Destination Life Cycle and Assessment: A Study of Goa Tourism Industry

The provided assignment content is a collection of academic papers, journals, and online resources related to the tourism industry, hospitality management, marketing, sustainability, and leadership. The papers cover topics such as managing tourist destinations, sustainable hotel management, climate change impact on tourism, human resource management in hospitality, and the role of ICT adoption in enhancing hotel performance. Additionally, the assignment includes case studies from organizations like Marriott and World Tourism Organization, highlighting the economic contribution of the UK hospitality industry and travel & tourism impact.

TOURISM
AND
HOSPITALITY
BUSINESS STRATEGY
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TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................5
1.1 Range of definitions of corporate strategy.............................................................................5
1.2 Apply definitions of corporate strategy to a chosen organization within the tourism and
hospitality industry......................................................................................................................5
1.3 Critically evaluate chosen corporate strategy........................................................................6
TASK 2............................................................................................................................................7
2.1 Range of relevant analytical models......................................................................................7
2.2 & 2.3 Identified range of analytical and evaluating the models in theoretical content and its
application on organization..........................................................................................................8
2.4 Critically evaluate organizational strategies........................................................................11
2.5 Propose and justify recommendations for future strategic development.............................12
TASK 3..........................................................................................................................................13
3.1 Management of diverse individuals, groups and teams.......................................................13
3.2 Identified ways in which Marriott organization culture can impact on strategy development
and implementation....................................................................................................................13
3.3 The impact of organizational culture on strategic development and implementation within
chosen tourism and hospitality organizations............................................................................14
TASK 4..........................................................................................................................................17
4.1 Advantages and disadvantages of various approaches that organizations can take towards
internationalization....................................................................................................................17
4.2 Propose and justify the most appropriate growth strategy for a specific organization........19
TASK 5..........................................................................................................................................20
5.1 The role of effective portfolio management and resource allocation in business growth
strategy.......................................................................................................................................20
5.2 Theory of portfolio management and the principle of resource allocation to the chosen
organisation................................................................................................................................21
5.3 Assess the relevance of portfolio management and resource allocation to the chosen
organisation................................................................................................................................22
TASK 6..........................................................................................................................................22
6.1 Identification of key external environmental factors for Marriott Hotel.............................22
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6.2 Key external environmental and establishing key external environmental factors facing the
organization...............................................................................................................................23
6.3 Appraising how external factors makes impacts on business..............................................24
CONCLUSION..............................................................................................................................26
References......................................................................................................................................27
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INTRODUCTION
The Tourism and hospitality are the fastest growing sectors of the economy as compared
to other sectors like, health, automotive, financial services etc. . The contribution of travel and
tourism to economy is highest with upto 10% of global GDP. The 1 in 11 of total job is
generated by travel and tourism sector. Thereafter, more than 2.4 million direct jobs are
generated by hospitality industry; 1 in 13 of gross jobs (Travel and Tourism impact. 2015). The
growth in tourism have direct and positive impact on the business of hospitality industry.
Thereafter, UK is on the list of world's 8th tourist destination, this has further lead to emergence
of new hospitality business like, hotels, restaurants, pubs, theme parks, fast food chains etc. In
addition to this aspect, hospitality industry have direct contribution of upto £34 billion amount in
tax income of UK (Economic contribution of UK Hospitality industry. 2015). This further states
that tourism and hospitality are important part of UK. To ensure continuous growth and progress
of nation, it is important for country to focus on these flourishing sectors.
In the present report, various aspects of hospitality industry will be studied. Further, in
this report, business strategy for renowned hospitality and tourism organization, Marriott will be
explained. It is chain of luxury hotel providing valuable hospitality services in more than 80
countries around the globe. It also generate employment for more than 200000 employees. It a
public company founded in 1993 by JW Marriott. In this report, new corporate strategy for
company will be devised that will further help Marriott to enhance its growth and profitability.
Thereafter, with the assistance of PEST and Micro analysis, impact of external and internal
factors on functioning of business will be studied. Further, with the help of range of analytical
models, assistance will be taken for formulating new business strategy. However, company is
intending to expand in international market therefore, corporate strategy in global context will be
designed. Thereafter, the implication of portfolio management and resource allocation in
ensuring growth of business will be explained. Further, significance of cultural diversity and
challenges in this respect will be detailed out.
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TASK 1
1.1 Range of definitions of corporate strategy
The corporate strategy refers to those plan of action that help organization in attaining the
aim of prolonged success. In addition to this, it also involve those steps that help in gaining
competitive benefit in dynamic market by making best use of core competencies available with
company. The corporate strategy help Marriott in creating value for its services across various
countries (Hall, 2008). Thereafter, it also help company in ensuring expansion, growth and
continuous development. Therefore, corporate strategy refers to strategic decision of
organization that have direct impact on the overall functioning of company. Broadly there are
three kinds of business strategy that can be employed by Marriott, growth, stability and
diversification. With the help of growth strategy, company can expand in various markets by
using current or new products and services. Thereafter, with the help of stability strategy,
company can maintain its current practices by serving existing customers with current products
and services (Jones, 2012). Thereafter, diversification strategy assist company in expanding into
new market where it is not functioning presently. Therefore, corporate level strategy help
business enterprises in creating, maintaining value. However, these strategies can be affected by
various external and internal factors. Therefore, it is important for Marriott to consider these
factors while functioning in different markets. This can be further explained through PEST and
micro analysis.
