Assignment on Business Health Check - KPI

Business Health Check

INTRODUCTION
Business plays an important role in every individual's life. Present report focuses on
Marriott which is one of the best hotels in UK and provides hospitality services. The hotel offers
its services in more than 127 countries and there are around 6500 properties across the world.
The report presents how SMART objectives meet with the current scenario of Marriott
International. It deals with Marriott International where it presents the external as well as internal
factors affecting the business by using PESTLE and SWOT analysis. Further, the report will
determine use of Ansoff's growth matrix which helps Marriott hotel in improving its
performance. It will also present different plans which help hotel in managing successful growth
of business. The report also presents different roles and responsibilities of their staff as well as
management team that how their current skills help in growth of a company.
LO 1
1.1 Presenting the objectives of the Marriott
Marriott International Hotel is a multinational hospitality business which provides its best
facilities to their customers. Marriott objective is to create long term relationship with customers
so that they will come again to visit the place. Management implements the use of KPI in order
to examine the performance of employees. Marriott provides the best facilities to their customers
at lowest possible cost to generate more revenue. The hotel has more than 6500 hotels across the
globe and is ranked at 33rd position out of 100 best hotels because of its luxurious services such
as bars, food facility, resort, pub, pools, etc. Marriott met the SMART criteria, which includes
Specific, measurable, achievable, realistic and time based (Kypridemos and et.al., 2018). Main
objective of Marriott is to enable superior customer services to serve satisfaction to travelers and
increase consumer base.
Company’s main objective is to achieve all their defined aim and fulfill the needs of their
customers. Company meets with SMART criteria in order to serve the best thing. It also offers
different coupons to their customers and tries to make new products with their innovative
products and serve those services in actual time. The tariff also changes according to season and
its aim is to satisfy the need of their customers by providing the best possible services. There is a
tough competition in a market and to maximize profits, hotel tries to produce innovative
hospitality services (Camp and et.al., 2018). There are about more than 1, 70,000 employees and
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they work as a team which assists the enterprise in managing coordination and cooperation
among staff members.
1.2 Presenting the factors that impact on the hotel
Pestle analysis will help in understanding the external environment of Marriott Hotel
which are mentioned as below:
Political Factors: These factors are unstable in nature and therefore, affect the
functioning of Marriott international. Political factors comprise of danger of tourism,
international relations and change in political climate that highly affect the tourism destinations.
The biggest threat of Marriott hotel is terrorism and military conflict which are disrupting
international air travel and as a result, it will affect the tourism too. Due to conflict in military
people threaten and they away from traveling (PESTLE Analysis of Marriot, 2018).
Economic Factors: These macro factors comprise inflation rates, interest rates are affect
the economy of the country. The biggest threat of Marriott hotel is the fluctuation in exchange
rate like dollars that discourage the Americans travelers as well as foreign tourists.
Social Factors: People follow different lifestyle and as a result, travelers planned to
spend money and due to changes in the culture that could affect directly to the hotel environment
(Sandnes and Neyse, 2018). As people of UK are growing older and as a result there is increase
in the demand of some level of traveling experience such as packages tours etc.
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Illustration 1: PESTLE Analysis
(Source: PESTLE analysis, 2018)

Technological Factors: This created huge impact on the business of Marriott. There are
some online rental service such as Airbnb, which provides room on rent to travelers at low cost,
which is affecting traveler’s preferences over hospitality services. The use of advance facility
will affect the income and help to maximize the profit. The increasing use Airbnb help to avoid
taxes and fire regulations, overall it will help to low operating cost (Edwards, 2018).
Legal Factors: It is necessary for Marriott to follow all the laws such as discrimination
law, Consumer Protection Act and Health and Safety law. However, the major threat related to
legal factor is that the impact of Airbnb on the business of a hotel because the use of this
application help to avoid extra expenses and that is the major source of revenue for government.
Environmental Factors: Marriott follows Sustainability Act which helps the business in
securing environmental conditions. Further, it also focuses on managing effective use of natural
resources such as water and energy which derive fluctuation in climatic conditions (Arroyo and
et.al., 2017).
PORTER'S FIVE FORCES MODEL
This model helps to identify the competitive advantages and mainly focus where the
products and services are suitable to serve in which area. These are discussed as below:
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Threats of new entrants:
 Marriott faces less threats of new entrant because new entrant brings innovations, new
ways to manage things and provide new values of preposition to the customers. In context of Marriott, it easily manages all those challenges by building effective ways
to overcome the barriers of innovation (Woringer and et.al., 2017).
Bargaining power of supply:
 This affects overall profitability of a hotel and therefore, hotel aims at building efficient
chain and experimenting with the product design the company can easily attract wider
number of customers. The higher the supplying power will lower a profitability of a company but bargaining
power of suppliers is low because the focus of hotel is on making optimum utilization of
resources (Robson and et.al., 2017).
Bargaining power of buyers:
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Illustration 2: Porter’s five force model
(Source: Porter’s five force model, 2018)

