit 408,346 54.00% 265,155 19.37% 222,120 40.80% 157,757 90.50% 82,810.10
Gross profit 1037550 21.37% 854886 21.50% 703592 13.52% 619805 -29.03% 873388
Gross margin 16.28 18.47% 13.74 14.34% 12.02 6.21% 11.32 -32.36% 16.73
Net margin 6.41 50.32% 4.26 12.34% 3.79 31.74% 2.88 81.57% 1.59
Number of
employee
157000 3.29% 152000 - - - - - -
Revenue per
employee
2.60 49.10% 1.74 - - - - - -
ROA 2.59% 50.58% 1.72% 30.30% 1.32% 47.05% 0.90 - -
EPS 0.4 122.22% 0.18 -25.00% 0.24 50.00% 0.16 -164.00% -0.25
Current ratio 1.11 0.00% 1.11 -7.50% 1.2 -12.41% 1.37 - -
Quick ratio 0.74 4.23% 0.71 4.41% 0.68 -1.45% 0.69 - -
Debt to equity
ratio
2.43 -16.21% 2.9 -57.16% 6.77 -22.89% 8.78 - -
Assets
turnover ratio
0.4 11.11% 0.36 5.88% 0.34 9.10% 0.31 - -
Operating
expenditures
5334584 -0.57% 5365082 4.18% 5149787 6.03% 4856798 11.75% 4346236
Total assets 16776692 4.35% 16077719 -4.05% 16755502 -4.66% 17574159 - -
occupancy % 78.40% 3.29% 75.90% - - - - - -
Revenue per $ $156.18 7.71% $145 - - - - - -

Key
performance
Indicators
Starwood incorporation 1980
2014 % change 2013 % change 2012 % change 2011 % change 2010
Revenue 3630211 -7.09% 3907048 -2.05% 3988703 13.74% 3506821 6.89% 3280703
Net profit 384076 -5.33% 405720 14.40% 354636 16.31% 304914 -1.19% 308597
Gross profit 2593875 -3.13% 2677749 6.92% 2504534 9.92% 2278436 7.67% 2116186
Gross margin 71.45 4.25% 68.54 9.15% 62.79 -3.36% 64.97 0.72% 64.50
Net margin 10.58 1.88% 10.38 16.80% 8.89 2.26% 8.69 -7.56% 9.41
Number of
employee
180,400 -0.55% 181,400 - - -100.00% 154000 6.21% 145000
Revenue per
employee
2.13 -4.91% 2.24 - - - - - -
ROA 7.30% -6.84% 7.83% 13.36% 6.91% 19.16% 5.80% -0.35% 5.82%
EPS 2.19 12.89% 1.94 -15.65% 2.3 84.00% 1.25 48.81% 0.84
Current ratio 0.95 -8.65% 1.04 10.64% 0.94 -25.98% 1.27 4.96% 1.21
Quick ratio 0.85 -7.96% 0.92 21.99% 0.76 -12.32% 0.86 2.89% 0.84
Debt to equity
ratio
1.59 250.09% 0.45 -14.14% 0.53 -39.93% 0.88 -32.46% 1.30
Assets turnover
ratio
0.65 -11.38% 0.74 1.24% 0.73 27.64% 0.57 8.50% 0.53
Operating
expenditures
3095054 -6.66% 3316039 -5.09% 3493980 11.84% 3123964 8.00% 2892531
Total assets 5560550 4.85% 5303553 -3.25% 5481784 -10.89% 6151470 -1.48% 6244052
occupancy % 70.10% 2.04% 68.70% 1.03% 68.00% 0.00% 68.00% - -
Revenue per $ $123.08 3.30% $119.15 2.27% $116.51 1.70% $114.56 - -


