Internationalisation Strategy for UK Hospitality Industry: A Study on Marriott
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This research aims to determine the internationalisation strategy that would be used by an organisation for improving their business growth at global level. The report is focused on UK hospitality industry and Marriott. It includes literature review, research methodology, data analysis, and conclusion with recommendations.
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TO IDENTIFY THE INTERNATIONALISATION STRATEGY THAT WOULD BE USED BY UK HOSPITALITY INDUSTRY FOR IMPROVING THEIR BUSINESS GROWTH AT GLOBAL LEVEL 1
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ABSTRACT Purpose: The major purpose of this research is to determine the challenges faced by organisation in their internalisation strategy.The report is also providing impact of internationalisation on business functions within hospitality industry. Methodology: In this research various research methods were used in order to collect and analyse the research in desired manner. The current research is associated with qualitative research methods in which in-depth information can be collected. Results and findings: In this research the major findings are related with examination of issues faced by businesses in their process of internalisation. Besides this the research report also demonstrated that the impact of internalisation over business functions in positive and negative manner. 2
Table of Contents ABSTRACT....................................................................................................................................2 INTRODUCTION, AIMS AND OBJECTIVES............................................................................4 Introduction to the research topic...........................................................................................4 Introduction to the organisation..............................................................................................4 Research questions................................................................................................................5 Research aim.........................................................................................................................5 Research objectives...............................................................................................................5 Rationale of the research........................................................................................................5 Snapshots of methodology.....................................................................................................6 LITERATURE REVIEW...............................................................................................................7 What are the different types of internationalisation strategy used by UK hospitality industry? ................................................................................................................................................7 What is the effective internationalisation strategy that would be used by Marriott for its business expansion?...............................................................................................................9 What is the impact of internationalisation strategy for Marriott?........................................10 What are the challenges that Marriott could be faced for using specific internationalisation strategy?................................................................................................................................11 RESEARCH METHODOLOGY..................................................................................................13 DATA ANALYSIS AND DISCUSSION.....................................................................................16 CONCLUSION AND RECOMMENDATION.............................................................................22 Conclusion............................................................................................................................22 Recommendation..................................................................................................................24 REFERENCES.............................................................................................................................26 3
INTRODUCTION, AIMS AND OBJECTIVES Introduction to the research topic Internationalisation strategy is defined as the strategy which is used by the businesses in ordertoexpandtheirbusinessinvariousothernationsandglobalmarketterritory. Internationalisation is the practice of designing of goods and acquiring internal operations so that other market can also be adapted by the organisation(Magnani and Zucchella, 2018). These are the strategy which is used in order to expand business in other markets and to develop global existence as well. This process is used by the organisation when the business is tend to satisfy needs and demands of their consumer at different nations. These strategy can be used when the organisation is willing to expand beyond national boundaries so that to attract high customers and to make customer base at global level. These are multidimensional in nature and related with taking such decisions by which overall succession opportunities can be enhanced. These strategies are emphasised over selling the goods and product at international level and to set example for organisational competitors. In the current time internationalisation strategy has gained higher prominence due to emergence of global economies and due to increasing market flexibility. Internationalisation is a time taking process which is helping the business to grow at multidimensional manner so that long term business goals can be set and such efforts can be made in order to attain the same. The current research report is emphasised over examination of internationalisation strategies and their importance for the organisation in business expansion. There are multiple factors which are responsible for success or failure of internationalisation strategy and in this some are internal and some are external (Kaczmarek and Nyuur, 2021). The report is going to discuss various challenges which can be faced by the organisation when they use internationalisation strategy and expand their business at global market. Introduction to the organisation Marriott is a selected American multinational hotel that was founded in 1927 by J. Willard Marriott and Alice Marriott. Marriott is one of the powerful organisation which is having 30 brands in their business portfolio and having their business in more than 131 countries around the globe. The major principle of the organisation is to manage their culture in such a way that customers can be served in better manner. The company has their fundamental value which is to include equality and diversity at their workspace so that most precious inheritance can be 4
