HOS802 - Hospitality Management: Marriott International Analysis

This report provides a comprehensive analysis of Marriott International Inc.'s hospitality management strategies, examining the strategic and tactical decisions the company has made to increase its market share. It includes a background of the company, its current position in the global market, and a PEST analysis to evaluate the political, economic, social, and technological factors affecting Marriott's performance. Furthermore, the report applies Porter's Five Forces to assess the competitive intensity within the hospitality industry. The analysis concludes with recommendations for Marriott International to maintain and enhance its market position by focusing on innovation and customer satisfaction. Desklib offers a variety of resources, including past papers and solved assignments, to support students in their academic endeavors.

Running Head: HOSPITALITY MANAGEMENT SIMULATION 0
Marriott International Inc.
Hospitality Management Simulations
(Student Name)
3/15/2019

HOSPITALITY MANAGEMENT SIMULATION 1
Executive Summary
The management of the business plays an essential role in the growth and success of
any business. Most of the companies have adopted the strategic decision making that made them
competitive in nature in the whole market. One of the leading companies Marriott International
Inc. has also adopted effective strategic management that made them succeed in the global
market. They have faced certain challenges in the global market however; they have managed in
effective manner. In the following report, there will be critical evaluation of the performance of
Marriott hotel chain will be done and the impact of the changes occurred in the global
environment.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Aim and Objectives......................................................................................................................3
Background of Company.................................................................................................................3
Current Position...............................................................................................................................3
PEST Analysis.................................................................................................................................4
Porter Five Forces............................................................................................................................5
Conclusion and Recommendation...................................................................................................6
References........................................................................................................................................7

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Introduction
Managing the business play a vital role in the competitive market. The global market is
covered with high level uncertainty that need strategic decision making to compete in the market
that involve with uncertainty (Trevino & Nelson, 2016). One of the international leading
companies Marriott International Inc. has a ethos, belief of novelty, foremost recital as well as
services. They have adopted effective strategies in their decision making than made them lead in
the market (Kimes, 2016).
In the following part, there will detailed analysis on the strategies adapted by the hotel
to enhance their market share efficiently and how they can more improve their overall
performance to maintain their position in the competitive market
Aim and Objectives
 The main aim of this report s to analyze the overall performance of Marriot Intentional
chain
 The market that affect the performance of the hotel
 It ends with the recommendation that will provide to cope up from the challenges.
Background of Company
Marriott International Inc., is international operative as well as franchisor of the hotels
and billet services, licensor of inns, business lodging possessions under the abundant brand name
at diverse worth as well as services points. The company has more than 3700 properties in the
global market. It is expanded to 74 countries as well as has more than 17 brands in all over the
world. It was founded in the year 1927 by J. Willard Marriott with his consort in Washington
D.C. as an origin cocktail attitude. They have achieved great success from their business by
using effective management strategies in their business (Madar, 2017).
Current Position
In the recent Marriott International Inc. operates as one of the largest as well as most
diverse portfolio of the hotels in the luxury with full service segments. After taking the slight

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depression in the year 2009, due to the struggling global economic climate, the revenue of
Marriott International has climbed gradually that reach to approximately 17 billion U.S dollars in
the year 2016. In the year 2015, the hotel chain was considered as one of the largest hotel chain
in the global market in term of revenue (Krupskyi, Stukalo, Krasnikova & Falko, 2017).
PEST Analysis
A PEST analysis is one of the framework or any effective tools that are majorly used to
analyze as well as monitor the macro environment factors that have a profound impact on the
performance of the organization.
Political environment: Such factors are all about how as well as at what level the
government involved in the activities of business. The political environment managed by
Marriott International is:
 They recognized the value of laws as well as regulation of the discrete realm then manage
their therefore in the historical as well as in present
 They have followed the protocol that are designed by the individual nation such as non-
fat food, low calories as well as no- smoking policy (Morris & Metternicht, 2016)
Economic Environment: it is the element of certain performance related to the
economy the factors that are included are exchange rates, economic growth, interest rates, rate of
unemployment. The factor of economics is:
 The growing economy of Australia as well as other developed counties inspiring Marriott
International to capitalize further amount in such zones
 The enhance in the price of gasoline encouraging the company to focus on clean energy
as well as more environmental friendly
Social Environment: it is one of the aspect of one of the overall situation that represent
the demographic characteristics, customs, standards as well as values of the individuals within
which the company operate. The social factors that manage by Marriott International are:
 In the recent, people like to ravel as well as explore new places therefore; Marriott has
expanded their network in Australia, America, Africa as well as Europe.

