Business Health Check Report: Marriott International Inc. Analysis

This report provides a comprehensive business health check of Marriott International Inc., a leading multinational hotel company. The report begins with an analysis of the company's objectives, both short-term and long-term, followed by an examination of factors impacting the business using PESTLE and SWOT analyses. It delves into the competitive landscape through Porter's Five Forces, assessing the bargaining power of buyers and suppliers, the threat of new entrants and substitutes, and industry rivalry. The report then explores potential improvements using the Ansoff Growth Matrix to identify suitable growth strategies. Furthermore, it reviews the effectiveness of the business, proposing plans for improvement and justifying their value. The report concludes with an evaluation of the current skills of management and staff, devising and justifying plans for skill development. The analysis provides a detailed overview of Marriott International's operations and strategic positioning within the hospitality industry.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Analyse the objectives of the business.............................................................................4
1.2 Explain factors that impact on the business.....................................................................4
1.3 Determine potential improvements to the business organisation and/or operation..........8
M1 SMART objective of Marriott International Inc. Internation Inc....................................9
D1 Contribution of Ansoff Matrix in business growth..........................................................9
TASK 2............................................................................................................................................9
2.1 Review the effectiveness of the business.........................................................................9
2.2 Develop plans to improve the business, justifying their value.......................................11
M2 Evaluate how the effectiveness of areas of the business contribute to organisational
growth...................................................................................................................................12
D2: To critically analyse how the plans developed lead to an improvement in the business.13
TASK 3..........................................................................................................................................13
3.1 Evaluate the current skills of management and staff......................................................13
3.2 Devise and justify plans for the development of skills for management and staff.........14
M3 Analyse the effect current experience, skills and abilities of management and staff....15
D3 Methods that can be used to develop the skills of management and staff......................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business Health Check-up refers to the activity in which business organisation analyse its
environment so that effective modification can be made in order to make the business
successful. It is also seen as evaluation of company at regular basis so that problems can be
diagnosed that is placing negative impact over business growth, business sustainability, cash
flow and profitability (Abdelhak, Grostick and Hanken, 2014). The present report is based on
Marriott International Inc. a multinational American Hotel. Marriott International Inc. is one
among the leading hotel in hospitality industry across the world. The hotel was incorporated in
the year 1927 and headquartered Bethesda, Maryland, U.S. The present report includes
discussion of various objective of the business and influence of different factors (external and
internal) over the business activities. It will further discuss about potential improvement for the
chosen business organisation so that the operations activity could be modified according to the
requirement. The project also reviews about effectiveness of business by analysing different
elements and further formulates a development plan for improvement. At last, it covers
discussion on the current skills of working staff and management team and an effective plan of
skill development with which they can grow in positive manner.
TASK 1
1.1 Analyse the objectives of the business.
Marriott International Inc. Internation Inc., is one among the leading company in
hospitality sector which belongs to USA. The company owes strong presence at global market
scale.
History of company
The Hotel was founded by John Willard Marriott International Inc. in the year 1927. At
the initial stage it was the place where people can drink in cool manner. The restaurant was later
converted into chain of restaurants where people can enjoy their drinks at regular basis. The
company has later opened up the hotel in Virgnia in the year 1957. With this initiative, the
company has opened up chain of hotels one by one which ultimately converted into a well
developed and successful hotel across the world.
Short term goals: The temporary objective of Marriott International Inc. Internation Inc.
is to satisfy customers needs and expectations with high quality premium services.

