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Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 1.1 Objectives of the business................................................................................................3 1.2 Factors that impact on business........................................................................................4 1.3 Potential improvements to business organisation and/or operation.................................7 M1 Analyse how objectives of organisation meet‘SMART’ criteria of organisational objectives................................................................................................................................8 D1AnalysehowelementsofAnsoff’sMatrixhavecontributedtoimprovementsto organisation............................................................................................................................9 TASK 2............................................................................................................................................9 2.1 Effectiveness of business..................................................................................................9 2.2Develop plans to improve business, justifying their value.............................................10 M2 Evaluate how effectiveness of areas of the business can contribute to organisational growth...................................................................................................................................11 D2 Critically analyse how plans developed can lead to an improvement in business.........12 TASK 3..........................................................................................................................................12 3.1 Current skills of management and staff..........................................................................12 3.2 Plans for development of skills for management and staff............................................13 M3 Analyse effect of current experience, skills and abilities of management and staff may have on business...................................................................................................................14 D3 Critically evaluate various methods that can be used todevelop skills of management and staff.......................................................................................................................................14 CONCLUSION..............................................................................................................................14 RECOMMENDATIONS...............................................................................................................14 REFERENCES..............................................................................................................................15
INTRODUCTION Hospitality industry is outlined as class of various areas in service sectors including food, lodging,eventplanning,transportation,drinkservice,themeparks,travellingandothers (Abdelhak, Grostick and Hanken, 2014). It is also referred as group of business which focus on providing services to users or consumers. This is depended on income of individual and leisure time for availing services of hospitality sector. The different sector which lies under hospitality industry are hotels, events, luxury services, food services, travel & tourism and others. In today's scenario, hospitality industry plays an effective role in rising growth of country as it is fastest growing sector in market. Different types of services are providing to users and guest for increasing profits and gains. In order to manage hospitality sector, different department such as technical, housekeeping and operations plays effective role in achievement of goal and objective of business. The organization selected for granted project is Marriott Hotel founded at United States in 1927 for providing hospitality industry service. This is American multinational organisation providing lodging and hotel facilities to their users. The aim of report is discuss about objectives, factors impacting business with help of PESTLE and SWOT analysis, Porter's five models. For improvement of concern operation, Ansoff’s growth matrix has used. It also covers effectiveness and plans for improving enterprise. There are some management and staff skills and for improving those plan has been made. TASK 1 1.1 Objectives of the business The organisation chosen for assignment is Marriott Hotel which was established in 1927 at United States. It is multinational American hospitality industry having franchise to deal with lodging and food facilities (Almahmoud and Doloi, 2012). This is regarded as largest hotel unit in world. It consists of 30 brands having 7003 properties in 131 countries around world which possess 1332826 rooms. In the year 2017, it was ranked as 33 on 100 best fortune companies to work for providing services. The products of Marriott Hotel are resorts and hotel which is serving worldwide. The number of employees working in respective organisation is more than 176000. This has subsidiaries branches of Ritz Carlton, Starwood and Le Meridien. In order to run business successfully and achieve growth, it is very important for Marriott Hotel to set objectives, scope, mission and vision. They are as follows:
Objectives- It is defined as a statement that describes what organisation or company want to achieve in particular period of time such as short or long term. The short term objective of Marriott Hotel is to increase brand value and develop awareness among users. The long term objectives is to provide high quality services with innovation in order to satisfy their consumers need and requirements by providing great experiences to them. Scope- There are various scope of Marriott as it is providing different products and services such as lodging, foods, Wi-Fi, luxury rooms and others. This helps to increase revenue, brand value and goodwill in market. Its scope is to focus on requirements of consumers and fulfilled them in effective and efficient manner. Mission- The mission is to enhance lives of users and consumers by creation and enabling unsurpassed leisure and vacation experiences. Vision- The vision statement of Marriott Hotel is to become high quality service provider and facilitator of vacation and leisure experience in world. 