Business Health Check Report: JW Marriott - Factors, Skills, and Plans

This report provides a comprehensive business health check analysis of JW Marriott. It begins by outlining the company's objectives, both short-term and long-term, including goals related to guest satisfaction, market share, and profitability. The report then delves into the factors impacting the business, using tools such as SWOT, PESTLE, and Porter's Five Forces to evaluate the internal and external environments. The SWOT analysis highlights the company's strengths (brand recognition, technical innovations) and weaknesses (luxury brand focus, lack of low-cost services), while also identifying opportunities (business expansion, service innovation) and threats (increasing competition, political uncertainties). The PESTLE analysis examines the political, economic, social, technological, environmental, and legal factors affecting JW Marriott. Porter's Five Forces assesses the competitive landscape, including the threat of new entrants, bargaining power of suppliers and buyers, threat of substitute products, and rivalry among existing players. The report further explores potential improvements to the business organization, utilizing the Ansoff growth matrix and SMART objectives. Finally, it evaluates the effectiveness of various business areas, including human resources, production, and marketing, along with an analysis of the current skills of management and staff and plans for skill development.

Business health check

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1.1 Analyse objective of business...............................................................................................1
1.2 Factors that impact on the business.......................................................................................2
1.3 Potential improvement to business organization...................................................................4
3.1 current skills of management and staff.................................................................................5
3.2 justify plans for the development of skills............................................................................8
REFERENCES..............................................................................................................................11
Books and Journals...................................................................................................................11

INTRODUCTION
Business health check can be a key partner of that business. It asks about some questions
and highlight the potential areas of weaknesses. Business health check is current comprehensive
evaluation of the crucial elements of business. Through this process organization get helps to
evaluate culture of organization and departments operate work in which culture (Wang and Byrd,
2017). If all department and function are operates their works better so health of business
maintain and manage. This report includes study about JW Marriott organization was founded in
1984 and headquarter situated in Paris. It operates their business at global level in 84 country.
This report will be cover objective of business, impact of business from internal and
external environment. This includes swot, pestle analysis and porter five forces. The smart
objective for the organization will also analyse. It will also include effectiveness of business and
develop a plan to improve business. Current skill of management and staff and development plan
of skill also will include in this report.
MAIN BODY
1.1 Analyse objective of business.
JW Marriott is a luxury hotel chain that was founded in 1984 by Marriott corporation.
They offer more luxurious rooms and amenities. First hotel launched in 1957 at twin bridges
motor hotel. There are more than 3000 hotels at global level. They acquire star wood hotel and
resort in 2016 and take the largest place in hotel industry in world.
Objective of the business :-
Short term objectives :-
 To increase guest by 30 % in upcoming two years.
 To provide satisfaction of guest and attract to them 70 % till 2020.
 To increase use of social media and new technologies for promote their services. To increase profitability of Marriott by 35 %.
Long term objectives :-
 To increase market share up to 90% till 2021.
 To increase properties and rooms of Marriott by 50000.
 To attract customers due to increasing competition through attractive promotion of
services.
1

 To influence organizational culture to increase business and recruit skilled and
knowledgeable employees.
1.2 Factors that impact on the business.
JW Marriott operate their business at global level, and they impact from many
environmental factors. These put direct impact on organizational performance. Marriott use tools
to evaluate and analyse environment.
SWOT analysis :- this tool use by Marriott to evaluate internal environment of organization
because many factors present that put direct effect on performance of organization.
Strength :-
High brand :- Marriott has high brand in hotel sector that operating at global level. It
captured approx 7 % share of market every year. They create good image among people through
provide satisfaction related to service and provide all types of accommodation according to
different guest.
Technical innovations :- Marriott hotel increase their techniques and new innovations
that means they conduct market research frequently and adopt the latest technologies. This thing
helps to employees motivation (Bull, 2016). It promotes services and spread informations
through technologies.
Weakness :-
Luxury brand :- Marriott is the biggest hotel and provide accommodation at very higher
cost. So high profile and rich people can get services and it also does not focus on customers
needs because different types of customers have different choice.
Lack of low cost services :- they have weakness that do not provide low cost services so
low income people can not afford high cost services and it affects to profit and productivity of
organization.
Opportunity :-
Expand business :- Marriott has opportunity of expand their business in other countries
that means they well reputed and abundant of customers. So they can expend their business and
increase profitability of organization.
Innovation in services :- they have opportunity to innovate services of customers that
means Marriott increase their innovation and technologies to promote services. Through these it
2

