Comprehensive Analysis: Marriott's Strategic Business Impact Report

This report provides a strategic analysis of Marriott Hotels, examining its brands, products, and executive decision-making models, including Porter's 5 forces, competitive analysis, Porter's diamond, GE McKinsey Matrix, and SCP model. The report also assesses the impact of external forces such as political, economic, social, technological, legal, and environmental factors on Marriott's operations. Furthermore, it explores the role of globalization in Marriott's business strategy. The analysis highlights the company's responses to these factors and the implications for its future performance, drawing on data and insights to provide a comprehensive overview of Marriott's strategic landscape. The report emphasizes the interconnectedness of these elements and their combined effect on Marriott's competitive position in the hospitality industry.

TITLE STRATEGIC
BUSINESS IMPACT

TABLE OF CONTENT
1.0 INTRODUCTION.............................................................................................................................3
2.0 Marriott Brands and Products............................................................................................................3
3.0 Executive decision-making models...................................................................................................4
4.0 External Forces..................................................................................................................................5
5.0 Globalization and Marriott.................................................................................................................8
6.0 CONCLUSION.................................................................................................................................9
REFERENCES..........................................................................................................................................10

1.0 INTRODUCTION
Marriott Hotel is from the hospitality industry which is having its headquarters in United
States and is spread across 567 locations in the world. There are 201,366 rooms operating as of
31st of December 2018. In all there are 176,000 of employees which are working in the company
so that the organization can have a better functioning and match the expectations of the
customers. The company is well equipped so that the services and the products of the
organization can match the expectations, standards and the lifestyle of the customers which are
coming in this organization. The company is operating in a lot of countries which is making the
organization have a net income of $1.90 billion as of 2018 which is making the company get
higher profit margins.
2.0 Marriott Brands and Products
Marriott has created brand recognition for them in the market by having their own
products which is making the customers get comfortable with the organization. The services of
the organization are for the premium guests which are why there is a well maintained reputation
of the organization. The services by the employees of the organization are making the customers
have a better experience in this hotel chain (Shao, Wang and Feng, 2016). The employees are
well trained and skilled in this industry which is why the customers are having a better
experience. All the products which are being used by the organization are of the company itself
and are not got from outside so that there is a well maintained standard which can be maintained
and that is going to make the functioning even better. There are a lot of discounts which are
given to customers which are loyal to the organization which makes the organization have better
experience. There is a direct communication of the customers with the organization itself so that
the customers can feel more welcomed and the company will be able to have a better reputation
in the market. The efficiency in the market is being well maintained and motivation is given to
the employees of the company so that they can provide the best to the company as well. The
wages are paid to the employee’s well which is making the company have a better experience
which is good for the reputation in this competitive market in which Marriott is existing from
such a long run (Chiang and et.al., 2018).

3.0 Executive decision-making models
There are a lot of models which the managers or the executives have to make the
organization have a better functioning and operation in the market. There are a lot of tools and
models which are in front of the managers of an organization so that they can plan for the
organization effectively. Managers have to reduce the risks and make the right decisions so that
the portfolio which the brand has made for them does not get affected.
 Porter’s 5 forces
This is going to help Marriott to understand the factors which needs to be improved in the
organization so that the functioning and operations in the organization can be effectively. This is
going to help the organization to know if there are powers which the company is having and find
more cost friendly methods for the organization to get a competitive advantage which is a very
essential factor. It is very important that the organization has a control on all the five aspects of
this model so that they can control the market according to them which is going to make the
company have a positive environment for themselves. There will not be a requirement of so
many changes in the company if the organization will have these factors under control.
 Competitive analysis
Marriott is having a lot of competitors in the market which have to be controlled by the
company so that they can have a better functioning for themselves. The organization will
understand their competitor’s strategies and planning so that they can effectively plan their own
so that the guests in this industry can be maintained (Trigos and López, 2019). The competitors
for Marriott are Hilton Worldwide, Hyatt hotels, Wyndham Destinations, Four Seasons Hotels,
etc. The competition in this industry is growing rapidly which needs to be controlled by the
organization so that there is a better functioning.
 Porter’s diamond
This model will help Marriot to understand the national advantage which the company is
having in the market. This can help the company to understand the government and act as
catalysts which is improving the country’s effectiveness and GDP. There are a lot of changes