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 The consumers are more concern toward the quality of services therefore, the attributes of
Marriott is to satisfying the consumers in order for a return visit.
Technological Environment: it pertains to invention in the know-how that can distress the
process of the business as well as the market favorable or unfavorable. The technological factors
are:
 Technology is one of the effective platforms for connecting the world. The hotel has
embraced technical revolution in the faster pace.
 The technology as well as innovation is one of the key priorities of Marriott International
(Assaf et al., 2017).
Porter Five Forces
It is one of the tools for considerate the effectiveness of the corporate situation as well
as aid in recognizing the prospective viability of strategies. The factors of Porter five Forces are
explained in below points:
Bargaining Power of Supplier
The suppliers are in different shapes as well as sizes. The bargaining power of suppliers
is moderate for the hotels as the power of suppliers in hospitality industry is fragmented.
Buyers Bargaining Power
The bargaining power of consumers in such business is moderate. The hotel Marriott
International has robust variety gratitude they would able to attract new consumers in effective
manner with little marketing and promotional efforts.
Threat of New Entrants
Due to the considerable development in the hospitality business, the risk of new
entrants for hotel is significantly high. The unfavorable economic condition reduces the rate of
land and real estate that attract new entrepreneur in such industry (Denizci Guillet, Guo & Law,
2015).

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Threat of Substitution
In the developed nation, the threat of substitution is low. The threat of replacement can
be high due to the inventive concept in the portable as well as travel business. However, the
service level delivered in the relaxed area cannot be compared with the level of Marriott for
service.
Rivalry
For Marriott International, the peril of competition in such industry is moderate. They
are the key players and have huge branded chains. The hotel Marriott faces robust rivalry from
further alike sized chain brands however they have gained modest benefit over the process of
diversification of commercial in other sectors (Bogetic, Antic & Lekic, 2015).
Conclusion and Recommendation
From the above analysis it can be concluded that the management strategy of Marriott
International is effective that made them succeeded in the market. They have achieved great
share in the market with earning high revenue from their business. Undoubtedly, their
management is effective but they need to concentrate on maintaining their position in the market.
They should enhance their strategies to come in first position in the global market. They need to
introduce some innovative services that would attract maximum consumers towards their
services in effective and efficient manner.

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References
Assaf, A. G., Josiassen, A., Woo, L., Agbola, F. W., & Tsionas, M. (2017). Destination
characteristics that drive hotel performance: A state-of-the-art global analysis. Tourism
Management, 60, 270-279.
Bogetic, S., Antic, Z., & Lekic, N. (2015). Analysis of hotel enterprises competitiveness aspects
in modern business. Journal of Engineering Management and Competitiveness
(JEMC), 5(2), 90-101.
Denizci Guillet, B., Guo, Y., & Law, R. (2015). Segmenting hotel customers based on rate
fences through conjoint and cluster analysis. Journal of Travel & Tourism
Marketing, 32(7), 835-851.
Kimes, S. E. (2016). The evolution of hotel revenue management. Journal of Revenue and
Pricing Management, 15(3-4), 247-251.
Krupskyi, O. P., Stukalo, N., Krasnikova, N., & Falko, Y. (2017). Franchising model for
expansion of the international travel business. Problems and Perspectives in
Management, 15(4).
Madar, A. (2017). Quality-a competitive advantage on the hotel services market. Case study:
Marriott Hotels & Resort versus Radisson Blu. Bulletin of the Transilvania University of
Brasov. Series V: Economic Sciences, 10(2).
Morris, A., & Metternicht, G. (2016). Assessing effectiveness of WEEE management policy in
Australia. Journal of environmental management, 181, 218-230.
Trevino, L. K., & Nelson, K. A. (2016). Managing business ethics: Straight talk about how to do
it right. New York: John Wiley & Sons.