Travel and Tourism Literature Review

This assignment requires students to conduct a thorough review of existing literature on travel and tourism. It involves examining various sources, such as books, journal articles, and research papers, published by prominent scholars in the field. Students are expected to identify key themes, concepts, trends, and debates within the field of travel and tourism, drawing upon diverse perspectives and theoretical frameworks. The goal is to demonstrate a comprehensive understanding of current scholarship and contribute to the ongoing discourse surrounding travel and tourism.

TOURISM AND HOSPITALITY BUSINESS STRATEGY

Table of Contents
INTRODUCTION................................................................................................................................3
LO 1......................................................................................................................................................3
1.1 Definition of corporate strategies..............................................................................................3
1.2 Definition of corporate strategy to chosen organization............................................................4
1.3 Evaluate the definitions stated above.........................................................................................5
LO 2......................................................................................................................................................5
2.1 Range of analytical models........................................................................................................5
2.2 Apply the models to specific business.......................................................................................5
2.3 Evaluate the model in terms of theories and applicability aspects...........................................6
2.4 Critically evaluate organizational strategies..............................................................................6
2.5 Justify recommendations for future strategic development.......................................................7
LO 3......................................................................................................................................................8
3.1 Assess management of diverse, individual, groups and teams..................................................8
3.2 Ways in which organizational culture can impact on strategy development and
implementation................................................................................................................................9
3.3 Evaluate the impact of organizational culture on strategic development and implementation
.......................................................................................................................................................10
LO 4....................................................................................................................................................11
4.1 Advantages and disadvantages of various approaches that organizations can take towards
internationalization........................................................................................................................11
4.2 Most appropriate growth strategy............................................................................................11
LO 5....................................................................................................................................................11
5.1 Portfolio management theory and principle of resource allocation.........................................11
5.2 Apply the theory of portfolio management and the principle of resource allocation..............13
5.3 Assess the relevance of portfolio management and resource allocation..................................13
LO 6....................................................................................................................................................14
6.1 Key external environmental factors.........................................................................................14
6.2 Establish the key external environment factors facing the organization.................................14
6.3 Critically appraise how these factors may impact on business................................................15
CONCLUSION..................................................................................................................................17
REFERENCES...................................................................................................................................18
2 | P a g e

INTRODUCTION
Tourism and hospitality industry seems to be the most important sector in the contemporary
scenario because it facilitates large number of innovations and developments in the business
services and facilities (Zhang Chong and Jenkins, 2002). The present research study has been made
on Hotel Marriott International which delivers the best services to the clients as per the
requirements. Internal and external conditions of the business entity have been stated in the research
study along with the strategies which the subsequent hotel has developed to manage work processes
as per the corporate strategies. Furthermore, researcher has also discussed the need of effective
portfolio and resource allocation management in growth of the business. Apparently, challenges
arise at the time when hotel Marriott International works across the globe. Similarly, several
strategies have been formulated by the hotel entity for the purpose of reaching all the aims and
objectives.
LO 1
1.1 Definition of corporate strategies
Corporate strategy is the most widespread view that improves the competitive strategies of
the pertaining units and it also works as the essence of organizational strategies. It is essential for
the hotel entity to formulate corporate strategies so that long term aims and objectives can be
acquired and at the same time, competitive advantage can also be acquired through this aspect
(Kárpáti, 2001). Market research analysis is required so that external and internal business
environment can be found out and through this; essential strategies can be formulated for business
management. In general, it can be said that Marriott has developed wide range of strategies through
which all the functions of business are managed. These strategies work as guidelines for the entity
and the strategies also develops the scope of same. Further, for the same aspect, it is essential for
Marriott International hotel to develop strategies in different sectors and areas so that every work
process can produce optimum result for the business management (Jayawardena and et.al, 2013). It
is vital for the hotel entity to align organizational strategies with corporate objectives because this
aids in developing more opportunities for growth and success.
Emphasis is required to be given on cultural norms and values because that generates many
issues in business entity. Further, on the other hand, it has been observed that business strategies of
Marriott International are competent and efficient and that aids the entity to reach towards
organizational aims and objectives (Hjalager, 2001). Similar to this, Marriott International has also
developed several marketing strategies which help the business entity to promote the services
among different customer segments. Moreover, chief emphasis has been given on product
development and market development strategies which support the business to facilitate more
success and growth. Apart from this, Marriott seems to be focused towards the expansion and
3 | P a g e