also attracts to customers because customers get informations about services and offers through
technologies.
Threats :-
Increasing competition :- Marriott has major threat about increasing competition that
means day by day competition increase and many competitors cokes in market with same
business and same size (Jaber, 2015). It put effect business of Marriott because customers attract
from other competitors, and they provide services at low cost compare than Marriott.
Political uncertainties:- these uncertainties in the country prove to be a barrier in
business, hindering performance at time and making the business incur unnecessary costs.
Pestle analysis :-
Political :- this factor includes taxation policy and government rules and regulation.
Marriott benefited from this policy because which are lower all over western hemisphere. So
organization earn profit and spending money on research and development. But new government
policy put negative impact on Marriott because government make new policies related to service
industries, and they have to change policies of organization as well.
Economic :- it includes exchange rate and inflation rates. This put effect Marriott
because if rate of currency increasing frequently so travel and hotel industries mainly affect and
this thing reduces business of organization (Fozer, 2017). Marriott affect majorly from currency
fluctuation and lead to delay in growth.
Social :- frequently changing in taste, choice and needs of customers includes in this
factor. These things effect on business of organization because Marriott has to spent more money
on research and conduct frequently research so it consumes more cost and time. But it has
positive effect as well because customers get services according to needs and wants. Profit also
increase through this due to satisfaction of customers.
Technological :- due to increasing technologies and innovations Marriott has to spent
more money to install of the latest technologies. So they have to provide employees training
frequently. But it positive effect that guest book their accommodation through online on their
official website.
Environmental :- this factor also affect to Marriott because it has to focus on recycling
and pollution management. That means they promote recycle of their products that they offer to
3

customers. They use packaging of recyclable material which is eco friendly. They also use solar
energy for sustainable growth.
Legal :- Marriott affected from this factor and it includes employment laws and many
other laws, so they have to follow and implement in organization. Employees get protection from
any discrimination and get minimum wages (Barba, 2016). Employees also attract and motivates
from this laws and policies.
Porter's five forces :-
Threat of new entrants – very low threat
In hospitality industry new entrants can not enter easily that means Marriott has low
threat about new competitors because in this sector huge requirement of investment. So huge
amount can not afford by every organization and this thing reduces this threat.
Bargaining power of suppliers – low threat
Suppliers of this sector has low power of bargaining that means suppliers has fewer
control on their prices. They have low switching cost and it is very difficult for them and
suppliers can not easily switch from hotel.
Bargaining power of buyers – high threat
Buyer's bargaining power is a major threat for Marriott because many more hotels are
present in market, and they provide services to guest at low price compare than Marriott
(Mathooko and Ogutu, 2015). So due to high prices buyers attract from other hotels.
Threat from substitute products – low threat
Substitute product means those products that satisfy same needs so in hospitality sector
this threat is very low because substitute products and services unavailable and this thing helps in
attain huge profitability and growth.
Rivalry among the existing players – high threat
In hospitality sector rivalry of competition threat is very highly present because many
competitors present in market that increase rivalry. Marriott has to face tough competition
because many competitors come in market with same services and same size.
1.3 Potential improvement to business organization.
Ans off growth matrix
This model use buy JW Marriott to prepare strategic marketing planing that helps in evaluate
about opportunity and increase revenue of organization. It includes market penetration, product
4

development, market development and diversification strategy. Penetration means existing
products and services sell with existing customers and achieve growth in current market
segment.
Product development means Marriott launches new products and services in existing market.
That means it has good market share in existing market. So this strategy helps to improve and
develop products.
Market development refers to development of market that means expand business and open new
branches in new market (Schawel and Billing, 2018). Marriott also expand their business in new
country and new market. So this strategy helps in increase profit and growth in organization.
Diversification strategy use by Marriott when product is completely new and the diversification
is growth of new business with new products in new market.
SMART Objective :-
Specific To increase again visits of guest by 70 %.
Measurable To influence organizational culture through provide satisfaction to
employees and expand business at global level.
Achievable To increase market share up to 90 % till 2021.
To increase promotion of services through technologies.
Realistic To increase customers attraction compare than other competitors by 70 %
in upcoming two years.
timely To increase profit by 35 % in up coming two years and expand rooms at
global level from 50000.
2.1 Explaining and reviewing the effectiveness of business areas
Business effectiveness refers to the extent to which the objectives of J. W. Marriott are
been achieved and the degree to which the targeted problems are been solved. Effectiveness of
the business is determined with reference to the cost incurred for reaching to the ultimate goals
(Maes, De Haes and Van Grembergen, 2017). It means the level of the quality with which the
task or the processes within the organization is been carried out which in turn leads to the higher
efficiency in the overall performance of the business.
5

