Assignment on Business Health Check

BUSINESS HEALTH
CHECK

Table of Contents
INTRODUCTION ..........................................................................................................................3
LO 1.................................................................................................................................................3
1.1 Analysing the purpose of business........................................................................................3
1.2 Various factors that have impact on the business.................................................................4
1.3 Determining potential improvement in business operations.................................................7
LO 2.................................................................................................................................................9
2.1 Reviewing the effectiveness of business...............................................................................9
2.2 Formulating a plan to improve the business.......................................................................11
LO 3...............................................................................................................................................12
3.1 Evaluating the present abilities of management as well as staff. .......................................12
3.2 Creating as well as justifying plan for development of new abilities in staff and
management..............................................................................................................................16
CONCLUSION .............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business health check can basically define as the activity which includes measuring an
effectiveness of the various business activities performed by firm. It is the procedure which helps
management in addressing those business functions or areas which require improvement.
Business health check can consider as evaluation of important elements of business. The main
benefit of business health check is that it provides management an ease in maintaining their
concentration on business. Business health check is basically a type of diagnostic assessment of
an enterprise. It is the procedure which assist management in analysing the internal strength and
weakness of organization.
The study emphasizes on addressing those variables which have significant effect on
business in context of Marriott hotel. It is basically a Multinational organization operating
business in hospitality sector. Report will include the internal as well as external analysis of an
organization. The business is or functions which requires improvement will be highlighted.
LO 1
1.1 Analysing the purpose of business
Marriott hotel is basically a global company which is operating business in hospitality
sector. Business entity offers accommodation as well as lodging facilities. Marriott is among one
of the leading organizations in hospitality industry. An enterprise has 30 brands and branches in
more than 130 countries. The mission of an enterprise to provide customers with quality services
and good experience. Vision of Marriott hotel is to become one of the premium service provider
as well as facilitator of leisure and holiday experience globally. Objective of an enterprise is to
assist customers in improving their lives as well as providing guest with good leisure experience.
Presently, Marriott is among the leading stagnation in hospitality industry. An organization has
achieved the 33 rank among the 100 best companies to work. Business entity operates approx
thirty-two brands at international level (Ketata, Sofka and Grimpe, 2015). Employees in
Marriott hotel mainly emphasizes on providing the premium quality as well as quick services to
customers. As an organization in delivering quality services to their clients, they have been
successful in gaining the customer loyalty. In addition to this, an enterprise also emphasizes on
delivering high level of comfort to their guests.

Marriott hotel is also concentrating on providing the high value proposition to their
guests by offering them good quality of products or services at reasonable price. Workers and
management in an enterprise is taking combine efforts for maintaining the balance between value
and quality in order to improve the guest experience.
The medium-term objectives of Marriott hotel is to develop the customer service skills in
their employees. An organization has set such objectives so that they could provide such
professional services to customers (Khan, Alam and Alam, 2015.). An enterprise has made plan
to concentrate on training and development of its workers so that their employees can develop or
improve their capabilities as well as knowledge. Human resource manager in Marriott hotel is
plan to organize training and development program for employees on quarterly basis.
Short term objectives of Marriott hotel is to increase their sales and profitability. In
addition to this, business entity intends to increase its market share. Marriott hotel in order to
accomplish the set short term organizational objectives has plan to conduct the marketing
campaign. Business entity has decided to increase its investment in the development of
multichannel distribution channels.
Long term target of Marriott hotel is to maintain its long-term sustainability in highly
competitive business environment. In addition to this, business entity also intends to maintain its
leading position in an industry. The other long-term objective of the Marriott hotel is to enhance
the quality service.
1.2 Various factors that have impact on the business
There are various factors that affect negatively or positively to the products and services,
operations and overall organisation, including internal and external factors.
PESTLE Analysis
 Political factor: Marriott Hotel operates at global level thus, political stability is the
foremost need for the success as it directly influences the number of tourists, visitors
(Banks and et. al., 2017). Along with it, sudden enhance in tax rates influence the
political stability that directly affect the accommodation services.
 Economic factor: This factor have an intense influence on luxurious hotel like Marriott
International. Fluctuation in currency affect the income of population that drive down or
up the sales of services that create a challenge for Marriott International to manage their

