Hospitality Management Stimulations

This report provides a situational analysis of Marriott International, focusing on PESTLE Analysis and Porter's Five Forces Analysis. It examines the external factors affecting the hotel industry and evaluates the competitive environment. The report concludes that Marriott International has a strong competitive advantage and financial hold in the market.

Running head: HOSPITALITY MANAGEMENT STIMULATIONS
Hospitality Management Stimulations
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Table of Contents
Introduction................................................................................................................................2
Overview of the Organisation....................................................................................................2
PESTLE Analysis.......................................................................................................................2
Porter’s Five Forces Analysis....................................................................................................5
Conclusion..................................................................................................................................7
References..................................................................................................................................9
Appendices...............................................................................................................................11
Appendix 1...........................................................................................................................11

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Introduction
As opined by Bernanke et al., (2018), the strategic, as well as the tactical decisions,
are considered to be the medium-term decisions of a productive business organisation that is
usually known to last for a period ranging between six months and one year. The strategic
choices help a firm to take up its financial as well as economic decisions. However, the
current situation of the business organisation is determined to maintain the same in fostering
its strategical plans and processes. In this connection, the given report is predominantly
focused on determining the current situational analysis of the hotel chain named Hotel
Marriot International.
Overview of the Organisation
Marriott International is considered to be an American diversified hospitality sector
(Salvioni, 2016). It is known to manage as well as franchise the broad portfolio of hotels and
lodging-related facilities. The same is known to be founded by Sir J. Willard Marriott and is
headquartered in the region of Maryland, the United States. It is recorded to be one of the
largest, most excellent as well as the most prominent operators amongst the hotel industry. At
present, Marriott International is known to operate across 4200 number of hotels widespread
in around 79 number of counties and territories (Shekhar, 2016). The company had known to
be ranked on the 33rd position in the year of 2017 in the list of hundred best companies to
work for. In this connection, the given report is focused on undermining the current situation
of Marriott International with the help of connecting the same with the theories of PESTLE
Analysis and Porter’s Five Forces Analysis.

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PESTLE Analysis
PESTLE Analysis is termed to that strategic business tool, which helps in
understanding the external factors that affect the working environment of any business firm
(Sadgrove, 2016). The major PESTLE factors affecting the concerned hotel industry in the
report are discussed below.
Political
 The undulation effect caused due to the travel ban had recorded to create a massive
loss in the financial considerations of the company (Das, 2018). This is so because the
tourist visits from all across the world had decreased and the sales of the company
have been affected.
 The statement made by the anti-immigrants had affected the operational department
of the firm as well as the franchising sector of the hotel.
 The expansion of the wall along the significant border of the Mexican region had also
affected the target market segmentation of Marriott International.
Economic

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 The frequent fluctuations in the currency of the nation's Marriott operate in have
known to affect the tourism department of the hotel industry.
 The intense competition in the airline industry had been recorded to affect the sales
condition of the company in an adverse manner (Tidd & Bessant, 2018). This
situation took place because the tourists travel mainly via the airline when visiting the
concerned hotel industry all across the globe and the fluctuation in the fleet rate
because of the profound level of competition in the airline business industry affected
the economic conditions of the Marriott International.
Social
 The threat of terrorism in some regions where the concerned hotel industry of
Marriott International has expanded its business and operating in the same. This
turned out to be a negative side for the business of Marriott.
 The increase in the level of consumer spending is continuously helping the company
to increase its sales condition as well as the financial position (Groves et al., 2016).
 The different areas and regions where the company operates allow the company to
have various skilled and talented workforce based on the diverse educational
background of the individuals of the society.
 The experiential travel of the tourists from all across the world as well as the
localities.
 The activities related to the value proposition and the lighting up of the experiences
received by the guests in the concern that they make repeated visits to the concerned
hotel industry (Bowie et al., 2016).
Technological
 The synergy of innovation that would drive the company towards successful steps of
achieving an effective level of competitive advantage (Huda et al., 2019).

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Legal
 The achievement of the standardisation in the face concerning the legal compliances
(Mamic, 2017).
 The legal laws considering the heath and the safety regulations of the society.
 The laws and norms of employee safety.
Environmental
 The integration of the various norms related to government intervention in the
hospitality industry (Wray, 2015).
 The simultaneous increase in the choice and preference of the customers with regards
to the synergy of sustainable hospitality.
 The government regulations towards the protection of the natural environment and its
resources.
Porter’s Five Forces Analysis
As stated by Teece (2018), Porter’s Five Forces Analysis is determined as the
framework that helps in the examination of the competitive environment prevailing in the
current business market for any business organisation. In this connection, the analysis of
Porter’s Five Forces for the hotel industry of Marriott International is specified as below.
The bargaining power of the buyers
The power of the buyers in the hotel industry of Marriott International is determined
to be at a moderate scale (Ouyang, Wei & Chi, 2019). This is so because the players in the
concerned market are known to frequently offer ways that reduce the bargaining power of the
buyers. In the industry concerned with the global hotel as well as the motel industry, the
business firm has to have its name flourished as a firmly recognised brand. This recognition

