Business Health Check Report: Marriott Hotel Objectives and Factors

This report provides a comprehensive business health check of the Marriott Hotel, examining its objectives, both short-term and long-term, within the UK market. It delves into the factors affecting its operations, including political, economic, social, technological, legal, and environmental (PESTLE) influences, as well as the application of SWOT and Porter's Five Forces analyses to assess its strengths, weaknesses, opportunities, and threats. The report further reviews the effectiveness of the business, proposes a development plan for improvement, and identifies potential growth aspects. Finally, it evaluates the skills of the management and staff, providing justifications for plans regarding skill development to enhance the hotel's performance and competitive edge. The analysis covers various aspects of the business to provide a holistic view of the hotel's current standing and future prospects.

Business Health
Check

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
LO1..................................................................................................................................................2
AC 1.1 Analysing the business objectives of the Marriott hotel operating in UK......................2
AC 1.2 Identification and explanation of the factors that effects the operation of the Marriott
Hotel............................................................................................................................................3
LO2..................................................................................................................................................6
2.1 Review the effectiveness of business....................................................................................6
2.2 Development plan to improve the business. ........................................................................7
LO 3...............................................................................................................................................13
AC 1.3 Identification of the potential aspects of the growth form Marriott hotel...................13
LO3................................................................................................................................................14
AC 3.1 Evaluation of the skill possessed by the management and staff of Marriott at current
times..........................................................................................................................................14
AC 3.2 Providing justification for the plans regarding development of skill for management
and staff.....................................................................................................................................15
CONCLUSIONS............................................................................................................................16
RECOMMENDATIONS...............................................................................................................16

INTRODUCTION
Business health check wider means to analyse the various factors which bringing changes
in their working and also determine their strength and weakness at certain levels. Every business
working are different, some prepare plane to retain for longer growth and some makes plane to
maintain their brand image and then expand their business to maintain their reputation and name
in the market (Botha, Grobler and Eloff, 2017). The owner of business makes various polices to
retain the interest of customers and employees for longer term but as when they had some
strength it also comes up with the weakness. Present report is based on Marriott Hotel which was
founded by Alice Marriott and J. Willard Marriott in 1927. It is considered to be one of the
largest hotels chain as comparison to other hotels, and they expanded their business through 703
properties in 131 countries. Marriott Hotel maintaining certain plans and procedure regarding
achieving their long term and short term goals.
Report will includes The factors which related to focus on business and also caused
impact to achieve business objective. It also includes other business plans to improve the
condition and are effective to achieve goals and targets. Lastly the report end up with the current
skills for the development of management and staff and in better manner.
MAIN BODY
LO1
AC 1.1 Analysing the business objectives of the Marriott hotel operating in UK
The Marriott hotel was found in 1927, in the US and its Currently operating at 7003
locations till 31st March 2019. The hotel has a chain which is operating at international level and
have its operation in UK as well. Marriott have products as hotel and resorts where it provides
the services of r stay, foods, beverages and others recreational facilities to its guest. The revenues
of hotel for year ended 2018 was $20.75 million and is one of the leading hotel chain in the
world. The Marriott group is very large and its has numbers of hotels and resorts in it and it s
operating at international level. The hotel has certain core values, long terms and short term
objective with it set to be achieved in a particular region. For the Hotel operating in the UK and
the over all group the objectives to be achieved by the organisation is divided into tow broad

sections that is long term and short term objectives of Marriott which are required to be achieved
to reach to the heights of success and ensure the long term survival of the hotel.

Long term Objective of Marriott:
 The long term objective of Marriott hotel can be outlined as having a cultural consistency
with global operations and giving its associated opportunities to grow and success and
this is termed as DNA of the company.
 The business have also a goals of "good food and good services at a fair prices" and the
organisation try to achieve it on a day to day basis.
Short term objective of Marriott:
 The short term objective of the Marriott includes the shaping the modern hospitality
industry.
 The business is driven to continually challenges the status quo and anticipated the
changing need of its consumers with the new brand and new global locations with
providing guest a newer experiences.
AC 1.2 Identification and explanation of the factors that effects the operation of the Marriott
Hotel
The factors which have impact on the operations of the Marriott are internal and external
as well. These internal and external factors includes various factors which have a direct or
indirect effect on operating the of the hotel (Lehr, 2015). In this regard the SWOT, Pestle and
porter's five force analysis with context of Marriott hotel is conducted to identify the factors
effecting it:
PESTLE Analysis:
Political:
Political factors plays a vital role in long term profitability and stability the operations of
Marriott hotel in a nation. As Marriott operates in more than a dozen of nations it is exposed to
different type of political environment. The factors that effects the operation of the Marriott
regarding the political environment of a nation includes political instability, level of corruption,
bureaucracy and interference in lodging industry by the government the protection related with
intellectual property. The governance system is one of the factor that can effect the operation of
Marriott as the industry is facing challenges and the organisation is keeping a close eye on
changing policies.
Economical:

The government intervention in the finance and accounting sectors have a direct impact
on the fortunes of Marriott. The volatile foreign exchange rate impact the investment plans of the
Marriott not only in the short but long term as well. Another economic factor having effect on
Marriott is the pressure on the consumer spending which is falling with time. There is lesser
change in the consumer disposable income but with the growth of income inequalities in the
society have created a negative impact on consumers and this have reduced their spending power
(Dung and Mohan, 2016). With reduced sending power the effect is seen on the income
generation of the Marriott and people spends less on the lodging and recreational activities which
directly effect the profits and income of Marriott.
Social:
The society and culture in which Marriott operates provide a better understanding to the
organisation over consumer preferences in the markets they operated. For each there is a
different culture and it includes various factors such ad services, health ad safety norms, attitude
acceptance of organisational values, societal roles and norms, traditions and others. The
organisation has along term objective of giving preference to each nation's culture in which it
operates and this directly effects the policies and strategies made by it, in order to enhance the
costumer satisfaction.
Technological:
The technological changes are related with the Chagas in techniques used in organisation.
For Marriott it incudes maturity of the technology where the business have researched to the
ascent stage and the most of the player in this industry are vying for newer technologies, this
effects the market share grabbed by Marriott. With adoption of the new technologies Marriott
lowers it cost of production in the finance and accounting sector. This also assist the organisation
in restructuring its supply chain to bring in more flexibility to meet both consumer needs and
cost structure. With this application are being developed for online booking of rooms and tables
at hotel as this is in demand and this lead the organisation adopt the newer technology to enhance
costumer satisfaction.
Legal:
The legal factors that effect the operation of Marriott are many and the Major one are,
waste management policies, environmental norms, complying with food and health safety,

protection of consumer rights and others. The consumer this are more aware about their rights
and they demand for loyal and equal treatment as well as fair services at hotel. Along with the
national level policies regarding the health and safety and environmental polices, a non abidance
with such can lead the Marriott in trouble (TAKACS and VADUVA, 2017). Legal protection of
intellectual property, patent, copyrights and others differs in each nation and Marriott can not get
enough protection if in each nation all the procedures are not followed diligently.
Environmental:
The environmental changes include the extreme weather, waste management, consumer
activism and recycling by the Marriott. The changes in climate lead to change in consumer
preference and they visit the hotel when there is suitable weather and this changes the demand
patters. As per the need and demand Marriott management is required to make the polices and
strategies. Recycling is fast emerging as a norm rather than a -good thing to do- in many
economies. Marriott has to make plans to adhere to regulations and meet consumer expectations
in the Finance & Accounting sector.
SWOT Analysis:
Strengths:
Marriott is operating since long and almost 92 years and its have its operation on 7003
destinations. This shows hat the hotel is successfully operating since 1927 and it has a strength of
a powerful brand image. The organisation is always indulged in technical innovations for
improvising the consumer experiences. The organisation has a good employee retention which is
numbered at 176000 employees till December 2016. With entering into the new markets it
always has a superb performance as Marriott have expertises in new markets and making success
of them. The organisation believes in consumer satisfaction by effective adoption of the social
factors of cultural understanding of each nations and providing the services to consumers
accordingly.
Weakness:
The financial performance of Marriott is below the average performance of the overall
industry. This can be seen due to the rapid change in the economical conditions of the various
nations as well as fluctuation of the foreign exchange rate in different nations. With competitors
in rapid adoption of newer technology Marriott lags in this and it becomes one of the weakness