diversification aspects wherein business involves new product and services so that customer
satisfaction rate can be enhanced to new terms (Hemmington and King, 2000). Marriott
International hotel believes in promoting different cultural aspects and for that purpose, they recruit
more number of people from different parts of the world. It has been seen that employees of the
hotel are satisfied because they are valued by the management. This not only promotes the
organizational culture but also aids the management to derive support from all the employees in an
adequate manner (Hassanien, 2006).
1.2 Definition of corporate strategy to chosen organization
The views of different authors state that corporate strategy is the direction which an
organization takes with the aim of achieving business success in the long term.
As per the corporate culture, Marriott International hotel gives more concern to corporate
cultural facets wherein employees are allowed to communicate with the top management
adequately. This allows them to encourage the employees for more growth and success and at the
same time, it also aids in retaining them for longer span. Nonetheless, employees of Marriott
International hotel have been delivering prominent services to the clients and on the next hand, it
satisfies them. This helps them to promote the services to other customer segments as well and as a
result, market share of the business entity is enhanced. Similarly, under corporate culture,
employees are directed to consider social, cultural and legal aspects so that business functions can
be properly operated as per the dimensions (Dollinger, 2006). Moreover, ethical aspects are also
maintained by the employees which helps Marriott International hotel to become successful and
competent entity. Ethical dimensions help customers to get accurate services which they see in the
advertisements.
1.3 Evaluate the definitions stated above
Evaluating the above definitions, Marriott International should have to develop effectual and
competent strategies so that business can differentiate itself with that to the competitors (Ireland and
et.al, 2008). Similarly, Marriott International hotel has to develop wide range of corporate strategies
especially at the time when the business enters into international market place (Inskipp, 2008). This
is essential because changes arise at the time when new things are involved and adopted in the
workplace. Corporate strategies of Marriott International generally describe the aims, vision,
mission and other things which give proper direction to the business entity.
LO 2
2.1 Range of analytical models
Business models needs to be developed by the organizational members so that their
concerned activities can be properly managed in a specific direction. In the present research study,
Marriott International hotel has been using competency framework model where in resources are
4 | P a g e

allocated as per the availability of requirement areas (Rodgers, 2001). Ansoff matrix has been used
by the hotel entity where in different marketing strategies are developed for the purpose of
promoting the services at market place. The major emphasis is given to the diversification strategy
in which Marriott International hotel establishes its branches in different part of the world and as a
result, more success is there for business projects. Ranges of new business entities are entering in
the same area which helps Marriott International to operate business with new collaborations
(Matthews, 2005).
2.2 Apply the models to specific business
There are various financial tools through the means of which senior authority of Marriott
International Hotel can develop suitable strategies which are as follows: Ratio Analysis: It can be defined as one of the most significant tool for understanding the
current position of business enterprise and then undertaking potential measures for
enhancing the performance of Marriott International Hotel. Further, it is the mathematical
comparison of financial statements with the help of which management can easily measure
the performance of each department and accordingly makes strategies for attaining future
sustainability (Vivanco, 2001). Through the means of financial ratios, manger can easily
understand the profitability, liquidity, solvency, efficiency, liquidity, investment and
coverage position of the business activities. With the desired results and outcomes generated
through these ratios, managers can easily take decisions regarding improvement of the
overall business performance.
 Financial Statements: In order to operate ethically, business has to prepare all the major
financial statements as per the defined standards and principles proposed by GAAP and
IFRS. However, top level management of Marriott International Hotel have the
responsibility to make decisions regarding the functioning of hotel so that needs and wants
of customers can be satisfied in effective and efficient manner (Uzama, 2009). Thus, with
the help of financial statement, management can easily evaluate the performance and
effectiveness of business activities so that appropriate and suitable strategies and tactics can
be framed. Furthermore, there are various stakeholders who are associated with the
functioning of Marriott International Hotel which requires proper information to make
decision. Thus, financial statements provide detailed information about the current position
of business so that they can make smart and effective decision regarding the future
investment in the functioning of Marriott International Hotel (Uysal and Williams, 2013).
2.3 Evaluate the model in terms of theories and applicability aspects
Business models are regarded as efficient for the hotel entity because that gives right
direction to the employees to manage the work practices; therefore as a result, issues and constraints
5 | P a g e

are minimized. From the entire discussion on the respective topic, it can be said that business can
enhance growth and profitability factor when right kind of business models and frameworks are
followed up (Zhang Chong and Jenkins, 2002). There are several financial tools with the help of
which managers of Marriott International Hotel can take decisions as well as formulate suitable
strategies so as to enhance the level of business enterprise and provide quality of services to target
audience. Operating in such a competitive market is important for the top level management of
Marriott International Hotel to undertake the suitable tools so that proper strategies and tactics can
be developed. Financial management is one of the major aspects for the firm and is essential for
manager to address this aspect in proper ways (Witt and Song, 2012).
2.4 Critically evaluate organizational strategies
In order to develop right strategies for the business, Marriott International hotel employs
workforce in these processes so that hotel can deliver proper services to the clients. Use of these
business models aids the hotel to allocate all the resources in feasible manner and this thereby is
also useful in terms of enhancing business competency aspects (Marvell, 2005). The models aid
human resources to deploy the efforts in different practices so that overall growth and success facets
can be accelerated. Financial resources are also required to use in proper manner so that investment
capacity of the hotel entity can be increased. Right strategies are requisite to develop so that all the
practices can help in promoting the value of organizational services. Different strategies should be
developed so that long term sustainability and competitive advantage can be acquired (Lane, 2007).
This is also vital in terms of reducing the challenges of business entities and at the same time,
constraints related to business operations can also be minimized.
Business models always consider external and internal environment and on that analysis,
strategies can be formulated for other work practices (Kimmm, 2012). In such respect, the
subsequent hotel has been focusing on setting of several metrics and benchmarks so that according
to the same, desired aims and objectives can be acquired. Furthermore, for the same aspect,
business models direct the hotel to emphasize more on service provisions and customer facets so as
to satisfy them. This aids in customer retention that aids in promoting the value of business for
acquiring collaboration from other industry players. Hence, from the discussion, it is clear that all
the business processes are managed in right and accurate directions. As per the diversification
strategy, new products are developed that have been acquiring the interest of clients (Ketzes, 2003).
2.5 Justify recommendations for future strategic development
 Investment appraisal techniques: The main aim of investment appraisal techniques is to
compare the potential proposal for the business and assist in making investment decisions.
There are several investment appraisal techniques which are used by the managers of
Marriott International Hotel to evaluate and analyse the reliability and validity of the project.
6 | P a g e

