Business Environment in Events, Hospitality and Tourism - A Case Study of Marriott International Hotel

This report provides an assessment of Marriott International Hotel, a multinational hotel chain, in the context of business environment in events, hospitality and tourism. It includes a discussion of analytical framework, importance of business ethics and ethical consideration, and leadership style considering ethical aspects.

Business Environment
in Events, Hospitality
and Tourism

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Part 1................................................................................................................................................1
Introduction of industry and its history.......................................................................................1
Introduction of organisation........................................................................................................2
Part 2................................................................................................................................................3
Analytical Framework.................................................................................................................3
Part 3................................................................................................................................................6
Importance of business ethics and ethical consideration.............................................................6
Recommendation.............................................................................................................................7
CONCLUSION................................................................................................................................8

INTRODUCTION
Business environment refers to collection of internal as well as external factors like employees,
expectations, customers expectation and requirement, suppliers which create impact on business
(Carasuk, Becken and Hughey, 2016). It helps business for identification of opportunities, assist
in planning, utilising various resources as well as improving performance, profitability as well as
growth of business. There are different factors to be included in this like micro and macro
environmental factors. It is essential for managers of company understand business environment
and identify factors present in it as it helps them to determine opportunities and threat for
business. It also provides them direction where business can get growth and success. This project
report includes assessment of Marriott International Hotel which is a multinational hotel chain. It
was founded in America by J. Willard Marriott in the year 1927.This project report includes
study of hospitality industry in which company is providing their service. It consists discussion
of analytical framework including PESTEL analysis and SWOT analysis. It assesses competitive
advantage of company through porter’s generic strategies. Additionally, it discusses importance
of business ethics and ethical consideration in business environment. Moreover, it discusses
leadership style considering ethical aspects and things to be require more ethical.
MAIN BODY
Part 1
Introduction of industry and its history
Hospitality industry is one of growing history which consist broad category in service industry. It
includes food as well as drink service, lodging, theme park, event panning, travel as well as
tourism. It consists tourism, hotel, restaurants, bars as well as agencies (Faisal, 2019). It is one of
industry which has different categories like food and beverage, lodging, travel and tourism,
recreation. It is a growing hospitality industry as many hotels lie Marriott international Hotel,
Hilton hotel and other has made huge profit in this industry. History of this industry can be
mentioned below:
1st revolution: It is the era which is between 1961 to 1980 where organisation create values and
culture through luxury as well as service. It can be analysed after world word II that wealth is
generated among richest people (Fang, Nguyen and Junek, 2017). In this era, wealth is increased
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with 10% and reached to $231K. With this, more and more money is to be invested on luxury
goods and service.
2nd revolution: There was also increase in airline passenger travel in the year 1950 to 2014 (Goh
and King, 2020). With increasing numbers of traveller, many entrepreneurs find opportunity in
market segment and focus on targeting special customers with their different offering and
boutique hotel came in existence.
3rd revolution: It is the era of digital distribution in which expedia was introduced by Microsoft.
In this time, company is charging around 5% nominal feel on filling of room of hotel. This feed
in today’s time has increased with 25% which is result from consolidation. In today’s time,
hospitality industry growing more rapidly and operating efficiently with use of technology.
In today’s time hospitality industry is one of growing and profitable industry as there is increase
in trends among people for traveling which increase its demand. There is also increase in
spending power of buyers which provide opportunity for business in this industry.
Introduction of organisation
Marriott International is one of American company which is operating at international level. It
operates, licenses, franchise and lodging residential, hotel, timeshare properties. Headquarter of
company is existed in Bethesda, Maryland. It was founded in the year 1927 by J. Willard
Marriott in America (Higgins-Desbiolles, 2018). It is one of largest hotel chain which is
providing its service in different countries. It has around 30 brands under their name with 7642
properties. It is providing service in around 131 countries as well as territories and has 1423044
rooms. It has powerful portfolio on basis of its brand and properties. It provides effective
services to their guest which allow them to more connect and enhance experience of guest. This
organisation is considering culture and principles of its founder and family leadership. Core
values as well as strategic goals are based on diversity as well as inclusion. This organisation is
maintained a culture in which peoples are treated well and company consider well-being of
employees. Company is concerned with sustainability as well as social impact and for which it is
committing towards creating positive as well as sustainable impact over business.
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Part 2
Analytical Framework
PESTEL Analysis: Pestel refers to an external analysis which identify various factors present
outside business environment (Karsavuran, 2021). This analysis helps business to overcome
made timely decision in their organisation which helps them to overcome of risk and threat
present in market. Pestel analysis of Marriott International Hotel is mentioned below:
Political Factors: These are factors which consist political stability, interference of government
in business and rules and regulation of government for business. Marriott Hotel is providing their
products and service in different countries for which they need to consider rues and regulation of
different government. Global pandemic also create problems for this organisation as government
has made regulation on traveling. It creates threat for hospitality organisation and results in huge
loss. Brexit also bring uncertainty for Marriott hotel as due to which government of UK has
made various changes in their rules and regulation.