1.2 Apply definitions of corporate strategy to a chosen organization within the tourism and
hospitality industry
The corporate strategy refers to those plan of action that help organization in attaining the
aim of prolonged success. In addition to this, it also involve those steps that help in gaining
competitive benefit in dynamic market by making best use of core competencies available with
company. The corporate strategy help Marriott in creating value for its services across various
countries.
Another corporate strategy that is being used by Marriott International include
differentiation strategy under which they constantly develop their product and services to meet
the distinct requirement of their customers. The foremost example of using differentiation
strategy is that Marriott has focused on introducing their new brand in the portfolio that mainly
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appeal to the customers by serving their unique requirement. For instance; Marriott International
has declared their new brand that is Autograph collection so that they may appeal to increasing
segment of the customers furthermore, it may also strengthen the presence of Marriott
International. According to Sirirak and Islam (2011) one of the major advantage of using this
strategy is that Marriott may easily generate high income and profit as for the differentiated
services they may charge unique or premium cost from their customers base as due to lack of
substitute services in the market.
1.3 Critically evaluate chosen corporate strategy
In order to succeed in the competitive hospitality industry Marriott international establish
effective business strategies that is commonly designed to assist the mission and vision of the
hospitality organization. Corporate level strategy mainly focuses on taking strategic decisions
that overall affect the organization decisions and performance in the marketplace (Lockyer,
2013). For instance; measuring the financial performance, managing workforce within the
organization, measuring portfolio of the company, allocation of adequate resources are mainly
considered as essential elements while formulating corporate level strategy. Marriott
International is consider as global franchiser of providing leisure and luxurious services related
with the hotels and lodging facilities to diverse range of customers. The company has certain
competitive advantage that distinguish them from their competitors that is uniqueness and cost,
serving quality services to all customers mainly targeting premium class customers and travelers.
Basically there are different range of corporate strategy that can be employ by Marriott
International to sustain within the competitive marketplace (Nickson, 2013).
According to Goss-Turner and Boella, (2013) value-creating strategy is consider as one
of the effective strategy that mainly support the Marriott international in seeking the competitive
edge from their rival organizations by gaining large market share. However, this strategy mainly
outcome in reducing the costs and increasing the overall efficiency of the organization. As per
the view of Andrews (2007) Marriott has attained the position in maintaining innovation and
quality in their services by serving or catering the services to moderately and premium class
customers. Therefore, this serve as precious and worthy attribute of the Marriott International
that attain valuable cost to the reputed firm.
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According to Andrews, 2007, “differentiation strategy of Marriott Hotel has distinguished
the hotel services from the other competitors” (Andrews, 2007). From the evaluation, it has been
found that the following strategy has helped in create the value for Marriott Hotel. With the help
of this, hotel has able to deliver the quality services to the guests at affordable price as compare
to its competitors. But Barrows and Powers, 2008 has stated in his research that “differentiation
strategy has helped Marriott Hotel to gain brand loyalty from the customers” (Barrows and
Powers, 2008). The effective service of the hotel has influenced the service users to became a
loyal consumes. It has increased the market share of the organization via perceived quality of the
services. In the contrast, Brotherton, 2012 has explored in his research that “the existing
differentiation strategy of Marriott Hotel has provide the marketing advantage”(Brotherton,
2012). With the help of it, it become easy to convey the message to the customers about the
services of the hotel. It has created a unique brand image in the market place. Therefore, from
the above stated statements, it has been concluded that the differentiation strategy of Marriott
Hotel has provided the various competitive advantages in the market place and increase market
share.
TASK 2
2.1 Range of relevant analytical models
The analytical models refers to those business tools used by organization to arrive at
solution to business problems. These analytical models are further used to frame effective
business strategy and plan which further help in growth and expansion of Marriott. The
analytical models also help organization on focusing on such business operations that are crucial
for future success and sustainability (Li and Solis, 2013). Therefore by considering the analytical
models business needs can be met by Marriott in effective and efficient manner. The various
analytical models that can be used by company to frame appropriate corporate strategy are
SWOT, PESTLE, Porter five forces model etc. The Swot analysis will help company in identify
various strength available with organization. These strength can be further used by company in
overcoming its weaknesses. Therefore, company can perform beyond its potential and give a
edge to its major rivals. Thereafter, various business opportunities can be identified by company
(Hall, 2008). Therefore, proper steps can be taken by Marriott to take advantage of upcoming
opportunities. Further, measures can be taken to reduce the impact of threats on the performance
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of company in different markets. On the other side used of PESTLE analysis will help to
examine the different macro environment factors which makes direct impact on the business of
Marriott. This model will also help to assess that how operational activities of hospitality
organization affects from different external factors.
2.2 & 2.3 Identified range of analytical and evaluating the models in theoretical content and its
application on organization
SWOT ANALYSIS MODEL
Strengths:
 Strong market position: Marriott enjoys the leading market position as compared to its
rivals. The company is on the top position in accommodation and tourism industry. The
shares of company are also on leading position. Therefore, it is the biggest strength of
company (Ritchie, Tung and Ritchie, 2011).