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maintained. The company is continuously making efforts in order to expandtheir business in various countries so that to cover all the global market and to earn market prominence as well. Research questions What are the different types ofinternationalisation strategy used by UK hospitality industry? What is the effective internationalisation strategy that would be used by Marriottfor its business expansion? What is the impact ofinternationalisation strategy for Marriott? What are the challenges that Marriott could be used for using specific internationalisation strategy? Research aim The aim of this research is “To determine theinternationalisation strategy that would be used by an organisation for improving their business growth at global level”: A study on Marriott Research objectives To determine the types ofinternationalisation strategy used by UK hospitality industry To identify the effective internationalisation strategy that would be used by Marriottfor its business expansion To evaluate the impact ofinternationalisation strategy for Marriott TodeterminethechallengesthatMarriottcouldbeusedforusingspecific internationalisation strategy Rationale of the research The rationale behind selecting this topic or research is to help Marriott in its business expansion.Thisresearchhelpsthembyprovidingaccurateinformationregardingthe internationalisation strategy(Braga, Marques and Serrasqueiro, 2018). Current research is essential by increasing their understanding regarding the suitable internationalisation strategy along with its importance in their business expansion. This research is also important for various stakeholders such as Marriott hotel, students and researcher. For students, this research helps them by increasing their knowledge about theinternationalisation strategy that would be used by an organisation for improving their business growth at global level. For the researcher, this research helps them by improving their various types of research skills such as data collection, 5
decision making, time management and many others. All these are main skills and helps an investigator in its personal along with professional development. For Marriott hotel, this research orstudyisessentialforthembyenhancingitsunderstandingabouttheeffective internationalisation strategy along with its significance in its business expansion. Snapshots of methodology Methodology is the process used by a researcher for gathering and evaluating accurate informationregardingaresearchtopic.Forcollectinginformationregardingthethe internationalisation strategy that would be used by an organisation for improving their business growth at global level, secondary research is used by an investigator (Nawaz, 2018).Within this research secondary sources of data collection are used. These sources are books, journals, articles, publication research etc. Along with this, there are also various methodologies that would be used by an investigator such as interpretivisim philosophy, inductive approach, qualitative secondary data etc. Thematic analysis is an analytical technique that is used by an investigator for evaluating qualitative secondary data within minimum time period. 6
LITERATURE REVIEW Literature review refers to the systematic process of gathering secondary data from available sources that are articles, publication research, books, journals, magazines and many others. Thesearemainsourcesthathelpsaninvestigatorincollectingsecondaryandin-depth information regarding the topic(Eduardsen and Marinova, 2020). The purpose of literature review is to find out research gap in existing research. In this research, main gap is that there was lack of information regarding theinternationalisation strategy that would be used by an organisation for improving their business growth at global level. In previous studies, there was lots of data available about the internationalisation strategy but there was lack of information regarding the role of internationalisation strategy in business expansion. This is a main gap and for addressing this, research questions are explained below; What are the different types ofinternationalisation strategy used by UK hospitality industry? As per the viewpoint ofTorkkeli and et. al., (2019),international strategy is a plan which is developed to run the business activities in international market. The International strategy mainlyrequiresdefininggoals,analysingtheinternationalmarket,studyingresources, understanding market dynamics and developing offerings. Through implementing international strategy, company can gain recognition and also consolidate management with economies of scale. Through implementing international strategy, UK hospitality industry can gain various benefits as it helps in increasing revenues, decrease competition also focuses on longer product lifespan. International strategies help in attracting more and more customer towards the brand and increase the market influence. By international strategy, companies can expand their business in oversee market and establish growing presence. It also helps in allowing businesses to grow, generate revenue and gain competitive advantage in market. In order to develop international strategy, it is important to set goals, identify product, research new markets, understand the competition, plan marketing strategy, plan international organisational structure, determine distribution strategy and assemble strategy document. International strategy helps in improving the business performance by targeting new market and increasing the penetration in existing market. There are mainly three types of internationalisation strategy which can be used by UK hospitality industry in order to run the business activities in effective and efficient manner such as multi-domestic, global and transnational strategy. 7
