MNG00314 Assignment 2: Entrepreneurship and Innovation Report

This report presents an analysis of an entrepreneurial venture centered around introducing a cruise service for the Sydney Harbor Marriott in Australia. The report begins with an executive summary and introduction outlining the venture's objectives, followed by a description of the business, highlighting the hotel's background and the rationale for the cruise service, emphasizing invention innovation. The management section discusses the organizational structure and strategic planning approach, including scenario-based planning. The marketing plan focuses on the target audience and communication strategies. A competitor analysis is performed. The financial analysis covers funding options, including IPO and retained earnings, and the report identifies key risks and challenges, such as environmental concerns and high investment costs, and suggests mitigation strategies. The report concludes by summarizing the expansion of the Marriott hotel business and the introduction of cruise services, discussing its business structure, marketing activities, and financial aspects.

RUNNING HEAD: Entrepreneurship and Innovation
Entrepreneurship and Innovation

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Executive Summary
The below mentioned report is formed to introduce a new business line in the Sydney Harbor
Marriot Hotel present in Australia. The organization is successfully running its business in the
market of Australia. Further, the company is aiming to introduce cruise services in Australia so
as to increase its level of profitability. Further, the report evaluates the description of the
company along with the analysis of marketing and management strategies of the organization.
Evaluation of competitors has been made in the paper. The ways in which the organization
should attain funds in the environments in the environment that is through retained earing and
IPO. The key challenges and measure to solve such challenges have also been discussed in the
paper. Further, additional details about the paper are mentioned below:

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Contents
Introduction......................................................................................................................................3
Description of the Entrepreneurial Venture.....................................................................................3
Management....................................................................................................................................4
Marketing.........................................................................................................................................5
Competitor analysis.........................................................................................................................5
Financial Analysis...........................................................................................................................5
Key risks and challenges.................................................................................................................6
Conclusion.......................................................................................................................................7
Bibliography....................................................................................................................................7
Appendix..........................................................................................................................................8

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Introduction
The objective of the paper is to enlighten the reader about the details about the innovative
business venture of the company Marriot present in Australia. The initial part of the report
involved analysis of the hotel Sydney Harbor Marriott present in Australia. This part of the paper
evaluates information about the implementation of innovative segment in the organization. It
should be noted that through this line, the company is aiming to introduce cruise service in the
market of Australia. The cruise segment would help the organization to increase the revenue and
diversify the scope of business (Dos Santos, Méxas, and Meiriño 2017). The below mention
report analyse information about entrepreneurial venture and the management and operations of
the company. Marketing and competitor analysis of the company has been evaluated in order to
analyse the level of competitiveness that the company need to introduce in the brand.
Description of the Entrepreneurial Venture
Sydney Habor Marriott, Australia is a branch of Marriott group. Marriott international is an
American multinational organization diversified in the hospitality industry. The hotel industry is
prosperous in every part of the world. This industry is the main sector with the help of which
several countries increase their economy and profitability as well. Sydney Harbor Marriott in
Australia is a well renowned hotel that is working prosperously in the nation. The company is
present in the upper middle segment that provides high class services to people in the
environment.
The Harbor Marriott hotel Australia is a heritage that is situated on the continent of Sydney. The
hotel was constructed in the year 1922 and took almost one year of completion. Tooth and
Company funded the hotel and the hotel is a part of J. William Marriott resort chain. Further,
there are four types of innovation explained in the presentation that are invention innovation,
synthesis innovation, extension innovation and duplicate innovation. The company is going to
utilize invention innovation in the business environment so as to successfully increase the
satisfaction of customers (Salvioni 2016). As a part of entrepreneurial venture, the company
should focus on introducing a cruise segment in the business segment. This segment would help
the organisation attract more and more customers and retain them in the marketplace.

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Additionally it is analysed that that the cruise services are an add on to the resorts and hotels as it
assists the business to let the customers stay for a longer period of time and enjoy the ambience
of the site. The area of Sydney Harbor is beneficial for the organization to introduce this
segment in the workplace atmosphere. Further, it should be noted that with the introduction
invention innovation in the Marriott environment, the organization would be able to
automatically introduce duplicate, synthesis and extension innovation in the business. It should
be noted that this type of innovation for Marriott could also be called as an extension in the
service facilities provided by the organization (Kovaltchuk, et.al., 2016).
Management
The Marriott group works were several segments present in different parts of the world.
Resulting in which, the organization required to use a definite organizational structure to initiate
the functions of the hotel chain. The vision of the hotel chain is to become a premiere provider
and facilitator of leisure and vacation desires to the people in the world. The mission of the
organization is to provide adequate services to the customers and enabling them to attain leisure
experience for which they are paying in the environment. The organization structure of the hotel
chain is broken into several segments based on the different types of services offered by the
organization (Nikolskaya, et. al., 2017). The organization has many vertical reporting segments.
Therefore, it can be said that the organization make use of vertical integration strategy to provide
services to the customers and manage the business functions as well. Further, the cruise line of
the organization in Sydney Harbor would also be managed individually. This aspect eliminates
the interference of other segments of the company that initiates easy and fast delivery of services
to the customers (Popovic, et. al., 2019).
The company holds a legal structure of corporate legal entity working under differential
structure. The company is different from its people and works as a separate legal entity. This
type of legal structure eliminates the presence of liability from the partners of the organization.
Further, in order to strategically plan the functioning of cruise segment in the environment of
Sydney Harbor for Marriott, the organization make use of scenario based strategic planning
approach in the business environment. According to this type of approach, the business does
evaluate the scenario in which the company works and then implement strategies accordingly. It