 Global presence: Company owns more than 4000 resorts, hotels and other properties in
over 80 countries. Therefore, it have worldwide presence which increases its global
recognition and brand value among customers. This further makes easy for company to
expand in new countries and locations.
 Strong reservation system: Marriott have adopted very strong reservation system that
increases convenience to customers. Therefore, it book the accommodation and other
services prior to the arrival of customers (Brotherton, 2012). Hence, customer get the
services as per their wishes easily even in peak seasons.
 Powerful brand recognition: Marriott is renowned chain of hotel that provide high end
services to its customers. Thereafter, it have global presence which increases the brand
recognition for prospective consumers. Further, consumer can easily recall the brand.
 Technical innovations: Organization use technical innovations to provide effective and
unique services to its target customers. By using technical aspect, Marriott makes
continuous improvement in its business processes and quality of services. In addition, to
this customer experience in enhanced constantly by using technical innovations
(Spyriadis, 2010).
Weakness:
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 Increasing employee turnover: Business is facing serious issue of increasing employee
turnover that also affect the ability of organization to fulfill the needs of prospective
customers in best manner (Jayawardena, 2011). The increasing turnover have negative
impact on the performance and service standards of Marriott.
 Focus on specific sets on consumers only: Company provides high end services
therefore, major consideration is given on elite and high income customers only.
Therefore, a large segment of customers comprising of middle class individuals are
ignored.
 Low presence in Asian market: The Asian market is developing and growing market. It
provide large growth opportunities for hospitality and tourism industry. However,
Marriott have low presence in Asian market (Hall, 2008).
 High geographic concentration: It one of the major weakness faced by company.
Marriott have increased geographic concentration that limit the scope for company.
Therefore, more than 75% hotels of brand are concentrated in only 20 countries.
Opportunities:
 Developing markets: The developing and growing markets of Asia and other developing
countries provide ample number of growth opportunities for Marriott. These markets
have large potential for company to increase its productivity and profitability (Ritchie,
Tung and Ritchie, 2011).
 Less competition in growing markets: There is fewer competition in growing countries
like, India, Gulf, China etc. Therefore, company can enter these markets can get first
mover advantage.
 Use of technology: Marriott can use technological aspects to gain customer attention and
enhance its brand recognition in different market. The technological aspect will also help
company in gaining competitive benefit over its rivals (Andrews, 2007).
Threat:
 Competition on price factor: Company is facing competition in terms of prices from
established chain of hotels. Therefore, to avoid shift of customers towards rivals, Marriott
have to consider pricing policies adopted by competitors.
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 Economic downturn in key destinations: Business face serious threat of economic
downturn in its key destinations like, UK, US etc.
Micro Analysis
It refers to analysis of those internal factors that have direct impact on the functioning of
Marriott in domestic as well as foreign nations. By considering the micro analysis the negative
impact of internal factors on the operations of business can be overcome. The micro factors that
affect the performance of Marriott are as follows:
 Competitors: The company is working in global environment therefore it has to fight
with competition at national as well as international level. Marriott is facing tough
competition from luxury hotels like, Hilton, Starwood hotels and resort, Taj and Hyatt
hotels. However, Marriott is leading hotel and rules the top position among its rivals. The
company enjoys global recognition, with more than 4000 hotels and properties in
different possible locations. Therefore, it enjoys global presence, brand value and high
recognition among its customers. Therefore, to maintain its leading position it is
important for Marriott to consider the strategy and other operations of rivals
(Jayawardena, 2011).
 Customers: The elite group, business delegates mostly represents the customer group of
Marriott. These customers prefer high end services which is provided effectively by the
company. Thereafter, more than 70% of business is contributed by delegates that conduct
meetings, business parties, conferences etc. in Marriott. The company also enjoys
customer loyalty from business corporations like, British petroleum, DHL etc. Further,
various foreign travelers and other family oriented customers like visiting hotel to have
some good and relaxing time with their close ones (So and Morrsion, 2004). Therefore,
by making continuous improvement in its services the loyal customers can be retained. In
addition to this, needs and preferences of customers should be identified and proper steps
should be taken to fulfill those needs.
 Employees: Company maintains the inventory of more than 200000 human resources.
The employees further help company in providing valuable and high quality services to
its target customers. Thereafter, employees also play an important role in proper
implementation of corporate strategy aligned with the vision, mission and core objectives
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of company (Lashley, 2007). However, the staff turnover can have adverse impact on the
operations of hotel. The increasing staff turnover can impact the service standards and
performance of company. Further, the rude behavior, low morale and negative attitude of
employees can cause dissatisfaction among customers. Therefore, it is important for
company to motivate its employees. Thereafter various needs of employees like, safety,
proper salary, healthy work environment, recognition etc should be fulfilled (Zientara,
and Bohdanowicz, 2010).
 Suppliers: The suppliers of Marriott provide various goods and services that are further
helpful for company to provide final services to customers. It involves supplier of food
ingredients, alcohol, juice and other eatables that are served in restaurants of Marriott.
Thereafter, it also involve various travel and tourism company that provide services to
guest of Marriott. In this respect, pick and drop facility is provided to guest of company
etc. Therefore, it is important for company to consider the needs and demands of
suppliers to maintain their interest in organization in long run (Barrows and Powers,
2008).