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Multi-domestic strategy: Multi-domestic strategy is one of the strategy which can be used by UK hospitality industry by investing in creating a strong presence in foreign market and fulfilling the needs and preference of local markets. Through adopting multi-domestic approach, hotels and restaurants can invest in various localities where they can actively market their products. In order to connect with consumers, organisation can use multi domestic strategy in order to create wide range of tactics for creating strong presence. UK hospitality industry can adopt this strategy and offer the services according to the customs, cultural traits and tradition of foreign market. Each country has different tradition and customs due to which it becomes difficult for company to attract the customer of foreign market. It is important for UK hospitality industry to take into account the foreigntradition,customsandculturaltraits.Byusingmulti-domesticbusinessstrategy, hospitality industry maintains their headquarters in the country of origin. They can also establish localised headquarters overseas so that they can easily manage the relations with foreign customers. Multi domestic strategy focuses on establishing a strong presence in market and also tailors the products to suit new markets. This strategy is mainly used by hospitality industry and food and beverages industry. Global strategy: Global strategy is another internationalisation strategy which can be used by UK hospitality industry in order to expand business. By adopting global strategy, company focuses on treating the world as one market and also leverages the economy of scale in order to generate revenue and increase reach. The global companies generally have central office and headquarters in their country of origins and also they focus on establishing their repartition in foreign markets. Through implementing global strategy, hospitality industry generates revenue potential and also diversifies their markets in order to create strong customer base. While adopting global strategy, hospitality industry treats each foreign market differently and also adapts their products and services to foreign market. For example, Marriott generally alter, add and remove the certain items from their menus in order to suit the needs of local markets. Transnational strategy: Transnational strategy is also an internationalisation strategy which focuses on combining the elements of global and multi-domestic strategies. The transnational strategy depicts that organisation operates their business activities from its headquarters in its country of origin and 8
also they focuses on expanding their business activities with full scale operations in foreign markets. Through implementing transnational strategy, hospitalityindustry can offer their products and services in multiple countries across the globe but they have to understand how the product can be marketed in each country. The product and services in transnational strategy doesn't get changed in order to suit a new market. There are few challenges which can be faced by hospitality industry such as large investment cost and effective management tactics. While usingtransnationalstrategy,companymusthaveseparatemarketingandresearchand development departments so that they can respond to local customer. What is the effective internationalisation strategy that would be used by Marriottfor its business expansion? As per the opinion ofJia and et. al., (2017),the effective internationalisation strategy which can be used by Marriott for its business expansion is multi domestic strategy. Through adopting multi-domestic strategy, company can achieve maximum local responsiveness by customising the product and service offerings and marketing strategies in order to match different national conditions. While adopting multi-domestic strategy, Marriott have to sell their products and services according to the custom and tradition of the local market so that they can attract and retain more and more customers towards the brand. This strategy tailors the product selection, payment methods and marketing to the regulations and values in each country where they operate business. The main purpose of multi-domestic strategy is to attract maximum customer towards the brand by offering them product and services according to their taste and preference. In order to create strong market presence, it is important for Marriott to serve their communities and stay ahead of competition. The hotel has its unique product strategy which aims on attracting luxury travellers. The core product of Marriott which helps in grabbing the attentionofmaximumcustomerishospitalityservices.TheproductstrategyofMarriott generally includes everything that goes into running the hotels. Marriott has expanded their business in different countries and cities by having headquartered in their country of origin. In order to reach maximum number of audience, Marriott advertise their products and services in digital, national TV and print media in last years. The brand generally focuses on investing in premium ads with multiple media formats. By using multi-domestic strategy, Marriott make their customers feel valuable and important due to which they gain loyalty of their consumers. The strategy also helps hotel to compete with competitors in effective and efficient manner. It is 9
important for Marriott to create its strong presence in different countries in order to enhance the profitability and growth of business. While implementing global strategy, Marriott can customise their products and services according to the need and preference of customer in order to make them satisfied with the brand. When Marriott customise their products and service according to the taste and preference of customer it helps in gaining competitive advantage in market and also helpsincreatingstrongpresenceinmarket.Multidomesticstrategyenablesindividual subsidiaries of Marriott in order to compete independently in different domestic markets. The multinational headquarters of Marriott coordinates financial controls and marketing policy in order to run the business activities in effective and efficient manner. Marriott operates their business in more than one country due to which it is necessary for company to adopt multi- domestic strategy so that they can smoothly run their business activities in each of the markets. What is the impact ofinternationalisation strategy for Marriott? According toHazarbassanova (2016),there is a huge impact of internalisation strategy for Marriott as it helps in improving the business performance and profitability. Internationalisation strategy creates a positive impact on the performance of business by achieving economies of scale, improving brand awareness and converting unique abilities to advantages. Through international strategy, company can enhance their recognition and also lower their cost with centralisation and streamlined operations. It also gives an opportunity to Marriott to develop connectionwithothermarketsandenhancetheircommunicationandawareness. Internationalisation strategy provides access to new investment opportunity and new market due to which Marriott can enhance their customer base and profitability. It creates vision and direction for organisation in order to expand business in international market(Jafari-Sadeghi, 2021). There are various benefits of internalisation strategy which helps organisation as it gives an opportunity to enter into new markets and also increase the business growth. Through implementing internationalisation strategy, company can stay ahead of competition and also gain competitive advantage in market. It also helps in providing larger market access and offer economies of scale with additional learning opportunities. Internationalisation strategy gives multiple opportunities to company in order to enhance their sales performance and productivity. The impact of internationalisation is positive as it helps in increasing the growth of business by attracting more and more customers towards the brand and getting out of saturated market. Marriott can also stay ahead of the competition and also avail access to new customers. By 10