 Important highlights
 Profitability ratio measures business ability to generate profits through their daily
business operations or activities (Jami and Bahar, 2016). Gross margin and net
margin are the two most common used profitability ratios that help to evaluate
percentage of gross profit and net profit on total turnover.
 Marriott’s GM got shows a continuous upward movement as it got increased from
12.62% to 14.25% in the year 2014. It reflects that Marriott hotel is generating
increased return on their total sales throughout the years in 2014; the percentage
increase in GM is 3.28%. However, comparatively the ratio is higher in Starwood
Incorporation and Hilton Incorporation to 71.45% and 16.28% respectively that
indicates that both these competitors are generating higher profit on their total sales.
 Liquidity ratio measure that company has enough resources or not to meet their
short-term obligations, especially creditors. Current ratio depicts relationship
between current assets and current liabilities whereas quick or acid test ratio measure
business ability to make deferral payments without considering inventory position.
 Marriott’s CR got decreased from 0.88:1 to 0.76 in 2014 indicating that liquidity
position of the company has declined over the years. Moreover, 2:1 is considered as
ideal industrial ratio and Marriott’s ratio is still far away than this target ratio which
depicts that hotel is not able to pay their short-term business obligations timely and
effectively (Parsian and Shams, 2014). However, on the other side, Hilton and
Starwood’s CR are comparatively higher to 1.11 and 0.95 demonstrate that
Marriott’s competitors are more able to pay their short-term liabilities on right time.
 Marriott’s QR got decreased from 0.57:1 to 0.39:1 reflecting that business ability to
meet short-term debts timely got decreased. In the comparative evaluation, Hilton
and Starwood’s QR are 0.85:1 and 0.74:1 comparatively greater shows that
competitors have more current assets available to pay suppliers when they due.
Moreover, 1:1 is considered as standard QR hence, less ratio of Marriott shows that
hotel is not very much able to meet their nearby obligations within 1 year.
 Assets turnover ratio measure corporate ability to effectively and optimally utilize
their business assets to generate more and more turnover. In the context to Marriott
International, in 2014, its ATR is 30.79 increased by 1.92% from that of earlier year
(Fitó, Moya and Orgaz, 2013). On the contrary to this, Hilton and Marriott’s ratio are
0.4 and 0.65 respectively shorter than that of Marriott indicates that its managers are
using business assets in the best possible manner to generate high turnover and reach
goals.
 Marriott’s ROA is 11.03% more than that of Hilton and Starwood hotel to 2.59%
and 7.03% respectively. High ratio of the hotel highlights that Marriott is generating
more return on their total assets and performing well as compare to both the
competitors.
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 All the organizations have to collect adequate quantity of long-term financial
resources to purchase fixed assets, new technology and other kind of capital
expenditures (Ramana, Ramakrishnaiah and Chengalrayulu, 2013). Debt/equity ratio
is a type of solvency ratio that indicates the proportion between long-term debt and
shareholder’s equity and helps to examine that in what extent, company is able to
meet their long-term liabilities especially debt.
 Marriott’s D/E ratio shows continuous declining trend and in 2015, it has been fallen
by 17.80% and came to 1.57:1. Contrary to this, Hilton and Starwood’s D/E ratio are
higher to 2.43 and 1.59 respectively. High debt to equity ratio represents more
financial risk or vice-versa. Ideal industrial ratio is considered 0.5:1 means hoteliers
must gather debt and equity in the proportion of 0.5:1 (Ehrhardt and Brigham, 2016).
However, Marriott’s ratio is comparatively higher represents high financial risk due
to excessive debt collection to finance itself. Henceforth, it becomes clear that
Marriott is facing high risk burden because of collecting more debts in their capital
structure decisions.
 Revenue per dollar in Marriott is 112.25 shorter than that of Hilton and Starwood as
their revenue per employee is $156.18 and $123.08. Henceforth, it can be said that
Marriott generates highest revenue on each worker which is good indicator.
 Marriott’s earnings per share (EPS) shows a rising trend as it got increased from
1.21 to 2.54 each holding in 2014. However, Hilton and Starwood’s EPS is 0.4 and
2.19 respectively lower than return of Marriott’s shareholders (Одинцова, 2015).
 Employees are the important resource of the firm. With elevation in the workforce
productivity also increases in the firm which enhances productivity at ground level.
In case of Marriott it can be seen that total workforce is 702254 and same in rival
firm Hilton hotel is the 157000. In Starwood total employees are 1,80,400. It can be
seen that there are higher number of employees in the Marriott then its rival hotel
chains. In terms of percentage it can be seen that in the Marriott workforce is not
increasing at pace. In some years to decline and in next year same increase. Thus,
fluctuation is observed in the firm workforce. Scene is different in case of Hilton
hotel because workforce size is consistently increasing in the business. This change
is taking at moderate pace in the business firm as its workforce is increasing at
CAGR of 3% (Koyuncugil and Ozgulbas, 2012). However, in case of Starwood it is
observed that number of employees in the premises is increase at fast pace year by
year from 6% to 13%.