2.4 Critically evaluate organizational strategies
Furthermore, Marriott International also focus on cost leadership strategy under which
hospitality organization mainly focuses on serving quality services at the lowest cost in the
market so that they can improve their net profit from their rival companies. Williams (2006) has
stated that charging lower price from the customers for the services result in targeting large
customers that often resultant in maintaining profit and growing their market share. On the
contrary adopting cost leadership strategy also have disadvantage that is focusing on the low
prices of services it may lose the customers preferences and taste that result in higher rate of
substitution. Therefore, chosen cost leadership strategy also result in lowering the operational
costs of the Marriott so that they may satisfy all the segment customers (Nickson, 2013). For
instance; the current brands under Marriott International mainly focuses towards the customers
base who are more price sensitive. Brands like Springhill Suites target moderate income segment
o the other hand Fairfield Inn another brand of Marriott serve the requirement of lower income
customers. However, with this organization stand out in providing cost efficient services as
compare to the other hospitality organization with targeting all income group customers.
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Therefore, Marriott International strives to keep the prices of their services relatively low while
rendering services to the wide customers by providing them quality accommodation and room
services etc. (Spyriadis, 2010).
2.5 Propose and justify recommendations for future strategic development
Marriott is functioning in dynamic business environment, therefore, it is required to
develop innovative business strategy and perpetually adjust them with the changing situations.
For instance, the corporate strategy of Marriott is to enter developing Asian markets, than
company can manage its brand portfolio and allocate resources on the basis of the needs of target
markets. Therefore, the resources can be used optimally to improve the productivity and
performance of organization. The portfolio management assist the management of Marriott in
devising effective growth strategy (Li and Solis, 2013). The major growth strategy are market
penetration, market expansion, product expansion, acquisition and diversification. In market
penetration, the current services are offered by company in same market to enhance market
share. Thereafter, in market expansion, the existing products are offered in new market to boost
the sales and enhance the profits. Further, in product expansion the product line is increased or
the current offerings are upgraded to boost the sales and revenue. In this respect, new and
innovative technology is used by Marriott to expand its product range. Further, in diversification
the new products and services are offered by organization in new market (Kozak and Baloglu,
2011). For example, Marriott can enter into health and social services in new market where it is
not functioning. Thereafter, through acquisition the organization can buy another business
enterprise to grow its business. In this respect, presently company is planning to acquire its
competitor, Starwood hotels and resorts in $12.2(About Marriott, 2015) billion to expand its
business operations by building giant hotel company of world. Therefore, management can
withdraw funds and resources from non performing hotels in specific locations. The same funds
can be used further in expansion projects through acquisition. Therefore, resources allocations
play important role in doing strategic planning. Thereafter, future goals can be easily attained by
making optimum allocation of resources as per the business requirement. Therefore, effective
portfolio management and resource allocation provide a great support in success of business
growth strategy (Andrews, 2007).
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TASK 3
3.1 Management of diverse individuals, groups and teams
Since, its inception that Marriott is trying to expand its market share by offering its
valuable services across the globe. The major focus of company is to expand in Asian markets as
it have large market potential and high growth opportunities. Thereafter, the Asian markets are
emerging markets with low competition and with large number of customer base. Therefore,
expansion in such markets will help in increasing the productivity and profitability of the
organization. Thereafter, business enterprise can make maximum utilization of its resources and
attain economies of scale (Hannam, 2008). However, while expanding in target country the
management of organization can face many challenges. The major challenge the organization
can face in this respect will be regarding management of global workforce. Therefore, to expand
its business in target nation the company requires to appoint global workforce. It further means
managing the pool of employees from different country and culture. Marriott is international
chain of hotel that provide valuable services to foreign as well as domestic customers. Therefore,
it can appoint employees of different countries. They will further help in identifying the needs of
prospective customers and various ways in which those needs can be fulfilled. (Kotler, Haider
and Rein, 2002) Thereafter, the local workforce will also provide the market information to
company. Thereafter, there are various benefit of appointing global workforce like, easy
understanding of the culture of target country. In addition to this, adaptability of organization can
be increased. In this respect, the company can get solutions to various problems in new market
easily using the knowledge, talent and experience of individual from diverse background
(Kamat, 2010).
3.2 Identified ways in which Marriott organization culture can impact on strategy development
and implementation
There are various ways by which Marriott Hotel organization culture can impact on
strategy development and implementation. In this context, some methods are as follows.
Flexibility and adaptability: At the time of developing the strategy and its implementation, it has
important for Marriott Hotel to adopt the flexibility and adaptability which has created an open
environment to adopt the new changes. This culture has help the management to create a set of
common rules for the employees and assist in adopting them (Sirirak and Islam, 2011).
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Goal unification: The goals of the organization should be aligned with the developed strategies.
With the help of it, Marriott Hotel will able to create a goals which are unique from the other
companies and help in achieve the objectives of business.
Process implementation: It is a part of organization culture which is having an important place
at development and implementation of the different strategies. Therefore, the process of
implementation should be clearly define Marriott Hotel to its employees so that the new
strategies can be easily develop and effectively implement (Zientara, and Bohdanowicz, 2010).