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expanding business in new market, organisation can gain access to pool of potential employees with unique skill set. Through internationalisation strategy, company can also gain competitive advantage by offering products and services according to the need and preference of customers. Thus, it is important for company to focus on developing effective internationalisation strategy that helps in creating strong presence in market and also enhance the profitability of business. What are the challenges that Marriott could be faced for using specific internationalisation strategy? As per the viewpoint ofMorais and Ferreira (2020),there are various challenges which are faced by company while using specific internationalisation strategy. In order to expand the business in international market, there are various challenges which can be faced by Marriott it is important to overcome the issues in order to run the business in effective and efficient manner. The challenges are as follows: Language barrier: Language barrier is one of the challenges which can be faced by Marriott while expanding the business in international market. While expanding the business in international market, Marriott have to consider the language which is spoken in the country so that they can run the business in effective and efficient manner. It is important for the company to hire interpreter and consultant with native speaker in order to represent their business in new market. Language barrier can influence the performance and growth of company. It is essential for Marriott to identify the language of the chosen country so that business continues to separate in smooth manner. Managing global teams: Managing global teams is also a challenge faced by company while expanding business in international market. It becomes difficult for Marriott to manage the employees who live all over the world. For Marriott, it is important to build and maintain strong working relationship with global teams, use video conferencing platform and also facilitate regular check-ins in order to interact with employees in real time. Through managing global teams effectively, organisation can achieve their goals and objective in effective manner and also employees contribute their productive outcomes. Thus, it is necessary to manage the team in smooth manner so that business can generate revenue and enhance their growth. Legal and compliance issues: 11
It is also an issue which can be faced by Marriott in order to expand the business in internationalmarketthroughadoptingspecificinternationalisationstrategy.Legaland complianceissuesarethemajorconcernforthebusinesswhileexpandingbusinessin international market(Franco and Haase, 2016). While expanding the business in international market, it is necessary to understand the legal and compliance issues of the country in order to run the business sin significant manner. Some of the compliance and legal issues are lack of training, laws and regulation, lack of accountability and inability to establish best practices of managing business. Cultural difference: Cultural difference is also a challenge which can be faced by company while establishing business in new market. It is important for Marriott to understand the culture of the country in order to run the business activities in effective and efficient manner. Through understanding the culture, Marriott can offer product and services according to the taste and preference of customers as it helps in increasing the customer base and also improve their experience. 12
RESEARCH METHODOLOGY Research methodology is the process used by an investigator for collecting and evaluating data or information regarding any topic. There are several methodologies that are used for collecting secondary data regarding theinternationalisation strategy that would be used by an organisation for improving their business growth at global level. These methodologies are explained below; Researchphilosophy:Thisistheeffectiveandusefulprocessusedforcollecting, evaluating and using data regarding specific research topic. There are basically two types of researchphilosophiessuchaspositivismandinterpretivism.Theseareeffectivebut interpretivism is a useful philosophy within a current research because it helps an investigator in collecting, evaluating and using qualitative secondary information(Bresler and Stake, 2017). Main purpose behind the use of interpretivism philosophy is it not require maximum time and helps in getting valid outcomes as compared to the positivism type. Research approach: This is the process applied by an investigator for evaluating gathered information via an effective approach of research. There are two approaches of the research such as inductive and deductive. In this research, inductive approach is more useful and valuable for the researcher. Main purpose behind the use of inductive approach is it helps in evaluating qualitative secondary data in given time period. As compare to the deductive approach, inductive is time and cost effective as well as helps in getting reliable outcomes. Research choice: There are mainly three choices of the research such as mono, mixed and multi-mixed. These are essential but within a current investigation, mono method is used for collecting qualitative data under secondary research. There are certain reasons behind the selection of qualitative data under mono method. These are; provides data in theoretical manner, not require maximum time, helps researcher in getting valid outcomes and many others. On the other hand, quantitative is another method that not used within a current research because it requires a lots of time and not helps in collecting as well as evaluating secondary data(Sahu and Singh, 2016). Research Strategy:Research strategy is defined as such processes which is used by the investigator in order to carry out the research in appropriate manner.Research strategy is focused over gathering of authentic and appropriate data so that research can be executed in systematic manner.Research strategy is divided into different parts such as action research, 13