Effectiveness is been applied to several areas of the business that include the performance
of the people or human resource in the organization as per the set standards or the strategies. The
more consistency in the employee performance, task could be performed more effectively. This
could be achieved by proper communication, use of the latest technology, individual and the
organizational resources (Wambalaba, Namada, and Katuse, 2019). Effective measures also
relates with the production where the process is counted as effective when the outcome or the
finished product is been resulted in accordance with the specifications or desire of the customers.
However, the effectiveness cannot be used for measuring the efficiency in the
performance of the staff in the process. It does not measure the time involved or the inputs used
in the production process (Cao, Duan and Li, 2015). Effectiveness of the marketing department
could be measured through the degree of the sales as higher the sales depicts more efforts by the
marketing department as it helps in knowing the trend in the overall market and the demand of
the customers. It also offers various sales promotional benefits to the customers which results in
higher sales. It provides the guidelines to the finance department relating to the management of
the accounting records and the financial information with ensuring that all the requirements in
relation to the cash could be met by the business in the future.
3.1 current skills of management and staff.
Current skills of management and staff evaluate by Marriott through skill audit process so
this helps to analyse present skills. It main purpose is that analyse capabilities of members of
Marriott. Organization analyse gap between required skill and actual skill. So due to skill audit
they update to themselves time to time. Business health maintain through this process because
skills and knowledge update and time to time.
Managerial skill :- it is a professional skill of managers. Managers of JW Marriott use
this skill to achieve goal and meet objective. So health of business also maintain and manage by
them and all department operate work efficiently. Skills of managers of every department like
finance, human resource and marketing helps to do work effectively and attract to guest as well.
It includes skills like communication, decision-making and problem solving.
Operational skill :- this skill is also very essential for management and staff during to do
work. Marriott's manager has need to skills like analytically, communication and execution skill.
Technical skills :- Marriott has major need to this skill because in this hotel technologies
adoption process is very fast and strong, so they recruit and trained to their employees for
6

develop and improve technical skill (Pan and Seow, 2016). Technologies has major need for all
department of Marriott. Like food and beverage, laundry etc.
All above skills are important for management and staff of Marriott. If these skills are present in
organization, so they easily beat to competition through create new ideas. If guest attract from
organization so productivity and profitability increase that useful to maintain health of business.
1 – bad, 2 – not bad, 3 – average, 4 – good, 5 – very good
Skills Sub skills 1 2 3 4 5
Communic
ation skill
 Management and staff
communicate effectively with
other.
 Both have good fluency of
communication.
 They talk smoothly with guest
who come for take services.
*
*
*
Motivation
skill
 Staff performance evaluate
time to time by Marriott.
 Staff get reward and incentives
according to their work.
 Management and staff both
focus effectively for motivate
to guest.
*
*
*
Problem
solving
skill
 Management solve problem of
employees with less time and
quickly.
 They gather information about
problem through employees
and members of Marriott.
 Employees take feedback from
guest at the time of checkout
from hotel.
*
*
*
7

Planning
skill
 Management uses this skill for
provide satisfaction to
customers.
 They focus on needs and
choice and understand their
wants.
 Management of Marriott make
effective plan about future.
*
*
*
Decision
making
skill
 Management uses democratic
style top make effective
decision.
 They include to staff at the
time of making decision.
 Both create effective ideas for
decision-making.
*
*
*
Technical
skill
 Management and staff has
complete knowledge about
technologies that use in
Marriott.
 They conduct research time to
time for evaluation of the
latest technologies and
innovations.
 Management of Marriott
Spend money on latest
technology and innovations.
 Members of organization have
complete knowledge and
proper knowledge about
*
*
*
*
8

information technology.
Gap analysis :-
Skill Standard rating (out of 10) Actual rating
Communication skill 9 7
Decision making skill 8 6
Motivation skill 7 6
Planing skill 8 7
Problem solving skill 9 7
Technical skill 10 9
3.2 justify plans for the development of skills.
Skill development plan is the process of creating an action plan based on awareness, values,
reflection, goal setting and planing for development (Shrestha, 2019). Members of Marriott use
this development plan to take right action for develop knowledge and skills.
Skills Development of
skill
Priority Activities
undertaken
Resources Time
scale
Rating
criteria
Commu
nication
Management and
staff of Marriott
communicate
with guest but
feel hesitation
during
interaction and
also need to
develop softness
in way of
talking.
Marriott gives
first priority to
prevent and
remove
hesitation and
then improve to
way of talking.
Attend to seminar
and listen to great
speakers.
They increase
interaction with
guest.
Time,
entrance
fees of
seminars.
8
months
8
9

Decision
making
Management of
Marriott do not
include staff of
organization in
decision-making.
Priority to use
democratic style
of management.
Organization has
need to provide
opportunity to
express
themselves and
create ideas.
Human
resource,
time and
cost
4
months
7
Motivati
on
Management
evaluate
employees
performance but
not give reward
according to
work, and they
do get
satisfaction.
Analyse staff
performance for
provide
satisfaction to
them.
Conduct research
about employees
performance in
fix time.
Time,
human
resource
and cost.
6
months
7
Planing Management of
Marriott do not
understand and
track needs and
wants of guest.
They do not
make effective
strategies to
provide
satisfaction.
Marriott give
priority to give
satisfaction to
guests.
They make
effective plan
after evaluate and
understand needs
and wants of
customers.
Management of
organization
appoint one
housekeeping
member with one
guest to fulfil
their needs.
Cost, time
and
workforce.
6
months
8
Problem
solving
Management and
staff of Marriott
They give
priority to take
Housekeeping
members fill log
Time,
human
4
months
8
10