Business Health Check Report: Marriott Hotel Analysis and Strategies

This report provides a comprehensive business analysis of Marriott Hotel, examining its objectives, internal and external factors influencing its performance, and potential improvement strategies. The report begins with an introduction outlining the importance of adapting to customer needs and the ...Read More

BUSINESS HEALTH
CHECK

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1 : Understand the focuses of the business...............................................................................1
AC 1.1. Analysing the objectives of the business..................................................................1
AC1.2, M1 & D1 Factors that impact the business................................................................2
AC1.3 Potential improvements to the business organisation and/or operation......................3
LO 2 : Develop plans for the business ............................................................................................1
AC2.1 Effectiveness of the business .....................................................................................1
AC2.2 Plans to improve business ..........................................................................................2
LO 3 : Evaluate and develop skills of management and staff .........................................................3
AC3.1 Current skills of management and staff......................................................................3
AC 3.2 plans for the development of skills for management and staff..................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Need and requirement of customers changes on regular basis and it is important for the
business to make sure that appropriate steps are taken in which wants are met. Firm is required to
make analysis of their performance and areas in which development is made should be
determined (AbuKhalifeh and Som, 2012). For conducting this assignment in appropriate
manner use of Marriott hotel is done.
This is focused on delivering their customers with high quality services. This report
covers factors that impact business in negative manner. Further, it covers potential improvements
to the business organisation and operation. Lastly, it also includes development of plans to
improve the performance of business.
LO 1 : Understand the focuses of the business
AC 1.1. Analysing the objectives of the business
Marriott hotel was founded in 1927 by J. Willard Marriott and Alice Marriott. There are
about 6520 locations in which they have established their business. With time there are many
competitors who focused on delivering similar types of products and services. However, they
were able to understand the requirements and to take up appropriate steps that will be suitable for
the business to satisfy needs and wants. More specifically, there are 127 countries and territories
around the world in which they have established their business. According to Fortune’s out of
100 Best companies, Marriott was ranked 12th in the list.
In accordance with the objectives that are set, it can be stated that they focus resolving
the issues or problems that are faced by customers and appropriate steps are taken so that they
are able to overcome them. When steps are taken immediately, then it causes positive impact
over customers (Gibbons, 2013). Further, the hotel embrace change on regular basis, research is
survey carried out and these are helpful for the business to provide high quality services. There
are targets that are set by business so that they are able to meet SMART criteria.
In this context, below given are the SMART objectives that are set by Marriott hotel:
 To raise the sales by 10% by the end of 2019
 To provide employees with training and development in order to raise their performance
level
The objectives given meet the criteria for SMART and thus it can be stated that these enable to
raise their sale and profitability is effective manner.
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AC1.2, M1 & D1 Factors that impact the business
In order to make analysis of the factors, there are tools that can be used. For analysing the
internal factors, use of SWOT analysis will be done. With this respect, below given is SWOT for
Marriott hotel.
Strengths:
 Leading company in the world
 Strong financial position
 Has diversified and expanded business
Weaknesses:
 Stability to financial issues are not
strong
 Facing backwardness in infrastructure
Opportunities:
 Making markets in which business can
be expanded
 Innovations
Threats:
 High competition from local companies
 High rate of substitution for customers
On the other hand, for analysing the external factors PESTLE and Porter’s Five Forces can be
conducted and they are as follows:
PESTLE:
Political: Main danger of political factor that affect cited firm is international relations,
political climate and terrorism. When a terrorist attack occurs, then people develop negative
perception and rate of travelling on that particular company decreases.
Economic: In many countries, there are situation of recession or inflation. This has
negative impact over spending power of customers (Gurtoo and Antony, 2010). A firm has to
make changes in their prices so that people make use of services delivered.
Social: There are frequent changes that taken place in relation with taste and preference
of customers. It is important for Marriott Hotel to immediately understand the requirement and
deliver those services accordingly.
Technology: Changes in technology take place on regular basis and all these are required
to be properly considered by Marriott hotel. When these changes are made, then it becomes
favourable enough for business to reach their goals in appropriate manner (PESTLE of Marriott
Hotel, 2016).
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Legal: In each of the countries there is different type of laws that has to be followed. It is
essential that all these are followed so that raise of sales and profitability can be raised.
Environment: Factor that affects the firm is prices of the fuel. When it rises, then prices
for airlines increases and this has negative impact over the business.
Porter’s Five Forces
 Buyer power: The rate of buyer power is moderate. It is important for the firm to have
high brand recognition so that customers can be attracted (Malmi and Brown, 2016).
 Supplier power: This is moderate as well; there are many of the suppliers who are
effective enough to provide quality products. It is important for the firm to develop strong
relation with them.
 Threats of New Entrants: There are many firms in recent times that have come up and
these have reduced that sales and profitability.
 Threat of Substitutes: Substitutes are high as there are many other options those
customers having other than hotels.
 Degree of Rivalry: The threat of rivalry is moderate due to logical and financial factors.