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survey methods, grounded theory, systematic literature review and many others. Inthe current research systematic literature review is selected so that to gather in-depth information related with research can be collected. This is helpful in making appropriate judgements within research so that researcher get an edge to manage the research in desired manner.This is analysed that with the help of systematic literature review research topic can be analysed in such manner that results within research can be attained. Data collection: This refers to the process of collecting information from a suitable research method. There are basically two essential methods of data collection such as primary and secondary. Both methods of data collection are effective but in this research, secondary method of data collection is used because it provides in-depth information within minimum time. There are several sources that are used for collecting secondary data regarding the internationalisation strategy that would be used by an organisation for improving their business growth at global level.These sources are books, articles, magazines, journals, publication research and many others. All these are effective sources that used for collecting in-depth and secondary information about the internationalisation strategy(Ratnam, 2019). There are various advantages behind the use of secondary sources such as not require maximum time, no need for access, facilitate in acquiring valid results and many others. Therefore, as compared to the primary research, secondary is more effective and valuable for the researcher. Research Ethics: Research ethics are defined as accumulation of such practices which are used within the research in order to manage and finish the research in effective and systematic manner.Ethics are significant for the research in order to develop all the practices within research in ethical manner. Under the current research secondary information is gathered and only by undertaking reliable sources information will be gathered(Nakata,2015). This would be helpful for researcher to gather relevant data in which investigation can be completed in accurate manner. On the other hand, researcher would focus on not harming anyone while conducting the research and while gathering of information. Investigator will also use only latest publications so that in real time accurate information can be gathered. Time Horizon: Time horizon is defined as one of the significant research methodology which is associated with inclusion of various factors and helps the researcher in gathering of research 14
objectives. Time horizon explores the time needed by the researcher in order to complete the dissertation(Brown and Tidy, 2019). Time horizon is of two types such as cross-sectional and longitudinal.Inthecurrentresearchcross-sectionaltimehorizonisusedasthisisa multidimensional method which helps the research to manage the research in easy manner. Data Analysis: Data analysis is described as the methods which are used within research in order to analyse the overall gathered information and to align the same in the direction of research objectives. There are two major methods that can be used in data analysis such as thematic analysis and frequency distribution table(Guthrie, 2015). In the current research thematic analysis will be used so that research objectives can be attained in easy manner. 15
DATA ANALYSIS AND DISCUSSION Theme 1: Determine the types ofinternationalisation strategy used by UK hospitality industry It is being analysed from the above information that there are different types of internationalisationstrategywhichcanbeusedbyUKhospitalityindustry.Through internationalisation strategy, company can run the business activities at global level in effective and efficient manner. In order to frame the internationalisation strategy, it is important for UK hospitality industry to define goals and objective, analyse the international market, study resources, understand market dynamics and also develop offerings. Hospitality industry focuses onimplementinginternationalisationstrategyinordertogainrecognitionanddevelop economies of scale. Organisation can gain various benefits through internationalisation strategy such as it helps in enhancing revenue and productivity of business. The strategy helps in expanding business in oversees market due to which company can enhance their market presence andalsoimprovetheirprofitability(Ngomaandet.al.,2017).Fordevelopingthe internationalisation strategy, UK hospitality industry is focusing on setting goals, identifying the suitable product for selling in international market, research the chosen market, understanding the competitors, planning marketing strategy, determining international organisation structure, planning for distribution strategy and assembling strategy document. Through implementing internationalisation strategy, hospitality industry can improve their business performance and efficiency. It also helps in targeting new market and also enhance the penetration in existing market. There are mainly three types of internationalisation strategy such as multi-domestic strategy, global strategy and transnational strategy. Multi-domestic strategy is effective strategy which can be used by UK hospitality industry in order to grab the attention of local responsiveness by customising the product and market offerings so that they can match the national condition of country. By adopting multi- domestic strategy, UK hospitality industry can grow their business in significant and smooth manner. If organisation implements multi-domestic strategy they can invest in various localities in order to expand their business in effective way. In order to expand the business in new locality, it is important for the company to identify the tradition and custom of country so that product can be produce according to the taste and preference of customer. The priority of UK hospitality industry is to fulfill the need and preference of consumers in order to gain competitive advantage in market. By using multi domestic strategy, UK hospitality industry can establish 16
