Analysis of Communication Problems at Marriott Hotel: A Report

This report presents a detailed analysis of communication problems within Marriott Hotels, a global leader in the hospitality industry. It begins with an executive summary and an overview of the company, highlighting its history, brands, and market position. The core of the report focuses on the business case for addressing poor communication, emphasizing its negative impact on customer service, employee motivation, and overall organizational performance. The report then delves into the internal and external environments, employing Porter's Five Forces model and a SWOT analysis to assess the competitive landscape and Marriott's strengths, weaknesses, opportunities, and threats. The report provides interim recommendations, including research and innovation strategies, along with an organizational analysis that covers transformation and change management, impact of change, stakeholders, environmental uncertainty, and evaluation of change processes. The report concludes with final recommendations and references to support the findings.

Executive Summary
Introduction – Company Overview
Marriott Hotels is considered as an international’s flagship brand of full service resorts and
hotels. It is a branch of Marriott international Inc. which is an American multinational hospitality
organization that manages large number of hotels and related lodging facilities. In this paper we
will study about the poor communication problem which has been faced by the organization for a
long time. Poor communication influences the overall customer service of the organization. So, it
is necessary to plan an efficient business structure to solve the problem in an efficient manner.
The organization was established by Willard Marriott in 1927 and now it led by his son, Bill
Marriott and Chief Executive Officer Arne Sorenson. Headquarter of the organization is situated
in Bethesda Maryland in the Washington, DC metropolitan area. The organization started its first
hotel, the Twin Bridges Marriott Motor Hotel, in Arlington, Virginia, in 1957. After that the
organization achieved lots of success in its future. Due to the high success it is listed in Forbes.
Marriott Hotel is consider the first hotel chain which offer food that is completely free of Trans
fats. Due to this it become the most famous hotel and able to attract large number of customers.
In April 1995, it acquired a 49% interest in Ritz-Carlton Hotel Company. This expand the
services and customers of the organization in a significant manner. Marriott believed that it can
enhance the profit and sales margins of the Ritz Carlton. It takes various initiatives to improve
the condition of Ritz Carlton and gain high profit by offering latest customer services. Now it is
operating more than 30 brands globally such as classic luxury, Distinctive luxury, Classic
premium, and distinctive premium, classic select and distinctive select. All these brands enable
the organization to operate the business successfully in the global market. High quality of
services enables the organization to earn high profit and satisfy large number of customers. Till
September, the organization operating more than hotels and resorts under the Marriott brand. It
also establish various loyalty programs which are known as Marriott Rewards. The quality of
services offered by the Marriott Hotel, create its brand image in the mind of customers.
Business Case
Communication play an important role in the success of the organization. Lack of
communication influences the overall work performance of the organization and not able to offer
good service to its target customers. Marriott Hotel faces lots of issues related to the poor
communication. Effective communication between the one department and the other department
makes the organization capable of dealing with the existing competition. Poor communication is
considered a big problem in the organization. Proper communication is required in every
organization whether it is a small business firm or large. Presence of healthy communication
between the departments enable the organization in developing long term relationship with its
clients and target customers. Healthy communication also enhance the motivation level of
different staff members with which they perform their functions in an efficient manner. One
most important benefit of the healthy communication is improved relationships. All the things go
smoothly when all activities are on track. Communication is a big problem which is faced by the
Marriott Hotel. If good communication is presence in the organization, then it will be easy for