1.2 Factors that impact on business There are various factors such as internal and external which can influence business and their activities and operations (Arntz-Gray, 2016). The internal influence is within organisation and can be controlled that is measured through SWOT analysis. Similarly, external influences are outside business which cannot be controlled that is measured through PESTLE analysis. These factors provide both positive and negative impact on business of Marriott Hotel which are described below: SWOT Analysis This is used for internal analysis of business that impact organisation in positive and negative manner. SWOT analysisis defined as strategic tool which is used for helping organisation in order to identify their strengths, weaknesses, opportunities and threats for project planning or business competition. It is very important for Marriott Hotel to analyse SWOT in order to know their strong and weak points for carrying out business in competitive market. They are described below: Strengths- Marriott Hotel is leading brand in terms of hospitality industry which focus on providing high quality services to their users. It has various strengths which leads it to earn maximum gain and profits. This has set their own way for carrying out activities and operation for employees which should be followed by them. It is present in 122 countries having 600
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properties with 1.2 million rooms across world (SWOT analysis of Marriott Hotel International Inc, 2019). Marriott Hotel has strength in terms of innovation as it focus on new ways and methods to provide services to their consumers and guest nu ensuring value for money. Weaknesses- It is defined as areas where Marriott Hotel need to make improvements in proper manner for achievement of their goals and objectives in effective and efficient manner. It focus on expansion which creates problem in maintaining standard of services at every location that dilute brand value in market. Marriott Hotel is regarded as system driven business where each and every employees is bound to follow procedure for whatever they perform work which lower morale of working force. It focus on family business so plans, policies and values are set accordingly which is not changed as per time and situation which is weak point for respective organisation. Opportunities- This is defined as environment where Marriott Hotel can increase their returns and revenues (Boedker and et. al., 2017). Due to change in behaviour of consumers whenever people want to travel with their family they can easily stay at luxury hotels which is creating opportunities for respective hotel to increase their revenues. With rise in global travel, Marriott Hotel has an opportunity to tie ups with various airline hotel chain for providing their services to their guests and users. Nowadays, consumers focus on personalisation so Marriott Hotel has opportunity to provide them with customised services and charge for it. Threats- It is external factors that can detrimental business growth and success in competitive market. The threats which can be faced by Marriott Hotel is in terms of competition and economic recession. Due to increase in competition from various brands like Hilton, Holiday Inn, Radisson Blu which creates problem for surviving in market. The global recession has created threat for hospitality sector which has affected many properties and they are out of market for sale that leads to low generation of profits. PESTLE Analysis It is defined as tool that is used for analysis and monitoring macro environmental factors that can impact performance of organisation (Chang and et. al., 2016). This type of framework is useful when firm want to enter into international market or start new business. There are six components of this analysis which can impact Marriott Hotel business and its performance that are described below:
Political Factors- The political factors which can affect Marriott are international relations, terrorism danger and climatic conditions in tourist destination (PESTLE Analysis of Marriott International, 2019). It is facing threat in terms of terrorist attack that is disrupting air travel or frightens individuals to move away from travelling. For example, attack in June 2015 at Tunisia where 39 people were killed in hotel beach which create problems for Marriott to scare away potential guests and charge of security measures also increases. Economic Factors- The factors which affect Marriott are slow economic growth of Europe and China. It leads to market collapse in China and crises in Europe where purchasing power of consumers decline for taking trip packages. This effect is tapering business of Marriott Hotel. For example, due to high exchange rate in US dollars discourages people of America to avail travelling and visit places which affect respective organisation. Social Factors- This factor can help Marriott to increase their profits as number of traveller is increased from past year and planning for trip every year with their family, friends and others. This seems people are travelling more and ready to pay for more for better experience. The respective organisation is impacted through culture and increase of Chinese and Asian travellers. Here, European and American prefer more travelling and want to increase travel experiences like luxury resorts and packaged tours which is opportunity for Marriott. Technological Factors- This factor has large impact on Marriott Hotel because of online rental services like Airbnb which provides private rented rooms to individuals or homes to travellers. With use of technology, Marriott can provide easy booking and cancellation to their users for effective outcomes. This can help to increase profits and gains of business. Legal Factors- There are some legal laws made for hospitality sector which need to be followed by them such as health and safety laws, criminal laws and others. Here, Marriott hotel need to follow all legal laws for their business and consumer so that they can avail facilities and services in effective manner. Environment Factors- The factors which is disrupting Marriott hotel is prices of fuels. The fall in prices of oil leads to reduction of travelling cost and demand of hotel rooms. The threats which can be faced by respective organisation are sudden rise in cost of fuels. Due to rise in global warming leads to increase in temperatures that make resorts and beach too hot for comfort. This forces relocation or closure of hotel.