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their localised headquarter in chosen country. The strategy helps in establishing strong presence in market and also creates loyal customer base. The other strategy which can be used by UK Hospitality industry is Global strategy. Through implementing global strategy, organisation focuses on treating the world as one market and also assess every product from the perspective of both international and domestic market. Global strategy helps in generating revenue and also creates strong customer base. It helps in making sales in new markets, enhance global brand awareness and also attract the customer by fulfilling their needs and requirements. The another internationalisation strategy is transnational strategy, it generally focuses on combining the elements of multi domestic and global strategies. Through using transnational strategy, company operates their business activities from country of origin and they can also focus on expanding business activities with full scale operations in foreign markets. Transnational strategy helps in expanding the business in multiple countries and also determine how product can be marketed in effective and efficient manner. It is important for the company to develop separate marketing and research and development department in order to analyse the foreign market and fulfil the need and preference of customers. Theme 2: Identify the effective internationalisation strategy that would be used by Marriottfor its business expansion From the above information it is being determined that the effective internationalisation strategy that could be used by Marriott for its business expansion is multi-domestic strategy. It is a strategy that helps in grabbing the attention of customer by offering them product and services according to their need and preference. Through implementing multi-domestic strategy, Marriott focuses on attracting and retaining customer by understanding their needs and requirement. Marriott have to sell the product and services according to the custom and tradition of customer. The motive of implementing multi-domestic strategy is to create strong customer base and gain competitive advantage in market. By using this strategy, company get an opportunity to offer unique product and services to its customer in order to increase the profitability and growth of business. Marriott have its unique product strategy that helps in attracting maximum number of customer towards the brand. The hotel have its presence in different countries due to which they adopt different custom and tradition according to the country(Magnani and Zucchella, 2018). For increasing the customer base, Marriott advertise their products and services in print media, national TV, digital media, etc. Multi-domestic strategy helps in making customer feel important 17
and valuable which helps in gaining loyalty of people. It also helps in gaining competitive advantage in market by identifying the needs and preference of customer and making them satisfied. Marriott have strong presence in different countries due to which it is necessary for company to adopt multi-domestic strategy so that they can reach to new market and create their presence. Through implementing multi-domestic strategy, Marriott can enhance their growth and also compete independently in different domestic markets. Nowadays, it is important to attract and retain customer as it helps in increasing the profitability and growth of business. In order to attract customer, it is necessary to focus on implementing multi-domestic strategy as it helps in attracting the foreign people by satisfying their need and wants. It is important for the company to focus on improving the experience of customers and make them satisfied with the products and services. Through customising the product or services, Marriott can generate more sales, stand out from competition, increase customer loyalty and also gain better customer insight. Marriott gain various advantages through offering customised products and services to its customers such as it encourages them to pay more, gain better data of people and also appeal for growing demand for product customisation. By using multi-domestic strategy organisation can make their customer feel happy and engaged. Theme 3: Evaluate the impact of internationalisation strategy for Marriott As per the above information it is being analysed that there is a huge impact of internationalisation strategy for Marriott. Internationalisation strategy helps in improving the growth and profitability of business. There is a positive impact of internationalisation as it helps inimprovingtheperformanceandproductivityofbusiness.Throughadopting internationalisation strategy, company can achieve economy of scale and also improve their brand awareness in market. Internationalisation strategy helps in increasing the growth and profitability of business. These strategies encourage organisation to internationalise and enhance its volume. International strategy helps in increasing the recognition of brand and lower the cost with centralisation and streamlined operations(Hagen and Zucchella, 2018). Marriott generally focuses on diversifying their market in different countries in order to enhance their growth and profitability. While establishing business in international market, Marriott gains an opportunity to run their business activities in new market and reach to more and more customers due to which the sale of company increases. Internationalisation strategy makes company to stay ahead in competition and gain competitive advantage in market. It also provides an opportunity to 18
Marriotttoincreaseitscustomerbaseandgainlargermarketaccess.Byimplementing internationalisation strategy, Marriott can develop connection with other countries and expand their business in effective and efficient manner. It provides vision and direction to organisation in order to achieve target and expand business globally. Marriott can also improve their sales performance through adopting internationalisation strategy. Thus, internationalisation strategy creates a positive impact on the performance and efficiency of Marriott. Therearevariousadvantageswhichcanbegainedbycompanythroughusing internationalisation strategy for expanding business such as it increases revenue, decreases competition,focusesonbetterriskmanagementandalsogainlongerproductlifespan. Internationalisation strategy gives an opportunity to company to gain new customers for the products and services. While expanding business in new market, it is important to identify the suitable market for establishing business and understand the market dynamics of the chosen country. Through expanding new business in market, organisation creates economies of scale andalsoenhancetheirmarketinfluence.Foradoptinginternationalisationstrategy,itis important for Marriott to analyse the international markets, study resources, define goals, understand market offeringsand develop offerings.Thus, it is necessary for Marriott to implementeffectiveinternationalisationstrategyforexpandingbusinessasithelpsin understanding the market and needs and preference of customer so that company can gain competitive advantage in market. While adopting internationalisation strategy, Marriott avail access to new employees who give their productive outcomes in achieving the goals and objective of business(Jafari-Sadeghi, 2021). Foreign talent are highly educated and qualified due to which they contribute their creative and innovative ideas in improving the performance and productivity of business. Furthermore, internationalisation strategy helps in increasing the productivity and performance of business. Theme4:DeterminethechallengesthatMarriottcouldbeusedforusingspecific internationalisation strategy It is being determined from the above information that there are several challenges which can be faced by organisation by using specific internationalisation strategy such as language barrier, managing global teams, legal and compliance issues and cultural difference. These challenges creates an impact on the performance and growth of Marriott. It is important for organisation to focus on overcoming these challenges in order to run the business activities in 19