These appraisal techniques consist of net present value, payback period and internal rate of
return (Thompson and Martin, 2005). With the help of these techniques, managers can easily
evaluate and analyse the suitability of the proposals thereby make smart and effective
decisions to generate better financial position in the near future. In addition to it, net present
value is the most common and often used method to evaluate the discounted values because
it considers the time value for money which helps in making the best possible decision for
the future investment. Therefore, it is important for the senior authority of Marriott
International Hotel to undertake this method before making any decision so that long term
sustainability of hotel can be maintained in such a competitive environment (Tallant, 2011).
However, there are financial tools with the help of which senior authority of Marriott
International Hotel can easily understand each and every aspect of business and accordingly
formulate the strategies so that desired results and outcomes can be generated. It is important for the
managers to make sure that they take better and effective decisions because intensive rivalry may
affect the course of functioning adversely (Swarbrooke and Horner, 2012). Hotel needs to provide
quality of services to its customers so that they can be retained for the long run and brand loyalty
can be developed. Thus, management should undertake analytical tools to analyze the performance
of business so that desired results and outcomes can be generated.
LO 3
3.1 Assess management of diverse, individual, groups and teams
It is an apparent fact that when any business entity works with different people, they faces
issues related to cultural and social aspects and along with this, constraints related to diversity
aspects also generates (Marvell, 2005). Marriott International hotel recruits global workforce
because the hotel entity wish to serve adequate and diversified services to all the clients. The
business entity aims to deliver prominent and luxury services to the end users and for such purpose,
Marriott International hotel emphasizes on acquiring crucial resources (Lane, 2007). The cultural
background of people is different at Marriott International hotel and this affects the business
services as well.
It is also an important aspect that should be considered into account while managing the
business functions globally. People when come from different nations and culture, face problems in
working with others because of the lifestyle, living standard and social background (Kárpáti, 2001).
Because of the geographical differences, Marriott International hotel has to put a lot of efforts in
managing employee’s interest on higher extent.
It is one of the apparent issues that are prevailing at Marriott International. The business
entities of Marriott International are situated in different locations of the world. Management of
things becomes difficult in the case of geographic difference which creates issues for manager of
7 | P a g e

Marriott International hotel (Jayawardena and et.al, 2013). Thus, geographical distance is the chief
constraint that arises in globalizes business processes.
It is essential for the hotel entity to monitor the practices and code of conduct of employees
so that the areas of improvement can be found out. However, working with different entities does
not allow the management of Marriott International hotel to monitor the practices of employees
(Inskipp, 2008). Hence, manager is also unable to rectify things which should be improved for more
development. Moreover, this also generates the issues related to employee support to each other;
hence all such aspects have a direct consequence on organizational practices.
In most of the cases, diversity management is considered as the most affecting aspect
because it is directly related to the employee management. At the same time, the issue seems to be
raised at Marriott International as well wherein the employer is unable to give proper attention to all
the employees (Hjalager, 2001). This depicts the inability of management in meeting the needs of
employees. Further, diversity management is the basic aspect which needs to be there in hospitality
sector because through diversity management, hotel entity can deliver wide range of services to
different clients. Diversity management is considered as the most influencing factor in
contemporary scenario because that includes varied dimensions in a single concept. Every
workforce should get equal opportunity instead of working in different locations (Hemmington and
King, 2000).
Thus, these are the major challenges that have been prevailing at Marriott International hotel
because of geographical distance among workforce and management. Hence, all such challenges
needs to be managed properly because it might have long term impact on the success and prosperity
aspects of Marriott International hotel (Dollinger, 2006). Therefore, the management of this hotel
should adopt certain measures and some of the important measures are discussed in the below
section.
There should be proper motivational aspects for all the employees so that organizational
issues can be minimized. Further, at the same time, it is also vital for the manager to emphasize on
adequate cultural facets and that should be mandatory to follow by every employee of the hotel.
3.2 Ways in which organizational culture can impact on strategy development and implementation
Culture is regarded as one such aspect that aids Marriott International hotel to involve all the
employees in organizational matters and through cultural aspects, employee motivation and other
facets can also be managed adequately (Delmar, Davidsson and Gartner, 2003). Further, it is also
essential for the management of Marriott International hotel to consider all the cultural values and
norms so that interest of each and every employee can be maintained subsequently. There should be
equal treatment for all the employees and issues related to discrimination should be avoided since it
hampers organizational effectiveness. Similarly, manager of Marriott International hotel has to
8 | P a g e