3.3 The impact of organizational culture on strategic development and implementation within
chosen tourism and hospitality organizations
Thereafter, the global workforce will help in ensuring maximum satisfaction to
diversified range of customers. However, there are various challenges that can be faced by the
management of Marriott while managing the global workforce. The description of which is as
follows:
 Cultural difference: It is the major challenge that can be faced by management of
Marriott while managing global workforce. The culture of various employees present
within the organization can be different which can further cause difference of opinion,
lack of trust and other personal issues. These factors can have adverse impact on the
success and profitability of organization.
 Language barrier: The another issue that can be faced by Marriott in managing the
global workforce is regarding language issues (Mowforth and Munt, 2008). Therefore, it
is important for manager of organization to understand the language known by workers
and employees. This will also help in overcoming the problem of communication gap
between manager and employees. In this respect, workforce management system can be
developed in organization in the language understood by them.
 Regulatory requirement: The regulatory requirement of very country is different from
one nation to another nation. Therefore, while entering the foreign nations it is important
for company to understand the legal and regulatory requirements of organization. This
will also help Marriott in avoiding fines and penalties. Therefore, factory act prevails in
India which should be adhered while expanding in India (Holden, 2007). Likewise, in US
Fair standards act is applicable and in UK Equality act. Therefore, management of
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Marriott should consider different regulatory requirement to maintain the interest of
diversified range of individuals present in the organization.
 Remuneration expectations: The salary expectancy among individuals is different in
various countries. Therefore, it becomes difficult for management of Marriott to
understand the remuneration expectations and take steps to fulfill those anticipations.
However, failure of organization to meet the salary expectations of individual can lead to
increasing employee turnover or dissatisfaction among individuals (Page, 2014).
 Resistance of change: The management of Marriott can face challenge of resistance of
change among workers. Therefore, the different employees from various cultural
backgrounds can resist changes. This can further obstruct the growth of company in
different market. Thereafter, the resistance can be in different business functioning like,
employee of Asian origin can resist in serving or preparing the beef in Marriott
restaurants (Tribe, 2011).
 Attitude towards time: The attitude towards time and feeling of sense of urgency is
different in different employees. For instance, the employee of UK may be punctual and
work in fast speed while most of the Indian employees are unpunctual and prefer working
slowly. However, if the management force the employees to work fast than it may have
negative impact on the quality of work and performance of individual.
 Difference in motivational orientation: It is another challenge that is faced in managing
the global workforce. The motivational needs of employees may be different of
diversified range of employees present in the organization (Fyall and Garrod, 2005).
Therefore, it is major challenge for company to identify those needs and take actions
accordingly. Boundary creation: The global workforce means pool of employees having different
culture, background, custom, traditions etc. Therefore, the employees from same
background and culture can develop informal groups which may develop a boundary with
rest of employees. This may restrict the social exchanges done with the business
enterprise leading to negative work environment.
Organizational cultural can help to manage and motivate staff based across the globe
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Marriott International while rendering services to the global customers may focus on
different organizational culture as adequate culture support in managing the workforce as well as
it also motivate staff in improving their performance so that organization may easily attain the
success. Organizational culture mainly focuses on path under which employees can easily
complete their activities that directly support in accomplishing the objectives of Marriott
International (Richel, 2014). However, the organizational culture mainly focuses on different
values and norms that mainly regulate the style of workforce and manpower in the Marriott
International. Thus, while operating business activities in the international market Marriott
international can focus on well-structured or bureaucratic form of organization (Hall, 2008).
Under this organizational culture and structure employees follow strict rules and regulation that
assist in accomplishing the objectives in the effective manner. However, under this
organizational culture manager of Marriott International can easily manage their workforce as
well as employees or staff rendering services in the Marriott will follow strict rules and
regulations and the roles and responsibilities of individual is also well structured and organized
that support the employees in rendering proper services. However, across the globe Marriott
international may also focuses on collaborative organizational culture that focus on decentralized
manpower.
The establishment when managing their business activities across the globe in the
different countries they needs to manage their employees and expatriates that they have hire from
their other premises to render services in the new market. Allowing international platform to the
employees will assist in encouraging and motivating them to move ahead in the life. It is an old
concept that organization may transfer their existing employees to the new destination so that
they may render services in new location (Kotler, Haider and Rein, 2002). Therefore, Marriott
International must manage their expatriates by providing them effective and participative
organizational climate so that they may easily renders quality services to their guests and
customers. Furthermore, Marriott International may also focus on managing and motivating their
employees by providing them proper orientation regarding their job so they may easily render
services.
In addition to this, there are certain methods through which Marriott international can
easily manage and motivate their workforce across the globe. The different ways through which
16

they can motivate their staff across globe that is with the help of fair remuneration. With the help
of fair remuneration and compensation they can easily manage their expatriates within the
organization (Fyall and Garrod, 2005). As, with the help of proper and adequate remuneration
expatriates may easily accomplish their basic requirement and needs. However, Marriott
international may also focus on effective feedback mechanism as well as training initiatives that
support in enhancing the employees skills and abilities so they may easily adopt the new culture
and render proper services to their customers.