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effective and efficient manner. Language barrier is a challenge that could be faced by Marriott by using specific internationalisation strategy. In order to expand the business in international market, it is important to understand the language of the chosen country so that they can influence the purchase decision of customer. Language barrier can influence the performance and efficiency of business. Thus, it is necessary for organisation to focus on on understanding the languages of different countries in which Marriott is operating so that business can be run in effective and efficient manner(Rana and Elo, 2017). In order to convey the information and messages to new market, it is necessary to hire consultant and interpreter who can convey the message in smooth and efficient manner. The other challenge which can be faced by organisation while using specific internationalisation strategy is managing global teams. It is one of the difficult task to manage the global teams in appropriate way. Marriott must focuses on creating inter-connectedness between the branches in order to run the business activities in smooth and effective manner. It also helps in creating strong bond between the branches and also company can generate more and more revenue by using specific internationalisation strategy. Thus, it is essential for Marriott to focus on managing the global teams effectively by using video conferencing and facilitating regular check-ins so that they can interact with employees in real time. It is the responsibility of manager to clearly state the roles and responsibility of each staff so that they can work accordingly and accomplish their task in significant manner. Legal and complianceissuesisalsoachallengewhichcanbefacedbyorganisationwhileusing internalisation strategy. While expanding the business, it is necessary for company to focus on identifying the legal laws and regulations of the country in which they are operation in order to stay away from any legal issues and conflicts. Marriott must focus on understanding the legal and compliance issues as it can influence the growth and performance of business. The few compliance risk which can be faced by organisation while using internationalisation strategy for expanding business are employee behaviour, workplace health and safety, environmental impact, social responsibility, legal laws and many others(O'Hagan-Luff and Berrill, 2016). The other factor which becomes issue for Marriott while using specific internationalisation strategy is culturaldifference.It isone of the challengewhich can influencethe performanceand productivity of business. Marriott must focus on understanding the culture of country in order to run the business activities in effective and smooth manner. By understanding the culture of 20
country, company can offer the products and services according to the need and preference of customer and create strong customer base. 21
CONCLUSION AND RECOMMENDATION Conclusion It is being concluded from the above information that internationalisation strategy plays an important role for improving the performance and productivity of business. It is the strategy which is used by company in order to expand the business activities in new market and gain competitive advantage. Through internationalisation, company can expand their business in differentregionsforcreatingstrongcustomerbase.Organisationgenerallyuse internationalisation strategy in order to satisfy the need and preference of customer at different localities. The strategy helps in expanding business beyond the boundaries in order to attract more and more customer towards the brand. Internationalisation strategy is time taking process which helps business to expand business at global level and improve its profitability. There are different types of internationalisation strategy which is used by organisation in order to expand their business in international market such as multi-domestic strategy, global strategy and transnational strategy. The different types of strategy have different benefits and disadvantage, it is important to identify the suitable strategy that helps in improving the performance and growth of business. While implementing the internationalisation strategy it is important for company to define the goals, analyse the international market, study resources, understand the dynamics of marketandalsodevelopofferings.Internationalisationstrategyhelpsingainingmarket recognition and also helps in consolidating the management with economies of scale. Through adopting these strategies, company can gain competitive edge in market and also attract more and more customer towards the brand. One of the type of internationalisation strategy is multi- domestic strategy. By using this strategy, company expand their business in new market by addressing the needs and requirements of customer. While adopting the multi-domestic strategy, organisation customises the products and services according to the taste and preference of customers. Thus, it is important for the company to identify and understand the need and preference of people in which they are operating so that they build strong presence in market and also improve their profitability and growth. Multi-domestic strategy is one of the effective strategy which helps in maintaining and managing the relations with foreign customer. The other strategy which organisation implements is global strategy. Through adopting global strategy, company treats the world as one market and also focuses on leveraging the economy of scale. 22