make sure that geographical distance is not generating any sort of issue among the employees;
hence there must be proper communication among all the employees (D'Amico and et.al, 2011).
Thus, according to the issues, the foremost thing that is required to manage among employees
across the globe is to give equal importance to the workforce.
Social and cultural difference: These differences arise at the time when Marriott
International hotel has to face issues related to social and cultural difference. People working at the
hotel are from different background and culture; therefore difference in opinion generates and
conflicts arise among the people (Kimmm, 2012). Further, some people discriminate others and
bully them which are a sign of social difference. This is one of the major challenges that come in
the area of diversity management. Sometimes, Marriott International hotel fails to give proper
attention to all the cultural values; therefore this raises differences among the employees (Ketzes,
2003).
3.3 Evaluate the impact of organizational culture on strategic development and implementation
Organizational culture is the major aspect that depicts responsibilities for employees. It also
shows the concern of business entity towards the employee’s interest (Croes, 2000). Organizational
culture depicts that all the employees should be allowed to communicate directly with the top
management. Furthermore, suitable environment can also be developed at workplace if adequate
cultural values are followed up. Employee values and responsibilities can be enhanced with
organizational social and cultural values and this would ultimately results in encouraging the
employees for diverse aspects (Covin, Green and Slevin, 2006). Thus, the culture of Marriott
International hotel is directly related to employee’s motivation and retention. Moreover,
organizational productivity can also be accelerated through the same. It becomes difficult for the
management of Marriott International hotel to manage global workforce; hence there should be
proper communication maintained with all the employees. Further, the hotel must follow diversity
management policy where in cultural values and norms of all the countries should be followed as
per the employee’s cultural aspects (Conrady and Buck, 2011).
It is an apparent fact that when employees are allowed to present their views and advice in
decision making process, they get motivated and put more efforts in achieving the defined aims and
objectives. Organizational culture of Marriott International includes leadership aspects, employee
retention aspects and many more things with all these dimensions that assist the workforce to
support the hotel for varied purposes (Connell and Page, 2006). Under organizational culture,
employees should be provided with the authority to undertake decisions related to hotel's affairs and
providing appropriate rights and responsibilities to the workforce can assist them to contribute
towards more productivity aspects. Furthermore, Hotel Marriott International should give equal
respect to all the social and cultural values and along with the same; consideration is also required
9 | P a g e

on diversity management (Chon and et.al., 2012). In addition to the above discussion, it can also be
said that organizational culture defined the way through which employees complete their tasks and
duties and this also determines the way through which they can interact with each other. Corporate
culture binds the workforce together and provides a direction to the company as well. On the
contrary, the dominant culture of Marriott International hotel changes environmental aspects in
which the hotel operates and manages business activities (Carlsen and Andersson, 2011).
Organizational culture also plays crucial role in driving employee performance because it
includes several things that gives benefits to the employees against the work done. Further, for the
same aspect, strong corporate culture indicates that the employees are considering ethical values
and beliefs which are aligned with organizational aims and objectives (Burns and Novelli, 2008).
Therefore, it can be said that with the help of suitable organizational culture at Marriott
International hotel, issues related to team conflicts are reduced up to some extent. Team interaction
has been developing more in the hotel and this allows the people to collaborate work practices in
adequate manner (Buckley, 2012). Many times, employees work harder to achieve organizational
aims and objectives especially when they are considered to be a part of corporate culture of the
hotel. In such respect, Marriott International hotel has changed the structural aspects wherein
different methods are included for encouraging the employees towards better productivity. The hotel
also seems to emphasize on employee retention aspects which changes employee’s attitude and
behavior towards the work processes of the hotel (Cooper, 2005).
LO 4
4.1 Advantages and disadvantages of various approaches that organizations can take towards
internationalization
Similar to this, Marriott International hotel works with diverse themes in different countries
as per cultural aspects and this supports the hotel to retain the end users for longer span. For
instance- Marriott hotel promotes hospitality industry in India through including different cultural
and social aspects and all types of service provisions are also added in the same facet. Hence,
preparing themes that helps Marriott International hotel to differentiate itself from the competitors
and new position can be developed at the market place (Croes, 2000). Through this, standards of the
business are maintained among the competitors and further it also generates more competition at
market place.
It is one of the major issues that have been observed in hotel entity and at Marriott
International; this issue arises because people work in different locations which sometimes creates
differences in them. Similarly, managers are also unable to reach towards all the employees because
of having diversified projects. Improper communication not only impedes the value of work
processes but also affects the value of internal business functions (Hassanien, 2006). Hence, when
10 | P a g e

