Business Strategy for Marriott International

This article discusses the business strategy of Marriott International, an American multinational organization that operates, franchises, and licenses lodging including hotel, residential, and timeshare properties. It applies appropriate frameworks to analyze the macro and internal environment, evaluates the competitive forces of the market sector using Porter's five forces model and applies a range of theories, concepts and models to devise strategic planning for the organization.

Business Strategy

Contents
INTRODUCTION.................................................................................................................................3
TASK....................................................................................................................................................3
P1 Apply appropriate frameworks to analyse the macro environment for a given organisation......3
P2 Using appropriate frameworks analyse the internal environment and capabilities of a given
organisation.......................................................................................................................................5
P3 Apply Porter’s five forces model and to evaluate the competitive forces of a given market sector
of the organisation.............................................................................................................................6
P4 Apply a range of theories, concepts and models, interpret and devise strategic planning for a
given organisation.............................................................................................................................7
CONCLUSION....................................................................................................................................9
REFERENCES......................................................................................................................................9

INTRODUCTION
It is not anything however a grasp plan that the management of an organization implements
to secure a competitive position inside the marketplace, carry on its operations, please clients
and obtain the favoured ends of the business. In commercial enterprise, it's miles the long-
range comic strip of the preferred photo, path and destination of the corporation. It is a
scheme of corporate intent and movement, which is cautiously deliberate and flexibly
designed with the cause of Achieving effectiveness, Perceiving and utilising possibilities,
mobilising sources, securing a wonderful role, Meeting demanding situations and threats. A
business strategy is a hard and fast of competitive actions and actions that a commercial
enterprise makes use of to attract customers, compete correctly, strengthening overall
performance, and attain organisational goals. It outlines how business need to be finished to
attain the preferred ends. Marriott International is an American multinational organisation
which is operated, franchises, and licenses lodging including hotel, residential, and timeshare
properties. The company is headquartered in Bethesda, Maryland. It was founded by J.
Willard Marriott.
TASK
P1 Apply appropriate frameworks to analyse the macro environment
for a given organisation
To analyse the macro environment the Pestle analysis tool, can be used which is a
framework designed to evaluate the extern al factors which can influence the business
organisation. The various factors are explained below:
Political- The fundamental political elements that would affect Marriott are the risk of
terrorism, global family members and the political weather in famous traveller locations. The
largest chance here's a terrorist attack or a army warfare that would disrupt international air
journey or frighten humans faraway from touring. Examples of such events include the
downing of Malaysian Airlines Flight MH17 by a missile in July 2014, which turned into
fired from the Ukraine, and the 9/11 attacks in 2001. Increased global tensions and the
upward thrust of competitive new terrorist companies together with ISIS make such events
probable inside the destiny. Naturally, any fall in air travel might lower the demand for hotel
rooms. Another threat Marriott faces is that terrorists will assault vacationer sites or resorts at
once. There is a few proofs that terrorists are focused on resorts and different traveller sites;
in June 2015, 39 people, along with tourists, had been killed at a lodge seashore in Tunisia.
Such assaults ought to hurt Marriott with the aid of scaring away ability guests and growing
the want for luxurious security features.
Economic- The economic factors so that it will have an effect on Marriott’s enterprise are the
slowing of economic increase in China and the continuing economic turmoil in Europe. Such
events as the inventory marketplace disintegrate in China and the debt crisis in Europe have