of this hotel group and it demands more investment by Marriott (Tso and Wood, 2018). The
company has not being able to tackle the challenges present by the new entrants in the segment
and has lost small market share in the niche categories. Marriott International has to build
internal feedback mechanism directly from sales team on ground to counter these challenges.
Opportunity:
With the development of the technologies the new consumer base can be created by
Marriott from the online channels. Over the past few years the company has invested vast sum of
money into the online platform (Kim 2018). This investment has opened new sales channel for
Marriott International. In the next few years the company can leverage this opportunity by
knowing its customer better and serving their needs using big data analytics. The new
environmental policies create opportunities for the hotel to create a level playing field for all the
players in the industry. It represent a great opportunity for Marriott International to drive home
its advantage in new technology and gain market share in the new product category.
Threats:
The threats faced by Marriott is intense competition a stable profitability has increased
the number of players in the industry over last two years which has put downward pressure on
not only profitability but also on overall sales (Kim and et.al., 2016). New technologies
developed by the competitor or market disruptor could be a serious threat to the industry in
medium to long term future. Over the years the company has developed numerous products but
those are often response to the development by other players. Secondly the supply of new
products is not regular thus leading to high and low swings in the sales number over period of
time.
Porter five force model:
Threat of new entrance:
The new entrances of lodgings bring new innovation and new ways of doing things
which put pressure on Marriott due to lower pricing strategy, reduced cost and providing new
value proposition to consumers. This builds a pressure on the organisation and for it Marriott
have established effective barriers or safeguard its competitive edge. This is achieved through
innovating new products and services, building economies of scale and building capabilities and
spending money on research.

Bargaining power of suppliers:
The organisation but its raw material from various suppliers. So, the suppliers are in
dominant position which decreases the margins on Marriott which it can earn in market. The
suppliers with more power in the service sector use their negotiation power to extract higher
prices from Marriott. The overall impact of high bargaining power of suppliers to reduce profit
margin of the hotel.
Bargaining power of buyer:
The buyers in this sector generally demand lot. They wish to purchase the best offers by
paying minimum price as possible. This put a pressure on the Marriot and affects its profitability
in long run. The consumer base of Marriott is small and powerful which leads to higher
bargaining power of the consumer and higher ability to seek incresed discounts and offers.
Threat from substitute products:
With introduction of a new product or service in a distinct manner pertaining to the
similar needs of consumer, the industry profitability gets affected. This puts Marriott under
pressure ad have a negative impact on the profitability of organisation. The threat of substitute
product or service for Marriott is high if consumers are offered with unique and different value
proposition which is different form the present offering of the industry.
Rivalry among the existing plyers:
The existence of rivalry among the existing players on hotel industry is intense which
leads driving to lower prices and decrease in overall profits of the Marriott. As the organisation
operates in lodging industry the competition take toll on the long term profitability.
AC 1.3 Identification of the potential aspects of the growth form Marriott hotel
The Asoff's growth matrix defines the opportunists of growth which are available to a
Marriott hotel. The growth plan development of the business can be done thorough many ways
but the Ansoff's matrix defines particular ways in which it can grow in the markets as well as
develop its products and services. Ansoff's Matrix is a marketing planning model that helps a
business determine its product and market growth strategy. Marriott hotel can avail such model
in perspective of bringing new scheme in market or attracting the customers through upgrading
the existing services. There are four sections of the Ansoff's Matrix which includes:

Market penetration:
This is a situation where organisational growth strategy focuses on selling the exiting
product into the exiting market only (Tonelli and Cristoni, 2018). The main objectivity behind
this strategy is to maintain or increase the market share of the current product and this can be
achieved through combination of the pricing strategies. In case of Marriott hotel, they can use
this method through offering new scheme or bringing new discount to the customer. They can
also bring such scheme for customer in case of sharing their hotel profile or providing good
rating after availing their services.
Product development:
Under this growth strategy the business aims at introducing a new product into the exiting
market. This strategy requires developing a new competencies and requiring to develop modified
products. Marriott hotel avail such method in respective of attracting the existing customer
through their new and innovative scheme. If they fulfil the interest of exiting customer there are
more chances to get better rating.
Market development:
Market development is the name given to a growth strategy where the business seeks to
sell its existing products into new markets (Liang and et.al., 2017). This includes entering new
geographical markets, new product dimensions and others. This is helpful for Marriott hotel to
expand their hotel in different countries. As if they carry the renowned brand name, this method
is useful in gaining more profits. They target the new customer which helps them to bring more
customer if they satisfy their needs in providing the best services.
Diversification:
Under this strategy the growth is planned as entering into a new market with a new
product. This is an inherently more risk strategy because the business is moving into markets in
which it has little or no experience. Through this method, Marriott hotel can also face issue in
respect of getting the better employment for committing work or attracting the customer interest.
If they made proper planning regarding diversified the business activities, there are more chances
of success in expansion planning.
Marriott adopts the Growth strategy of markets development where it enters into the new
markets with its existing products and services. The reason for section of this growth strategy by