employees work globally, most of the time, they fail to communicate consistently with others and as
a result; it creates differences amid the management and the employees.
In managing global workforce, the major issue arises at the time when the hotel does not
have proper resources for managing work aspects. Operating business globally shows that the hotel
has the capability to manage diverse business functions (Carlsen and Andersson, 2011). However,
on the other hand, when organizational resources are not properly allocated in hospitality functions,
people working at different locations faces issues and constraints.
4.2 Most appropriate growth strategy
As per the promotion strategies, only accurate and reliable information is delivered to the
clients who also protect their interest in company's services. Hotel entity deals in delivering only the
authentic information to clients as it is mentioned in the corporate strategic aspects. Moreover, legal
aspects are also followed in the hotel entity and as per the framework; services are provided to the
clients appropriately which on the other hand minimizes legal issues (Delmar, Davidsson and
Gartner, 2003). Thus, it can be said that major emphasis has been given towards marketing
strategies because that enhances the scope of business entity in different market places. Marriott
International Hotel has adopted Adaptive Standardized strategy in which chief attention is given on
customer's cultural values and norms; hence on that basis, changes have been made in service
delivery aspects (D'Amico and et.al, 2011). The subsequent hotel entity seems to work on the basis
of different themes and there in varied cultural norms are included. This helps the entity to persuade
attention of clients from different regions and as a result, services are expanded to different market
places.
LO 5
5.1 Portfolio management theory and principle of resource allocation
There should be proper resource allocation in organizational practices so that business
performance can be properly managed and improved. Effective portfolio is required for hospitality
management and is also essential for Marriott International hotel since that aids in utilizing all the
resources in adequate manner. There are so many players who are operating their business in
hospitality market of UK and this has been enhancing competition in the same sector. Suppliers
have been supplying proper resources to the hotel so that they can meet different needs and
demands of the customers. As per the portfolio, hotel Marriott International can include all types of
resources and aspects so that business entity can manage its performance in prominent manner
(Covin, Green and Slevin, 2006). Similarly, with the help of effective portfolio, the ability to
allocate resources can be improved as it is a process which ensures that the hotel entity spends the
scarce resources on work which is of most value. The process of managing portfolio helps Marriott
International hotel to allocate organizational resources in valuable aspects for more growth and
11 | P a g e

prosperity. Hotel entity is required to prioritize the work as a part of managing things; hence this
also allows in delegating the roles and responsibilities in proper manner (Conrady and Buck, 2011).
Financial resources of the hotel need to be used in feasible manner so that investment capacity of
the hotel can be augmented. Hence, Marriott hotel has to develop portfolio management so that
resources can be properly used and balanced structure can be maintained between all the financial
instruments.
Business portfolio management also looks to achieve a proper balance of work and through
this; cost factor of firm can be managed (Connell and Page, 2006). Effective portfolio management
is required so as to foster an environment where collaborative decision making is easier and more
fruitful. Further, it also minimizes the risks to individual projects in terms of business impact and as
a result, organizational work processes can also become more productive. Similarly, portfolio
management is also essential for Marriott International hotel to enhance the value of human
resources by utilizing the resources in requisite areas only (Chon and et.al., 2012). This is also
suitable for stakeholders because through that proper sharing of the shares and dividends can be
made. Hence, stakeholders of Marriott International hotel will be able to acquire greater benefit
from the management. The resources of the hotel need to be allocated and utilized in those areas
only where it can produce optimum results and outcomes. It is an apparent fact that having adequate
resource management helps the hotel entity to minimize the aspects of risks and can also avoid
issues and constraints (Carlsen and Andersson, 2011).
Therefore, with the help of good financial management, Marriott International can make
comparison regarding benefit and costs aspects; thus it is also vital in managing poor performance.
Business can grow and prosper more only when all the organizational resources are productive and
when they are used in optimum manner. It is essential for the entity to distribute the scarce
resources in limited quantity so that all the projects can produce optimum results (Burns and
Novelli, 2008). Hence, in such respect, the management of hotel Marriott International should
emphasize on proper resource allocation aspects so that organizational competency can be
encouraged. Human resources are considered as vital for the organization because it aids the entity
to generate more resources for other business practices (Buckley, 2012). For instance- Marriott
International hotel has to invest suffice resources for employee’s training and development because
this is integrated with their performance which maximizes sustainability aspects. However, instead
of crucial resources, Marriott has to make sure that the investment is made according to the
capability of the employees (Cooper, 2005). Another contribution of portfolio management in
business growth is that it maximizes hotel's resources and helps in reducing cost of operations.
5.2 Apply the theory of portfolio management and the principle of resource allocation
It has been observed that having adequate management of resources helps the organizations
12 | P a g e

