Strategic Analysis of Marriott’s Merger with Starwood Hotel
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Added on 2020-04-29
Strategic Analysis of Marriott’s Merger with Starwood Hotel
Added on 2020-04-29
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Running head: STRATEGIC ANALYSIS OF MARRIOTT’S MERGER WITH STARWOODHOTELStrategic analysis of Marriott’s merger with Starwood hotelName of the Student:Name of the University:Author’s Note:
1STRATEGIC ANALYSIS OF MARRIOTT’S MERGER WITH STARWOOD HOTELTable of ContentsIntroduction:....................................................................................................................................2Evaluation of relevant strategy level:..............................................................................................2Analysis of strategic position using Bowman’s Clock-...................................................................3Critical evaluation of the key stakeholders:.....................................................................................5External analysis:.............................................................................................................................7Industry analysis:...........................................................................................................................10Conclusion:....................................................................................................................................13References list:...............................................................................................................................14
2STRATEGIC ANALYSIS OF MARRIOTT’S MERGER WITH STARWOOD HOTELIntroduction:The merger of Marriott with Starwood hotel is one of the strategic appraisal that isemployed by organization to expand their frontier. Starwood hotel and Marriott are leadinghospitality brand having presence in major cities. International footprints of Starwood hotel willbe fused resulting from merger with Marriott and its strong presence in personalized and luxuryservices. A changing landscape of hotel industry is depicted by such merger. Core value ofMarriott is centred upon providing excellent services, supporting and promoting employees,integrity, innovation and supporting the goal of becoming the leading hospitality chain in theworld. It is the goal of Marriott to be number one hotel company that could be done by claimingmarket share internationally. Merger has brought additional 5700 hotels with 30 brands making itlargest hotel in the world (Connell 2016). This strategic approach has led to acquisition ofluxury brands of Starwood and inheriting lifestyle brands such as Aloft. Merger would enable thecompany to help them in achieving long-term goals of becoming number one company inhospitality industry. Evaluation of relevant strategy level:Corporate strategy- The corporate strategy of organization is supported by businessstrategy and the merger would lead to integrate complicated work. A comprehensive portfoliowould be created resulting from combined transactions of international footprints and leading lifestyle brands of Starwood with Marriott’s strong presence in service and luxury tiers along withresort and convent segment. The additional value to shareholders of Starwood and Marriottwould be unlocked by providing greater opportunities to associates and broader choice to guests.Strategic business unit of Marriott merger of Starwood focuses on representing differentdivision, group and they are the most profitable unit of the group (Yu and Gu 2013).
3STRATEGIC ANALYSIS OF MARRIOTT’S MERGER WITH STARWOOD HOTELManagement of product, maintaining competitive level and expansion of business are theresponsibility of strategic business unit. Corporate strategy of the group will be confined withbusiness unit expansion. Objective of Marriott at the end of 2015 was to generate additional150000 jobs, make $ 50 billion investment in real estate and reaching 1 million room (Gibbs etal. 2016). This expansion plan of Marriott is supported by strategic business unit that led tostrategically setting business. One of reason of merger of Marriott with Starwood is expandingtheir business in Asia. Acquisition of Starwood hotel by Marriott is a part of their corporatestrategy and they have been able to derive benefits from such strategy depending upon marketenvironment. Global corporate strategy would help in guiding business units of Marriott despitetheir own market environment and peculiarities (Wood 2016). Analysis of strategic position using Bowman’s Clock-Bowman’s Clock strategy is a model to analyse their competitive position whiledesigning market strategy. Model is represented diagrammatically using framework depictingrelationship between prices and customer value. There are eight strategic position as per thismodel and the implementation of model helps organization in comparing their services andproducts offered with other company belonging to same industry (Zheng and Zhang 2014).
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