International Hospitality Management: Strategies and Analysis

This report discusses international hospitality management in the context of Marriott hotel. It covers topics such as SWOT analysis, PEST analysis, and Porter's five forces. The report explores the strategies and analysis of international hospitality management.

International Hospitality
Management project

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BOODY...............................................................................................................................1
TASK 1............................................................................................................................................1
SWOT Analysis...........................................................................................................................1
TASK 3............................................................................................................................................3
Strategy........................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International hospitality management term is mainly used to businesses or companies
which works under the international hospitality industry. Currently there are many businesses
exists in the market place of the United Kingdom which runs their business operations
internationally. Basically, upper management of a hospitality have to put its huge efforts for
running its different business operations in a channelized form, because when a company runs its
business operations properly, then it can simply gain extra-ordinary outcomes in marker place.
Upper management of a company currently has many effective strategies and tools which it can
be used for successfully running own business operations under the international hospitality
management (Rahimi and Gunlu, 2016). This report discusses international hospitality
management topic in the context of Marriott hotel. Basically, Marriot is a multinational America
hospitality venture which currently serves in many countries including United Kingdom. The
international headquarter of this hotel business is situated in Bethesda, Maryland. This report
covers background of international hotel sector. Some key frameworks and tools also have been
used in this report, like; SWOT analysis, PEST analysis, Porter’s five forces, etc. for knowing
about factors which can affect Marriott in both ways positively and negatively.
MAIN BOODY
TASK 1
SWOT Analysis
Strength-
Marriot is a multinational organization which provide its services in various geographic
location and because of which it is able to achieve high economic growth and thus has managed
to achieve high customer count. Due to this high global presence company is able to achieve a
strong economic growth and because of which it is able to increase the chances for goal
achievement (Pratiwi and Sudiarta, 2019). Marriot is one of the largest hotel chain across the
globe and because of which it has more than 81 hotels and more than 30 brands through this high
market leadership company is able to reduce the chances of brand switching for its customers
through which it is able to concentrate its efforts in attracting new customers by which it can
increase the chances for increasing its customer count. With that Marriot also develop strategic
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partnership by which it is able to develop proper collaboration through which it can provide high
level of working outputs to its customers and is also able to implement customer sharing and also
at the same time organize employee tours at other organization by which it can provide a better
understanding to employees by motivating them to learn new skills. With high level of customer
loyalty company make sure that it is able to implement technological innovations through which
it can provide new and rare products and services to its customers.
Weakness-
Marriot provide its services all across the globe but company fails to develop high level
of brand awareness and due to which its organizational sales are limited and also company’s
advertisement is ineffective to reach wide range of customers because of which its customer
count is limited. With that company’s working is affected in a negative way during the time of
COVID-19 in which travelling is reduced and thus customer count is also reduced. During the
events of Brexit company’s working procedure is also affected because customer travelling is
affected and thus company has to increase its pricing by which it has made a negative impact on
company’s economical growth because customer engagement is also reduced (TAKACS and
VADUVA, 2017). In the present times of COVID-19 when governments all across the globe are
forced to implement lock down this company’s economical growth is affected in a negative way
because customer count is reduced and with that it also has to implement different creative
customer attraction approaches for regaining and increasing customer’s engagement with the
company. This reduction in pricing and high expenditures have increased organizational
expenditures and company has to reduce its profit margin by which its economical growth it
affected. Marriot’s limited engagement in social media advertisement is also affecting the spread
of brand awareness because company mostly uses traditional ways of marketing which costly
and also is not much effective as compared to digital marketing.
Opportunity-
During the events of COVID-19 when tourism and hotel industry is affected at a global
level because of which Marriot’s efforts of implementing creative working processes is
increasing the chances of improvement in organizational sales and increment in customer count
because Marriot is one of the biggest hotel chain and cost reduction offers will motivate
customers to increase their involvement with the company (Ahmad and et.al, 2017). Company
can also advertise itself through the means of internet and digital marketing by which it can
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increase the effectiveness of its advertisement which will enable organization to improve and
analyse its impact on targeted market customer by which it can increase the chances of goal
achievement. Marriot can also use its good economic background for increasing its reach in
other geographic location by which it increase its appearance and thus increase its customer
count by which chances for goal achievement can be increased because high sales are increased.
Threat-
There are a lot of threats which are present in the market in the hospitality industry since this
is a very competitive industry which is present. There are small hotels which are present in
Ireland. This is a very tourist attractive location which Marriott is expanding into therefore the
competition is going to be very high and that is going to make the profitability and sales of the
organisation be limited and not as expected (Nikadimovs and et.al., 2017). There are already a
lot of small hotels which are present in Ireland since it is a tourist destination Which is a great
threat for the company since they will have to get in a lot of change is an improvement for which
there is going to be a lot of investment which would be required.