Long term goals: The long term goals of Marriott International Inc. Internation Inc. is to
improve their revenue and profitability so that they enhance their market share and sustain longer
at international market place (Almahmoud and Doloi, 2012)
1.2 Explain factors that impact on the business
PESTLE
This can be defined as a strategic framework which is used by a corporation to gain
knowledge of macro environment in order to devise strategies and objectives accordingly. To
effectively conduct the health check-up of entity, the manager of Marriott International Inc. has
made use of this model as follows:-
Political Factors: It includes the laws stipulated by government, such as tax policy,
corruption, foreign trade policy, labour laws etc. The governmental stability of United Kingdom
presents lucrative opportunities for Marriott International Inc. to gain holistic knowledge of
political policies and regulations and conduct operations that are aligned with such rules.
However, an instance of terrorist attack or political instability within the country can lead to
decline in revenues of this hotel (Anerousis and et. al., 2014). Thus, entity should keep a backup
plan to deal with this.
Economic Factors: This comprises of aspects associated with economy of a country
such as inflation, savings and interest rate, foreign exchange rates etc. The strong economic
system of UK offers opportunities to Marriott International Inc. to make use of the excellent
services and raw materials present to render high quality offering to guests. This assists in
gaining maximum satisfaction from service users. However, an instance of recession may lead to
decline in purchasing power of buyers, thereby negatively affecting the sales and profitability of
the hotel. In such case, entity should lower its prices to maintain the volume of sales.
Social Factors: This constitutes the attitudes and purchase behaviour of population. In
this regard, it is seen that tourism is a rapidly growing industry which attracts a large quantum of
people on a daily basis. This presents opportunities for Marriott International Inc. to enhance its
sales by offering services meeting latest trends. However, a sudden change in any of the
prevailing practices or trends of hospitality will pose threat to the existence of the respective
hotel within UK. Thus, constant research should be carried out by entity to anticipate new trends
and lifestyles for attracting tourists.

Technological Factors: This includes the advancement that place a significant influence
upon business entity. Marriott International Inc. is an international hospitality organisation which
has introduced online booking and automated check-in and check-out system to attain
competitive edge in market. However, there are large number of alternate companies that deal
within same industry and can use more innovative techniques to attract people (Arntz-Gray,
2016). For dealing with this, Marriott International Inc. should constantly launch new and unique
services or make use of innovative procedures.
Legal Factors: This consists of laws that are required to be adhered to, by all the
companies. In this regard, the main aim of organisations operating within hospitality sector is to
attain contentment from customers. Looking upon this, Marriott International Inc. abides by all
the legislations stipulated by legal and statutory bodies. However, an instance of non-compliance
with any of the laws will lead to negative consequences for the organisation. Thus, entity should
gain knowledge and comply with all the stipulated hospitality laws.
Environmental Factors: The environment is constantly on an alarming trigger and thus,
organisations operate in its interest to give their contribution towards CSR activities. In this
regard, Marriott International Inc. ensures that there is least wastage within the organisational
premises in terms of food or linen. This assists in gaining the trust of people and developing a
loyal customer base. However, an instance of acting against the interest of environment may
lead to violation of environmental standards and thus have negative consequences for entity.
SWOT analysis
Strengths Weaknesses
 Company is having high brand
recognition across the whole wide
world which is one of the biggest
strength of Hotel Marriott.
 Adoption of new and latest
technologies in order to provide better
customers experience (Boulanger and
et. al., 2015).
 Hotel Marriott having more than 3700
hotel around 70 countries across the
 Large number of competitive company
are available at the marketplace, which
reduces their market share.
 By continuous adoption of new
technologies can reduce the brand
image of Hotel Marriott.