TASK 4
4.1 Advantages and disadvantages of various approaches that organizations can take towards
internationalization
The international dimension of tourism and hospitality mainly contribute to deliver a
systematically superior quality services to their guests and clients across the globe beyond
religion, beliefs and cultural issues. The implications are that businesses must strive towards
adopting flexible strategies that will work effectively for future development while taking
advantage of the advances in new technologies (Li and Solis, 2013). However, the term
internationalization is very broad concept that mainly focuses on operating business activities
across the nation so that Marriott can easily target their large customers and satisfy their needs
and requirement. The different approaches that Marriott International can take towards
internationalization may include adopting diamond model, Foreign direct investment theory etc.
Foremost model include Diamond model one of the common economic model that is
developed by Micheal porter. The model focuses on four broad factors that is essential in
analyzing the competitiveness. The factors include-
 Factor conditions- This component basically target on the availability of human
resources, physical resources, capital resources etc that support the Marriott International
to expand their activities in the global marketplace among their rival companies like
Hilton (Nickson, 2013). However, before adopting internationalization manager of
Marriott must focus on assessing the availability of skilled labor, raw material,
technological base etc. so that Marriott can easily establish their activities in the
international market.
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 Demand conditions- another factor include assessing the demand conditions of the
customers and guests. The more demanding customers will make pressure on the Marriott
International so that they must render quality and innovative services to new customers
and guests (Lockyer, 2013). However, it has also measured that high demand within the
market will result in gaining national advantage to the Marriott that support in adopting
internationalization in the effective manner.
 Related and supporting industries- Another factor within the diamond model include
assessing the competitiveness of related and supporting industries so that while adopting
the internationalization Marriott international may focus on the cost effective services as
well as their innovative inputs that support in attaining the competitive edge among their
rival companies (Spyriadis, 2010).
 Firm strategy, structure and rivalry- Furthermore measuring the firm strategy, structure as
well as intensity of rival companies of another nation is also effective for Marriott
International. It support the organization in framing effective strategy while adopting
internationalization.
As per the view of Zientara, and Bohdanowicz (2010) Diamond model is systematic
model that focuses on interacting all essential elements so that firm can easily adopt the
internationalization with the exact structure in the different countries. However, the advantage of
using this approach that it assist in determining the four elements that support the Marriott
International in gaining national competitive advantage. However, disadvantage of Diamond
model is that it mainly focuses on domestic market rather than focusing on the foreign
marketplace. Other than this another disadvantage of model is that is does not focuses on the
function of MNC.
Advantages of Diamond model:
 It has able to explain why corporations domiciled in some nations are more successful in
penetrating the foreign markets. With the help of it, it has easy to made the assessment of
competitive advantages of country environment with respect to business units.
 It helps in increase the understanding link between organization corporate strategies and
competitive advantages of a nation (Cohen, 2004). With this use of this model, the companies can easily develop strategic alliances.
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Disadvantage of Diamond Model:
 The absence of any factor in model then the companies will not be able to take
competitive advantages.
 Affect the allocation of resource and it has decreased the strengths of the organizations.
 It has given emphasis on role of home companies because according to this model, the
home based firms are the major driving force of country (Goss-Turner and Boella, 2013).
4.2 Propose and justify the most appropriate growth strategy for a specific organization
In order to plan for expansion or growing the Marriott business as well as increasing the
ratio of profits and sales company may use different growth strategies (So and Morrsion, 2004).
These strategy mainly aims to attract large market area with achieving long term and short terms
earnings. The different growth strategies concentrate on diversification, product development,
market penetration and market development.
For seeking the globalization, it has affected the business activities of Marriott
International in the constructive manner because it will help the firm in grabbing the new
opportunities that exist in the other nation by expanding their market area or service area through
establishing new setting (Hall, 2008). Therefore, market penetration strategy is consider as an
impressive growth strategy that should be used by Marriott International in the future as it result
in generating their net income. However, market penetration strategy mainly focuses on
providing different opportunities for the establishment while spreading out their business
activities within existing market that is due to availability of low cost of services, cheap labor or
raw material as well as enchanting market size etc (Lockyer, 2013). The result of this strategy is
hotel has not required to faced the competition at the initial stage. It has also helped in making
the prices of the services low as compare to its rivals. However, market penetration is feasible
growth strategy for Marriott International as with the increasing level of competition in the
hospitality industry Marriott will focus on developing their market by targeting new segment
customers. For instance; Marriott International mainly target premium segment customers
therefore, with the help of market development strategy they might target new segment that is
middle class and lower income customers in the international market to grab the market share
with increasing profit ratio (Hannam, 2008).
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TASK 5
5.1 The role of effective portfolio management and resource allocation in business growth
strategy
The portfolio management is business strategies that aims at managing the investment so
as to generate highest return with lowest risk. It further involve decisions regarding blending the
investment alternatives, coordinating the investment with business objectives etc. It further help
in allocation and distribution of assets within Marriott International so as to proportion
performance against uncertainty. Therefore, portfolio management play a crucial role in the
success of the company. With this aspect, the top level executives of Marriott makes a list of new
product to be developed to meet the emerging needs of prospective customers. Therefore,
portfolio management involves up gradation and revision of new projects. In addition to this
aspect, new projects are assessed, chosen and prioritized (Portfolio management, 2002).
