Critical Analysis Report on Marriott International and Starwood Merger Project Management Theories and Application

This report provides a critical analysis of the project management theories and their application in the merger project of Marriott International and Starwood. It includes theories of planning, execution, and control, and recommendations for future directions.

Critical Analysis Report

Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Project management theories ......................................................................................................1
Application of project management theories ..............................................................................2
Future directions and recommendations .....................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
Project management can be described as process which help managers in leading their
team in an effective manner (Picciotto, 2020). It is concerned with attaining organisational goals
and deliverables in an effective manner. Project management is considered as beneficial for
organisations in co-ordinating their activities in a manner which enhance their productivity level.
This project report is based on the merger operations which take place among Marriott
International and Starwood. This exercise has given their customers an extended choice of
visiting their numerous hotels which are presented on a global scale. This transaction essentially
combines leading lifestyle as well as international footprint of Marriott Hotels in regards with
luxury. This merger provides a wider choice to the guests, more enhanced opportunities to
business associates as well as increase the value for shareholders. Through this, they are
leveraging operational efficiency in a significant manner as well as accelerated growth avenues
on a global scale. These merger practices led to reduce the competition in regards with
hospitality industry in a significant manner.
This project report demonstrates an understanding of project management theories and
their application in this merger project.
MAIN BODY
Project management theories
Project management theories are considered as relevant for leading a team in a strategic
manner while handling specified constraints as well as accomplishing desired objectives (Pan
and Zhang, 2021). Process of project management theories is bifurcated into initiating, planning,
execution, controlling and closing aspects. It works on a central idea whereby through planning
process, plans are formulated which are followed by execution which led in making
modifications in regards with project. Varied types of project management theories in relevance
with merger project of Marriott and Starwood are as mentioned below:
Theory of management bifurcates the project development into planning, execution,
controlling and discovering deviations in an specified manner (Galli, 2018). Explanation of
theory of management in relevance with project of merger among Starwood Hotels and Marriott
International are as follows:
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Theory of planning- This theory encapsulates planning processes for the project which
provides guidance to managers to tackle their operations in an effective manner (Bredillet,
Tywoniak and Tootoonchy, 2018). At this phase, systematic structures are stimulated in order to
gain effectiveness in the project. It is imperative for project managers to develop efficient
communication channels which help them to gain efficiency in operations. Project managers
ought to formulate strategies as well as specified budgets in order to execute their operations in
an efficient manner. At this stage it is vital for project managers to understand the current state of
their operations and the necessity of the undertaken decisions. Primary purpose of project
managers at this phase is effective formulation of plans.
Dispatching theory- It is also known as theory of execution whereby formulated plans
are executed with specified aspects for gaining success in an efficient manner (Sepúlveda-
Rivillas, Alegre and Oltra, 2021). It has been conceptualised in a manner by which tasks has
been dispatched towards work stations. It has been assumed that task as well as resources are
executed in a strategic manner at the time of authorization. For proper execution of plans, it is
essential for managers to develop a two-way communication for effectiveness in operations.
Theory of control- This theory is conceptualised in regards with controlling aspects as
well as performance management of the project. This theory is based on the principle is
evaluating the potential variance among measured and actual value. This practice is used for
computing the variances in regards with actual and past performance in regards with a specified
project (Elia, Margherita and Secundo, 2020). It is a continuous process whereby performance is
measured in relation to aggregate terms.
Theory of project- This theory is conceptualised on the basis of transforming raw inputs
into finished commodities or services. It is based on the assumption that task in regards with
projects are discrete as well as uncertain (Kerzner, 2019). This theory is based on principle
manageable as well as well-understood tasks in an effective manner. As per this theory, while
managing a project, it is essential for managers to bifurcate tasks in a systematic manner as well
as optimal sequence. It is essential to understand that tasks are considered as discrete and are
bounded with timescale for gaining effective results on a timely manner.
