Marriott Hotel: Business Performance Analysis and Expansion Strategies

This report provides a comprehensive analysis of the Marriott Hotel, a major player in the hospitality industry. It begins with an overview of the hotel's profile, including its vision, mission, objectives, structure, strengths, and weaknesses. The report then compares the hotel's current performance with its previous year's performance, examining both financial and non-financial metrics. It delves into actions to overcome weaknesses, maintain performance, and expand the business, including merger strategies and diversification. A detailed business plan is presented, outlining the company's objectives and action plans for expansion. Finally, the report addresses the impact of changes on the organization, change management strategies, and methods for monitoring and improving performance. The report is a valuable resource for understanding the business development and strategic planning within a large hospitality enterprise.

Small business enterprise

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
A. Profile of the Marriott hotel...............................................................................................3
B. Analysis of current performance with previous year performance....................................4
TASK 2............................................................................................................................................5
A. Actions to overcome the weaknesses................................................................................5
B. Ways and techniques to maintain the performance...........................................................5
C. Methods to expand the business........................................................................................6
TASK 3............................................................................................................................................6
A. Business plan for the current objective..............................................................................6
B. Revision of the plan to prepare an action plan to implement changes..............................7
TASK 4............................................................................................................................................7
A. Impact of changes on the organisation both internally and externally..............................7
B. Management of changes in the organisation......................................................................8
C. Methods for monitoring and improving the performance after the implementation of the
change.....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Small business enterprise are privately owned enterprise like sole proprietorship,
corporation, partnership etc. which requires less capital, have less number of employees and also
earns less amount of revenue as compared to a regular sized business and has less or no
machinery. Marriott hotel is an American multinational diversified hospitality organisation
which manages and franchises a broad portfolio of the hotels and lodging facilities. The report
will first discuss the whole profile of hotel Marriott. Afterwards it will compare and analyse the
current performance with the past performance. After the comparison it will suggest action to be
taken to overcome the weaknesses. Also, it will suggest some ways through which the
performance can be maintained along with some measures to expand the business. After
thoroughly analysing the whole business it will suggest a business plan. Further it will highlight
the impact of changes on the business. Also, it will suggest some ways on how to manage the
change in the organisation. At last the report will devise some methods of improving and
monitoring the implementation of the changes.
TASK 1
A. Profile of the Marriott hotel
Marriott is an American multinational hospitality company founded in 1927 by J. Willard
Marriott. Profile of the hotel is as follows-
Vision- To become the premier provider and the facilitator of leisure and holiday experiences in
the world (Giachetti, 2016).
Mission- To enhance the lives of our customers by creating and enabling unsurpassed holiday
and leisure experiences.
Objectives- Hiring and retaining employees and motivating them through innovative approaches
training and development and also performance management.
Structure dimension of the hotel- The structure followed by Marriott is centralisation which
allows decision taking power in hands of the top management only. Also, there is formalization
and hierarchy of authority flows in the management system.
Strengths- Marriott international is one of the leading company in the hospitality sector. The
hotel prominently and efficiently maintains the position in the market by critically analysing the
strengths of it. The strengths of Marriott are as follows-

 The hotel has built great expertise in entering into the new markets and expanding the
organisation to build a new revenue earning source.
 It has a strong base of the suppliers of raw materials which enables the company in
overcoming the blockages and obstructions in the supply chain.
Weaknesses- There are some areas where Marriott needs to improve. The weaknesses of the
Marriott are as follows-
 The hotel is not able to tackle and handle the challenges because of entry of the new
entrants in the market and because of which it has lost some market share.
 Also, the hotel needs to invest more in the new and advanced technology to integrate the
process throughout the hotel (Wetherly and Otter, eds., 2014).
B. Analysis of current performance with previous year performance
Performance management is a significant and integral part of the workplace because it
provides the supervisor to measure the performance of the employees as well as the organisation.
Performance of company can be measured by ways like comparing the present performance with
the past performance on basis of revenues, sales, operational data. Financial ratios, revenue per
available room (REVPAR) etc. The comparison of the performance of Marriott is as follows-
Comparison of financial performance of Marriott with last year
 The fourth quarter report of 2018 state that REVPAR has increased 1.3% worldwide,
4.0% outside North America and 0.2% in the North America as compared to the year
2017.
 Full year 2018 showed a diluted EPS total of $5.38 which is a major increase as
compared to the last year.
 Also the full year adjusted diluted EPS which totalled to $6.21 is around 48% over all
increase as compared to the 2017's full year adjusted EPS results.
Comparison of non financial performance of Marriott hotel
 The hotel added more than 80,000 rooms during 2018 including 9900 rooms converted
from competitors brand and nearly 36,400 rooms in international market which was low
in the year 2017.
 Also, the number of employees have increased that is in 2017 the number of employees
were 150,000 but this number raised to 176,000 in the year 2018.

