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Report on Renowned Hospitality Organizations | Marriott International

   

Added on  2020-02-14

24 Pages8859 Words62 Views
International Business

TABLE OF CONTENTSExecutive Summary ........................................................................................................................3INTRODUCTION...........................................................................................................................4ANALYSIS AND EVALUATION.................................................................................................5ANSOFF Matrix..........................................................................................................................6PESTLE Analysis........................................................................................................................8Cultural issues............................................................................................................................10Global economic development and its impact on Marriott hotel...............................................10National responsiveness vs. economic integration challenge....................................................11Economic Integration Process (EU, NAFTA etc.).....................................................................11INTERGRATED SUMMARY AND SOLUTION OPTIONS.....................................................12RECOMMENDATION.................................................................................................................14REFERENCES..............................................................................................................................162

EXECUTIVE SUMMARYHospitality industry is considered as one of the fastest growing service industries thatfocuses on rendering luxurious and leisure services to customers and different clients. In order tosurvive in the competitive scenario, hospitality organization must focus on Internationalbusinesses in the emerging markets so that they may enhance their brand image as well asportfolio so that large customers get attracted towards it. Marriott International of UK is a largestand well known hotel of UK and to maintain standards, hotel has focused on pricing factor whichis also regarded as promotional element of business.(a) Option selectedThe selected option for the international business assignment is to focus on the currentbusiness problem and opportunities existing in the countries where Marriott International plansto expand their business activities. Furthermore, researcher has also analysed the scenario withthe help of different tools and models. (b) Core international business challenges and justificationThe core international business challenges that Marriott International faces whileexpanding their activities in the South Africa and Asia region is related with environment. As,both the environmental condition within both the region change continuously as South Africacovers 3000km coastal area that impact the environmental condition. While, Nepal is consider asmajor hub for earthquake that affect the operation of hospitality organization in the region.However, it also focuses on current international opportunities that are available for hotelMarriott International that support them in growing their market area by targeting low segmentcustomers. The Marriott International is best known for their premium class luxurious & leisureservices thus, to grab the overall marketplace and to become the leading organization in thehospitality industry, they must focus on entering in low budget segment to satisfy different needsof customers. (c) Approaches taken in analysis Furthermore PESTLE, Ansoff matrix and SWOT analysis model have been used toanalyze the current scenario by determining different internal and external factors that affect theinternational businesses of organization. However, these factor have also provided strategicinsight of the organization that supports management in taking effective decisions. 3

(d) Key findings and recommendationIn addition to this, it is also recommend certain strategies and options that supportorganization in creating successful international business. Recommended strategies willeffectively support the Marriott International to response with the opportunities present in themarket that support them in gaining competitive advantage. (e) Critical reflection on the implication of the recommended option Implication of strategic alliance to Marriott results in reducing the extra cost ofoperations as with whom they are formulating the strategic alliances are already existing withinthe Nepal. Furthermore, another implication of the recommended option that is strategic allianceinvolves that it results in sharing the expenses as well as risk associated while entering into thenew market that is South Africa and Asia. 4

INTRODUCTIONHospitality industry is considered as one of the major service industries that rendersdifferent services to the traveller and visitors so that they may enjoy their pleasant stay.However, in the contemporary scenario, the ratio of travel and tourism has been increasing sinceit also contributes in the development of economy (Dunning, 2012). Moreover, hospitalityindustry possess broad range of services that are provided to customers and visitors such aslodging, accommodation, food and beverages. Hospitality sector mainly depends upon theaccessibility of leisure time and customers disposable income. With the increasing hospitalitysector, it increases the number of visitors and travellers and simultaneously it also outcomes indeveloping and growing of economy. The main objective for conducting the study is to focus onassessing the international challenges and opportunities that are faced by the organization whileexpanding their services and business activities into the new region and countries. Foraccomplishing this objective the selected countries in which hospitality organization wouldexpand their businesses is South Africa and Asia as both the countries are highly potential for theinternational business.Overview of the organization Present report focuses on one of the renowned hospitality organizations that is MarriottInternational that organizes and manages wide range of portfolio of hotel that are engaged inrendering services related with lodging, accommodation etc. However, organization has morethan 4087 properties in different countries and territories that support it to render services in thebroad marketplace. Marriott international is considered as a premium organization that renderspremium quality services to high income customers (Demirkan and Demirkan, 2014). Whereas,in the contemporary scenario, organizations are engaging in international business as it providesample of opportunities so that they can easily serve the needs and requirement of large market,adopt new advanced technology and support in overall development to sustain in the newmarketplace (Wild, Wild and Han, 2014). Main motive of hospitality industry is to expandbusiness activities, acquire resources and reduce the level of risk that is being faced by theorganization in the current scenario. With the help of economic integration process, firm caneasily save its future as different opportunities are being present with the help of which companycan become famous in worldwide. 5

Relationship to the organization/ Challenge to be discussed With the increasing pace of globalization author has assessed different challenges thatwill be faced by the Marriott International while expanding their business activities in theinternational market that is South Africa and Asia region. The author relationship with theorganization is that it support in examining the challenges that exist in the external market andcountries while expanding the activities. The different challenges that Marriott attain whileexpanding business in South Africa is that the region possess high taxation level thus, it act asthe major challenge for Marriott international to expand their hotel within the South Africa.However, Marriott will also counter with different challenges while expanding or entering intothe Nepal, Asia region that is the place is the hub of natural calamities that is earthquake. Thus, itmay act as major challenge for the Marriott International to operate in the Nepal region. Identification of critical problem or opportunities relating to international business and theirimpact on organizationWith the increase in globalization, it also outcomes in increasing the level of competitionin the hospitality industry as many firms and organizations existing in this industry deliverhomogeneous services to the customers (Cantwell, Dunning and Lundan, 2010). There arecertain key challenges which support hospitality organization to focus in the internationalbusiness so that they may increase their market coverage as well as it also support them tosustain in the competitive global marketplace. However, there are certain opportunities andtrends that support hospitality organization to focus on international business that are economicintegration processes, global economic developments, international dimensions of R&D andinnovation etc. All these factor effectively contribute in successful resolution of the internationalbusiness (Folsom and et. al., 2012). However, the impact of these challenges and opportunitieswill benefit the Marriott International in expanding their activities in the new region byincreasing the overall market share.Overview of the relevant context contributing to the problem and opportunities Therefore, in the competitive environment, Marriott has potential opportunities to targetall income customers by modifying their services and pricing strategies. It has been stated thatMarriott International is highly dependent upon their luxury brands in US market. Thus, it lackslow cost life style brands which is now popular in developing nations. Therefore, there are6

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