world, which strengthen the
organisation structure of the company.
Opportunities Threats
 Innovation in customer services leads
to capture high market share.
 High quality services and attractive
infrastructure can provide large number
of opportunities to the company (Chang
and et. al., 2016.
 Threat for Hotel Marriott is that, there
are large number of international
brands looking forward to establish
their hotels in the country.
 Also, there are some hotels which
provide low cost services to their
customers, which affect the profit
sharing ratio of Hotel Marriott.
Porter's five forces
Porter's five forces refers to the strategic framework which is specifically developed for
understanding competition within the industry. The framework basically includes different forces
that one by one analyse industry and gives company an overview about the actual situation. With
reference to Marriott International Inc. , its top management team have planned to implement
porter's five forces framework in order to identify that influence of all forces over their business
performance so that an effective business health check-up could be executed in effective manner.
For Marriott International Inc. , all five forces of this framework is described as below in detailed
manner:
Bargaining power of buyer: For Marriott International Inc. , bargaining power of buyer
is high as the customers are now a days expecting much from the hotels. This means customers
expects that hotel should provide high quality of services at minimal prices. Along with this,
these customers also desires to get huge discounts and offers from hotel side so that usage of
these services do not hamper their budget (Ghaddar and et. al., 2012). This directly places higher
pressure on Marriott International Inc. as in order to sustain longer in the industry, the hotel
have to revise their costing of products in right manner for grabbing attention of customer.
Bargaining power of supplier: Bargaining power of supplier for Marriott International
Inc. is relatively low because, suppliers of this hotel is required to negotiate their quotations

according to the hotel because, Marriott International Inc. is large scale hotel and if in case,
supplier do not agree according to the company's expectation, then they can give their tender of
supply of raw material to another supplier. This shows less influence of supplier over business of
Marriott International Inc. As a result, buyers of this company have to agree to the prices given
by this Hotel.
Threat of new entrants: Influence of this force in hospitality industry is quite low. This
is because, the company who wishes to enter into this industry requires huge funds in order to
make their positive place in the industry (Goins and Pye, 2013). Therefore, threat for new entrant
for Marriott International Inc. is quite low.
Threat of substitutes: Threat of substitute product in hospitality industry is quite high
for Marriott International Inc. as there are numerous of business who have conducted a market
research through which new services can be delivered to the customers by which their
satisfaction level can be raised effectively. In order to overcome this situation, it is essential for
Marriott International Inc. to focus on the core needs of customers instead of going with the
trends in hospitality industry. This will help out Marriott International Inc. in sustaining
customers longer with them for long period of time.
Industry rivalry: Rivalry among hospitality industry is quite high as the industry
contains numerous of companies which working and leading the same industry for longer period
of time. In order to enhance their market share, it is essential for Marriott International Inc. to
focus on collaborating with their rivalry company so that with the support of one another they
collaboratively lead the marketplace.
1.3 Determine potential improvements to the business organisation and/or operation
Ansoff Growth Matrix is considered as the marketing tool which helps business
organisation in selecting feasible marketing strategy with which they can grow in quick manner.
In context of Marriott International Inc. , its top management team have planned to conduct an
effective Ansoff matrix analysis in order to find out suitable growth matrix for the company with
which they can improve their business performance in effective manner (Henrich, Hinman and
Killius ., 2013). All of four kind of growth strategies are described as below:
Market Penetration: This growth strategy states that Marriott International Inc. , can
grow effectively by providing its existing services in the existing countries where they are
leading the marketplace. It is easier for Marriott International Inc. to grow with this strategy as

they can easily influence interest of customers because they are already familiar to them. As a
result, its easier for company to grow with existing customers base.
Market Development: According to this strategy, Marriott International Inc. is
suggested to offer its existing services at new market place. Here, Marriott International Inc. is
required to find out new nations or location where they can easily set up effectively and can also
attract maximum number of customers in effective manner.
Product Development: As per this growth strategy, Marriott International Inc. is
advised to introduce the new product in existing marketplace. It can be said that Marriott
International Inc. can introduce additional service that is customise services to its customers
according to their requirement (Hyppönen, Hämäläinen and Reponen, 2015). This will attract
specific customer zone of same area who seeks for customize services. As a result, with this
strategy sales performance of the company can be improved in right manner.
Diversification: It is considered as the most riskier strategy as it emphasis on offering
new service in completely new market. This strategy requires huge capital for investment in
order to set up the business in effective manner. Along with this, it would be difficult for the
company to influence new customers with new service or product of Marriott International Inc.
It can be said that if this strategy fails, then whole investment is wasted and directly affects
business of the company.
From the above mentioned growth strategies, it has been identified that product
development is best growth strategy for Marriott International Inc. as with this, they can easily
attract customers interest towards the Hotel services in effective manner. This is because,
customise services will provide better satisfaction to customers with which they can grow in
quick manner (Joshi and Cheung, 2015).
M1 SMART objective of Marriott International Inc. Internation Inc.
For improving business performance of Marriott International Inc. Internation Inc., the
top management team of this company have to convert their objectives into such a manner so
that they can effectively meet SMART criteria. The new objectives of Marriott International Inc.
Internation Inc. are stated as below:
 To improve profitability of company with 17% in 2 years with the help of advance
technological tools.