Economic Factors: It consist factors which are related to economic growth and cost of
company. There is reduction in economic growth of China as well as Europe which results in
reduction in purchasing power of people (Kelly and Fairley, 2018). It decreases demand of
hospitality service of Marriott Hotel. Fluctuation in currency of many countries also create
negative impact on Marriot Hotel as it has its hotel in different countries. There is inequality in
income distribution among people and increase in expenses of people which decrease ability of
people to travel in different destination or stay in luxury hotels.
Social Factors: These are factors which consist preference of people, health consciousness and
other demographic factors like age, gender, income and many more. There is increasing health
awareness in people due to spread of covid-19 and also company needs to spend on health
precaution in their hotel which increase overall cost of their organisation. There is also
increasing in spending power of people which create opportunity for Marriott Hotel as people
has sufficient money to buy their services. There is shift in preference of people as now people
are ready to pay for enhanced experience.
Technological Factors: It includes factors which are related to technological advancement,
upgradation and innovation. Business can gain competitive advantage by using these factors as it
provides them opportunity to differentiate their products from those of competitors (Mair and
Weber, 2019). Marriott Hotel is adopting technology in their organisation which make their
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operation process smoother. This organisation is providing different method of payment to their
customers for their convenience like debit card, credit card, paytm, and many more. They are
also using technology for purpose of marketing of their products and service. Marriott
international organisation is adopting digital media marketing which reduce its cost and increase
awareness of their products.
Environmental Factors: Environmental factors are those which consist pollution, climate
condition, sustainability and many other things. Marriott International Hotel is providing their
products and service in hospitality industry (Miller, Gonzalez and Hutter, 2017). In order to
attract customers towards their organisation, they need to make their place more attractive. For
this, they clean areas near by their hotel which attract more tourist towards them. This
organisation is fulfilling its corporate social responsibility.
Legal Factors: Legal factors are those which are related to laws and regulation of that country
which create impact on survival of business. Marriott Hotel is providing their service at
international level and for which they need to consider rules and regulation of different countries.
It creates problems for them as it is difficult for an organisation to consider rules and regulation
of many countries. But following this legal regulation create positive impact on image of
company which is beneficial for them.
SWOT Analysis: It is an internal external analysis which is use to evaluate competitive position
of company as well as develop strategic planning. It is used to assess internal as well as external
factors of company in order to analyse current and future potential. SWOT analysis of Marriott
Hotel is mentioned below:
Strength Weakness
Marriott International Hotel has strongest
position in market on basis of its profit and
numbers of hotels (Orefice and Nyarko, 2021).
It is one of luxury brand which is providing
premium service and experience to customers.
It has strong present in international market
with brand lie Ritz Carlton as well as JW
Marriott.
It has various merger and acquisition like
It is one of organisation which is reliant on
market of North America. Reason behind this
is to major profitability share of company gain
profit from north America.
Focus of company is on expansion in order
make their organisation huge which make it
difficult for them to maintain standards of
service (Pearce and Zare, 2017).
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Starwood acquisition provide them opportunity
of expand and reduce its cost.
Opportunity Threat
There are changes in consumer behaviours
which provide opportunity for Marriott Hotel
as peoples now open to stay in luxury hotel in
developing economies.
There is increasing demand of international
travel among people which provide
opportunity to Marriott hotel to increase their
marketing share (Sotiriadis, 2017).
Marriott has Alibaba partnership which helps
them to expand their business and marketing
share in China.
There is increase in competition in hospitality
business which create impact on profitability
and sales of company. There are various
competitors of Marriott Hotel like Hilton,
Novotel and many more.
Marriott Hotel is also getting threat from
situation like economic recession. Due to
global pandemic, economy of many countries
is facing recession which increase rate of
unemployment in countries. This does not
people to buy luxury service of company.
Porter’s generic strategies: These are strategies which was introduced by Michael Porter in the
year 1985. These strategies can be applied to any industry or organisation for purpose of gaining
competitive position. These strategies include differentiation, cost leadership ad focus strategies.
These strategies in context of Marriott Hotel are mentioned below:
Cost Leadership Strategies: It is one of strategy which focus on gaining competitive advantage
which helps them to overcome of competition. Business can attain competitive advantage in two
ways (Vij, 2019). It can be done either reducing cost with charging average prices of industry or
increasing marketing share with offering lower prices for products. Marriott International Hotel
can gain competitive advantage by reducing cost of operation as it is providing their service at
large level. It can be done through various ways as company can invest in technology which
reduce their operation cost. It can access to low-cost base like labour, material as well as other
facilities. With adoption of this strategy, company can get various benefits as it provide them
brand recognition and allow them to expand their customer base.
Differentiation: It is another strategy which allow business to made their products and service
different from competitions. Ways of making differentiation is depend on industry in which
company is providing their products and service. Marriott Hotel can differentiate their products
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and service on basis of functionality, features, support, durability as well as image of company
and customer value. In order to make it success, company require proper research, innovation
and development. Business also needs to have ability to offer high quality of products and
service. It provides them effective sales as well as marketing in order to provide understanding of
market.
