Strategic Management of Marriott Hotel

The assignment is a strategic management report on Marriott Hotel, aiming to top the list of upgraded sector in Europe by 2020. The report includes a stakeholder matrix, PESTEL analysis, SWOT analysis, and discusses the hotel's mission and vision. It also explores the impact of stakeholders on the organization using a stakeholder matrix.

STRATEGIC HOSPITALITY
MANAGEMENT

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1...............................................................................................................................................3
1. Identify the organisation's mission and objective.......................................................................3
2. Provide matrix of ten key stakeholder of organisation along with their significance for
organisation and also support this by PESTEL.............................................................................3
3. Provide a strategic analysis of the organisation's internal and external environment and also
critically analyse the features of SWOT.........................................................................................6
CONCLUSION...................................................................................................................................7
REFERENCES.......................................................................................................................8

INTRODUCTION
Strategic hospitality management is very important for an organisation of hospitality
industry. Hospitality refers to offer services to others as well as exhibit consistent excellence an d
quality. It should also mean profitably offering value at any cost level while presenting specific
points of distinction. Hospitality sector is a part of a large group of organisations which is known
as travel and tourism sector and offer the required or necessary goods and services to customers
and travellers. Hospitality and tourism industries are the largest and fastest developing industries in
the world. This help managers of organisation to make specific strategies by which they can
manage their manage the plans and future objectives in very effective manner. This report is based
on The Marriott Hotel, which is one of the leading organisation in the world of hospitality industry.
They use to provide their services in different parts of world. It is an American organisation and
was founded in 1972 by J. Willard Marriott (Abrate and Viglia, 2016). This report will help in getting
knowledge about the long term term goals setted by The Marriott Hotel along with their key
stakeholders. This report will also focus on the affect of these stakeholder by using PESTEL and
also internal and external environment of organisation will get analysed.
TASK 1
1. Identify the organisation's mission and objective.
The Marriott Hotel is one of the leading organisation in the world. They sue to provide their
products and services in hospitality sector, they are running their business in around 127 countries
of the world. As, by the time hotel was founded, their leader use to set some objectives and
missions for organisation, by which only they become successful and come in the top of world's
best hospitality organisations. Therefore, for keeping themselves growing and developing it is
important for them to make more missions and objectives, achieving those can help organisation in
development. Latter on, in 2016 they use to make mission that they will grow their business in
Europe. Under which they use to add around 40,000 rooms in Europe only, by which their market
share can get improved and they get several benefits. These benefits include, competitive
advantages, increase in market share and profits. Also now the latest goal and objective of the
organisation is to lead the list of upscale segment of Europe by 2020 (Mission and vision of The
Marriott Hotel, 2019). Currently Marriott have 5th position in this list of upscale segment in Europe.
For completing this, it is required for managers of organisation to make proper plans strategies for
this and also plans to monitor the work in effective manner. This will help them in checking the
performance of teams, tasks, and individuals, so that changes can become easy for them.
Classical- Chandler: There are various theories which is used by companies in order to
increase their business growth and revenue. Chandler's theory of “visible hand” explains the origin
of the company as well as the growth of firm. Managers of Marriott hotel examine the background

or history of the company for the purpose of analysing its current market situation. Along with this,
it is the theory which provide detailed analysis of the company. In the present context of Marriott
hotel managers use this theory to examine the historical as well as current position of the
company.
5 P’s- Minzberg: Minzberg provide five main definitions of strategies: Plan: It is the first stage where Marriott hotel plan or formulate various strategies in order to
sell their products and services. Ploy: Under this stage, Marriott hotel examine the tactics and strategies of their
competitors in order to maintain their marketplace. Pattern: In this stage, managers of Marriott hotel examine its past and present strategies in
order to formulate strategies for its future. In addition to this, managers can generate more
revenue as well as gain competitive advantages at the marketplace. Position:Under this strategy, manager of Marriott hotel examine the present market
position of the company as well as position of its rival company within same industry. Perspective: Human perspective is dynamic in nature, for this manager of Marriott hotel
examine the external environment and then create new products and services. These
products satisfy the requirements of customers as well as company can retain them for a
long period of time.
Strategic Lenses: It is a concept of strategic management which includes four major
angles with the help of which managers can examine and implement their strategies. These are:
 As design: It is the process where managers of the Marriott hotel look at the problem in
different way which help in rising new solutions to the problem.
 As experience: Decision making process is mainly based on the past experience of
management team of the Marriott hotel.
 As idea: This approach is mainly focuses on innovating new products by examine the
overall the overall internal as well as external resources.
 As discourse: Managers of Marriott hotel communicate various strategies and plans by
presenting vision and mission statement of the company.