 To increase sales performance of Marriott International Inc. Internation Inc. with 20% in
1 year with usage of social media.
D1 Contribution of Ansoff Matrix in business growth
On the basis of above made discussion on Ansoff growth matrix, it has been analysed that
all the elements of this framework are contributing their share on the improvement of business
performance of Marriott International Inc. It can be said that these growth strategies allows
company to enhance their understanding over growth tactics with which their business objectives
can be attained in quick manner within less period of time (Laws, 2015). Along with this, these
strategies also improves sales performance of company through which their profitability also
grows in quick time.
TASK 2
2.1 Review the effectiveness of the business.
In context to business organisation effectiveness refers to quality of results which is
derived from accomplishment of goals which are being completed by employers as well as
managers. To maintain effectiveness at workplace it is important and essential for employee and
managers to produce consistent results. Their should be on regular basis business health check if
managers and employees so, that any gap or deviations can be identified and resolved. As
ineffective results can have negative impact on quality of products and services of company so, it
is very important for each and every business organisation to make sure that their employees and
managers are fulfilling their roles effectively. Therefore, effectiveness of various business
operations at Marriott International Inc. has been discussed below:-
 Products/Services- Their are various categories of products and services which are being
offered by Marriott International Inc. at international level. Marriott International Inc.
renders luxury, signature, modern essentials and lifestyle or collection services whereas
products are hotels and resorts inclusive of basic amenities such as bed, pillow, bath,
lifestyle and many more (Philbin and Kennedy, 2014). The products and services which
are being provided to customers are of good quality and they are highly satisfied. The
managers on regular intervals review services which are rendered by their employees.
Also, keep check on effectiveness and quality of products as these are very important
aspects through which growth is maintained along with profitability and productivity.

 Marketing- The marketing function plays very important role for growth and success of
every business organisation. Marketing managers of Marriott International Inc. adopts
appropriate strategies related their product and services. To review effectiveness proper
marketing mix has to be adopted as this play major role for Marriott International Inc..
Effectiveness can be maintained by periodic review of marketing mix components. And
to increase effectiveness of company social media platforms can be used to get reviews
and feedback from customers.
 Sales- Marriott International Inc. sales vision is very much clear and precise which helps
to generate good profits and results. The sales function of Marriott International Inc. is
very much effective as they focus on unique needs and tailor products as per their
specification (Porter and Tanner, 2012). To maintain effectiveness Marriott International
Inc. achieves their vision by placing special focus on attracting, retaining and finding
value for their customers.
 Finances- Finance is life blood for every business organisation. It is also connected with
other function of organisation. The finance manager must effectively utilise and allocate
funds appropriately to maintain their liquidity and efficiency. The funds are utilised
properly if this is not done than effectiveness can not be maintained. Also, finance
manager as well as employees of Marriott International Inc. should mainly emphasis on
effective use of funds and finance as their can be negative impact in terms of increase in
debts and losses.
 Staffing- This function is concerned with placing right person at right job as per their
skills and expertise. Efficient employees maintain efficiency along with effectiveness of
both quality and productivity.
 Business Image- The business image is referred to as goodwill and reputation of
business organisation (Robson and et. al., 2017). To maintain effectiveness for long term
growth and sustainability managers must focus on satisfying customers as per their
expectations and needs.
 Record Keeping- Proper records are maintained of customers information and other
necessary information which helps to make future plans which are necessary for
sustainable growth and profitability. Also, keeping of records helps Marriott International
Inc. to attract and retain customers for long term and to maintain level of effectiveness.