which the government gets in the country for the betterment of the people which needs to be
followed so that there is a better functioning. This will help the organization to get a competitive
advantage in the market which is going to be very good for a long run in the market and also to
expand Marriott in other countries as well.
 GE McKinsey Matrix
This matrix is going to help the managers of Marriott to understand their products and
services in the market which needs to be improved from time to time. There is a change in the
expectations of the customer’s needs and demands which is why it is very essential for the
organization to keep changing the products and services accordingly. In a hospitality industry
comfort level of the guests is very essential which is why giving them what they need is going to
help the guests have a better satisfaction level and the customers will want to travel again sooner
in that hotel.
 SCP Model
There has to be a proper structure conduct performance model which Marriott must have for
themselves so that they can have a better functioning for themselves (McMillan, 2017). This is
going to help the company have an effective planning for themselves and functioning of the
organization is going to improve which is going to impact on the economic factor of the
organization. The behaviour of the employees and the customers will be able to be controlled by
the organization which is going to be in favour of the company and effective for the
organization.
4.0 External Forces
There are a lot of factors which are having a great influence on the organization which
needs to be controlled by the organization. The externals factors are not in the control of the
organization therefore the organization should plan their strategies and take measures in the
company accordingly. Marriott has been in this hospitality industry from a long run therefore it is
going to be very easily and effective planning in the organization.
 Political Factors

The major factor which is scaring the hotel line is the terrorism, international relations and
the political climate in the tourism destinations in the world which can make the tourism get
affected easily. There are a lot of conflicts which are taking place between the terrorist attack and
military which is frightening the tourism (Silva, Styles and Lages, 2017). The terrorists target the
hotels which is why there were 39 deaths in 2015 including the tourists in Tunisia at a hotel
beach. The hotel is expanding themselves in countries which are going to keep the tourists safe
and secured in the hotel. The political balance and the terrorism should be low are what Marriott
hotel chain is trying to do for the tourism to take place so that the company can have a strong
place for themselves in the market.
 Economic Factors
The organization is investing in those countries which are having a high connectivity for the
tourism in the location so that they can provide better services to them. The standards of the
customers are being met and the premium customers are coming in the organization which is a
great factor for the organization. The company will have to find ways so that they can find
stability in the economic factor since the terrorist attacks are increasing in number and that is
impacting on the customers in the hotel. Economic growth of the hotel is low because of China
and also because of the ongoing turmoil in Europe. The currency can also play a major role in
the organization which is going to make the productivity in the organization limited which is
being controlled at Marriott so that the organization can get a competitive advantage since there
is a rise in the competitors in the market.
 Social Factors
There is an increase by 13% of as of 2013 to 2014 in the number of international tourists
which have planned their vacations in advance. There is a luxury which this chain is getting for
the customers which is a very great advantage for the organization and this can also help the
company to have a better functioning in the market for a long run (Kähkönen and et.al., 2018).
The culture of the organization is matching the culture of the customers and the respect and
comfort is being provided to the customers travelling with this hotel line. There are a lot of
customers which are ready to spend a lot on their vacations so that they can have a better stay

and comfort for travelling international which is being taken care of by the organization and that
is a great advantage for a long run.
 Technological Factors
There are a lot of technological changes which are coming up in the world in all kind of
industries so that the best of services can be provided to the customers (Kuokkanen and Sun,
2019). There are a lot of apps and websites which have been launched which help the customers
to find out the best hotels in the city they are travelling to which is why it is very important for
Marriott as well to have tie ups with such organizations. Marriott has a tie up with Airbnb which
is a great factor because through surveys it is evident that there are more than six million
travellers who have stayed in the Airbnb properties. There are a lot of taxes which are avoided by
the hotel so that they can get more customers in the hotel chain which is not good for the growth
of Marriott.
 Legal Factors
There are a lot of place like New York, Barcelona and New Orleans which have fined Airbnb
because the customers from this website have violated zoning laws, health and safety regulations
and hotel regulations overall. This can get a bad name for Marriott as a chain internationally
which is why there have to be few bookings which have to be taken from this site so that the
customers can be maintained and the organization does not loss their reputation in the market.
There are laws which are coming up in China and United States that the wages of the employees
need to be increased and paid per hour which can make the costing of the organization get
effected for a long run in the market.
 Environmental Factors
The fuel prices are affecting the tourism factor which is a great advantage for the
organization because if the fuels reduce there will be more people who will travel and the
company will be able to have a better functioning for them. The organization is using
technologies which are not affecting the environment in any way possible which is a great factor
for the organization (Grimmer, L and et.al., 2017). This is making the company have a stronger
reputation for themselves in the market which is a great factor for them. There are no air