1 2 3 4 5
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ROA
Starwood
Incorporation
Hilton
Incorporation
Marriott
International
Axis Title
1 2 3 4 5
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ROA
Marriott International
Hilton Incorporation
Starwood Incorporation

Marriott’s business model canvas
Key partners
 In 2007, Marriott announced its partnership with boutique hotel, Ian Scharger which was the first
global boutique hotel brand operating at a larger scale. Moreover, it announced partnership wth
Nickelodeon and Miller Global Properties and LLC in order to develop a new lodging resort brand.
The main aim of this key partnership is to provide fun and adventure to the travelers by introducing
“Nickelodeon by Marriott”.
 Asian American Hotel Owners Association (AAHOA) is one of the leading fastest growing hotel
having more than 22000 hotels across the globe.
 Partnership with Eastern Crown Hotel, China’s leading hotel helps to replace FairField by Marriott. It
is a milestone of hotel’s strategic plan to expand operations and locations across the world.
 American Foundation for the Blind (AFB) is a non-profit organization.
 Asia Society operating to strengthen the relationship among people, leaders and organizations of US
and Asia.
 Partnership with LEED (Leadership in Energy and Environmental Design).
 A leading non-profit organization operating at global level, named Catalyst to promote inclusive
workplace and expanding opportunities for women and business.
 Black Culinary Alliances (BCA) to promote education and network of hospitality and food service
professionals.
 CAMSC (Canadian Aboriginal and Minority Supplier Council) to promote procurement processes.
 Partnership with HACR (Hispanic Association of Corporate Responsibility) and Human Rights
Campaign to strive against discrimination practices.
 International Franchise Association’s VetFran.
 Marriott Foundation and US Green Building Council
 National Association of Black Accountants (World’s Favorite Travel Company, 2014).
 National Association of Black Hotel Owners, Operators and Developers.
 United Negro College Fund, US Business Leadership Network and US Pan Asian American Chamber
of Commerce
 WeConnect International, Women’s Business Enterprise National Council and Women Corporate
Directors
 Women’s Food Service Forum and National Association of Female Executives
 National Societies of Minorities in Hospitality and National Minority Supplier Development Council
 Marketing partnership with Universal Music Group in 2015.

Key activities
 It supply food and beverage, retail and spa, event management, vendor relationship and give quality
assurance as well. Moreover, it also aims to deliver innovative products and services to serve
consumers beyond expectations and ensure operational excellence. In addition to this, best quality of
goods and services enable Marriott hotel to meet their consumer demand and enhance performance.
 Marriott’s operates numerous market-sales activities to generate more revenue, customer base,
loyalty, market share and competitive strength as well (Faical and Sbiti, 2016).
 Pre-opening operational process assist Marriott hotel to take benefits of extensive experience and
knowledge in hospitality sector. Training, system installation, sales and marketing and revenue
management are also the part of hotel’s operations. In such respect, revenue management system
consist management of inventory, rooms, space occupy and catering services as well.
 It also conduct high-quality and affecting campaign to generates more room nights, increase brand
awareness, generates more revenue and capture high demand and market share.
 Architecture and construction division of the hotel is highly dedicated to construct innovative,
designer and stylist hotels so as to impression guest across the world.
 Its key operations segments have been divided into three segments that are North American Full
Service, North American Limited Service and International Financial Segment (World’s Favorite
Travel Company, 2014).
 Licensing, franchise and timeshare operations and luxury lodging segments
 Bring innovation and advancement in technology to strengthen their competitive position.
Key resources
 Liquidity and Capital resources: Marriott have sufficient and enough capital resources to meet both
the revenue and capital expenditures such as interest, dividend, salaries, wages, construction cost,
introducing new technology and many others.
 Human resources: It recruits talented and skilled personnel at the workplace to deliver best quality
services to their customers and meet their targets. Moreover, it hire multi-cultural workforce to satisfy
their customer’s expectations and desires (Joshi, Bhadauria and Dixit, 2015).
 Website hosting and other forms of electronic communication also are the resources used by Marriott
hotel.
 Business expansion across the country and thereby generates larger revenue, market share and gain
customer loyalty as well.
 Information Technology (IT) resources helps to take initiatives to bring innovations in their
operational process and system to meet market demand more effectively.
 Physical resources consist of located hotels, restaurants, resorts etc. at different places.
 Best quality and innovative products and services.