the management to maintain the time horizon at the workplace. Effective communication help
the organization in maintaining its own time and also enables the staff in managing their work
deadlines. If proper communication system is followed in the organization then staff of the
organization also feel important in the organization. This will enhance the motivation level of
staff, and their involvement in their respective tasks. This will improve the customer service of
the organization and also cam attract a large number of customers. It is necessary for the
organization to satisfy its customers because in the absence of customer satisfaction, the growth
of the organization is not possible in the future time period. Due to the lack of the customer
service the organization loses its current customers as well as the future customers. This will also
impact the reputation of the organization at the marketplace.
Internal and External Environment
2.1.1 Structural Dimensions
2.1.2 Contingency Factors
2.1.3 Porter’s 5 Forces
Marriott Hotel is considered as a global market leader that has shown continuing signs of
dominance and prosperity in its industry. Porter five forces model is an efficient tool of
measuring the external environment of an organization. It is combination of five forces that shall
be evaluated is comprised of supplier power, threat of substitutes, buyer power, degree of rivalry,
and threat of new entrants.
Buyer Power
The buyer power in this industry is considered moderate. It is because the major players of the
industry are continuously offering ways to reduce it. The primary strength for the hotel industry
is its brand recognition in the existing marketplace. A strong brand recognition in the market not
only aids in attracting large number of customers, but it also entails repeat business activities
since switching costs can be trifling in the industry. Price competition alone is not considered a
good stimulator of this force but innovation also play an important role. Different organizations
are always trying innovative ideas to capture large number of customers, ranging from the
middle class to the premium segment. For existing organizations in the industry the influence of
losing a customer is not such a considerable threat. They can retain their customers through
developing innovative strategies.
Supplier Power
Supplier power in the hospitality industry is considered moderate. It is because of the
circumstances that build and create different benefits to suppliers. Suppliers in this sector are
comprised of a wide range of positions such as developers, architects, property owners, and real
estate companies. The degree of quality and accessibility is considered the important part of
supplier’s services and equipment.
Threat of New Entrants

Hotel industry has experienced a continuous growth over the past few years. Due to the high
growth opportunities, large number of entrants will be attracted. The industry is highly
influenced by the travel and tourism trends which create prime opportunities for competitors to
enter into the market. The threat from new entrants is considered strong in the Asia-Pacific
region. It is because the number of tourists in Asia-Pacific region continuously grow.
Threat of Substitute
Existence of substitute services outside the industry boundaries may enhance the chances of
customers switching to alternatives. Substitutes for the hotel industry may include campaign,
lodging, and informal visits to family and friends. If these substitutes exist in the marketplace the
switching cost may be low. It is because the alternatives are not able to provide the same utility
as a hotel does.
Degree of Rivalry
The rivalry threat for this industry is considered moderate due to mostly logistical and financial
factors. The key players of the hotel industry are large branded chains. These makes the whole
industry very competitive. The large branded chains organization have a strong competitive
advantage by being able to utilize their higher level of profits to diversify into the other business
organizations. The nature of the competition is also affected by the fact that some tourists decide
on what competitor to choose based solely on brand.
2.1.4 SWOT Analysis
Strengths Weaknesses
 Strong brand recognition and recall in
the existing market.
 Technical innovations to improve
level of customer satisfaction and
constant upgrade of business
activities.
 Strong employee retention strategy
with a total workforce of 140,000.
 Broad portfolio of service brands from
attainable to aspirational.
 Strong financial position because of
the large number of debt.
 Global Presence
 High level competition from long
established hotel chains means limited
share market.
 High number of hotels and global
expansion may lead brand dilution.
 The organization is facing the state of
high debt
Opportunities Threats

 High potential growth in emerging
markets
 Large number of innovations in
customer services
 Well done renovations
 Different global hospitality sectors are
facing boom
 Entry of different international brands
 High level competition on price points
 Stagnated growth
 Availability of large number of hotels
in several areas create a high rate of
substitution for the customers.
 High rate of fluctuations due to the
high competition
 The issues, crisis, and factors of the
housing sector is the largest threat for
the organization
2.2 Interim Recommendation Research and Innovation
2.2.1 Literature Review
Organizational Analysis
4.1 Transformation and Change Management
4.2 Impact of change; the expected Five Forces Model post-implementation
4.3 Stakeholders
4.4 Environment uncertainty Analysis
4.5 Evaluation of change processes
Conclusions
References