TASK 2
PEST Analysis
It is very important for the company to be able to analyse the external and internal factors
before making decisions so that the company will be able to operate effectively in the market
which is going to be good for the overall development of the company. The external factors are
not in control of the company but they have to plan accordingly so that the organization will be
able to operate effectively and not have troubles to expand themselves. The following report is
going to discuss Morrison’s external factors in expanding into Ireland effectively.
 Political factors
The political factors of Ireland a very stable and that makes the policies and trade laws are
going to remain almost the same which is look very positive factor. The company will have to
make sure that they are following the laws of customers and employees for making the brand
reputation increase in the country and having loyalty of the customers in the organisation. It is
very important for the organisation to make sure that they are following the right employment
laws as well because employees are the backbone of the organisation and in an hospitality
industry they are going to be very effective for the company to have a higher brand reputation in
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the market (dos Santos and Wada, 2018). There are a lot of customer related policies which have
come up and they have to be addressed effectively so that there is going to be higher competitive
advantage which is present in the organisation. Comfort level of the travellers and wearing them
off the policies which are present in the country is very important since the island laws and
regulations are very different from the other countries. Morrison hotel will have to make sure
that the customers are very much aware of the policies and their behaviour which is going to be
present in the country during their stay.
 Economic factors
The economic factor is very stable off Marriott hotels therefore it is going to be very easy for
the company to be able to expand in Ireland. The company is also having a lot of experience and
the right skills and techniques to be able to make these factors come into practical making the
company have a higher competitive advantage. There is a lot of investment which is going to be
required by Marriott since they have a standard and reputation which they have set for
themselves. The lifestyle and the climate of the customers is also shifting and improving daily
because the GDP an unemployment rates are being worked upon by the government. There is a
lot of improvement in the economic factor which Morrison hotel can get by expanding
themselves in Ireland since they would have more tourists and less of locals which are going to
come (Prashanti, 2018). The company will have to improve their standards and more of they will
have to train their employees in different languages and making sure that the customers would
feel more comfortable in the organisation.
 Social factor
It is very important to match the standards of the customers in the organisation so that there
is going to be a higher loyalty and trust of the customers which is going to be present. it is very
important for the travelers to feel comfortable in the hotel therefore there are a lot of changes an
improvement which Morrison hotel will have to get in for making sure that the customers are
having a pleasant stay. The employees will also have to be given wages and physical motivation
since they are the backbone and create the impression after industry on the customers. For the
brand reputation value and portfolio to be improved in the market the employees will have to be
trained according to the standards which the organisation is setting for they which would make
the customers have a better experience (Hutchindon, 2020). The customers are going to be
coming from all around the world therefore there have to be translators which Morrison will
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need to provide to the customers or at least have the right employees to make sure that they know
different languages to interact with the customers effectively making the brand reputation
increase.
 Technology factor
There are a lot of technological changes which are coming in the market Anne especially in
the hospitality industry which is very important for Marriott to adopt then so that there is going
to be a higher competitive advantage. the company will have to make sure that they have the
right trained employees in the organisation to make sure that this factor is being followed.
Technology has made the check in and checkout of the customers and satisfaction level has been
improved over the years which are making the company have a higher reputation in the market.
There are chances of fewer errors which are taking place in the company making the
sustainability of the company improved and have higher operations as well. The employees are
motivated from time to time so that they can adapt and put in their best to make sure that the
changes are coming in the organisation effectively (Kallmuenzer, 2018). Employees have to be
trained and developed so that the investment which Morrison hotel is getting in the hotel are
going to be adapted and used effectively so that the company can gay from these factors and not
have more losses.
TASK 3
Strategy
The upper management of Marriott hotel have to adopt different appropriate business
strategies in the market place for gaining better outcomes. For example; hotel’s upper
management can adopt porter’s five forces strategy in own workplace for systematically dealing
with the factors of emerging market place, named; Ireland. Basically, this tool is currently very
helpful to different companies or businesses for gaining very effective outcomes in market place.
Day to day competition is increasing, so this strategy will help to Marriott for gaining better
outcomes in competitive market place. The strategy of Porter’s five forces has been used below
for entering in the new marker place to earn huge profit margins.