TASK 2
A. Actions to overcome the weaknesses
Weakness is those traits of the organisation which stops or hampers the organisation from
performing their work up to its optimum level (Giaoutzi, Storey and Nijkamp, 2016). These are
some specific areas where the organisations need to improve to remain and perform in the
competitive world (Henrekson and Sanandaji, 2014). There are many models through which the
weaknesses can be overcome. The model used here is Rise model for self evaluation.
Elevate the weakness- The first and foremost step in overcoming the weakness is to analyse
what the weakness is and accept that weakness. Then it is necessary to find out what are the
actual weakness.
Suggest- After recognizing the weakness the organisation must seek measures to find the
solution to overcome the weakness. For this the organisation can hire some experts and
professional to advice some measures and steps to improve the weakness and convert it into a
strength.
Inquire- After knowing the weakness, if the existing employees does not have those specialised
skills to overcome those weaknesses. Then the organisation must either hire newer employees
who posses those skills. Or it should provide training to the existing employees so that they can
develop those skills.
Reflect- It is the last step of the model in which the person reflects or checks that whether the
weakness has been overcome or not. If it has been overcome then well and good but if it not has
been overcome then corrective measures are taken.
B. Ways and techniques to maintain the performance
Every business is started with the sole aim of earning profit and growing. Every business
wants to grow their business but only few knows how to maintain and sustain it for long term.
There are many techniques and ways through which the performance of the organisation can be
sustained. These ways are as follows-
Plan for the growth- The first and foremost comes the planning for the growth of the
organisation. The planning is the seed for the organisation. If the seed is not sown in the ground
properly then there will not be any fruit. Similarly, if the planning is not done proper then
nothing will go right in the future.

Top talent- Business is all about the people and without the right people any company cannot
work and grow. Similarly, the Marriott also must hire the best and talented employees and
personnel so that the work of the organisation is done more effectively, efficiently and more
productively (Bruhn, Karlan and Schoar, 2018).
Risk taking capacity- The organisation must have an enough risk taking capacity. In today's
competitive environment and the ever changing and dynamic environment it is very tough for the
companies to survive in the market. The environment is very dynamic which means that the
environment keeps on changing rapidly and speedily. So the business must have high risk taking
appetite to compete in the environment.
C. Methods to expand the business
All the small companies have plans to grow their business and increase the sales and the
profits (Storey, ed., 2016). Expansion and growth are key goals for every business. It is a
necessity for every business to grow for the survival and for the economic well being. Some
methods to expand the business are as follows-
Merger- a merger is a combination of two companies wherein one company merges with another
company and both the companies work together as a single firm or company. From the legal
point of view merger is defined as the legal consolidation of two different companies into a
single company. A merger is a voluntary fusion of two different companies in order to either
expand the company, or to gain the market share. The companies agree to merge mutually and
merge all the resources, liabilities, assets customers, scale of operations and many more other
factors. There are major two types of mergers. Horizontal merger which occurs when two
businesses in the same industries' comes together to form a single company. Whereas the other
merger is vertical merger in which two business in the same value chain merges together.
TASK 3
A. Business plan for the current objective
The business plan of the Marriott is as follows-
Executive summary- the plan will lay down the mission and vision of the hotel. Also, it will
provide an insight about the objectives of Marriott.
Mission- To enhance the lives of our customers by creating and enabling unsurpassed holiday
and leisure experiences.

Vision- To become the premier provider and the facilitator of leisure and holiday experiences in
the world.
Objectives- Till 2022 Marriott has planned to open 40 luxury hotels. It is also expecting to have
over 4000 opened or signed room for the brand in Europe by 2020.
Company profile- It is a major American corporation. As a top company in hotels, resorts,
casinos Marriott international specializes in the hospitality and tourism also providing lodging in
value and luxury hotels.
Marriott International Slogan- A slogan refers to a tag line or motto used to identify a product
or company in advertisements. The advertising slogan, or business slogan most associated with
Marriott International, is: “Revive”
Business Objectives- the objective of the hotel is to expand the business by 40 % till 2021.
Another objective is to increase the market share by 20 % in the next financial year.
B. Revision of the plan to prepare an action plan to implement changes
After reviewing the business plan it was concluded that there need to be develop an
action plan to improve the performance of the Marriott International. The hotel for the expansion
should go for the diversification (Nguyen, Newby and Macaulay, 2015). Diversification refers to
a corporate strategy through which a business entity can enter into a new market or an industry in
which it currently does not operate and also creating a new product for the new market. It can go
for product diversification. It involves addition of a new product or service to the existing
products. Marriott can diversify by introducing a new range of travelling services. It can provide
for the mode of transportation for the customers staying at the hotel. Going for the diversification
it will give a positive result by increasing the market share in the whole world. Also, it helps the
business in full growth because it is evident from the fact that due to diversification total
numbers of employees, sales, profits, strategies etc. all increases. The obvious benefit of
diversification is increase in the quantum of the revenue because there is a substantial increase in
the level of sales.
Action plan- An action plan refers to a document which lists out all the necessary steps which
are required to be followed by the company in order to achieve the particular task or the goal for
which the action plan is prepared. The action plan for expanding the business of Marriott is as
follows-