1.3 Potential improvements to business organisation and/or operation It is very essential for Marriott Hotel to make improvement in business activities and operation for achievement of goals and objectives (Ghaddar and et. al., 2012). For that they need to identify best suitable strategies to make proper decisions in business in order to grow, sustain and earn profits. The potential improvements strategy adopted by Marriott Hotel is Ansoff's Growth Matrix which is described below: Ansoff's Growth Matrix It is defined as growth corporate strategies which focus on products and market of organisation. Ansoff's matrix is developed by Russian Igor Ansoff for helping organisation. This helps manager, executive, marketers for devising strategies in order to grow in future time period. This consists of four various strategies which are as follows: Market Penetration- This is the strategy which can help Marriott Hotel to achieve growth by selling existing products in existing market. It is less risky strategy which can help respective organisation to leverage capabilities and resources. The main aim is to increase market share of existing products through use of sales promotion, advertising, pricing strategies. It can helps to improve situation of business by expanding in same market with same products. For example, Marriott Hotel can sell their existing product such as food, parking areas, clean room, Wi-Fi in hotel in existing market. If they can provide it in effective manner then they can grow in market. Market Development- This is defined as strategy where Marriott Hotel can grow by selling existing product in new market (Ansoff Matrix,2018). It is good strategy which can be adopted by respective organisation in order to gain competitive advantage in new market. This can be possible if they search new geographical market and distribution channels. It is risky strategy because of targeting new market. With help of such strategy it can make improvement by coming into new market where there is no services of respective organisation for increasing profits. For example, Marriott Hotel can come up in new market with same products for increasing market share and profits.While choosing new market they need to focus on their consumers who are going to use various services. Product Development- This is strategy where Marriott Hotel can grow their business with new products in existing market (Goins and Pye, 2013). The respective organisation can grow if it can focus on particular requirement of their targeted consumers. It requires new
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competencies and developing modified products in existing market with some differentiation from competitors. It is risky which requires research and development and insight into needs of consumers. For example, Marriott Hotel can introduce new products such as recreation for children which can really work to attract families to avail facilities and services. There are many times when family make their trip with small kids which creates problems for parents to visit along with them in such case respective hotel can provide recreation facility for kids and have person to look after them in same existing market. Therefore, this can help them to increase market share and fulfilling their target consumers’ requirements. Diversification- It is strategy which can be adopted by Marriott Hotel where they can grow their share and profit by introducing new product in new market. It is more risky strategy because of new product in new market where marketer may have no or little experience. It is highly rewarding strategy if it get success in competitive market. For example, Marriott Hotel should have clear idea about what product they are going to offer and in which market then they can make best strategy and plan to make it success and profitable in competitive market. They should offer new and innovative products which can make them different from competitors. After analysing various growth strategies, it can be concluded that Marriott Hotel need to adopt market penetration strategy. As it does not require more cost because it deals in existing market with same products. As user and consumers are already know and aware of products and services offered by them. M1 Analyse how objectives of organisation meet ‘SMART’ criteria of organisational objectives It is essential for Marriott Hotel to set SMART objectives which should be based on specific measurable attainable realistic and time (Hardy, Deane and Gray, 2012). This can help business to achieve their set goal in effective and efficient manner. The SMART objective fixed by Marriott Hotel is to decline energy usage from business operation by 25% and reducing waste and water. It can be accomplished by giving training and development programmes to their working force for reduction of water. In order to reduce waste, Marriott Hotel should give training session regarding impact of pollution to our environment, society and health. For achievement of SMART criteria, organisation should perform work through step format in proper manner. Therefore, it should be made in SMART way for their business so that result can be known.