Porter’s Five Forces
This is one of the best strategies or tools to a company for knowing competition of its
respective industry. Currently many ventures gain very appropriate outcomes in market place
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with the support of Porter’s five forces (Shakerian, Dehnavi and Shateri, 2016). This strategy
was first developed by Michael Porter in year 1980’s for enabling different ventures to gain huge
competitive advantage in the market place. This tool generally indicates five major factors of the
market place which each business has to be considered in the terms of gaining huge profit,
bargaining power of suppliers, bargaining power of customers, threat of substitute product,
competition in the industry and threat of new entrant. In this situation, upper management at
Marriott has highly required to consider these all factors in own workplace in order to gain better
results in its new emerging market place Ireland. Of course, this hotel business has already
expanded its business operations in this country, but not at the large scale, so hotel’s
management have to choose some more market segments of Ireland in order to boost its
organisational growth in market place. All five forces and their impact on Marriott has been
discussed below;
Bargaining power of customers
Currently the bargaining power of customers in the hospitality industry is very higher,
because there are thousands of hotels simply available in marker place which they can choose for
the hospitality services. In this situation, upper management at Marriott hotel is highly required
to consider this factor. Generally, when competition within an industry is very higher, then local
people has many choices of business to buy a product or service, in which currently there are
many demotic and international hotel businesses already runs their business operations in this
country in the terms of gaining profit (Istoroyekti, 2019). So, local people can simply fulfil their
needs of hospitality services due to having thousands of hotel ventures within the Ireland. In this
situation, upper management have to take steps for attracting lots of people towards own brand,
otherwise, it will not gain proper results in the new market place. On the other side, customers
give higher priority to such ventures which timely fulfils the obligation of CSR in market place.
Basically, CSR (corporate social responsibility) is the most productive way to a venture for
working in the welfare of people or society. In this situation, upper management of Marriott have
to fulfil its corporate social responsibility obligation in order to properly deal with the impact of
first porter’s force.
Bargaining power of suppliers
Currently the bargaining power of suppliers is also very higher, because there are number
of hospitality businesses is higher in the comparison of suppliers in Ireland. In this situation,
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currently many of hotel businesses in this country are facing the challenge of shortage of raw-
material. This factor can negatively affect the Marriott hotel if it will not maintain an effective
relationship with existing suppliers. Basically, supplier is the key stakeholder to a business who
provides different raw-material and necessary goods to run own business operations smoothly in
the selected market place, so when Marriott’s upper management maintain very effective
relationship with existing suppliers of Ireland, then it can simply gain necessary raw-materials
from suppliers on time in the market place. After gaining raw-materials from suppliers on time,
this hotel will be able to prepare its different dishes timely to customers. After considering these
all mentioned factors, upper management of Marriott hotel can simply gain huge profit margins
in the market (Baggio and Mariani, 2019). There are many other hotel businesses of this country
also tries to maintain an effective relationship with suppliers in Ireland’s hospitality industry, in
which upper management at Marriott also need to find out those suppliers which can provide or
deliver different ordered goods or items to ventures on time. These aspects will help to hotel for
running its business operations in Ireland in that condition as well when existing suppliers’
bargaining power is higher.
Threat of substitute product
Threat of new entrants is another major factor under the porter’s five forces, in which the
hotel has to consider these factors as well, because threat of substitute product also can affect
venture in both ways, positively and negatively. According to current hospitality circumstances
of Ireland’s hospitality industry, there is threat of substitute product is not higher for a hotel
business, it means this threat will low when Marriott will expand its business operations in this
country. Basically, there is no service available in market place which can compete with
hospitality services, and this is the main reason that factor relating to threat of substitute product
is low (Pham and et.al., 2020). In this modern world, many of hotels are trying to day or day
improving levels of hospitality services in market, and this is aspect can influence to different
customers for always buying hospitality services in the market place. Top-level management of
Marriott hotel have to systematically manage impact of existing factor of porter’s strategy in
order to successful enter in the new market segments of Ireland.
Competition in the industry
Currently there is huge competition in the hospitality industry of Ireland, because this is
the attractive location to many tourists and traveller of the world, in which many international
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hospitality ventures like to invest in this country for gaining huge profit margins. For example;
currently Hilton and Radisson hotels has succeeded in establishing their hotel business
operations in this country, and these ventures can give very tough competition to Marriott hotel
venture when it will more expand its business in the hospitality market of Ireland (Griffin, 2020).
In this situation, upper management of hotels have to be some active in the terms of adopting and
implementing different strategies of business within its workplace. Basically, this hotel can adopt
the market development, product development, diversification, competitive pricing, digital
marketing etc. strategies within its workplace in order to fight against different competitors of
market place in Ireland.
Threat of new entrants
Threat of entrants will low for Marriott hotel, when this business will enter in market
segments of Ireland, because Marriott is very established hotel business, and currently has a large
base of loyal customers. On the other side, currently the whole world is facing lots of challenges
due to corona virus pandemic, and this pandemic has badly affected to the international
hospitality venture, in which a person can think before starting a new venture as hotel right now.