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in the reliable brand of Marriott has helped it gain lots of customers and competitive
advantage.
The bargaining power of the suppliers
The supplier power in the hotel industry of Marriott is also considered to be at a
moderate level because of the circumstances that are known to create advantages for the
suppliers connected to Marriott. This is because the concerned hotel industry is considered to
be highly labour intensive, and therefore, the company gets higher power to bargain from
their suppliers and vice-versa (Bernard, 2017).
The threat of the New Entrants
As examined with the help of the study that the hotel industry of Marriott is known to
experience a high and substantial degree of growth in the business market over the last few
financial years, the ideology of new entrants coming up in the market becomes very likely as
unique individuals get attracted to the business. As opined by Benckendorff, Xiang &

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Sheldon, (2019), the hotel industry is profoundly influenced by the synergy of tourism as well
as trends of travel. This, in turn, creates more significant opportunities for potential
competitors to enter the market.
The threat of the Substitutes
The survival of the substitutes that exist outside the realm of the boundaries connected
to the hospitality industry have chances to increase the switching of the customers due to the
alternatives available in the market (McDonald & Wilson, 2016). The superior substitutes for
the industry of Marriott are the different types of lodging hotels and the RV's camping. Thus,
the threat of the substitutes exists in the concerned sector from the hotels who have
substantial brand equity.
The degree of rivalry
The level of rivalry connected to the industry of Marriott is considered to be at the
moderate level because if it’s strength in the financial as well as the logistical factors (Hanson
et al., 2016). The same is considered to be an independent company in the current market of
the hotel industry. Thus, it can be stated that Marriott industry has a higher level of
competitive advantage as compared to its competitors.
Conclusion
Given the research based on the current situation of the hotel industry of Marriott
International, the findings show that the company stands a higher paradigm as compared to
its peer competitors. Not only this, but the company also has a better level of competitive
advantage as well as substantial financial and economic hold in the business market of the
hotel industry. Moreover, the report came up with the outcomes that the degree of rivalry for
the hotel industry of Marriott is at a moderate level because of the strength the company has
in its logical factors.

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References
Benckendorff, P. J., Xiang, Z., & Sheldon, P. J. (2019). Tourism information technology.
Cabi.
Bernanke, B. S., Laubach, T., Mishkin, F. S., & Posen, A. S. (2018). Inflation targeting:
lessons from international experience. Princeton University Press.
Bernard, H. R. (2017). Research methods in anthropology: Qualitative and quantitative
approaches. Rowman & Littlefield.
Bowie, D., Buttle, F., Brookes, M., & Mariussen, A. (2016). Hospitality marketing.
Routledge.
Das, P. (2018). Economic Crimes and Companies of East India. Available at SSRN 3368216.
Groves, P., Kayyali, B., Knott, D., & Kuiken, S. V. (2016). The'big data revolution in
healthcare: Accelerating value and innovation.
Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management:
Competitiveness and globalisation. Cengage AU.
Huda, M., Qodriah, S. L., Rismayadi, B., Hananto, A., Kardiyati, E. N., Ruskam, A., & Nasir,
B. M. (2019). Towards Cooperative with Competitive Alliance: Insights into
Performance Value in Social Entrepreneurship. In Creating Business Value and
Competitive Advantage with Social Entrepreneurship (pp. 294-317). IGI Global.
Mamic, I. (2017). Implementing codes of conduct: How businesses manage social
performance in global supply chains. Routledge.
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them how to profit
from them. John Wiley & Sons.

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Ouyang, Z., Wei, W., & Chi, C. G. (2019). Environment management in the hotel industry:
does institutional environment matter?. International Journal of Hospitality
Management, 77, 353-364.
Sadgrove, K. (2016). The complete guide to business risk management. Routledge.
Salvioni, D. (2016). Hotel Chains and the Sharing Economy in Global
Tourism. SYMPHONYA Emerging Issues in Management, (1).
Shekhar, S. (2016). Managing the reality of virtual organisations. Springer India.
Teece, D. J. (2018). Dynamic capabilities as (workable) management systems
theory. Journal of Management & Organization, 24(3), 359-368.
Tidd, J., & Bessant, J. R. (2018). Managing innovation: integrating technological, market
and organisational change. John Wiley & Sons.
Wray, M. (2015). Drivers of change in regional tourism governance: A case analysis of the
influence of the New South Wales Government, Australia, 2007–2013. Journal of
Sustainable Tourism, 23(7), 990-1010.

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Appendices
Appendix 1
Figure 1: Showing Annual Report (2017) – Marriott International Inc.