to reduce the degree of resource wastage which is yet another beneficial dimension for the business
(Stokes, 200). Similarly, manpower resources of Marriott International hotel should be delivered
with numerous benefits and advantages so that they can serve varied benefits to the organization for
longer span. At the same time, new opportunities for business growth and success can be developed
and subsequent hotel will also be able to acquire more projects. At the time of serving amenities to
the clients, Marriott International hotel has to make sure that they are delivering all the services to
the end users. This shows that the hotel has sufficient idea regarding proper resource allocation and
business management. Doing such thing, will help the subsequent hotel to retain customers and this
in turn can directly maximize profitability aspects of the business (Spilsbury, 2011).
Marriott International hotel is also able to facilitate innovation and creativity in the business
due to utilizing manpower in requisite areas. People working with them are provided with numerous
benefits that aid them to learn different things which are vital for hotel's success and prosperity.
Resource allocation process of Marriott International hotel is effective because specific limit is
provided to all the sectors which in turn help in using resources feasibly. Marriott International hotel
is able to plan different aspects of business; thus up to some extent, it reduces the opportunities of
risks and uncertainties (Sisay, 2009). Hence, the chances of failure and business constraints get
reduced when the entity has developed an appropriate structure for resource management. Along
with the same, cost benefit analysis can also be made through the same; thus accordingly resources
can be allocated for future job roles effectively. Collecting all the resources in a portfolio assists
Marriott International hotel to acquire information about the value of business processes; hence on
the basis of that, more clients can be persuaded towards the products and services. From the above
discussion, it is clear that resource allocation is significant for business growth because it
maximizes the scope of adopting new and innovative things (Sharpley, 2006).
5.3 Assess the relevance of portfolio management and resource allocation
Human resources are required to be utilized for achieving business success and prosperity
for the management of Marriott International hotel. They have to deliver several benefits to the
workforce. At the subsequent hotel, resource allocation is the process whereby different strategies
can be developed and formulated for managing entire business functions. Marriott International
hotel has to emphasize on efficiency of production so that within minimum requirements, proper
goods and services can be produced (Santana, 2000). This can enhance the economic prosperity of
the entity and as a result, better services can be delivered to the clients. In the realm of resource
utilization, a good portfolio management strategy can help Marriott International hotel to
comprehend how the change on one project impacts the delivery of other projects. It could assist the
hotel entity to re-prioritize and re-allocate organizational resources as necessary.
Moreover, along with these benefits, portfolio management could also allow Marriott
13 | P a g e

International hotel to use the technology in multiple ways and this will make the entity more
developed and competent. Hence, it is clear that this hotel can increase collaboration in all the
departments and with the same aspect; better decisions can be taken for hotels more growth and
development (Rodgers, 2001). For instance- marketing department of the hotel can undertake
adequate decision for finance department and as a result, overall business capability can be
encouraged. If the portfolio of organization is wide, then the head of the department will need to
communicate effectively among the executives and portfolio management team (Matthews, 2005).
LO 6
6.1 Key external environmental factors
Background of the environment of Marriott International hotel
The present research study has been made with an attempt to ascertain the external and
internal environment of Marriott International hotel which is one of the largest hotels in UK’s
hospitality industry. It is a brand conscious hotel which always emphasizes on serving quality
services to the clients (Witt and Song, 2012). The hotel is competitive enough and is delivering
innovative and luxury amenities to the end users which in turn aids in customer retention. External
environment of Marriott International hotel is much more influencing than the internal environment
because of the social and cultural factors included in it. At the same time, technology is also
impacting the business decisions of Marriott International hotel and similarly, they have to
emphasize on new and innovative things so as to gain competitive aspects. However, on the other
hand, internal business conditions of Marriott International hotel is also changing because of the
competition (Weiermair, 2000). There are so many players who are operating the business in
hospitality market of UK. This has been enhancing competition in the same sector. Suppliers have
been supplying proper resources to the hotel so that they can meet different needs and demands of
the customers.
PEST analysis of Marriott International hotel has been conducted in the present research
study so as to analyze the factors that impact the business conditions (Vivanco, 2001). Similarly,
with the help of such analysis, Marriott is able to undertake adequate strategies for proper business
management. Political, social, legal, environmental and technological factors are the most that lies
under this category and that impacts the business decisions of Marriott International hotel.
6.2 Establish the key external environment factors facing the organization
Political factors: The political condition of UK market place has been stable from past many
years and this has been helping out all the industries of nation to operate the business functions
adequately. At the same time, Marriott seems to get impacted through political aspects because the
business conducts trade processes with numerous industries and players. Though, instead of
stability, Marriott International hotel has to consider all the political and legal policies and there in
14 | P a g e