Value preposition  E-commerce facility
 Consumer Relationship Management
 Effective marketing and advertisement campaign
 Designer and innovative infrastructure
Customer segment  It delivers services to both the businesses and individuals to enjoy their travelling experience such as
accommodation, catering, travelling, entertainment and many others.
Distribution channels
 Marriott implement multi-platform distribution strategy, in which, it connect to the clients through
online, mobile apps, telephone call centers and different intermediaries such as internet travelling web
sites, travel agents and other distribution channel.
 Moreover, it is regularly striving for establishing a broad or multinational distribution system.
Mariott.com is a strong revenue engine or e-commerce web site that generates high revenue.
 Marriott Worldwide Reservation System (MARSHA) also considers powerful network that helps in
its Global Distribution System (GDS).
Cost structure
 Marriott hotel incurred both direct and indirect cost such as cost of goods sold, salaries and wages,
interest obligation, marketing and selling and distribution expenditures.
 Research and development activities are also conducted by the hotel which incur R&D expenses.
 Apart from this, it also incur capital expenditures like construction of hotel, acquisition of fixed
assets, property, new technology etc (Hollensen, 2015).
Revenue streams
 Its revenue segment segregated into two parts, that are illustrated as follows:
1. North American Full-Service comprises Autograph Collection Hotels. Renaissance Hotel, Marriott
Hotel, Gaylord, Delta JW Marriott, Ritz-Carlton situated in US and Canada. In the year 2015, this
segment generated 6% higher revenue from that of earlier year to 8825 dollar million.
2. North American Limited-Service comprises all the AC hotels by Marriott, Residence Inn, Spring Hill
Suites, Tower Place Suites, Fairfield Inn and Courtyard located in Canada and US. Its total revenues
got increased from 2962 dollar million to 3193 dollar million in 2015 by 8% (World’s Favorite Travel
Company, 2014).
3. International segment which includes properties that are situated outside US and Canada. In 2015, its
total revenue grown up from 2255 dollar million to 2200 dollar million by 2%.
 Apart from this, it also generates revenue through Licensing and Franchise Fees, Owned and leased
units and other income like third party residential sales etc.

4Cs including SWOT analysis
Company
(SWOT/TOWS
analysis)
Strength  Strong market position and diversified
operations across world
 Leading organization in hospitality
industry (Uhrenfeldt and Attree,
2014)
 Top--quality products and services
 Loyal customers
Weakness  Lack of managerial efficiency
 Backwardness in the Information
Technology management
 Excessive debt
Opportunity  Market expansion
 Ease to access financial resources
 Eco –tourism (Bull and Carter-Silk,
2016)
 Technological advancement
 Merger and Acquisition
Threats  Political instability and risk
 Sudden price fluctuations
 Tough competition
 Availability of substitute products
 Fluctuations in foreign exchange
currency (Kajanus, Kurttila and
Kangas, 2012)