AC1.3 Potential improvements to the business organisation and/or operation
Marriott international Inc is a leading hotel company having more than 4500 hotels in 90
different countries all around world. The hotel group is continuously increasing its market share
by developing their product and services. They focus on expanding their hotel chains in various
new regions or territories to increase their visibility in the market and profitability.
In order to sustain their market position and brand image, Marriott hotel have many
opportunities which can help them to improve its performance.
For analyzing growth and development opportunities for the cited organization an
effective tool can be applied, Ansoff Matrix model. It helps in identify various areas which can
be developed or improved for achieving growth within the operations and business. The Ansoff
matrix renders the basis for organization's goal, arranging procedures and managing the
development of directional policy for its future.
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The Ansoff's matrix consist four important market or product combinations which can be
described as below - Market penetration
 Marriott hotel can focus on sponsoring international football club such as Barcelona; it
can help the organization to improve their loyalty and marketing.
 Targeting middle class customers help to improve the performance and profitability of an
organization; and Marriott hotel can target them by developing new campaign, discount
and new offers (Byrne and Happell, Reid‐Searl2017).
Product development
 The hotel can develop their services to attract more customers such as using helicopters
for transporting guests from their arrival point to the hotel
 It can host attractive monument exhibition for weeks including offers or discounts in
hotel across the world.
Market development
 The hotel group can expand their business by entering into regions not yet covered by
Marriott branches such as Morocco, Maldives etc. It can help in increasing sales and
profitability of hotel group all around the world.
Diversification
 The important concept which can be considered by Marriott is to diversify their products
and services. It is focusing on developing Marriott coffee chain, which is a new chain of
coffee shop under the same name Marriott inc.
 It is also establishing a sea cruise tourism company that may also attracts many
customers.
LO 2 : Develop plans for the business
AC2.1 Effectiveness of the business
In the year 2015 Marriott earned more than 10 million customers per month, more than
35 million rooms per night. There are various functions performed by the organization
effectively to increase their revenue and brand image in the market. These functions are as
described below -
1. Global sales - The sale's vision of Marriott group clear and specific, it focuses on
developing profitable relationship with the help of understanding unique needs and
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demand of customers. The organization attained this vision by concentrating on finding,
attracting and retaining high value customers (Wang and Byrd, 2017).
2. Marketing – The organization finds, attract and retain high value customers with the help
of marketing efforts and integrated sales. It includes various marketing functions such as
revenue management, e commerce, stellar marketing support and other global marketing
techniques developed to create brand value, optimize revenue, generate demand etc.
3. Operation planning – Marriott assists each and every hotel by providing various resources
in areas of room operations, food and beverage, engineering, event management, retail
and spa etc. The operation management of the hotel develops new and innovative
services that are designed to increase customer satisfaction as well as to assist brand
operating standards and specifications for operational excellence.
4. Training – According to the strategic business goals or objectives, Marriott is committed
to retain and recruit the best employees, providing fair treatment and opportunities for
development.
5. Multicultural workforce – The Marriott hotel has effectively developed a multicultural
workforce. 26% of the management positions are held by minorities within which 47%
are covered by women. The hotel group has two main outreach initiative for attracting
various suppliers, franchisees, owners etc. It also includes a strategy to invest $1 billion
with women and minority owned suppliers.
AC2.2 Plans to improve business
In order to improve the performance of business and various functions such as marketing,
finance etc, Marriott hotel focus in adopting generic strategy, it is also known as differentiation
strategy which is a generic approach selected by the hotel group. Marriott hotel operates its
business all around world and is a leading global franchisee in hotel industry. The hotel focuses
on developing various competitive advantages that help in increasing profitability and
performance of the hotel. These advantages include uniqueness, cost, and services and so on.
The Marriott Hotel follows various strategies at entrepreneurial level such as its wide brand
portfolio that helps it to develop a strong market presence in the hospitality sector. This approach
is a major part of the strategy for entity that examines differentiation. The differentiation plan of
the company effectively focuses on creating a product or service that satisfy and fulfill the needs
of their customers. The company can use various other strategies such as franchising and cost
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leadership in their marketing mix along with market segmentation.. This approach can assist the
hotel group in developing a strong brand image among its customers at each and every level of
the market. It can also support the business to cover a wide market for its products and services
as a result it will enhance the demand and profit ratio for the business.
LO 3 : Evaluate and develop skills of management and staff
AC3.1 Current skills of management and staff
There are various skills needed in an organization or business to carry out different
organizational functions successfully with an aim of attaining its goals or objectives. There are
various skills required in an organization like Marriott hotel as described below -
 Operational skills – The operational skills are various attributes needed by employees in
an organization to perform daily activities in the business. These skills include time
management skills, decision making skills etc. The various functions in Marriott hotel are
performed by skilled staff and employees who are provided with proper techniques or
methods.
 Technical skills – These skills refers to the abilities and knowledge required to complete
engineering, scientific and technology related roles or duties in the hotel. Marriott hotel
uses highly effective technologies and computer related skills to access data or
information quickly. These technologies also help in maintaining effective
communication within the hotel among various departments. The Marriott hotels recruit
skilled accountants, computer engineers, and system analysts etc to control and provide
technical support to the other department of the hotel (Borchers, Chang and Gershwin,
2017).