Focus Strategy: An organisation in focus strategy needs to concentrate on a specific niche
market. Business in this needs to understand market dynamic and different needs of customers
for purpose of developing unique low cost as well as specified products of market (Wei, 2019).
In order to serve customers effectively in market, it is important for them to build loyalty among
customers which make specific customer segment more attractive. In broad market strategy, it is
important to select cost focus or differentiation. In order to make this strategy successful in
market, business needs to focus on adding extra which helps to focus on single market segment.
Marriott Hotel needs to adopt focus on low cost by serving special needs of specific market
segment. Managers of company also needs to focus on attributes of products and service by
revising branding strategies and making changes in their organisation.
Part 3
Importance of business ethics and ethical consideration
Business ethics refers to standards which allow business to differentiate things which are morally
right and wrong. It enhances law and outline acceptable behaviour which is beyond government
control. It promotes integrity among and allow firm to gain trust from stakeholders like investors
as well as consumer. It is important for business for various reason and it considered as an
essential skill. Importance of business ethics in context of Marriott International Hotel is
mentioned below:
Improve public image: It Is important for a business to conduct their business in right manner
and do things in right manner. It is also important for them to done things in manner which is
beneficial for society and people (Yang and Tan, 2017). It improves their public image as
customers are willing to buy products from organisation which is doing thing for society.
Marriott Hotel is operating their business in ethical manner and also adopting its core values in
their organisation. This organisation is also working towards increasing customer enhancement
and doing good for society.
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Increase brand awareness and recognition: Business ethics allow firm to gain public image in
market which helps them to increase their brand recognition and awareness. It allows a person to
be committed towards brand. Marriott International Hotel is an organisation which is adopting
ethical and sustainable practice in their business which improve their image in minds of
consumer. This organisation is also taking care of their employees which is also good for image
of their business.
Competitive advantage: Business ethics and ethical consideration also provide competitive
advantage to a business as it allows business to differentiate their service from those of
competitors. Adoption of CSR helps business to build their image in minds of consumer. Buyers
are usually preferring to buy from organisation which are focusing on business ethics and CSR.
It allows business to maintain trust among consumers and also allow to build community.
Leadership style of organisation
Leadership refers to ability of a person to influence other in an organisation, It is one of quality
which make a person different from others and provide direction to other towards attainment of
business goals. There are different styles of leadership which can be adopted by managers of
Marriott International Hotel. These styes are autocratic, democratic as well as participative.
Managers of Marriott International Hotel can be adopted democratic leadership in which
employees are free to provide their suggestion and ideas. It improves capability of employees
and improve their quality of work.
Managers of Marriott International Hotel are adopting ethical approach in their leadership.
These leaders are promoting positive values among employees and motivate them to work with
dedication. In order to make employees work ethically, hey are providing them sufficient wages
and also rewarding them on basis of performance. Leaders of this organisation is also focusing
on providing excellent services to their customers in order to create values for their money.
Recommendation
From above mentioned discussion, it can be recommended to Marriott International Hotel
can adopt advance technology in their organisation in order to improve their efficiency and
reduce cost of operation. These technologies can be used for purpose of marketing business and
for booking services of company. Managers of company should adopt order management
technology through which customers can order from their phone to waiters which reduce waiting
time and enhance experience of customers.
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It is also suggested to Marriott International Hotel to focus in improving efficiency and
customers experience instead of expanding business. It helps business to effectively manage their
different organisation and also improve their band image. It provides opportunity to business to
increase profit without investing more.
It is advised to managers to focus on corporate social responsibility and invest for social
development as it provides them advantage of differentiation from their competitors. It helps
business to build positive image in mind of customers as well as government. This helps business
from interference of government in their organisation and ensure their long-term survival. It also
business to get support from local people which is good for any multinational business.
CONCLUSION
From above mentioned project report, it can be concluded that business environment is an
important aspect which is to be consider by managers while operating their business. There are
different factors to be includes environment which can be internal or external. Internal
environment consists factors which are present inside business organisation and business has
control over these factors whereas external environment consists those factors which are present
outside business. In order to identify these internal factors, business managers can conduct
SWOT analysis. It is framework which identify strength, opportunity, weakness as well as
opportunity to be present in market for business. It allows business to identify factors which
create threat for them and allow them to made strategy which helps them to overcome of
problems. PESTEL analysis is another framework which is used by business for purpose of
identification of external factors. It identifies factors like political, social, economic, legal,
technological and others. In order to gain competitive advantage in market, business managers
need to adopt porters’ generic strategies. These strategies provide cost leadership, differentiation
as well as focus strategy. There are various benefits get by business by adopting ethical practices
and consideration. It helps business to improve their image, increase brand awareness as well as
allow business to build good relation with customers.
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REFERENCES
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