Thereafter, the current projects are modified, de-prioritized etc. Thereafter, resources can be are
allocated to attain the objectives determined in project. To ensure growth of business in different
markets the company can make use of new product portfolio management. In this respect, a
growth strategy can be devised by company that will help business enterprise in entering into
new market using new product portfolio. This will further help in attaining first mover advantage
and capturing the market share and increasing the customer base. The major objective in this
respect will be, maximizing the financial return of organization, using R&D to develop
innovative and unique services. The new product portfolio management will also help in
maintaining the leading position of company in market. Thereafter, the limited resources can be
allocated effectively and efficiently to profit generating business (Fyall and Garrod, 2005).
However, it is crucial for management of business enterprise to link the project with corporate
strategy. This will further help the organization in attaining the overall objectives of company.
While developing new product portfolio it is important for managers of Marriott to keep right
balance between short and long duration projects and maximum risk and those with low risk.
With this aspect, uniformity can be maintained with business aims and objectives. In addition to
this, manager of Marriott should ensure they focus on those projects that yield maximum benefit
rather than, doing maximum number of projects that further result into over utilization of
resources (Jones, 2012).
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5.2 Theory of portfolio management and the principle of resource allocation to the chosen
organisation
Further, the portfolio management also assist in dividing the risk they are exposed to in
market. Therefore, even if the company face risk or loss in one market it can be recovered from
another market. In this respect, Marriott owns hotels, resorts, restaurants, bars, conference halls,
destination clubs etc. Therefore, there are 19 brands operated by Marriott in domestic as well as
international market (About Marriott. 2015). It also involve the signature brand; Marriott hotels
and resorts, Delta resorts that provide luxurious lodging services to customer’s. In addition to
this, it involves Ritz Carlton which is also a luxury chain of hotel. Thereafter, Marriott is also
owner of Bulgari hotels and resorts that are best known for fine accommodation and soothing spa
services. Further, AC hotels is also subsidiary of Marriott International. The AC hotels is a prime
venue for many customers for conducting wedding, conferences, corporate programs and other
events. Likewise, Autograph collection, Renaissance hotels are operated by Marriott to provide
superior quality accommodation and tourism services to elite customer’s and mostly leisure
travelers. Furthermore, Marriott also provides destination entertainment services through its
brands like, Gaylord hotel, Marriott vacation clubs (Brotherton, 2012).
These brands further ensure that customer have unique experience with them. Mostly the
company offers services to elite group only. However, to increase its customer base the
organization is also targeting upper middle class etc. Therefore, Marriott is offer economical
services through its brands like, Fairfield Inn, Spring Hill suits and Courtyard. Thereafter, it also
target business travelers by building conference center in its brand name. Therefore, by operating
different brands, the risk is diversified by company. With portfolio management better
performing and least performing brands can be identified. The resources will be allocated
maximum to best performing brand in market. Therefore, during resource allocation more
priority will be given to brand yield maximum fruitful outcomes. Thereafter, excess resources
should be removed from the business that are not generating sufficient revenues and same
should be invested in other business (Page, 2014). Therefore, the effective resource allocation
will help in minimizing the cost and maximizing the profit. Thereafter, the excess profit can be
invested in growth and expansion projects that are important for company to increase its
productivity and profitability. Furthermore, the leading brands can be used by management of
21

Marriott to grow in different market. For example, presently for business travelers, Courtyard is
best venue for conducting corporate programs like product launch, presenting business proposals
etc. Therefore, company can develop new chain of Courtyard hotels with required amenities in
various countries like, London, Dubai etc that are regarded as business hub (Richel, 2014).
5.3 Assess the relevance of portfolio management and resource allocation to the chosen
organisation
Furthermore, the portfolio management help in giving strategic direction to organization.
Therefore, managers of Marriott ensure that portfolio of projects showcase the business strategy
adopted by the brand. In this respect, the resources are divided across different projects, markets
and fields. The major resources that are used by organization are financial, technical, marketing
and human resources. The financial resources can be used to expand and promote those business
that are performing better than others while technical resources help organization in maintaining
its leading position by making continuous up gradation in services.
The marketing resources are very important to attract the potential and existing customers
using strong brand image. Thereafter, the human resources play most important role in attaining
the overall objectives of organization (Sirirak and Islam, 2011). These resources are very crucial
for organization therefore optimum utilization should be done. Further, to allocate resources
various business tools can be used by the managers of organization. Therefore, the resources are
apportioned to maximize the value of portfolio. The net present value, return on investment and
expected commercial value of each project is calculated and the projects with maximum value
are the first priority of the organization. Thereafter, the resources are also allocated to those
portfolio of projects having maximum return. Therefore, company can leverage the market
potential and avail better opportunities.
TASK 6
6.1 Identification of key external environmental factors for Marriott Hotel
There are various external environmental factors which affect Marriott Hotel are political,
social, environmental, economic, technology and legal. These all factors affecting the different
business activities and operations of hotel in positive and negative aspect. Along with this,
another external factors are competition, natural forces, changes in technology, social and culture
forces, demographic factors and government policies (Harrington and et al., 2014).
22

6.2 Key external environmental and establishing key external environmental factors facing the
organization
Environmental factors regards to the impact of political, economic, social and technical
factors on the functioning of Marriott International.
PESTLE Analysis
 Political: It refers to the impact of rules, regulation and policies laid down by UK
government. It further involve policies like, tax, labor, fiscal, employment and
environmental etc. government may impose in fiscal year and influence the functioning
of business enterprise (Ritchie, Tung and Ritchie, 2011).