 Communication skills – Communication skills are also very important elements in an
organization that affects business functions or activities. These skills are very essential at
each and every level of management. Good communication helps in developing a sound
and profitable business. The Marriott hotel uses various techniques and methods to
improve communication skills of the employees, there are various devices used within
the hotels such as telephones, walkies-talkie, emails which helps in interaction or
communication among different departments of the Marriott hotel.
 Management approach – The hotel successfully adopted contingency management that is
similar to human relations approach, Marriott group give high importance to its
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employees and staff as they are the reason for the success of the brand. The organization
often conducts brainstorming sessions for their employees to discuss and resolve various
issues or problems.
AC 3.2 plans for the development of skills for management and staff.
The employees need to be provided various training and development programs to
improve their skills and abilities for performing different functions or activities. In order to
develop various skills of employees Marriott hotel can implement a well designed development
planed as mentioned below -
Skills Action to do Resources you need Dead line
Communication Reading 30 minutes
every day
Seminars
watching film 40
minutes every day
Money
Book
Internet
1 July 2018
Negotiation skills Course
Reading 30 minutes
every day
Books
Money
1 July 2018
Sales and
marketing skills
Course
Reading 30 minutes
every day
watching film 40
minutes every day
Books
Money
Internet
1 July 2018
Work experience Internship
applications
Money
Time
1 July 2018
1. Listening aptitudes – keeping in mind the end goal to connect or speak with different
representatives in an association an individual needs great listening abilities so he or she
can comprehend the perspectives of others. As a client benefit employees, they need a
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viable relational abilities for that associates have to create noteworthy listening capacity
to comprehend what others have to pass on or impart (Tien and Chung, 2018).
2. Time management – Skills and abilities development can be accomplished by
successfully dealing with the time. Time administration method is basic to guarantee the
correct use of time. Keeping in mind the end goal to be inventive and imaginative an
individual needs to focus around effective usage of time in every single zone of the
association or employment part.
3. Collaboration – A man can learn numerous things by working in a group. The individuals
in a group share different data and thoughts while working in a group, these aides in
getting different inventive and imaginative thoughts which additionally aid compelling
execution.
Development Opportunities to satisfy present and future needs
The improvement chances to satisfy future and current needs relies on particular
capacities, the different aptitudes inside an individual causes him or her to dissect and decide the
viable techniques for playing out the business tasks. Employees need different vital abilities to
help and exhort clients successfully. These aptitudes can be produced by consistent connection
with the clients. Employees can build up the abilities, for example, relational abilities, critical
thinking and so forth by cooperating with various clients to give viable administrations to them.
Collaboration or correspondence helps in creating listening aptitudes and understanding the
clients this likewise helps in making new thoughts and methods for dealing with clients
amenably and also with fulfillment (Kondo and Ishikawa, 2018).
CONCLUSION
The above report concluded that Marriott Hotel is a leading hotel chain operating its
business all around the world successfully. The report identified various factors affecting
performance and profitability of the hotel. The potential improvement areas for Marriott hotel are
also determined in the above report along with the current skills of management and staff.
Furthermore, it also included an effective development plan for the employees working in
Marriott group of hotels.
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REFERENCES
AbuKhalifeh, A. N. and Som, A. P. M., 2012. Service quality management in hotel industry: a
conceptual framework for food and beverage departments. International Journal of
Business and Management, 7(14), p.135.
Gibbons, T., 2013. Competition policy and regulatory style – issues for OFCOM. Info. 7(5). pp.
42 – 51.
Gurtoo, A. and Antony, S. J., 2010. Environmental regulations: Indirect and unintended
consequences on economy and business. Management of Environmental Quality: An
International Journal. 18(6). pp. 626 – 642.
Malmi, T. and Brown, D. A., 2016. Management control systems as a package—Opportunities,
challenges and research directions. Management accounting research. 19(4). pp. 287-
300.
Kondo, N. and Ishikawa, Y., 2018. Affective stimuli in behavioural interventions soliciting for
health check-up services and the service users’ socioeconomic statuses: a study at
Japanese pachinko parlours. J Epidemiol Community Health, pp.jech-2017.
Tien, H.K. and Chung, W., 2018. Exploration of Effective Persuasive Strategies Used in
Resisting Product Advertising: A Case Study of Adult Health Check-Ups. Health
communication, pp.1-8.
Borchers, A.T., Chang, C. and Gershwin, M.E., 2017. Mold and human health: a reality
check. Clinical reviews in allergy & immunology, 52(3), pp.305-322.
Wang, Y. and Byrd, T.A., 2017. Business analytics-enabled decision-making effectiveness
through knowledge absorptive capacity in health care. Journal of Knowledge
Management,21(3), pp.517-539.
Byrne, L., Happell, B. and Reid‐Searl, K., 2017. Risky business: Lived experience mental health
practice, nurses as potential allies. International journal of mental health nursing,26(3),
pp.285-292.
Online
PESTLE of Marriott Hotel. 2016. [Online]. Available through: <http://pestleanalysis.com/pestle-
analysis-of-marriott/>
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