Marriott in order to increase the costumer base and provide its services to more and more people
around the world (Shyu and et.al., 2015). The hotel can also increase its cultural integration and
diversification and provide more customised services to its new consumers to increase the
consumer satisfaction as well as the reputation in the hotel industry. Also, with this Marriott can
enhance its distribution channels by moving to the online order and bookings and increase its
accessibility to the consumers. The market development of the Marriott includes opening new
branches in the countries which do not have any other branches. The hotel is planning to open its
branches in Morocco which have high mountains, natural beauty, tourism and the presence of
Arabic culture, with considering all theses factors it can enter the market place of Morocco with
its exciting product and service and Arab culture integration (Mann and Yaghoubi, 2018). Iran is
the another area which it can enter as it is a fresh place to enter with lesser competitors and here
religions tourism is more so as per this the plans and strategies for growth in the marketplace of
Iran can be made.
LO 2
2.1 Review the effectiveness of business
The term related to business effectiveness is closely related to the problems or any
consequences which is raised by the customer in the business, and they solve in better way.
Thus, effectiveness related to doing the accurate things within the stipulated time and efforts and
also raise more productivity to earn and maintain the cost and profits in the business for longer
terms. The short term goal of the company is related to communicate with their employees and
staff and to assign them task which is to be worked as a team (Cohen, Hanna and Gössling,
2018). The longer term gaols of the business is to make such plan which is to be completed for
longer period and it takes time to achieve it with different plan and strategies. Effectiveness
component refers to the efficient activities performed by the organization. These activities help
the business to achieve its goals and objectives.
As in case of Marriott Hotel the activity of adopting and investing in the technology and
online services has enhanced the growth of the company by increasing its revenue sales and
customer bookings. The reason behind this is due to rise in internet and digital technology
customers find it convenient and prefer to online applications and websites for bookings and that

in turn drives their interests towards Marriott Hotel. The use of online platform has also led to
the marketing of the Hotel in several countries from one single platform. Marketing activities of
Marriott Hotel has created its strong brand name and media coverage across the world (Soliman,
2016). The company is popularly known for its luxury service offerings and hospitality in the
world due to its marketing in several countries that it operates. This in turn has resulted to
increase the amount of sales for the Hotel. The sales activities in turn has led to the growth of
revenues for the company building up its strong financial position to deal with the competition
(Zhang, Seo and Ahn, 2018). This in turn have enabled the capacity of Hotels to build and
undertake the new projects and invest in different markets to expand its business. Hence, it can
be observed that the effectiveness of one business activity of Marriott Hotel has led to grow
another and all of them interrelates with one another that leads to company's growth.
The effectiveness of the Marriott’s business can be established with its commitment
towards its people as it includes their participation in every decision which affects them. The
communication through participation results in employee motivation. This hotel chain has 30
brands across multiple markets, all of which are a different level of maturity which creates a
balance between effectiveness and efficiency of this chain.
2.2 Development plan to improve the business.
Business plan refer to such planning activities which is used by the business to incite
their business into large scale and face various opportunities in the market (Angkanurakbun and
Wanarat, 2016). This planning procedure helps the companies to prepare certain budgets, plans
and strategies to face challenges and competitors if they bring the same concept as that of the
company.
Business concept: The major concept of Marriott hotel is that they expand their business into
such countries where government norms are strict but still they get more business by allowing
there franchising or using the brad name in the international market.
Vision and Mission: The vision of Marriott hotel is that they want to become the premium and
luxury hotels provides in the international market (Rieu and Kamara, 2016). The mission is that
They create the hotels according to the needs and demands of the customers and all such
animates are to be provided which they demand in the hotels.