Current hospitality industry is very risky for those entrepreneurs or people who are planning to
enter in this industry by opening a hotel business (Fissi, Romolini and Gori, 2020). That’s why
this Porter’s last force will low to Marriot when it will expand own business operations in market
place.
Justification of strategy
All five forces of Porter strategy have been mentioned above, and the management of
hotel has highly required to consider these all forces while entering in new market segments of
Ireland. Basically, when hotel use this tool or framework, then then it can simply gain huge
competitive advantage in new market place. According to this strategy, the management of hotel
will mainly require to focus on attracting different customers by providing quality products and
services in this market place. This is the only way to gain an excellent profit margin in new
market segment.
Practical application of strategy (5 and 10 years ahead)
Practical application of strategy is also a very necessary task to the management of
Marriott hotel, in which upper management firstly have to adopt this strategy, and then it needs
to implement strategy according to existing conditions of Ireland’s hospitality industry (Ling and
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et.al., 2018). Basically, marketing team of company will also need to be very active in the terms
of using porter’s five forces while entering in new market segment to gain huge competitive
advantage.
CONCLUSION
It can be concluded that upper management of each business have to use different
frameworks of market analysis. Basically, when any business analyses different market
conditions, then it will be able to make business strategies accordingly. Currently Marriott hotel
is very reputed hotel brand in across the world, but upper management of this business also need
to use various frameworks for analysing its key factors. It can be also concluded that SWOT
analysis is very excellent tool to business for identifying its major internal factors, PEST will
help in analysing macro factors, and the Porter’s five forces strategy will help in gaining huge
competitive advantage in the selected market place. Upper management of Marriott have to
systematically employ these all strategies or tools within its workplace, because these will be
able to venture for gaining better results in the future.
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REFERENCES
Books & Journals
Ahmad, F. and et.al, 2017. SWOT Analysis of Arbitration Awards in Indian Construction
Contracts. International Journal of Civil Engineering and Technology. 8(3).
Baggio, R. and Mariani, M., 2019. The relevance of mixed methods for network analysis in
tourism and hospitality research. International Journal of Contemporary Hospitality
Management.
dos Santos, A.F.L. and Wada, E.K., 2018. Higher education in tourism and hospitality
management: a competitiveness factor for tourism destinations?. Marketing & Tourism
Review. 3(1).
Fissi, S., Romolini, A. and Gori, E., 2020. Building a business model for a new form of
hospitality: the albergo diffuso. International Journal of Contemporary Hospitality
Management.
Griffin, W. C., 2020. Perceptions of Hospitality Industry Professionals and Hospitality Faculty
on Industry-Academia Collaborations. Journal of Hospitality & Tourism Education.
pp.1-12.
Hutchindon, H., 2020. A new perspective on the soft skills hospitality management students need
to be successful in the hospitality industry: Meeting the gold standard and the Soft
Skills Index.
Istoroyekti, Y. M., 2019. Sexual harassment in the hospitality industry. Eastern African Journal
of Hospitality, Leisure and Tourism. 6(1). pp.44-59.
Kallmuenzer, A., 2018. Exploring drivers of innovation in hospitality family firms. International
Journal of Contemporary Hospitality Management.
Ling, F. Y. Y., and et.al., 2018. Human resource management practices to improve project
managers’ job satisfaction. Engineering, Construction and Architectural Management.
Nikadimovs, O and et.al., 2017. Key competencies of managerial level employees for
sustainability in hospitality business. Economics & Education. (2). pp.23-34.
Pham, N.T., and et.al., 2020. The role of green human resource management in driving hotel’s
environmental performance: Interaction and mediation analysis. International Journal
of Hospitality Management. 88. p.102392.
Prashanti, J., 2018. Hospitality management institutes-the skills training industry
perspective. Journal of Services Research. 18(2).
Pratiwi, N.P.L. and Sudiarta, M., 2019. ALTERNATIVE MARKETING STRATEGIES FOR
LOW SEASON PERIOD AT COURTYARD BY MARRIOTT BALI SEMINYAK
RESORT. Journal of Applied Sciences in Travel and Hospitality. 2(2). pp.109-119.
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Rahimi, R. and Gunlu, E., 2016. Implementing Customer Relationship Management (CRM) in
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Shakerian, H., Dehnavi, H. D. and Shateri, F., 2016. A framework for the implementation of
knowledge management in supply chain management. Procedia-Social and Behavioral
Sciences. 230. pp.176-183.
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TAKACS, J. and VADUVA, S.A., 2017. A swot analysis of the global hospitality
industry. Revista Economica. 69(6).
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