 Marriott offer different discount vouchers and tries to develop innovation in services
which, helps in enhancing its customer base. This is the strategy that denotes, which
strong bargaining power of buyers.
Threats of substitute product: Marriott have threat from substitute services but it tries to overcome it by being service
oriented rather than product. Moreover, it always tries to understand the basic need of
customers to develop services as per traveler’s requirement (Moutinho and Phillips,
2018).
Rivalry among existing competitors:
 Marriott faces tough competition from industry rivalry and if the rivalry among existing
competitors is high it will decrease the price and overall profitability will be affected.
However, by making establishing coordination with the business environmental and
changing market conditions the hotel is able to increase its market share. This strategy of
firm is assisting organization in managing stability in overall productivity as well as
profitability of business.
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SWOT AnalysisStrengths:Company mainly focuses to bring innovation.
 Faces high competition in market.
 Marriott is known for its best management style and good coordination team work.
 It offered its services in more than 120 countries in world (SWOT analysis of Marriot,
2018).
Weaknesses:Because of huge extended business, company fails to maintain its best
management.
 Having a strong financial status but still faces some losses and debt.
 The company is not uses advance technologies and not cope up with IT management.
Opportunities:
 Marriott is tries to merge with many business and start to expand its business in Europe.
 Hotel can be charge extra premium for providing personalized service (Edwards, 2018).
Threats:
 The global recession affects the environment of business adversely and are not able to
generate revenue.
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Illustration 3: SWOT analysis
(Source: SWOT analysis, 2018)

 Company faces a lot of competition from other brand.
1.3 Presenting the potential improvements of the business by using Ansoff's growth vector
matrix
Ansoff's growth vector matrix is help to determine the which business strategy is helpful
for new product or service development. In context of Marriott, this matrix is helpful to
overcome different risks which are mentioned as below:
Market Penetration Product Development
 Under this strategy, selling all the
existing products/ services in existing
market only (Ansoff's growth vector
matrix, 2018).
 In context of Marriott, it can be
achieved by sponsoring international
football club.
 Target especially middle class
 Provides VIP treatment to every special
guest.
 Can use different strategies in order to
minimize the cost and introduce their
own new products (Segura, Morales
and Somolinos, 2018).
 Marriott also uses helicopters in order
to serve Special VIP treatment with
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Illustration 4: Ansoff's growth Vector matrix
(Source: Ansoff's growth Vector matrix, 2018)