 Economic factors: It refers to various elements like, economic growth, bank rate,
inflation etc that affect the establishments the key external environmental factors facing
the organization of Marriott. In addition to this, it also involve the fluctuation in exchange
rate that impact the global operations of company.
 Social factors: It refers to social and cultural aspects of country. Therefore, it involves
increase in population, age distribution, cultural belief, lifestyle, spending patterns etc of
individuals of UK (Hall, 2008).
 Technological: This factor involves various technological aspects such as, research and
development, technological innovations, automation etc. that are used by Marriott to
attain competitive advantage from its domestic and international rivals like, Hilton, Hyatt,
Accor etc.
Other factors
PORTER FIVE FORCES
 Bargaining power of customers (Low): Being globally recognized and branded hotel, the
company provides low bargaining power to its customers.
 Bargaining power of suppliers (Low): The suppliers of company enjoys low bargaining
power.
 Threat of new entrants (Low): The entry of new business organization in hospitality and
tourism industry require heavy capital investment and too much business risk.
 Threat of substitutes (Moderate): Due to high quality services and brand value, the
switching cost for customers is high..
23

 Degree of rivalry (Moderate): Degree of rivalry is moderate for company.
6.3 Appraising how external factors makes impacts on business
PEST Analysis
The PEST analysis regards to the impact of political, economical, social and technical
factors on the functioning of Marriott International.
 Political: It regards to impact of GDP, GNP, interest rate and disposable income on the
operations of Marriott. As per the analysis the GDP of UK is 2.6 % that means, there are
more opportunities for company to provide effective services and increase its profitability
(Spyriadis, 2010). Thereafter, the increase in disposable income of individual states that
individual can spend more on availing luxury services of Marriott.
 Economic factors: The interest rate of UK is 0.5 % which means company can avail loans
on lower interest rate and utilize the funds of expansion and growth projects (Harrington ,
et al., 2014). In the context of international operations, Marriott is also impacted by the
economic factors of foreign countries where it is operating. In this respect, the sickness of
stock market in China have weakened the purchasing power of customers. Therefore, the
chain of Marriott hotels in China are finding difficulty to survive due to increasing
expenditure and falling revenue. Likewise, increase in inflation in 2008 also had harmful
impact on the buying power of consumers and decreased the profitability of business
(Williams, 2006).
 Social factors: The increasing expenditure of individuals on tourism and hospitality have
positive outcome on the business of Marriott. In this respect, there is gain by 13% of
individuals who want to travel in foreign countries. This states that individuals are willing
to incur more expenditure on tourism and hospitality. This increases the business
opportunities for company as it can offer luxury resorts, packages and other recreational
activities to travelers.
 Technological: Company can gain positive impact on its business by using effective and
innovative technology (Brotherton, 2012). For instance, customers can use mobile
applications to book services of Marriott. In addition to this, they can check in hotel using
mobile application. Further, technological aspects, can also be used in increasing the
24

customer base of company. Therefore, Marriott can use e-commerce marketing, social
media advertising etc to attract prospective consumers.
Hence, from the aforementioned PEST analysis it can be concluded that these factors can
have contrasting impact on the performance of company. Therefore, they must be considered
compulsorily while designing new business strategy. For instance, while expanding business
operation in foreign country the political environment, economic, social aspects should be
considered (Cohen, 2004). Thereafter, technological aspects can be used by company to
effectively expand its operations in target nations.
PORTER FIVE FORCES
 Bargaining power of customers (Low): Marriott is facing price competition which is
prevented by company by using technical innovations etc. Thereafter, additional quality
services are offered by Marriott like, gym, spa, concerts , theme events etc.
 Bargaining power of suppliers (Low): Being a globally recognized company, suppliers
want to stay associated with the renowned organization (Zientara, and Bohdanowicz,
2010). This further reduces the bargaining power of customers.
 Threat of new entrants (Low): It is not easy for new business to enter the market (So and
Morrsion, 2004). The brand image of Marriott makes difficult for new entity to enter the
market and compete with it.
 Threat of substitutes (Moderate): There are many rivals who have started providing
services offered by Marriott initially. However, they still not match the standards set by
Marriott. This further makes threat of substitutes low to moderate (Sirirak and Islam,
2011).
 Degree of rivalry (Moderate): The major rivals of Marriott are well established chain of
hotels who also enjoys strong financial position, goodwill and possess competent
workforce etc. This further makes competition intense for Marriott to give an edge to its
competitor. Thereafter, the degree of rivalry is moderate for company.
CONCLUSION
From the above report, it can be concluded that tourism and hospitality are highest
growing segments of the economy. The new emerging economies play an important role in the
25

hospitality market. With the help of strong brand image in market place, it has easy to expand the
business. Beside this, there are various models such as SWOT and Porters five force analysis for
developed the new business strategies. The value creating strategy has helped Marriott hotel to
take competitive advantages of the competition. On the other hand, with the help of different ion
corporate strategy, hotel has able to deliver the effective services at reasonable costs. For seeking
the expansion of business at international level, it has more important for the organization for
manage entire workforce. There are issues faced by Marriott Hotel such as cultural difference,
language barrier, etc and it has directly affected the services of hotel. In this aspect, it has
needed for the organization to resolve the following issues very soon by adopting the various
strategies.
26

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