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should be noted that the company initiates regulations and implement them on the basis of best
case and worst case scenarios in the business environment. This type of strategic business
approach helps the organization to target the different locations differently by analysing the
features present in that environment and then provide the resources and services to the customers
accordingly. Like, in the Australian environment, it would be beneficial for the organization to
introduce the cruise segment for the customers. Innovation in the business based on the scenarios
helps the organization to initiate competitive advantage in the external environment (Clifton
2019).
Marketing
The company is going to target upper middle level people who either visit to such location for
leisure and vacation or for business meetings. According to the geographic segmentation, the
business the targets people who live in cities and populated locations because they prefer
travelling to different location for relaxing. Further, according to the demographic segmentation,
the business is going to target people who have adequate income level of afford in a high class
hotel. The company would also target people who going to business trips on a regular basis.
Satisfaction, value and lifestyle are the three aspects that are targeted according to the
psychological segmentation (Goh, Nguyen, and Law 2017).
Talking about the communication strategy, it should be evaluated that the business would
effectively utilize both of the physical as well as social media to attract the customer in the
marketplace. The company should initially provide cruise facilities to the visitors as economic
rates in the market. This will attract the interest of visitors, further, the company should also
include this facility in the package offered by different travel agencies. Further, the organization
should make use of social media tools like Facebook, Instagram and Twitter etc. to develop
online campaign and promote the functions in the business environment (Goryushkina, et. al.,
2016).

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Competitor analysis
Financial Analysis
There are several ways in which the company could attain funds for the development of new
services in the environment like IPO, loan, venture capital etc.
However, being a global organization, the name of the organization is renowned in the
worldwide environment, resulting in which it is suggested that the organization should raise
funds through IPO. Further, looking at the sound financial statements of the company, it can be
said that the company has surplus retained earning that can be used for investment in the new
product segment of the organization. It is not suggested to the organization to take loan or debts
in the environment because they are a liability for the organization. The company do not need to
give any interest on the retained earnings or the IPO as the shareholders are the part of the
organization (Dogru, and Sirakaya-Turk 2017). Below mentioned is the analysis of investment
structure of the company:
Activity Cost
Operational Cost $100,000 ($ 25000*4)
Retained earnings $ 5000
IPO $ 95000
Key risks and challenges
Environmental challenge: the cruise industry is affecting the environmental conditions of the
nation resulting in which it is attracting the eyes of government. Initially, the organization might
face difficulty in attain license, further, the actions of the organization would also affect the
marine life.
High investment and maintenance cost: introduction of this segment in the business involves
high cost of investment. The company could attain cost of investment but it would also require
cost of maintenance as well.

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Further, it should be noted that company should strictly follow the environmental guidelines in
order to save themselves from the penalties and CSR related issues. Further, it should be noted
that the company would definitely attain profit from this line. Thus, share of this profit should be
directly invested in maintaining the resources (Kimes 2016).
Conclusion
Thus, concluding the facts mentioned above, the aspects should be analysed that the paper
evaluates details about the expansion of the business venture of Marriott hotel present in Sydney
Harbor Australia. The paper highlights the information about the introduction of new segment
that is cruise service in the environment of Australia. The above mentioned paper highlights the
business structure and marketing activities of the company to promote the innovative venture in
the environment of Australia. The financial analysis provides details about the ways in the which
the organization should attain profits in the international environment.

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Bibliography
Dos Santos, R.A., Méxas, M.P. and Meiriño, M.J., 2017. Sustainability and hotel business:
criteria for holistic, integrated and participative development. Journal of cleaner
production, 142, pp.217-224.
Kovaltchuk, A.P., Dedusenko, E.A., Blinova, E.A. and Miloradov, K.A., 2016. Concept and
procedures of crisis management in Russian hotel enterprises. Journal of Environmental
Management & Tourism, 7(3 (15)), pp.473-480.
Salvioni, D., 2016. Hotel Chains and the Sharing Economy in Global Tourism. SYMPHONYA
Emerging Issues in Management, (1).
Popovic, G., Stanujkic, D., Brzakovic, M. and Karabasevic, D., 2019. A multiple-criteria
decision-making model for the selection of a hotel location. Land use policy, 84, pp.49-58.
Clifton, D., 2019. Hospitality Security: Managing Security in Today's Hotel, Lodging,
Entertainment, and Tourism Environment. CRC Press.
Goh, E., Nguyen, S. and Law, R., 2017. Marketing private hotel management schools in
Australia. Asia Pacific Journal of Marketing and Logistics.
Goryushkina, N.Y., Shkurkin, D.V., Petrenko, A.S., Demin, S.Y. and Yarovaya, N.S., 2016.
Marketing management in the sphere of hotel and tourist services. International Review of
Management and Marketing, 6(6S), pp.207-213.
Kimes, S.E., 2016. The evolution of hotel revenue management. Journal of Revenue and Pricing
Management, 15(3-4), pp.247-251.
Nikolskaya, E.Y., Pasko, O.V., Volkova, I.A., Dekhtyar, G.M. and Lebedeva, O.Y., 2017.
Boosting the competitiveness of hotel business operators in current conditions. Journal of
Environmental Management & Tourism, 8(8 (24)), pp.1617-1622.

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Dogru, T. and Sirakaya-Turk, E., 2017. Investment and firm value: is there an optimal
investment level in hotel firms?. The Journal of Hospitality Financial Management, 25(1),
pp.17-26.

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