Expansion of Marriott in Australia

Running head: EXPANSION OF MARRIOTT IN AUSTRALIA
EXPANSION OF MARRIOTT IN AUSTRALIA
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1EXPANSION OF MARRIOTT IN AUSTRALIA
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Background of the Organization- Marriott:...........................................................................2
PESTEL Analysis:.................................................................................................................7
Opportunities and Threats for Marriott:...............................................................................12
Industry Analysis- Porter’s Five Forces:..............................................................................13
Conclusion:..............................................................................................................................15

2EXPANSION OF MARRIOTT IN AUSTRALIA
Introduction
The strategic tool, which is used for the identification of internal as well as the
external factors that can influence performance of organizations, is known as Environmental
analysis (Moutinho and Phillips 2018). The factors reflects the assessment of the threats as
well as the opportunity of the organizations (Ansoff et al. 2019). The procedure of
environmental analysis consists of Environmental Scanning, which identifies the elements or
factors that affects the business operations of organizations (Grant 2016). The objective is to
find early warning signal and/or emerging trends (Keith 2017). The external environmental
analysis studies the analysis of the industry, competitor analysis and macro-environmental
forces. Macro environment forces concentrates on the future possibility of events (Glowik
2017). The purpose of the paper is to discuss the expansion possibility of Marriott in
Australia by conducting external environmental analysis. Marriott is planning to expand its
business to Australia, which will require the analysis of opportunities and threats in
Australian hospitality industry. The paper will also present the background information of
Marriott. For the identification of threats and opportunity of the organizations, external
analysis will be conducted by using the framework of PESTEL as well as the Porter’s
Industry Analysis. The paper will be concluded by stating the expansion possibility of
Marriott in Australia.
Discussion
Background of the Organization- Marriott:
The American multinational company Marriott, specializing in hospitality services
manages as well as it involves in franchising a wide range of hotels, lodge facilities and other
hospitality businesses. J. Willard Marriott founded the company in the year 1927. The

3EXPANSION OF MARRIOTT IN AUSTRALIA
headquarter of Marriott is situated in the metropolitan area of Washington, D.C. Marriott
offers includes around 6,900 properties in 130 countries (marriott.com 2019).
Marriott International was started in the year 1993 after the split of two different
companies, Host Marriott Corporation and Marriott International. The first ever hotel
organization, which offered the online service of booking hotel reservation is Marriott. The
organization incorporated the online infrastructure of Marriott's Automatic Reservation
System for Hotel Accommodations (MARSHA) (marriott.com 2019). The organization
acquired the hotel chain of Canada, Delta Hotels in the year 2015. Marriott also acquired
Starwood Hotels and Resorts Worldwide in the year 2015. The acquisition of Starwood
presented a wide presence in non-US regions (marriott.com 2019).
The core values of Marriott consists of various elements such as taking care of
employees/staff before taking care of consumers. The hotel brand focuses on improving the
service offerings for reaching as well as in maintaining the level of excellence. The brand
believes in incorporating innovation by accepting changes from external environment
(marriott.com 2019). The brand concentrates on challenging status quo of the operational
functions and identifies the changing needs for consumers in regards with new locations,
different guest experiences as well as new brands (Tso and Wood 2018). Integrity is one of
the main values of Marriott as well as the organization involves itself in legal and ethical
practices for day-to-day business activities, policies of supply chain, employee policies and
regulations, commitment towards social responsibilities as well as human rights as well as
setting standards for environmental practices. The organization also involves activities for
contributing towards sustainability (marriott.com 2019).
The mission of the organization is to improve lives of the customers by the creation of
supreme quality of vacation and leisure experience. The vision of Marriott is to become the