Strategic Process Diagram:
(Source: Strategic Process, 2018)
Mission: Main aim of Marriott hotel is to improve the living standard of people by creating
better vocational experience.
Vision: Vision statement of Marriott hotel is to become the prime supplier of vacation
experience in the whole wide world.
2. Provide matrix of ten key stakeholder of organisation along with their significance for
organisation and also support this by PESTEL.
The matrix for stakeholders which is used by organisations is divided into different
categories. In this, organisation use to place their stakeholders according to their interest and
power, by which they can get knowledge that which stakeholders are important for them and which
are not. Beneath is the description of this matrix :-
Illustration 1: Strategic Process, 2018

Source : Stakeholder matrix used by Marriott, 2019
While it come to categorising stakeholder according to their interest, it is divided into two
parts :- Defenders : These are the stakeholder which are highly interested in organisation, but they
do not have enough power that can influence the organisation. As Marriott Hotel is one of
the biggest organisation in hospitality industry, therefore they have huge list of suppliers
who are very much interested in organisation ( Durand, Grant and Madsen, 2017). But due
to long list of suppliers with them reduce the power of suppliers and also they do not able to
pose any impact over organisation. This take the suppliers in Defenders, which are required
for organisation to keep informed about the services provided by them. Also they have
ample number of customer which love their products and services. This also increases the
interest of customers in organisation and also decreases their power.
 Apathetic : These are the stakeholder which have least power in organisation. They nor
have any interest in operations of organisation and neither any power has been given to
them. The most common stakeholder in this are the government of the nation. They do not
have any power with The Marriott Hotel and also do not have any interest in the functioning
of them. They only are connected with them, so that they can monitor their functioning and
operations.
Where as, according to the power of stakeholder also, they are divided into two parts, which
are as follow :- Promoters : There are the most powerful stakeholders of the organisation. The power to
influence decisions and working of organisation are most with them and also they are the
most interested person in the organisation ( Evans, 2015). The stakeholder which Marriott
Hotel have in this category are, CEO, BOD, leaders, managers. There are the main
stakeholder of organisation, on which the decision making is completely depends. They use
Illustration 2: Stakeholder matrix

to study different conditions and make plans and strategies according to it, so that
organisation can get some advantages.
 Latent : These are the stakeholder, which have high power in organisation but do not have
very much interest. This lead them in getting power by which they can make change in The
Marriott Hotel when ever they want, but these are the stakeholder who do not give very
much focus on functioning and operations of organisation. The which matters for them is
just their profits, they use to make changes when they do not get some profits. In this the
stakeholder are, employees, investors and competitors of organisation.
These stakeholders pose some role in external environment of Marriott Hotel, by which
organisation have to make changes. Following is the PESTEL of organisation :-
1. Political : This is the factor which is concerned with government and other legal bodies of
nation (Foss and Hallberg, 2014). They do not have very much interest in any single
organisation, and also do not have any power in specific private organisation like Marriott.
This make them not directly affect the functioning of organisation, but change in global rules
by them can affect the operations of organisation. Also, it is very much important for
Marriott Hotel to make their strategies according to rules and regulations of nation, so that
they do not face any legal issues. Getting fixed in such any type of issues will lead the
organisation in financial loss and also lead them to loss in goodwill at market place.
2. Economical : In this factor, economic conditions of nation are concerned. As Marriott Hotel
is an American organisation, which also use to perform their operations in different parts of
the world. Economic conditions of America is very good and also it help organisations in
performing their operations and also help them in generate some revenue, so that they can
get some profit of them. This all lead the organisation in attaining their goals and objectives
so that they can grow and develop their business.
3. Social : This is the factor which is concerned about the society in which they are serving
their products and services. As success of failure of each and every organisation depends
on society of the nation. Therefore, for Marriott Hotel, it is very much important for them to
understand the needs of their customers and also to provide products and services
according to it only. Also they have to take care that the product and services they are
offering can give some benefit to society, so that they can develop their business.
4. Technological : Technological factor is very much important for an organisation which use
to perform their operations in nation like America or UK. As these are the place where
people are highly educated and love to enjoy new technologies. Therefore, it is very much
important for top management of Marriott Hotel to make study of new technologies and also
to adopt which are good for their organisation and for their performance.
5. Environmental : Every nation have their own rules and regulations related to environment