prices. To overcome the situation, Marriott International develop services with moderate
price range that attract wide consumers.
 Socio-cultural factor: Culture and attitude of society and people have directly impact on
the operations. People prefer such hotels for their corporate meetings, refreshment trips or
casual outings (Carraher, 2018). This brings an advantage for the hotel to meet the
satisfaction of the guests. Apart from that, price range can be negative point for the
Marriott International.
 Technological factor: This factor have positive effect on the hotel as it brings
opportunity to expand the services under more technological advancement. The hotel
offers digital check-in and out facilities, online booking and collecting further
information, etc.
 Environmental factor: As Marriott International run their business in hospitality
industry it is essential for them to follow ethical and sustainability act that lead company
effectively towards responsible organisation in the society. Apart from that, it also
includes sudden climate change, flood, increase in pollution that affect the consumer
behaviour towards the company (Madar, 2017).
 Legal factors: Marriott International is responsible to follow all the laws and legislation
developed by the country regarding employees, environment, taxes, etc. This make
positive impact on the brand image and enhance the goodwill. Other than that, the
company strictly implemented all the necessary laws in the industry that ensure that they
are treating the employees fair and operating the business as per the government
regulations.
SWOT analysis
Strength
1.1. Proactive and innovative-Proactive and innovative- The hotel is one of the most innovative hotels ranked as per
Forbes. Marriott International is centred on innovation (Mak and Chang, 2019). Their
strength is that they stay proactive and innovative and attempt various way to find how
they can enhance consumer experience.
2. Top position in competitive landscape-Top position in competitive landscape- It is the largest hospitality industry across the
world in terms of value sales worldwide. Marriott International has the largest number of
rooms at global level. The company have strength of taking advantage of growing

demand of luxury accommodation with overall capacity of 117000 rooms. Along with it,
it has 8.4% of market share worldwide.
Weakness
1.1. Lack of low cost lifestyle brand-Lack of low cost lifestyle brand- This is the biggest weakness of Marriott International
that they do not have a low-cost lifestyle brand in their products and services portfolio
(Page, 2015).
2. High attrition rate in employees-High attrition rate in employees- It has been analysed that, in compare to other
organisation, Marriott International has high attrition rate as they spend a lot on training
and development of the staff.
Opportunities
1.1. Lower Inflation rate-Lower Inflation rate- Low inflation rate in UK brings more stability in the UK market
that enable credit at lower interest rate to the consumers of the hotel. This is a great
opportunity for the company to expand their products and services and try to operate in
new marketplace.
2. New Technology-New Technology- New technologies give an opportunity to the business to practices
differentiated their strategy of pricing in the new market. This also enable company to
maintain loyal guests by providing great services (Page, 2015). Various technologies in
the industry help the company to beat the competition and attract consumers.
Threats
1.1. Intense competition-Intense competition- there is a strong competition of Hilton Hotel for Marriott
International. The competition in the marketplace enhance by stable profitability in the
industry that put pressure on the profitability of Marriott International and on the overall
sales (Mak and Chang, 2019).
2. Currency fluctuation-Currency fluctuation- as the hotel operates in various countries and exposed to fluctuation
in currency in number of markets appears as a threat for the hotel that affect the consumer
behaviour and sales of the company. This also affect the regular operation in the industry
and technological implementation.
Porter's five forces
 Bargaining power of buyers-Bargaining power of buyers- The bargaining power of Marriott International is high as
the hotel is based on luxury services and have high competition that means the consumer
base is also high (Madar, 2017). As the bargaining power of the consumers is high they