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Global strategy helps UK hospitality industry to expand their business globally and attract maximum number of customer towards the brand. By implementing global strategy, organisation treats each foreign market differently and focuses on working within custom and tradition of country. The another internationalisation strategy which can be implemented by organisation is transnational strategy. It is a strategy which includes the combination of both multi-domestic and globalstrategy.Through adoptingtransnationalstrategy,companyfocusesondeveloping separate team of marketing and R&D department so that they can understand the market dynamics and also respond to local customer in effective and efficient manner. One of the effective internationalisation strategy is used by organisation in order to expand their business is Multi-domestic strategy. It is a strategy which helps in improving the performance and growth of business.Throughimplementingmulti-domesticstrategy,companytailorstheirproduct selection, marketing ideas, payment methods and values in each country in order to stay for long run in market and gain competitive advantage. By adopting multi-domestic strategy, company offers their product and services according to the tradition and custom of country. It is important or organisation to focus on identifying and understanding the custom and tradition of country in which they are operating so that they can successfully establish their business and also generate more and more revenue. In order to create strong market presence, it is essential to focus on fulfilling the need and preference of customer so that company gains their loyalty. When people are satisfied with the products and services it helps in improving the profitability and growth of business. Organisation also uses various types of advertising strategy in order to grab the attention of viewers and attract them towards the brand. UK hospitality industry can also enable their individual subsidiaries by using multi domestic strategy. Internationalisation strategy helps in creating positive impact on the organisation as it helps in increasing the profitability and growth of business. Through internationalisation strategy, company also gains strong customer base and improve their sales performance. There are various benefits which can be avail by company through adopting internationalisation strategy such as it helps in increasing the profitability, improve growth rate, access to new customer, access to new employees and also organisation can avail advanced technology. Organisation also faces various challenges while implementing internationalisation strategy, it is necessary for company to focus on overcoming those challenges as it can influence the growth and profitability of business. The few challenges which are faced by organisation while implementing specific internationalisation strategy is 23
language barrier, culture barrier, managing global teams and legal and compliance issues. Organisation can focus on understanding the language of the country in which they are going to expand business. Through understanding the language of the country, company can make their customer feel familiar and make them understood about the products and services they are going to offer, It is necessary to adopt language of the country in order to sustain in market for long run and gain competitive edge. For running business internationally, organisation has to deal with the suppliers, clients and employees and focuses on overcoming the gaps between the cultures. Through understanding the language, company can foster stronger personal relationship and also make their business profitable. The other issue which can be faced by organisation while using specific internationalisation strategy is managing global teams. It is essential for the company to manage the global teams in effective and efficient manner so that business activities can be run in significant way. While managing global teams, an inclusive climate of diversity is developed within organisation. Global teams helps in increasing the productivity and efficiency of company due to which they can achieve the goals and objective of business. Legal and compliance issues isanotherproblemwhichcanbefacedbyorganisationwhileimplementingspecific internationalisation strategy. Thus, it is important for company to overcome these challenges in order to run the functioning of business in smooth manner. Recommendation It is being recommended from the above information that company must focus on mitigating the problems which they face while implementing specific internationalisation strategy. They must focus on speaking their language in order to make them understood about the products and services. Speaking the language of native country helps in making their customer feel comfortable and also reduce their queries related to the product and services. If organisation don't use their native language it becomes difficult for company to attract and retain customer. Thus, it is important to know the language of the country in which company is dealing with in order to provide great customer service and improve their experience. It is essential for company to focus on understanding the local preference as it helps in attracting more and more customer towards the products and services. By understanding thetasteandpreferenceof customer,Marriottcanidentifytheproductportfolio, determine the product for future diversification and also build marketing and sales 24
strategy in order to penetrate the local market. Understanding the local preference helps in creating strong customer base and also company can gain loyalty of their potential customer. Marriott must focus on targeting social media and search engine strategy in order to reach to maximum number of customer towards the brand. It is important for Marriott to have strong presence on social media marketing for improving the profitability and growth of business. While entering into new market, it is necessary to target social media and search engine marketing. In order to overcome the challenges, it is essentials to focus on studying the local culture and laws carefully in order to stay away from any legal disputes and conflicts. Marriott must focus on getting complete understanding of the local workings and culture before targeting the particular market as if company is not able to cope up with the culture and tradition of country it can influence the profitability and growth of business. Local culture helps in providing a sense of identity for rural residents and communities. Through understanding the culture of country, Marriott can determine the local identity and solidarity of country. Navigating new legislation and compliances is also a way through which company can overcome the challenges faced while implementing internationalisation strategy. It is the responsibilityoforganisationtoidentifyandunderstandthenewlegislationand compliances so that they can run business activities according to the new legislation and compliances. It also helps in increasing the goodwill and profitability of business. Through implementing new legislation, company also gain competitive advantage in market. 25
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