Competition
 Hilton Wordlwide Holdings Inc.: One of the world’s
largest hoteliers operating through more than 4600
hotels in more than 100 nations.
 ACCOR is also a one of leading hotel operates in
more than 90 countries and having more than 3500
hotels (Marriott International report, 2015).
 Intercontinental Hotel Group Plc (IHG) is a leading
hotelier especially in terms of room count and
conduct operations through greater than 4400
properties in 100 or more nations.
 Starwood is an American hotel founded in 1980
manages number of hotels, restaurants, residences,
spas and properties.
Customers  Marriott is highly committed to deliver luxurious and superior services to both the domestic and international
guests. It caters the needs and desires of both the foreign and domestic customers by offering them qualitative
services.
Collaborators
Alliances  Marriott’s strategic marketing alliances consists partnership with strong global customer
brands to drive more consumer awareness, room nights, revenue and market share as well.
 Joint venture between Marriott International and AC hotels in 2011 added 80 more hotels and
8300 rooms to its overall portfolio.
 In 2006, it made joint venture with Whitebread Plc.
Acquisition
 In 2015, it acquired Delta Hotel and Resorts of Canada which added 300 hotels and 52000 rooms
worldwide.
 In 2014, Marriott acquired South Africa’s leading hotel, named Protea Hospitality Group for $193m
cash, $184m intangible assets and $20m goodwill (Marriott history, 2012).
 It also announced acquisition of one of the competitor, Starwood Hotel and Resort to drive more
value, but still, it is not completed till today In 2012, it acquired Gaylord Hotel and increase its
number of room by 8100.
 In 2006, it acquired Paris Rive Gauche Hotel situated in Paris.
Partners  In 2007, it announced partnership with Boutique hotel, Nickelodeon, LLC and Miller Global
Properties.
 CAMSC, HACR, LEED and AFB

 Ian Scharger, Snapchat, YouTube stars and medium.com
 Partnership with Amdec Group
License  Marriott franchise and license its brand and trademark to third parties regarding lodging, residential
services, time share and credit card programs.
 Its time share properties are licensed by MVW (Marriott Vacation Worldwide Corporation, Ritz-
Carlton Destination Club and Grand Residence in 2015.
 Till the end of 2015, Marriott had 3074 franchised properties, 88 unconsolidated joint venture and 58
licensed time share agreements.
Suppliers
 Berman Purchasing Inc for furniture and fixture procurement.
 Carter Brothers supplies security and fire alarms
 Fairmont Designs Hospitality Group design Marriott’s furniture (Marriott enlists diversified
suppliers, 2012).
 Hospitality Staffing Solution supplies temporary staff to the hotelier.
 Land-Ron Inc and T&G Constructors deliver construction facilities to the hotel.
 Ty, TY&TyInc supplies rooms and linen to Marriott hotel.
McKinsey’s 7s synthesis framework
System
 Revenue management system in the business processes
helps company to uplift their total revenue in lodging
industry includes rooms, space utilization and catering
opportunities.
 Global reservation system (MARSHA) is a strong
network that enable hotelier to establish a global
distribution network around the world (Chen, Kim and
Yamaguchi, 2014).
 E-Commerce system that is Marriott.com helps to generate
more consumer traffic.
 Further, tie-up with Orbitz, Expedia and Travelocity
assist corporation to generate high revenue and profit.
 Sustainability strategy of Marriott International aims to
preserve or protect the carbon footprint and environmental

Strategy
security via taking innovative conservation initiatives. In
2015, its water intensity drop down by 10.4% whereas
energy intensity and GHG emission decreased by 13.2%.
 Customer-focused e-business strategy of Marriott hotel
highly focused to leverage web business so as to generate
more customer traffic, profitability and growth (Marriott
International report, 2015)..
 Distribution sales and strategy aims on ensure multiple
reserve channels to gain consumer traffic and meet customer
satisfaction on time.

Skills,
learning
and
growth
 Marriott recruit highly skilled and talented personnel to cater
the unique desires and expectations of their target audiences.
 In order to bring improvements in their workforce
excellence and competencies, it also conducts training
sessions and provides development and growth opportunities
to their personnel. It assist hotel in bringing proficiency in
operations and thereby exceeding customer expectations.
 Cutting-edge interactive training sessions, including both
off-site class and on-property, written handouts, materials,
manuals, videos, CD-ROMs, online learning and
individualized courses are conducted by Marriott
International.
Style
 Managers and leaders at Marriott adopted democratic style
of leadership, in which, they encourage and promote their
staff member to give their ideas, suggestions and valuable
advices for the better functioning and execution of daily
activities (Huizingh and McCarthy, 2015). It helps to
motivate their workforce to give their best efforts in order to
comply their duties and responsibilities on right time.
Staff
 Highly-skilled and capable human capital at Marriott Hotel
helps to meet the demand of target audiences in the best
possible manner. Till the end of year 2015, it recruited
127500 employees, out of which, 11000 are represented by
labour unions.
Structur
e
 It follows vertical structure in which Chairman, J.W.
Marriott and CEO Arne M Sorenson have centralized
authority to make business decisions and implement it in the
operations.
 While, at the middle level, HR manager and finance
manager comes who are responsible to manage workforce
and finance related operations (Vignali, 2015). Furthermore,
it includes procurement, marketing, engineering and
manufacturing departmental heads.