all the concerned strategies are required to be followed (Uzama, 2009).
Economic factors: Economic capability of UK aids the government to invest resources
properly in all the sectors and industries and this can also improve the prosperity of the nation
(Uysal and Williams, 2013). The government of UK is supporting Marriott International because
the industry has been employing number of people in the same area.
Social factors: In terms of social factor, it can be said that Marriott International hotel is
highly affected by the various community aspects. Needs and preferences of clients have been
changing which leads the hotel to adopt new and different things to satiate customer’s needs. Social
factors encourages Marriott International hotel to adopt different cultural and social values so that
the hotel can depict concern towards social diversity (Thompson and Martin, 2005). The hotel has
been recruiting culturally diversified people so that they can deliver all types of services to the
clients. Along with these facets, Marriott is also required to connect customer's beliefs with
company's services so that overall satisfaction rate can be enhanced.
Technological factors: Technology is regarded as the basic factor that impacts business
decisions of every organization because it is another aspect of adopting new and different things
(Swarbrooke and Horner, 2012). Hospitality sector of UK is greatly emphasized towards these
aspects because all the hotel entities wish to develop more opportunities for growth and success.
6.3 Critically appraise how these factors may impact on business
 Political scenario of UK may change after a certain period of time and this can also alter the
business conditions of Marriott International hotel. However, stern concern towards the
political aspect leads the hotel entity to formulate different strategies for managing legal
framework.
 Hospitality industry is populous in terms of generating huge opportunities of employment;
hence this enhances purchasing parity of consumers and as a result, they spend more
resources in travel and tourism services. Nonetheless, on the other side, change in the
economic condition of the hotel can transform the overall scenario of business
organizations; hence this can impact the demand for hospitality services as well (Tijana and
Tivers, 2012). Hospitality industry has been greatly contributing in raising the economic
power of the nation because every year; it generates around 2% of employment
opportunities in the same sector for varied positions.
 At the same time, Marriott hotel has to follow social policies and strategies so as to become
a competitive entity. It is an apparent fact that social changes affect business practices and to
safeguard the business from all such aspects, it is vital to analyze needs and demands of
customers on continuous basis (Tallant, 2011). Further, social factors also enhance
sustainability aspect because according to social beliefs, hotel entity can meet needs and
15 | P a g e

demands of clients on the consistent basis.
 Similarly, Marriott International hotel has been focusing on technological grounds and
according to the same, the hotel entity facilitates more innovation and development. Further,
because of technological aspects, certain new changes have been developed in the service
provision. On the basis of overall analysis, it can be said that technological factors have
increased the scope of expansion and diversification (Stokes, 2006). The competency factor
of hotel entity has been encouraging because new technologies and tools have been adopted
for service management.
Micro environment factors are discussed in the below mentioned section: Customers: The clients of Marriott International hotel have been changing their needs and
demands which further lead the hotel to make several changes in the service aspect.
Customers are considered as those resources that aid the hotel entity to acquire long term
sustainability and competitive advantage especially when they get retained by the business
(Spilsbury, 2011). Hence, for all such purposes, it is vital for Marriott International to satiate
all the requirements of the clients. Competitors: They have been impacting the business conditions of Marriott International
hotel because they all are delivering the same services to the clients. Sometimes, the level of
rivalry increases because all the businesses emphasis on creating competitive edge over the
rivalries (Sisay, 2009). Employees: Staff of Marriott International hotel has been changing the way of managing
things because they need more encouragement and benefits from the organization they work
for. Hence, Marriott International hotel has to consider the interest of employees on all the
levels because human resources aid the business entity to acquire numerous benefits as
compared to the competitors (Sharpley, 2006). Issues prevailing among human resources in
the hotel can also affect the business conditions and this may impact the management as
well. Hence, Marriott International hotel has to give more consideration to all the crucial
resources of the organization.
 Shareholders: It is essential for the organization to give proper share to all its shareholders
as per the level of investment. They need to get proper return from the hotel and that also
aids them to contribute in maintaining continuous flow of resources (Santana, 2000).
However, all the owners and shareholders of Marriott International hotel should be involved
in decision making process and other meetings so that they can consider themselves as a part
of the organization. It is essential for the hotel entity to consider internal business practices
because that changes their conditions respectively. Further, Marriott International hotel is
also required to develop appropriate relationships with the shareholders and stakeholders as
16 | P a g e

well so that long term sustainability can be facilitated (Ryan, 2003).
CONCLUSION
Summing up the entire research, it is clearly identified that hotel Marriott International has
been emphasizing on staff motivation and encouragement so that they can be retained for longer
span and also for enhancing organizational productivity aspects. It has been evaluated that internal
and external business analysis is vital for the hotel entity because that helps in identifying all those
factors that can impact the business decisions. Therefore, with the help of good financial
management, Marriott International can make comparison regarding benefit and costs aspects; thus
it is also vital in managing poor performance. Business can grow and prosper more only when all
the organizational resources are productive and when they are used in optimum manner. It is
essential for the business entity to distribute the scarce resources in limited quantity so that all
projects can produce optimum results. Further, at the same time, there should be proper resource
allocation in all the business activities so that investment capacity of the hotel entity can be
encouraged. From the research study, it has been evaluated that there should be diversified culture
followed in the hotel entity so that cultural information can be developed on varied aspects.
17 | P a g e