significantly reduced people’ buying strength and their potential to journey. The largest effect
of this is the petering out of enterprise travel, which Marriott is closely based upon. A
associated hassle for Marriott is the high trade fee for the U.S. Dollar remote places, which
discourages Americans from journeying and overseas tourists from touring U.S. Destinations
along with Las Vegas. High change prices can also discourage enterprise journey. A lengthy-
time period monetary risk is growing earnings inequality and stagnation of centre-elegance
wages in the United States, which reduces human’s capacity to journey and stay at
accommodations.
Social- These factors make the destiny appearance excellent for Marriott because the range of
humans that planned to tour internationally extended via thirteen% between 2013 and 2014,
in line with Mashable. More importantly, the amount vacationers deliberate to spend far away
from home accelerated from a mean of $5,955 in 2013 to $five,136 in 2014. That way there
are more travellers spending more money. It seems as though more humans are inclined to
journey and pay extra for the enjoy. Interestingly enough, Australians spent the most on
journey, around $12,393 in 2014. Cultural changes that would impact Marriott consist of
elevated numbers of Chinese and other Asian tourists. Populations in the United States and
Europe which might be developing older may want to increase the demand for sure kinds of
travel experiences, which include packaged tours and luxury lodges.
Technology- Technology may want to have a large impact on the lodge enterprise in the
shape of on-line apartment offerings which include Airbnb, which we could private people
hire rooms or houses directly to vacationers. Around six million visitors stayed in Airbnb
properties in 2013, in step with Inc. There are round 25,500 Airbnb listings for New York
alone. One predominant ability threat Airbnb poses to traditional resort groups is its hosts can
avoid prices which includes resort taxes and hearth regulations, which means they've a great
deal lower operating costs. That allows Airbnb hosts to undercut resort room costs in many
markets.
Legal- The main legal element so one can impact Marriott’s future enterprise is the status of
offerings like Airbnb. Authorities in towns as various as New York, New Orleans and
Barcelona have fined Airbnb and its hosts for violating zoning laws, lodge guidelines and
health and safety guidelines. There has been grievance that a few hosts are abusing Airbnb in
some markets to run what amounts to unlawful inns. Another situation is that Airbnb hosts do
now not pay accommodations taxes, that are a major supply of revenue for some
municipalities. In America, Marriott additionally faces the possibility of an multiplied
minimal salary—as high as $15 an hour in some proposals. That should lead to better
exertions charges and carrier discounts.
Environment- Currently, the principal environmental component that would disrupt
Marriott’s commercial enterprise is gas prices. Falling oil charges should lead to decreased
travel costs and greater call for hotel rooms. Obviously, a capacity hazard to Marriott’s
commercial enterprise could be any surprising growth in gas charges, especially for the
airways. A capability lengthy-term environmental effect on Marriott should include expanded
energy costs created through efforts to curb greenhouse gases by means of proscribing the
burning of coal in power plant life. Climate exchange should harm Marriott’s business with
the aid of elevating ocean ranges and flooding lodges or developing storms that discourage
seashore going. Increased temperatures from international warming may want to near ski

accommodations or make a few seaside inns too warm for consolation. Those tendencies
could force the closure or relocation of accommodations.
P2 Using appropriate frameworks analyse the internal environment
and capabilities of a given organisation
The appropriate framework to analyse the internal environment of the business
organisation will be SWOT analyses which is a tool used by the various business enterprises.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT
evaluation is a method for assessing those four factors of your commercial enterprise. SWOT
Analysis is easy tool that allow you to analyse what your corporation does high-quality right
now, and to plot a success approach for the future.
STRENGTHS WEAKNESSES
 The largest power of the resort chain
is their strict adherence to
operational norms. Their code of
conduct has been custom designed
by using the pinnacle control and
every worker is predicted to follow
it to the very last detail. It is said that
a lot of those guidelines revolve
round resourcefulness.
 Marriott’s operational philosophy is
focused on innovation and most of
its procedures and systems try and
combine dedication and innovation
to ensure general value for money.
 Marriott International has a
presence in 122 countries around the
world and has 600 properties under
its umbrella with 1.2 million rooms
to its credit.
 Marriott has been on an aggressive
growth power and nowadays their
empire is so large that it is
impossible to maintain requirements
of carrier all through with the result
that the brand is diluted.
 Marriott is a system driven business
and every employee is given a hard
and fast of procedures for anything
they do. The stringent adherence to
norms has delivered down the
morale of the employees.
 Marriott’s brand has been marred by
non-stop controversies. One of the
present days is the blockage of
private wi-fi of clients declaring
privateness dangers. Such poor
advertising puts the logo in terrible
light.
OPPORTUNITIES THREATS
 People internationally are now extra
open to staying in luxurious
accommodations once they tour
inspite of own family and this is a
fashion which has visible a pointy
incline in developing economies –
an opportunity that inn chains cannot
afford to overlook.
 In contrast to the remaining decade,
the number of humans traveling each
on paintings and delight has
expanded substantially. Through tie-
 The Company faces a lot of
competition from brands such as
Hilton, Novotel etc who are in a
constant pursuit to become market
leaders.
 The worldwide recession has hit the
hospitality commercial enterprise
adversely and many residences are
out available on the market for sale
due to the fact they may be unable to
generate revenues.
 Star –rated residences internationally