The first step is to thoroughly evaluate the liquidity as well as the financial capability of the
company with which the Marriott can do merger.
The next step is to hire some experts who can help the company through the process of merger
by providing guidance and expertise in the process of merger.
Further the next step is to establish the new objectives, mission and goals for the new merged
company.
Last step is to control and evaluate the performance of the new merged company and to lead the
company.
TASK 4
A. Impact of changes on the organisation both internally and externally
An organisational change refers to a process through which an organisation brings
changes in its structure, technologies, organisational culture, strategies etc. and effect of these
changes on the organisation (Lechner and Gudmundsson, 2014). The change can be either
positive or negative for the organisation. The impact of the implementation of change are as
follows-
Positive impact- changes are inevitable part of doing the business. Some positive impact of the
changes are as follows-
Organization
 Implementation of changes helps the organisation to stay updated and use the current
trends going in the market which can make the customers more attracted towards the
products with the latest technology (Obeng, Robson and Haugh, 2014).
Employees
 The ability to implement and accept the change can help the employees in creating more
new opportunities. By implementing the change the employee may position itself as
someone who is capable of taking more additional responsibilities.
 Implementing changes can help in increasing the efficiency of the work because if the
employees will adapt the latest change then they will work more productively which will
be more satisfying to the employees.
Negative impact- Organisational change can happen for several reason like in financial terms,
mergers and acquisition, expanding market etc. Whatever the reason for the change it is always

difficult for the employees to accept the changes. Some negative impact of changes on the
employees and the organisation are as follows-
Organization
 Some organisational changes require major restructuring like it may be merger and
acquisition, takeover etc. which may result in negative changes like salary cut, job loss,
demotions etc.
 If there is any change it takes a lot of inputs to implement those changes. The most
valuable input is money. Many companies cut the salaries and benefits at first to balance
the cost involved in implementing the changes.
Employees
 If the changes are not beneficial for the employees then they become dissatisfied and start
loosing their interest and loyalty in the organization. Then this may lead to more
employee turnover.
B. Management of changes in the organisation
Managing change in the organisation focuses on the changes that results from change in
the outputs of the programs and the policies and from changes in the environment. For managing
the change that is implemented by the organisation there are many change management models.
One of the model used by the Marriott is ADKAR change model. This model is a goal oriented
change management model that guides the organisation and the individual and the employees of
the organisation. It is created by Prosci. ADKAR is an acronym which represents the five
tangible and concrete outcomes that people need to achieve for implementing and lasting the
change these are Awareness, Desire, Knowledge, Ability and Reinforcement. This model
describes the necessary building blocks for the individual change and was developed based on
the analysis of the research data. The model proposed two facts that it is the people who change
and not the organisation. And the other principle is that successful changes occur when
individual change matches the stages of organisational change (Massa, Farneti and Scappini,
2015). The model used for planning the change to be successfully managed is the ADKAR
model. The steps of the models are as follows-
 Awareness (A)- it involves that the organisation must be aware that there is a need to
implement a change in the organisation.

 Desire (D)- To survive in the cut throat competitive world the requirement of
implementation of the change is of the utmost priority (McKenzie and Woodruff, 2015).
 Knowledge (K)- It should be in the knowledge of the supervisor that it has to implement
and ways to implement the changes.
 Ability (A)- the supervisor must be able to make the change implement and make sure
that it is applied accurately.
 Reinforcement (R)- it means retaining the change in the organisation.
C. Methods for monitoring and improving the performance after the implementation of the
change
It is very crucial to monitor the changes implemented in the organisation. It is so because
to ensure that the change implemented by the organisation is applied well or not. Monitoring is
the process of periodic or continuous time which allows the organisation or the supervisor to
regularly take the feedback from the employees who have been exposed to changes to make sure
that the change is implemented properly. There are many methods through which an individual
can monitor the performance. The common method used by maximum companies including
Marriott is Continuous Monitoring Methods. This method provides a continuous record of all the
changes made at all the levels. The superiors continuously keeps an eye on the working of the
employees after the implementation of the change. After the implementation of the changes, the
superior sets the new targets and asks the employees to achieve those targets. The superior
continuously keeps a track of the performance of the employees (Barber, Metcalfe and Porteous,
2016). He matches the performance of the employees with the set standards and if there is any
deviation is there between the standard performance and the actual performance then corrective
measures are taken to improve the performance.
CONCLUSION
Small business are generally defined as the kind of the business which has some workers,
uses little amount of resources and also has a low volume of sales and due to which also the
amount of the revenue earned is also low. After the study of the report it gave learning about the
whole profile of hotel Marriott. Afterwards it showed a comparison and analysis of the current
performance with the past performance. After the comparison it suggested some action to
overcome the weaknesses. Also, it suggested some steps through which the performance can be

maintained. And also recommended some measures to expand the business. After a thorough
analysis of the whole business it suggested a business plan to improve the performance of the
business. Further it highlighted the impact of changes which on the business both internally and
externally. Also, it suggested some ways to manage the change in the organisation. At last the
report devises some methods for improving and monitoring the implementation of the changes.