2.2 Develop plans to improve the business, justifying their value.
Business planning is blueprint or written document that describes about companies
products, services, ways to earn money, financing, leadership, staffing, operational model and
other necessary details which are important for both operation and success of firm. Business
planning help business organisation to accomplish objectives and success for long term.
Therefore to make some improvements in existing business plan as per complex business
environment manager of Marriott International Inc. is planning to make some necessary changes
in various operational functions which are performed by employees (Saaty and Vargas, 2013).
Some of functions are been discussed below:-
 Marketing Planning- Business environment is very much complex and dynamic so, it is
important to make changes on periodic basis. Customer is important for every business
organisation so it is necessary to make changes in business plan. The marketing planning
strategies must be adopted as per technological advancements. For marketing of products
and services of Marriott International Inc., marketing manager can make use of various
latest tools and techniques, social media platforms as this will further assist in analysing
about changing needs of customers and work with motive to fulfil expectations of
customers.
 Planning The Organisation’s Financial Management Systems- Finance is very
important for every business organisation as without proper availability of funds different
operational functions cannot be performed effectively. If there is shortage of funds than
manager has to make some reasonable changes in their existing business plan with the
objective to arrange funds for organisation. The organisation financial management
system of Marriott International Inc. must work with objective to allocate funds
according to the requirements and functions which are to performed. The managers of
Marriott International Inc. should make proper allocation of funds as this is important for
maintaining sustainability for longer period of time and organisation growth (Shermon
and Gilmour, 2016).
 Planning The Roles And Responsibilities Of Staff And Management- Business plan
differs from company to company so business organisation are required to focus on
planning authority and responsibility of managers and employees. This is done with
objective to reduce overlapping or duplication of work and command. Proper roles,

responsibilities and authority helps employees to produce effective and efficient results
by proper allocation of resources.
 Planning Performance Monitoring- Every business organisation should on continuous
basis focus on evaluating performance of both employees as well as organisation. Their
should be monitoring of performance on periodic basis of both employees as well as
managers with set performance criteria. If any deviations are been identified than with the
help of new business plan corrective actions can be taken. Monitoring of performance on
regular basis helps Marriott International Inc. Hotel to know about good and poor
performers and also assist in analysing for need of training and development to
employees as they further help in long term growth and profitability.
M2 Evaluate how the effectiveness of areas of the business contribute to organisational growth.
The effectiveness and efficiency both play major role for organisations growth and
success. Their are different operational functions at Marriott International Inc. which are very
much important to be functional properly. If managers and employees will perform their roles
and responsibilities properly and effectively than this will lead to organisation growth and
profitability (Uronen and et. al., 2017). Also, if appropriate marketing strategies, good quality
products and effective prices are applied by managers of Marriott International Inc. than this will
help in producing effective results and productivity which in turn help in retaining and attracting
more and more customers. Lastly, if employees are highly committed and motivated by good
compensation packages so that they produce effective results and maintain quality of products
and services as this will further help in sustainable growth of both organisation and their
employees.
D2: To critically analyse how the plans developed lead to an improvement in the business.
Business plan play very crucial role for every business organisation as this further helps
in making business flourish for long term. If there are changes in existing business plan
according to changing business environment and customer needs and preferences. Business plan
assist managers and employees for market planning, financial management systems and planning
which is concerned with monitoring of performance. If according to changing environment
managers update their business plan it will further help in making changes and encourage
employees to work towards accomplishment of goals effectively and efficiently (Anerousis and
et. al., 2014). Moreover this will also help in making business flourish and grow for long term.