ups, with airlines lodge chains can
exploit this opportunity to their gain.
 Today the consumer wants
personalized interest and most of the
instances also are inclined to pay for
it. This method that inns may want
to fee a top class for each
personalized provider they render.
are dealing with a large chance from
terrorist agencies since thy form
easy objectives for attack. Such
occasions frequently deter tourists
from staying in such premium
hotels.
P3 Apply Porter’s five forces model and to evaluate the competitive forces of a given market
sector of the organisation
Porter’s five forces model- Porter's Five Forces is a version that identifies and analyses 5 aggressive
forces that form each enterprise and allows decide an enterprise's weaknesses and strengths. Five
Forces analysis is regularly used to perceive an enterprise's shape to decide corporate strategy.
Porter's version may be implemented to any phase of the economic system to recognize the level of
competition inside the industry and beautify an enterprise's lengthy-term profitability. The fice
forces are discussed below:
 Threats of new entrants- New entrants in Lodging brings innovation, new methods of doing
things and put strain on Marriott International, Inc. Via decrease pricing approach, lowering
costs, and offering new price propositions to the customers. Marriott International, Inc. Has
to manage a majority of these demanding situations and build powerful barriers to shield its
aggressive side. Marriot can take care of new entrants y innovating new products and
services. New products no longer only bring new clients to the fold however also supply old
patron a cause to shop for Marriott International, Inc. ‘s products. By constructing
economies of scale in order that it could decrease the fixed value per unit. Building
capacities and spending cash on studies and improvement. New entrants are less in all
likelihood to enter a dynamic industry where the mounted players inclusive of Marriott
International, Inc. Preserve defining the standards frequently. It notably reduces the window
of notable earnings for the new companies as a consequence discourage new gamers inside
the industry.
 Bargaining power of suppliers- All maximum all the organizations within the Lodging
enterprise purchase their raw material from several providers. Suppliers in dominant role
can lower the margins Marriott International, Inc. Can earn in the marketplace. Powerful
providers in Services area use their negotiating power to extract better charges from the
corporations in Lodging field. The typical impact of higher provider bargaining energy is that
it lowers the general profitability of Lodging.
 Bargaining power of buyers- Buyers are frequently a annoying lot. They need to buy the fine
services available by paying the minimal fee as feasible. This positioned stress on Marriott
International, Inc. Profitability ultimately. The smaller and greater powerful the consumer
base is of Marriott International, Inc. The better the bargaining energy of the customers and
better their capability to seek growing reductions and gives.
By building a large base of customers. This may be useful in methods. It will reduce the
bargaining power of the customers plus it'll offer an possibility to the company to streamline
its sales and manufacturing system. By unexpectedly innovating new merchandise.

Customers regularly searching for reductions and services on hooked up products so if
Marriott International, Inc. Maintain on developing with new products then it could
restriction the bargaining electricity of buyers.
 Threats of substitute products- When a brand new service or product meets a similar client
wishes in one of a kind methods, enterprise profitability suffers. For instance offerings like
Dropbox and Google Drive are substitute to storage hardware drives. The chance of a
alternative services or products is excessive if it offers a value proposition that is uniquely
distinctive from gift offerings of the industry. Marriott can focus on few things such as By
being carrier oriented instead of simply product oriented. By know-how the core wants of
the customer in place of what the patron is buying. By growing the switching cost for the
clients.
 Rivalry amongst existing competitors- If the rivalry a number of the current players in an
enterprise is extreme then it'll power down charges and reduce the overall profitability of
the enterprise. Marriott International, Inc. Operates in a totally aggressive Lodging
enterprise. This competition does take toll on the general long-term profitability of the
enterprise.
P4 Apply a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation.
Planning is one of the basics of contemporary life. We all exercise it to a more or lesser
quantity. In our personal lives we plan holidays, careers, the purchase of belongings (e.G. Vehicles,
patron items, houses) every now and then we do distinctive planning with budgets, on other events
we do it fairly informally, without a doubt 'work things out in our heads'. but we do it, making plans,
essentially, is the 'organisation of a series of moves to achieve a detailed outcome'. In paintings
environments, where we typically check with it as 'enterprise making plans', we undertake a usually
plenty extra systematic, disciplined approach. We plan tasks, plan and develop new services and
products, new projects and programmes. We additionally draw up plans for exchange, for doing
matters in another way, doing matters higher. We additionally discuss, draft and then put in force
short, medium and longer-time period plans as to in which, organisationally, we want to get to, what
we need to achieve. In essence such plans are organisational 'direction maps' to get us from 'in
which we are at now' to 'where we want to get to' at some described factor, or points, inside the
destiny. They also are the essence of what, nowadays, we call strategic making plans, something that
has, because the early Sixties, grown step by step to come to be one of the essentials of modern-day
commercial enterprise and organisational life.
PATH GOAL THEORY - The theory became developed with the aid of Robert House and has its roots
inside the expectancy principle of motivation. The principle is based totally on the premise that an
employee’s belief of expectations among his attempt and performance is significantly stricken by a
pacesetter’s conduct. The leaders help organization participants in accomplishing rewards by using
clarifying the paths to goals and doing away with barriers to performance. They accomplish that by
means of providing the data, support, and different resources which might be required by
employees to finish the project.
There are four leadership styles in this theory :
 Directive: Here the leader provides guidelines, lets subordinates know what is
expected of them, sets performance standards for them, and controls behavior
when performance standards are not met. He makes judicious use of rewards and
disciplinary action. The style is the same as task-oriented one.