Application of project management theories
Project management theories are developed in such a way that it helps managers in
tackling their operations in a strategic manner (Raharjo and Purwandari, 2020). Application of
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project management theories in relevance with merger project of Marriott International and
Starwood Hotels are as follows:
Theory of planning- Under this, plans are developed with the understanding of necessity
and scope of project in an effective manner. It is imperative for project managers to analyse the
scope and rationale of making a critical decisions regarding any specified task. Top management
of Marriott International has made plans to absorb specified places of Starwood Hotels and
Resorts in order to enhance their brand portfolio. For taking this critical decision, managers of
Marriott have evaluated the financial performance and other related aspects of Starwood Hotels
and Resorts. As it is important for them to gain an understanding of their assets, income
statements and other related components. In 2016, shareholders of both the hotels have met and
approved the outlined proposals. At the end of this deal, it has been announced that shareholders
of Starwood receive 0.8 shares in regards with Marriott International (Whitmore, 2018). This
was marked as a integration journey of Starwood Hotels and Marriott International.
It is imperative for managers of Marriott International to frame their plans in such a manner
which help them to gain competitive advantage in industry. This planning processes aid them in
gaining insights into executing the strategies in an effective manner.
Theory of execution- This theory is concerned with implementing the plans and make
them work in accordance with attaining objectives (Zid, Kasim and Soomro, 2020). This merger
is not only beneficial for shareholders but through this excellent experience and opportunity to
make a choice from numerous hotels are provided to customers on a global scale. In order to
execute their plans, managers of Marriott International and Starwood Hotels to merge their
loyalty programmes which provides their customers a elite treatment in extended chain. Through
this merged loyalty programme, customers ca enjoy consolidated elite reward system in an
effective manner. This merger also lead to expand credit card reach of Marriott International
whereby these are developed by Chase and American Express. This merger is seemed to be
beneficial in regards with both brands.
Theory of controlling- This aspect is concerned with discovering deviations in regards
with past and actual performance. Merger project was executed by managers of Marriott
International and Starwood Hotels. However, their impact is also needed to be evaluated in an
effective manner so that future plans can be drawn effectively. It has been analysed that Marriott
International had estimated a cost savings of $ 250 million on an annual basis (Fox, 2016).
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With combination of loyalty programme benefits, guests of both the hotels can earn
points and enjoy elite treatment in a strategic manner. Managers of Marriott International has
launched a combined loyalty programme called as microsite in order to provide them reciprocal
benefits in an appropriate manner. However, through the practice of merger, stock of Marriott
International has goes down by some percentage. Merger provides them long term benefits as
well as opportunities. It is considered as a time consuming process which comprises of varied
steps that needs to be taken into consideration (Frederico, 2021). This practice has also increased
in the number of directors at Marriott International in a significant manner.
It is imperative for assessing the impact in relation with before and after the practices of
merger. This exercise helped them in gaining attributes in regards with their re-accelerated
journey in an effective manner. Managers of both the hotels are also facing difficulties regarding
integration of IT system in respect to their combined loyalty programmes. They face issues in
combining their loyalty programmes which lead to disruption in their operations in a signifiant
manner. However, managers of Marriott International had developed strategies in order to make
their combined loyalty programme effective. They have also face issues in regards with
maintaining their position at digital marketing channels and social media platforms. In order to
manage this issue, they have launched a new website for navigating the people as per their needs.
It is imperative for managers to understand the branding overhaul which is cautiously maintained
at the time of practices of merger.
Market analyst had remarked that this merger can deteriorate their workplace culture in a
significant manner which led in hampering the situations. However, it has proved wrong and
their combined cultural practices at workplace are highly appreciated. This merger practice has
led to improvise market positioning of both the brands, lowers the competition rate as well as
offer customers a great experience of choosing hotels to visit from their extended hospitality
chain.