D1 Analyse how elements of Ansoff’s Matrix have contributed to improvements to organisation There are four elements of Ansoff's Matrix which assist in improvement to Marriott Hotel (Hyppönen, Hämäläinen and Reponen, 2015). In market penetration, respective hotel can supply existing product in existing market in effective manner for fulfilling their need and demand. For product development, they can add various new goods for fulfilling requirements of their consumers in existing market. For increment of market share and profits, Marriott can enter into new market with same products through market development strategy. Similarly, in case of diversification strategy they can enter into new market with new goods for their consumers. For this strategy, they require proper research and development to sustain in market. Therefore, in this way all elements of Ansoff's matrix help to contribute in improvement of decision making of Marriott Hotel in effective and efficient manner. TASK 2 2.1 Effectiveness of business Business effectiveness is referred as organisation's efficiency in order to accomplish objective and goal of business. This means enterprise has made production without damage and wastage. The effectiveness in business is regarded as quality level which helps to carry activities, operation and process for high performance of business. It is also called business capacity in order to produce expected results with less time, cost, human resources, material and others (What is Effectiveness,2019). The business effectiveness is also considered as individual work in organisation in order to achieve effective outcome with high efforts. The manager need to review business effectiveness on frequent basis to know about how much set results has been achieved by organisation. In order to know about business effectiveness of Marriott, different areas has been set by manager for positive outcomes. The areas included in business effectiveness are described below: Products/Services- For achievement of business effectiveness, Marriott need to deliver high quality goods and services to users. The products offered by Marriott are cleaning and laundry facilities, beds, Wi-Fi, high premium room and so on. Services include parking, recreation activities for children, delivery of food on timely. Marketing- This area assists in building strong relationship with users and consumers to get positive result (Inoue and et. al., 2012). For running business effectively, Marriott need to
performpropermarketingfororganisation.Thiscanbedonebysatisfyingconsumer's requirements and maintaining relationship with them so that they would avail same service again in future time period. Therefore, it can helps in achievement of goal and objectives of business. Sales- It is the areas which help to enhance profits and gain of respective organisation. The sales manager of Marriott has to perform various roles for making business effective such as proper market research, services, promotions, packaging, advertising and so on. Also they need to analyse requirement of their consumers in effective manner. Finances- In order to make finance areas effective, it is responsibility of finance manager to make proper allocation of funds to each and every department for carrying of activities in proper manner. They have to make allocation in marketing, sales, staffing and promotions and so on. If all activities are carried out in effective manner then set objective and goal can be achieved. Staffing- For effectiveness of business, Marriott Hotel need to hire skilled, experienced and capable employee for performance of work. If they carry some weaknesses then they should be provided with training and development. The employees and staff should be motivated and encouraged through bonus, rewards, incentives and others. Business Image- This is also the areas which helps in creating effectiveness of business. If Marriott provides high quality products and services to their user along with providing benefits to working force then it can increase goodwill and brand value in competitive market. With help of business image, respective organisation can earn maximum gains and profits in proper manner. Record Keeping- It is very important area of hospitality industry. The record keeping of each and every activity can help business to know about work performance of organisation and their weaknesses (Ismail and Atkin, 2016). This should be done by finance manager or account expertise that possess good knowledge of maintaining data and information. 2.2Develop plans to improve business, justifying their value Business planning is referred as written legal document that is designed for providing accurate data and information about both new and existing firms. There are various aspects covered in business plan such as financial background, nature of firm, sales and market strategy (Business Plan,2019).It is called future road map of enterprise that provides direction in order
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to achieve goal and objectives. Marriott Hotel needs to make proper business plan which should consider the following areas such as: PlanningMarketing-MarriottHotelneedtomakemarketingplanforcreating relationship with users and satisfying their requirements. It is very important to analyse market first and planning according to their requirements. In this business plan, need and demand of consumers are given first priority for achievement of goal and objectives. Sales and Productivity- In order to increase revenue, Marriott Hotel need to make strategies related with sales and productivity. They should produce high quality products and provide to consumers for increment of sales and profits (Kamio and et. al., 2014). It also consists of consumer requirement of buying of products. Thus, if requirement and quality both are fulfilled then respective organisation can enhance sales and productivity. Planning Organisation's Financial Management System- This is considered as most important part of business plan where planner need to allocate their funding to all department and activities to achieve goal and objectives in effective manner. This helps in goal achievement of Marriott Hotel in effective manner. Planning the Roles and Responsibilities of Staff and Management- The business need staff as well as management for carrying out operations, activities in systematic way. For planning of staff and management, their roles and responsibilities need to identified and assigned to them for carrying of work effectively. It includes various roles such as checking, assisting and guiding. PlanningPerformanceMonitoring-Inordertomeasureemployeeandstaff performance, Marriott Hotel can use different tools and technique such as 360 degree, feedback, appraisal and management by objectives and others. In business plan, this area should be considered for goal achievement. M2 Evaluate how effectiveness of areas of the business can contribute to organisational growth There are various areas of effectiveness which includes service, staffing, product, marketing and others that helps in business growth (Khadjesari and et. al., 2015). Here, product and service is called USP (Unique Selling Proposition) of business which create awareness and letting consumers to know about products. Marketing assist in knowing about activities to be performed by them and staffing builds relationship with visitors. In this way, different areas help in contribution to growth and success of organisation.