 Supportive: The leader is friendly towards subordinates and displays personal
concern for their needs, welfare, and well-being. This style is the same as people-
oriented leadership.
 Participative: The leader believes in group decision-making and shares
information with subordinates. He consults his subordinates on important
decisions related to work, task goals, and paths to resolve goals.
 Achievement-oriented: The leader sets challenging goals and encourages
employees to reach their peak performance. The leader believes that employees
are responsible enough to accomplish challenging goals. This is the same as goal-
setting theory.
Strategic planning of MARRIOTT
Marriott Inc. Has loved a worldwide growth thru the purchase strategy. The organization
adopted this growth technique to consolidate its business in the hospitality enterprise inside the
worldwide marketplace. Mulherin, Netter, and Poulsen (2017) hold that the purchase is a market
manipulate mechanism that definitely impacts the results of the outside environment on an
employer and enables the exploitation of growth possibilities. The essential motive of Marriott’s
acquisition is to establish a competitive framework and beautify the emblem role within the target
marketplace. Marriott adopted the horizontal acquisition method to beautify penetration, overcome
boundaries, reshape opposition, and increase its market energy. The 2016 acquisition of Starwood
Corporation is the maximum big success in augmenting global dominance and setting up a aggressive
product emblem. Given that Starwood Corporation is a multinational hospitality firm with an
established consumer base, marketplace logo, branches, and distribution channels, it shaped a part
of huge rival companies within the hospitality industry. Therefore, its acquisition reduced the
negative economic effect of intense competition between the 2 corporations with the merger of
their various branches, main to the consolidation of their nearby markets below one logo. This
approach undoubtedly impacts Marriott’s worldwide growth and competitive role.
As technology keeps to form the global society, the hospitality industry faces competitive
pressures from new and installed corporations in these markets. The emergence of on line
corporations consisting of Airbnb has imposed a fantastic deal of marketplace competition on motel
companies. Marriott’s acquisition has facilitated the consolidation of assets consisting of know-how
from the two corporations, which increase performance, market size and sell manage of commercial
enterprise operations.
Marriott enjoys a big market proportion with most of its revenue from the local vicinity of
South America. The organization has facilitated the boom of its marketplace segment in the
worldwide market via regional penetration and enlargement, which involves the established order of
enterprise schemes in North America, Africa, the Middle East, and Europe.
The Company’s primary enlargement in Northern, Latin, and Caribbean America involved the
purchase of Starwood hotel, one among its essential competition within the American and
worldwide markets. Localized marketplace growth facilitates a business enterprise to establish a
commanding market proportion in the local marketplace, which enhances and stabilizes nearby
growth. The development of Marriott’s monetary electricity is important in supporting market
enlargement techniques in socio-economically challenged markets which include Africa and the
Middle East.
In the European marketplace, the organization has availed its upscale plan with the goal to
establish a strong competitive area and make bigger its marketplace percentage. Since Europe
harbours stable economic surroundings, the market offers excessive demand for accommodations

centres. Moxy lodges act as the enterprise’s European emblem in luxury and full-time service
segments. However, the purchase of Starwood lodge, an already hooked up worldwide agency,
notably motivated the organisation’s emblem within the European marketplace with an increase in
target share of two.2% to 3.4% of the region’s branded lodges.
Marriott’s acquisition of Protea Hotels and alliance with Alibaba (an internet commercial
enterprise firm) has drastically elevated get right of entry to the African and Middle Eastern markets.
Improved monetary situations because of commercial improvement in these regions inspire
consumer spending and profitability of life-style-related groups. The enterprise’s expansion into
those new markets consists of the creation of AC Hotels through Marriott, Element, and EDITION
manufacturers to faucet into burgeoning opportunities in the tourism industry.
CONCLUSION
From the above report it is concluded that in commercial enterprise, it's miles the long-
range comic strip of the preferred photo, path and destination of the corporation. It is a
scheme of corporate intent and movement, which is cautiously deliberate and flexibly
designed with the cause of Achieving effectiveness, Perceiving and utilising possibilities,
mobilising sources, securing a wonderful role, Meeting demanding situations and threats. A
business strategy is a hard and fast of competitive actions and actions that a commercial
enterprise makes use of to attract customers, compete correctly, strengthening overall
performance, and attain organisational goals. The Pestle and Swot analysis explains the
macro internal and external factors of Marriott international. This analysis helps the
organisation in finding the factors which can impact the company.

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