customers in order to increase the
customer base.
 By hosting different international
successful programs
their specificguest.
Market development Diversification
 Under this strategy, find new markets
for the existing products or services
(Moutinho and Phillips, 2018).
 As Marriott has many branches but
wants to open new one especially in
Europe.
 It is considered as one of the riskiest
strategies and that is why not preferred
by many companies because it deals
with introduce new product/ services in
totally new market.
 Marriott introduce coffee chain by
establishing new chain of coffee under
its own name.
LO 2
2.1 Review the effectiveness of a business
The effectiveness of a business can be done through many points such as:
Products/ services:
 Marriott serves good room facility at affordable cost as compared to others.
 It also offers extra facilities such as restaurants where it offers lunch, breakfast and dinner
which are available at affordable range. Marriott also uses social sites in order to provide good facilities to their customers.
Marketing:
 Marriott uses advanced technologies in order to help their customers to provide different
products or services.
 Whenever the new products or services are introduced, it uses different promotional
activities in order to let people know about it (Robson and et.al., 2017). Good marketing suppliers and better coordination with its buyers as well as suppliers.
Sales:
 The selling department of Marriott is well organized.
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 It provides different discount vouchers and coupons in order to attract different
customers. It also takes feedback from their customers in order to know about their positive or
negative loops.
Finance:
 The financial status of a company is quite strong which can be examined by its annual
financial reports. Maximizes more profit and increases the sales.
Staffing:
 There is communication gap between the staff and management team but they all work
together in order to fulfill the demands of their customers.
 Management team will always monitor the employees. They encourage their staff to
produce new products as per the demand (Woringer and et.al., 2017). They understand the need of customers and try to implement those into their business.
Business image:
 Marriott has a strong brand image across the world and tries to expand its business. The objective of company is to maintain long term customer relations.
Record- Keeping:
 Having a strong financial status but the system of record keeping is yet not improved.
 Yet not have proper billing and vouching system.Company hires accountant who feeds
the entries in a computer but not have any physical records for cross checking at the time
of audit.
2.2 Presenting the plan to improve the business in the context of Marriott.
Business plan is the basic form which is needed to take business at further level of
success. It is a process that is done in order to improve the business. For Marriott, it is necessary
to improve the department of its sales as well as marketing and this can be improve by coping up
with new and advance technology. Introducing new technologies into their business will help to
enhance its customer’s base. By using social sites also marketing can be develop (Edwards,
2018). On the other side, to improve its record keeping system, company uses online billing
system but there should be hard copy of those bills. So that it will help at the time of auditing and
the company should maintain last seven years of record keeping.
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The coordination system of hotel is effective but there is lack of communication between
whole staff that should be improved. To improve this system, proper trainers must be hired and
they should take care of all the work of the employees and conduct seminars in order to increase
their communication skills. There should be strong communication and coordination so that it
will directly impact on the profitability and productivity of a company (Arroyo and et.al., 2017).
Marriott have poor system related to use of advance technology and in order to improve this
communication, they should come up with new advance technologies so that people come to
know about their advance and innovative products and services.
LO 3
3.1 Presenting the current skills of management and staff
The staff and management should possess different skills some of them are as technical
skills, managerial skill and operational skills. The skills of employees of Marriott must be
possessed by their employees in order to take a business to further level of success. The
employees of the Marriott have technical skills which means that they have special ability to
perform specific work only. On the other side, managerial skills are used by the managers and
upper authority so that they help their employees and try to train them about new innovations of
products. (Sandnes and Neyse, 2018).
In the context of Marriott, the staff of a company are able to perform their work in
specific field which affect its productivity of a company. Whole team of Marriott should be clear
with others so that they all do their work in an effective way. The Upper authority of a company
also communicate properly with their staff in order to let them know about their goals and
objectives. Recently, the whole staff and management team are quite cooperative and find
different ways to fulfill the demand of their customers. They always try to reduce the
communication gap and hired skilled staff for completing all types of work and for evaluating
the performance of the company they actually need the special skilled staff and management
team for the growth and development of Marriott in order to complete the targets of it.
3.2 Justifying the plans for the development of skills for management and staff
For developing skills in whole staff, there is a need to have good plans. Initially, the
directors or HOD of Marriott should analyze the strengths and weaknesses of their employees
and try to know them at both; personal and professional level by conducting various activities.
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Proper communication is another option to develop the skills and in case they need any help,
they can hire trainer to sort out this problem (Camp and et.al., 2018). After examining properly,
conduct well settled training programs session to enhance technical, operational and management
skills. And if the training sessions are completed, take feedback from the employees whether
they learn from it or not. Through this way, management team can easily know about their
negative and positive points and then they try to correct them for the betterment of the company.
By training, it is possible that some of them learn positive things and few did not learn a
single thing. In that case, both seminars and training should be conducted and again take
feedback and if it has been examined that it creates a positive impact on the employees then
assign work to them and allot responsibilities to each and every person according to their
capability. After it, analyses each and every person's efficiency in individual way. The company
already uses Key indicator performance which help them to examine their performance level
(Kypridemos and et.al., 2018). Again when this problem is not sort out, then hire supervisor in
order to solve the problems of all the employees so that they will monitor the activities of all of
them. This is an actual plan which helps the management team of Marriott to develop skills for
management and staff.
CONCLUSION
By summing up above report, it has been concluded that business environment plays a
significant role in every business. Marriott has a strong financial status as it has many branches
across the world. The report helped to understand the objectives of a business and it actually met
the SMART criteria. It has been concluded that there are different external as well as internal
factors that affect the business environment that can be examined by using PESTLE and SWOT
analysis. The report also helps to identify the current skills of management team as well as the
whole staff. Further, it also described the Anosff's growth vector matrix which helps to identify
the market which will be better for the new production. The report also discussed different roles
played by their staff as well as managers and in order to monitor all they hire supervisors who
help them to sort out their problems. Overall, it helped to identify the exact environment which
affects the performance of a business.
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REFERENCES
Books and Journals
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Camp, C. J. and et.al., 2018. Page-level health equalization. U.S. Patent 9,990,279.
Edwards, P., 2018. Business and Health Planning in General Practice. CRC Press.
Kypridemos, C. and et.al., 2018. Future cost-effectiveness and equity of the NHS Health Check
cardiovascular disease prevention programme: Microsimulation modelling using data
from Liverpool, UK. PLoS medicine. 15(5). p.e1002573.
Moutinho, L. and Phillips, P., 2018. Strategic analysis. In Contemporary Issues in Strategic
Management (pp. 46-79). Routledge.
Robson, J. and et.al., 2017. NHS Health Check comorbidity and management: an observational
matched study in primary care. Br J Gen Pract. 67(655). pp.e86-e93.
Sandnes, F. E. and Neyse, L., 2018. An Image Based Automatic 2D: 4D Digit Ratio
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Innovation Technology in Smart Cities (pp. 63-74). Springer, Singapore.
Segura, E., Morales, R. and Somolinos, J. A., 2018. A strategic analysis of tidal current energy
conversion systems in the European Union. Applied Energy. 212. pp.527-551.
Tuominen, M., 2018. POLITICAL ENVIRONMENT AND BUSINESS DEVELOPMENT IN
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Woringer, M. and et.al., 2017. Evaluation of community provision of a preventive cardiovascular
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Online
SWOT analysis of Marriott. 2018. [Online] Available
through:<https://www.marketing91.com/swot-analysis-marriott/>.
Ansoff's growth vector matrix. 2018. [Online] Available
through:<https://businesscasestudies.co.uk/portakabin/achieving-growth-through-
product-development/ansoffs-matrix.html>
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PESTLE Analysis of Marriot. 2018. [Online] Available
through:<http://pestleanalysis.com/pestle-analysis-of-marriott/>.
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