 At the lower level, it includes employees who are
responsible to carry out their associated job duties and
responsibilities.
Shared
values
 Globally diversified and multi-cultural workforce
 Sustainable development goals (SDG) and responsible
business
 Women empowerment
 Workforce development
 Consideration of Health, safety and wellbeing of guests and
associates
 Put people, especially customers first.
 Innovations and advancement
 Act with integrity
 Spirit to serve

Ansoff Matrix
It is a technique used by the hoteliers to expand their business across various segments and reach success. It comprises four
elements that are market penetration, market development, product development and diversification, executed here as under:
Market penetration: Marriott International Hotels and Resorts can use this business strategy to increase their sales through
delivering high quality products and services, attractive potential customers and gaining competitors like Hilton, IHG and Starwood’s
customers as well (Thijsen, Tong and van Leer, 2014). Through strengthening the customer loyalty and more customer traffic, hotel
will be able to generate more turnover, profitability and competitive strength to compete effectively with the rivalry firm.
Product development: Customer satisfaction is a key to achieve success in hospitality industry. In the modern era, where
customers demand and needs are highly different and fluctuating also, it becomes necessary for the Marriott hotel to introduce new
products and services to meet their customer demand. Exploitation of new technology, innovative products and increasing production
efficiency hotel will be able to generate more customer traffic and reach goals easily (Hussain, Rizwan and Latif, 2013).
Market development: In this strategy, Marriott hotel can move towards attracting more audiences through introducing their
existing goods and services in new market segment. Business expansion, opening new hotel in different geographical locations etc. are
the ways available to hotelier to develop new markets and accomplish their target aims and objectives.
Diversification: Moving current offerings, goods and markets into new areas is called diversification may be either related or
unrelated areas. Moreover horizontal and backward integration including forward integration and backward integration also are the
ways available to JW Marriott to implement diversification practices in their daily businesses (Thijsen, Tong and van Leer, 2014).. In
such respect, horizontal integration takes place when hotel moves towards similar kind of activities and business areas. However, on
the other hand, vertical integration takes place when it expands its operational activities and functions into different steps.

PART 2
Two key operational areas of Marriott and developing a process map
Recruitment and selection process
Business process map encompasses all the activities and functions involved in the operational process to carry out operations
successfully. It helps to complete all the activities and operations accurately and effectively to reach targets and success. Marriott hotel
aims at delivering top quality and superior services to the customers, therefore, it recruit highly talented and committed people in their
organization. With reference to the Marriott, its recruitment and selection process map has been prepared below:

Marriott also offer online booking and reservation services to the consumers to maximize their sales, customer base, market
share and generate maximum yield. Its online booking and reservation process map has been presented below:
Areas of risk
With reference to the recruitment and selection process, risk may incur due to biasness and unequal opportunities to the people.
If company recruit inefficient and less skilled worker at the workplace then it will directly affect operations negatively because they
will not deliver best quality services to the customer base. This in turn, it will lead to create negative image of the company and
damage market reputation as well. While in regards to online booking, technological failure may be a risk which may cause hurdles in
online payment facilities. Furthermore, inaccurate information on the website may lead to rise dissatisfaction among customers and as
a result, Marriott may lose their customer loyalty and will not be able to attract potential consumers as well.

Risk management plan
 In order to recruit best and highly committed people, equal opportunity and no discrimination policy will be followed.
Moreover, talented and experienced interviews will take interview of all the participants so as to select the best candidate who
are highly capable to deliver first class and premium services to the visitors.
 Online booking can be improved by adhering to the reservation policy and principles. Moreover, best team will be given
responsibility to manage online operations, in which, 24 hours staff will be available to deliver required information to the
customers via both the online and telephonic conversation. It will help Marriott hotel to resolve their customer issues and
problems and maximize their satisfaction level to a great extent.

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