conditioners but ducts which are making the functioning of the organization make a better
functioning which is a very essential factor for the organization.
5.0 Globalization and Marriott
According to Eric Reed globalization is interconnection of countries economically for
reasons like trading, investment, labour, good and services, etc. This method involves the
government for these processes to take place which have to me well maintained in the market.
There are a lot of factors which needs to be worked upon so that there is a better functioning of
the organization globally (Grover and et.al., 2018). The organization will have to follow all the
restrictions which are put out by the government and then they will have to implement those
changes in the company so that they can have an international liking of the customers. Licensing
in other countries is not easy but having a strong portfolio and brand image in market it is very
easy for Marriott to find a place for themselves in the market. Countries like India, China, Brazil,
etc are welcoming foreign brands in their countries so that they can have a strong flow of cash in
the market and remove unemployment in the country which is a very essential factor. The
tourists want the best of services and comfort which is only possible when their culture is
understood in the hotel they are staying in. The other foreign brands are going to bring not just
foreign tourists in the country but make them even have a better experience in the country as
well which is a very essential factor for the country (Sanchez-Segura and et.al., 2017). India is
having a lot of foreign and Indian brands for hospitality industry which have followed foreign
policies so that the tourism is maintained in the country. Marriott has gained the trust of the
customers which have travelled with this organization and having such a strong base for
themselves in the market which is helping the company have a strong functioning for
themselves. Globalization is going to help Marriott to have more customers and the company
will be able to have higher profit margins which are very essential for the establishment. This is
going to gain the trust of the customers more because they will be able to serve the customers or
guests in all the countries they travel to and the culture for them will not be different which is
creating a comfort level for the guests.

6.0 CONCLUSION
From the above report it can be concluded that there is a need for businesses to
understand the market and the international policies so that they can expand themselves which is
going to be very effective for the organization. The reputation and standards of the organization
have to be well maintained so that the organization can have a better functioning for themselves
and the planning and strategies can be used accordingly. There are a lot of external factors which
are impacting on the organization which have to be controlled by the company so that there is a
better functioning and the company has to consider them while functioning in the organization so
that there is a better reputation. The brand has a strong portfolio which is going to help the
organization have a loyal customer base for them in the market this is going to make the
economic stability in the organization.

REFERENCES
Books and Journals
Chiang, R.H and et.al., 2018. Strategic value of big data and business analytics.
Grimmer, L and et.al., 2017. The impact of resources and strategic orientation on small retail
firm performance. Journal of Small Business Management. 55. pp.7-26.
Grover, V and et.al., 2018. Creating strategic business value from big data analytics: A research
framework. Journal of Management Information Systems. 35(2). pp.388-423.
Kähkönen, A.K and et.al., 2018. The impact of total costs and strategic supply on risk
management in project business. International Journal of Procurement
Management. 11(2). pp.153-171.
Kuokkanen, H. and Sun, W., 2019. Companies, meet ethical consumers: strategic CSR
management to impact consumer choice. Journal of Business Ethics. pp.1-21.
McMillan, C., 2017. Exploring the Strategic Business Processes Senior Leadership use to
Enable Successful Ethical Practice within Their Organization (Doctoral dissertation,
Colorado Technical University).
Sanchez-Segura, M.I and et.al., 2017. Strategic characterization of process assets based on asset
quality and business impact. Industrial Management & Data Systems.
Shao, Z., Wang, T. and Feng, Y., 2016. Impact of chief information officer’s strategic
knowledge and structural power on enterprise systems success. Industrial Management &
Data Systems.
Silva, G.M., Styles, C. and Lages, L.F., 2017. Breakthrough innovation in international business:
The impact of tech-innovation and market-innovation on performance. International
Business Review. 26(2). pp.391-404.
Trigos, F. and López, E.M., 2019. About tooling capacity for the vulcanising planning decision
problem to improve strategic business profit. International Journal of Production
Research. pp.1-12.