They also face issues with making communication in regards with internal and external
aspects which can hamper their performance. Foe solving the issues in regards with developing
communication channels, they formulate strategies in order to make the processes viable. It is
imperative for them to use two-way communication aspect which leads them to communicate
them in a strategic manner.
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Future directions and recommendations
It has been recommended to managers of Marriott International to gain insights of their
financial performance after the practices of Merger. It is imperative for them to have a look on
their overall operations comprises of activities of Starwood Hotels. It is recommended to
managers of Marriott International to analyse the reasons of merger which would help them to
formulate better strategies for future. It is advisable for managers to frame realistic strategies for
further expansion of their activities. It is needful for them to engage themselves in proper
planning procedures in order to gain insights regarding merger operations. It is imperative for
managers to execute their plans in an effective manner so that they can enhance their
productivity. It is essential for top management of Marriott International to formulate the
strategies in an effective manner which aid them in gaining the knowledge of future expansion or
merger projects. It is required for managers of Marriott International to analyse their financial
performance which helps them in making effective decisions on a timely basis. For planning
future expansions, it is imperative for managers of Marriott to follow the learnings that have
discovered under this merger practices.
CONCLUSION
From the above presented information, it has been assessed that project management is
considered as important procedure for leading the team in a strategic manner. Project
management theories are concerned with bifurcating the task phases such as planning, executing
and controlling for effective completion of the project. Theory of planning is concerned with
framing plans which provides guidance as well as direction for attaining desired objectives.
Theory of executing encompasses of strategies which needs to be taken care by project managers
while transforming the plans into actions. Theory of controlling is considered as helpful as it led
project managers in finding any deviation in relevance with past as well as actual performances
in a significant manner. It is imperative for project managers to analyse varied aspects in order to
make critical decisions in an effective manner.
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REFERENCES
Books and Journals:
Bredillet, C., Tywoniak, S. and Tootoonchy, M., 2018. Why and how do project management
offices change? A structural analysis approach. International Journal of Project
Management. 36(5). pp.744-761.
Elia, G., Margherita, A. and Secundo, G., 2020. Project management canvas: a systems thinking
framework to address project complexity. International Journal of Managing Projects
in Business.
Frederico, G. F., 2021. Project Management for Supply Chains 4.0: A conceptual framework
proposal based on PMBOK methodology. Operations Management Research. 14(3).
pp.434-450.
Galli, B. J., 2018. Application of system engineering to project management: How to view their
relationship. International Journal of System Dynamics Applications (IJSDA). 7(4).
pp.76-97.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. John Wiley & Sons.
Pan, Y. and Zhang, L., 2021. A BIM-data mining integrated digital twin framework for advanced
project management. Automation in Construction. 124. p.103564.
Picciotto, R., 2020. Towards a ‘New Project Management’movement? An international
development perspective. International Journal of Project Management. 38(8). pp.474-
485.
Raharjo, T. and Purwandari, B., 2020, January. Agile project management challenges and
mapping solutions: a systematic literature review. In Proceedings of the 3rd
International Conference on Software Engineering and Information Management (pp.
123-129).
Sepúlveda-Rivillas, C. I., Alegre, J. and Oltra, V., 2021. Impact of knowledge-based
organizational support on organizational performance through project
management. Journal of Knowledge Management.
Zid, C., Kasim, N. and Soomro, A. R., 2020. Effective project management approach to attain
project success, based on cost-time-quality. International Journal of Project
Organisation and Management. 12(2). pp.149-163.
Online:
Whitmore. G., 2018. Details Surrounding the Marriott and Starwood Merger. [Online]
Available through: <https://www.forbes.com/sites/geoffwhitmore/2018/04/18/details-
surrounding-the-marriott-starwood-merger/?sh=1711597b5c07>
Fox. T. J., 2016. Marriott completes Starwood merger. [Online] Available through:
<https://www.hotelmanagement.net/transactions/marriott-completes-starwood-merger>
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