D2 Critically analyse how plans developed can lead to an improvement in business Different type of planning is made by organisation like sales, organisational financial system, marketing, productivity, performance and monitoring. It is creating both positive and negative impact to business. In order to improve business by Marriott Hotel, they need to analyse requirement of consumers, visitors, users and make planning accordingly for effective results. Therefore, it is essential for enterprise to make continuous improvement in their business and their activities. TASK 3 3.1 Current skills of management and staff Skill is referred as ability and capacity in order to perform work in sustained and systematic manner by giving efforts to carry work smoothly and effectively (Kutzin, 2013). The different skills required in hospitality industry are: Technical Skills- It is the abilities and knowledge required to perform specified work. It is practical in nature and having information of mechanical, mathematical, technology and scientific task. Examples are: mechanical tools, programming language knowledge and others. OperationalSkills-Thisisregardedasoperationalleadershipskillsthatreflect interactive delivery which allow leader to develop practical solutions for challenging situations arise in environment whether unplanned or planned. This includes policy deployment, structure making skills, daily operations management skill. Managerial Skill- It is called skills which are held by manager of organisation. This includes various skills such as organising, planning, directing, controlling, staffing, decision making, leadership, communication, problem solving. The various current skills needed for staff and management are given below: Problem Solving- There are various problems arise in Marriott hotel where management should encounter them and provide solutions (Laws, 2015). The staff should give their ideas and opinions to their manager for effective outcomes. Communication Skills- In order to interact and communicate such skills is required within management and staff for goal achievement. It assists in proper understanding of visitors requirements and fulfilling it in better manner.
Decision Making- The management and staff of Marriott Hotel need to make decision for business and department considering past data and future requirements for accomplishment of goal and objectives (Lehto and et. al., 2012). Time Management- It is important skills which is required for management and staff working in Marriott Hotel to complete assigned work on given time period. For every activity, time should be managed properly. 3.2 Plans for development of skills for management and staff For running business in systematic manner, management and staff should require some skills for achievement of goal and objectives. This assists them for better work performance. Marriott Hotel needs to make plans for development of existing skills for management and staff which is described below: Learning Objectives Target Proficiency Development OpportunitiesTime Scale Problem Solving10This can be developed by reading books related with problemsolvingsothatworkcanbedonein effective and efficient manner. 50to75 days Communication Skills 10In order to deal with consumers and guests, it is very essential for management and staff to improve their communication skills through public speaking, participating in various activities. 80to95 days Decision Making 10There are various opportunities available in market which should be analysed by management and staff and grab best one through decision making skills. 25to40 days Time Management 10Differentactivitiesneedtobeperformedby managementandstaffwhichcanbepossible through time management. For improving such skill, training should be provided in effective and efficient manner for better outcomes. 30to50 days
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M3 Analyse effect of current experience, skills and abilities of management and staff may have on business The current experience, skill and abilities of management and staff of Marriott Hotel help in goal accomplishment (Lencioni, 2012). With experience they cannot make any mistake for assigned work. Similarly, skills and abilities of staff and management can help them to guide and solve arise issues and problems. With performing various roles and responsibilities helps manager and staff to increase their experience and enhance skills and abilities. D3 Critically evaluate various methods that can be used todevelop skills of management and staff In order to develop skills of management and staff, different methods can be used by Marriott Hotel which includes training, mentoring and coaching (Morgan, 2016). The training methods help management and staff to increase current skills and improve competence of future for effective outcomes. The training can raise pressure and stress on management and staff due to conducting it on regular basis. This require more time that leads difficulty in managing other work by them in business. CONCLUSION As above discussion, it can be concluded that organisation need to make objectives, mission and vision for goal achievement. It is important to conduct PESTLE and SWOT analysis byrespectiveorganisationtoknowaboutexternalandinternalfactorsofbusiness.The continuous improvement should be performed by organisation with help of Ansoff's matrix. Business plan need to be made by firm in proper manner considering all aspects. Both management and staff should have skills to achieve business goals and objectives and which should be improved on continuous basis. RECOMMENDATIONS In order to run business operation and activities, some recommendation has been provided to Marriott Hotel which are described below: They need to follow rules and regulation for providing services to their users, guests and others in order to increase brand value and goodwill in competitive market. The organisation need to do market analysis for knowing requirement of their consumers and providing accordingly to fulfils their need and demands.
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