of them, which help them in keeping the environment of nation clean and safe to live.
Therefore, for Marriott Hotel it is very much important for them to study these rules and
regulations, so that they can make plans and strategies according to it only.
6. Legal : This factor is related to the legal bodies of the nation and also indirectly to the
government of nation ( Madera and et. al, 2017). In this, if organisation like Marriott Hotel
can follow the rules and regulations of nation then they will not face any problem but they
do not follow these rules, then government can create problem for them. Otherwise, they
have to several problems, like legal case, financial loss and also loss in goodwill of
organisation at market place.
Stakeholders of Marriott Hotel :-
Basic Stakeholders
Promoters  CEO
 Board of Directors
 Leaders of organisation
Latent  Suppliers
 Customers
Defenders  Employees
 Investors
 Share holders
Apathetic  Government
 Society
3. Provide a strategic analysis of the organisation's internal and external environment and also
critically analyse the features of SWOT.
The Marriott Hotel is one of the leading organisations in the world of hospitality industry. It is
very important for them to analyse the internal and external environment, so that they can
effectively achieve their objectives. SWOT analysis of The Marriott Hotel is as follow :-
1. Strengths : As The Marriott Hotel is one of the biggest organisation in hospitality sector.
They have ample number of loyal customers along with huge source of finance, by which
they can easily expand their business in different parts of world. Positive : This can help The Marriott Hotel in getting knowledge that where they can
invest and how they can get more benefits from their own services. This also help them
in getting knowledge that how they use their resources.

2. Weaknesses : The main weakness of Marriott Hotel is they use to always have focus on
expansion of organisation ( Moutinho and Vargas-Sanchez eds, 2018). This help them in
making huge empire but handling such a big system is very tough of any one. They always
look to provide standard services which are also not possible. Negative : This can expose the weakness of an organisation in front of world, which can
affect performance and brand image of Marriott Hotel.
3. Opportunities : The Marriott Hotel have ample opportunities, which they can grab, so that
their performance get enhanced ( Pavlatos, 2015). This also help them in growing their
business using various methods and also help them in gaining some competitive
advantages. Positive : This help an organisation like The Marriott Hotel to identify different
opportunities available for them in different business environment. Also this help them in
gaining some competitive advantages
4. Threats : As The Marriott Hotel is one of the biggest organisation in hospitality industry and
they provide their products and services in different corners of the world. Therefore, they
have several threat, for which they have to make plans. The most common threat for them
is the increasing competition in different parts of the world. Also they have treat to face any
terror attack, which can affect their financial conditions along with structure. Negative : Leakage of their planning and measures can cause to failure of their plans,
as another party get information that what are the security they are using for prevention
( Phillips and Moutinho, 2014). This help them in making new plans by which they can
harm organisation.
TOWS Matrix: It is a technique which is used by various companies in order to formulate,
select and compare best and suitable strategy which helps in increasing performance and
productivity of organisation.
Strength/Opportunity Weaknesses/Opportunity
 In context to Marriott Hotel, managers of
the company use their internal strengths
to gain external opportunities.
 By grabbing external opportunities
Marriott Hotel will be able to minimize
their weakness.
Strength/Threat Weakness/Threat
 In the present context of Marriott Hotel,
company use its internal strength in
order to reduce external environment
 With the help of effective strategies,
managers of Marriott Hotel will be able to
minimize their internal weakness as well