REFERENCES
Buckley, R., 2012. Adventure Tourism Management. Routledge.
Burns, M. P., and Novelli, M., 2008. Tourism Development: Growth, Myths, and Inequalities.
CABI.
Carlsen, J. and Andersson, T., 2011. Strategic analysis of public, private and not-for-profit festival
organizations. International Journal of Event and Festival Management. 2(1). pp.83 – 97.
Chon, S. K and et.al., 2012. Consumer Behavior in Travel and Tourism. Routledge.
Connell, J and Page, S. J., 2006. Tourism: A Modern Synthesis. 2nd ed. Cengage Learning EMEA.
Conrady, R. and Buck, M., 2011. Trends and Issues in Global Tourism. Springer.
Cooper, C., 2005. Tourism: Principles And Practice. 3rd ed. Pearson Education Limited.
Covin, G. J., Green, M. K. and Slevin, P. D., 2006. Strategic Process Effects on the Entrepreneurial
Orientation–Sales Growth Rate Relationship. Entrepreneurship Theory and Practice. 30(1).
pp. 57–81.
Croes, R. R., 2000. Anatomy of Demand in International Tourism: The Case of Aruba. Uitgeverij
Van Gorcum.
D'Amico, C. and et.al., 2011. Moving from the Crisis to Sustainability. Emerging Issues in the
International Context. FrancoAngeli.
Delmar, F., Davidsson, P. and Gartner, B. W., 2003. Arriving at the high-growth firm. Journal of
Business Venturing.18(2). pp.189–216.
Dollinger, M. J., 2006. Entrepreneurship strategies and Resources. 3rd ed. Pearson Education, New
Delhi.
Hassanien, A., 2006. Exploring hotel renovation in large hotels: a multiple case study. Structural
Survey. 24(1). pp.41 – 64.
Hemmington, N. and King, C., 2000. Key dimensions of outsourcing hotel food and beverage
services. International Journal of Contemporary Hospitality Management. 12(4). pp.256 –
261.
Hjalager, A. M., 2001. Quality in tourism through the empowerment of tourists. Managing Service
Quality: An International Journal. 11(4). pp.287–296.
Inskipp, C., 2008. Travel and Tourism. Evans Brothers.
Ireland, D. R. and et.al., 2008. Understanding Business Strategy: Concepts and Cases. 2nd ed.
Cengage Learning.
Jayawardena, C. and et.al., 2013. Trends and sustainability in the Canadian tourism and hospitality
industry. Worldwide Hospitality and Tourism Themes. 5(2) pp.132–150.
Kárpáti, L., 2001. How to Develop a Strategic Marketing Plan: A Step-by-Step Guide.
EuropeanJournal of Marketing. 35(11/12). pp.1398 – 1402.
18 | P a g e

Ketzes, S., 2003. Optimising business performance through innovative workplace strategis. Journal
of Facilities Management. 2(3). pp.258-275.
Kimmm, J., 2012. How do pleasure travelers manage their travel constraints. Tourism Review. 67
(3). pp.30 – 40.
Lane, M., 2007. The Visitor Journey: the new road to success. International Journal of
Contemporary Hospitality Management. 19(3). pp.248 – 254.
Marvell, A., 2005. Travel & Tourism: AS Level for OCR : GCE AS Level Double Award.
Heinemann.
Matthews, R. J., 2005. Strategic Planning And Management For Library Managers. Libraries
Unlimited.
Rodgers, J. 2001. Travel and Tourism. Heinemann.
Ryan, C., 2003. Recreational Tourism: Demand and Impacts. 2nd ed. Channel View Publications.
Santana, G., 2000. An Overview of Contemproary tourism development in Brazil. International
Journal of Contemproary Hospitality Management. 12(7). pp. 424-430.
Sharpley, R., 2006. Travel and Tourism. SAGE.
Sisay, A., 2009. Historical Developments of Travel and Tourism in Ethiopia. The Author.
Spilsbury, L., 2011. Travel and Tourism. The Rosen Publishing Group.
Stokes, R., 2006. Network-based strategy making for events tourism. European Journal of
Marketing. 40(5/6). pp.682 – 695.
Swarbrooke, J. and Horner, S., 2012. Business Travel and Tourism. Routledge.
Tallant, J., 2011. The Importance of Strategic Planning in the Business Environment. GRIN Verlag.
Thompson, J. and Martin, F., 2005. Strategic Management. 5th ed. South Western cengage Learning.
Tijana, R. D. and Tivers, J. D., 2012. Narratives of Travel and Tourism. Ashgate Publishing, Ltd.
Uysal, M. and Williams, J. A., 2013. Current Issues and Development in Hospitality and Tourism
Satisfaction. Routledge.
Uzama, A., 2009. Marketing Japan's travel and tourism industry to international tourists.
International Journal of Contemporary Hospitality Management. 21(3). pp.356 – 365.
Vivanco, L., 2001. Spectacular Queztals, Ecotourism and Environmental Futures in Mote Verde,
Costa Rica. Univeristy of Pittsburgh- Of the Commenwealth System of Higher Education.
40(2). pp. 79-92.
Weiermair, K., 2000. Tourists’ perceptions towards and satisfaction with service quality in the cross‐
cultural service encounter: implications for hospitality and tourism management. Managing
Service Quality: An International Journal. 10(6). pp.397–409.
Witt, F. S. and Song, H. H., 2012. Tourism Demand Modelling and Forecasting. Routledge.
19 | P a g e

Zhang, H. Q. Chong, K. and Jenkins, L. C. 2002. Tourism policy implementation in mainland
China: an enterprise perspective. International Journal of Contemporary Hospitality
Management. 14(1). pp.38-42.
20 | P a g e