threat. as external environment threats.
Ansoff matrix: Managers of Marriott Hotel uses this model in order to gain competitive
advantages as well as to grow in the marketplace.
Market development Market penetration
 This is the factor used by Marriott Hotel
managers, where they provide same
products and services but in new market
place. This will aid them to expand and
grow their organisation.
 Under this factor, Marriott Hotel can
generate more revenue by providing
existing services within the same
existing market.
Product development Diversification
 Under this factor, managers of Marriott
Hotel use this strategy where they
launch new products and services in
existing marketplace.
 This is one of the high-risk strategy for
Marriott Hotel where they have to launch
new product and services at new
marketplace.
With the help of Ansoff matrix it has been analysed that managers of Marriott Hotel use
diversification strategy in their business organisation.
Value Chain: Value chain analysis is a strategic tool used by various firms in order to
examine their internal activities. The main aim behind using this model is to recognize their
activities and analysing which activity add value to the final product. This model is developed with
the help of primary activity and secondary activity.
Primary activity: Value chain is developed by company with the help of primary activities
which directly add value to the final products. It includes inbound logistics, operations, outbound
logistics, marketing and sales function and services.
Secondary activities: These are those activities which help the firm in adding value to their
products but in indirect method. It includes firm infrastructure, HRM, procurement as well as
technology.
CONCLUSION
From the study of above report, it has been concluded that, The Marriott Hotel has aim to
top the list of upgrade sector of Europe by 2020. Also it has been concluded that, organisations
use to adopt stakeholder matrix, so that they can identify the impact of them on PESTEL analysis
of organisation. Also this report has helped in gaining knowledge about the SWOT of organisation

along with their positive and negative impact over organisation and their performance.
REFERENCES
Books and Journal
Abrate, G. and Viglia, G., 2016. Strategic and tactical price decisions in hotel revenue
management. Tourism Management. 55. pp.123-132.
Durand, R., Grant, R. M. and Madsen, T. L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management Journal. 38(1).
pp.4-16.
Evans, N., 2015. Strategic management for tourism, hospitality and events. Routledge.Mission and
vision of The Marriott Hotel. 2019
Foss, N. J. and Hallberg, N. L., 2014. How symmetrical assumptions advance strategic
management research. Strategic Management Journal. 35(6). pp.903-913.
J. Harrington, R. and et. al., 2014. Strategic management research in hospitality and tourism: past,
present and future. International Journal of Contemporary Hospitality Management. 26(5).
pp.778-808.
Madera, J. M. and et. al., 2017. Strategic human resources management research in hospitality
and tourism: A review of current literature and suggestions for the future. International
Journal of Contemporary Hospitality Management. 29(1). pp.48-67.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI Tourism
Texts. Cabi.
Pavlatos, O., 2015. An empirical investigation of strategic management accounting in
hotels. International Journal of Contemporary Hospitality Management. 27(5). pp.756-767.
Phillips, P. and Moutinho, L., 2014. Critical review of strategic planning research in hospitality and
tourism. Annals of Tourism Research. 48. pp.96-120.
Wood, R.C., 2018. Strategic questions in food and beverage management. Routledge.
Online
Mission and vision of The Marriott Hotel. 2019. [Online] Available Through:
<https://news.marriott.com/2017/03/marriott-international-announces-2020-growth-vision-
europe-post-starwood-acquisition/>./
Stakeholder matrix used by Marriott. 2019. [Online] Available Through:
<https://www.stakeholdermap.com/stakeholder-matrix.html>.