Business Health Check Report: Marriott Hotels, Hospitality Industry

This report provides a comprehensive business analysis of Marriott Hotels, a leading company in the hospitality industry. It begins by outlining the company's objectives, mission, and vision, followed by an examination of internal and external factors impacting its operations. The analysis incorporates models such as PESTLE, Porter's Five Forces, and SWOT to assess the business environment, competitive forces, and the company's strengths, weaknesses, opportunities, and threats. The report also evaluates the effectiveness of the business, proposes plans for improvement, and justifies their value. Furthermore, it addresses the current skills of management and staff, devising and justifying plans for skill development. The conclusion summarizes the key findings and recommendations for the company's continued success. The report highlights the challenges and opportunities facing Marriott Hotels in a dynamic and competitive market.

Business Health
Check

Table of Contents
INTRODUCTION...........................................................................................................................3
1.1 Analyse the objective of business.........................................................................................3
1.2 Factors that impact on business.............................................................................................4
1.3 Determining potential improvement to business ..................................................................8
M1. SMART criteria for organisation.........................................................................................9
D1. Effectiveness of Ansoff matrix............................................................................................9
TASK 2............................................................................................................................................9
2.1 Effectiveness of the business................................................................................................9
2.2 Develop plans to improve the business, justifying their value............................................11
M2 Effectiveness of areas of the business an contribute to organisational growth..................12
D2 Critically analyse how the plans developed and lead to an improvement in the business. .13
TASK 3..........................................................................................................................................13
3.1 Evaluate the current skills of management and staff..........................................................13
3.2 Devise and justify plans for the development of skills for management and staff............14
M3 Analyse effect current experience, skills and abilities of management and staff may have
on the business..........................................................................................................................15
D3 Critically evaluate various methods that can be used to develop the skills of management
and staff of their chosen organisation.......................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Hospitality management can be refer as study of management of hotels and its services
(McInerney, 2012). This industry is continuously expanding and hotels are increasing its services
in order to create impactful relationship with customers. Management of hotels includes various
challenges and ranges of responsibilities. Hotel management is a term used to define
management of all aspects of hotel and providing effective and efficient services to guest of
hotels. For this report chosen company is Marriott hotels. This hotel has largest hotel chain
which is spread in 131 countries all over the world. Marriott hotel is founded by J. Willard and
Alice Marriott in 1927. This hotel is providing its services worldwide and its headquarters are
located in Maryland, U.S. Marriott hotel is a brand leaders by offering large portfolio of its hotel
and resort services to customers. Purpose of this report is to develop understanding about
business of chosen company in hospitality industry. Evaluation of impact on internal and
external factor on business and its operations. Business effectiveness is analysed in this report
and plan is develop to improve business. Skills of management and staff of chosen company is
identified and methods or strategies are evaluated in order to improve ability and skills of staff.
1.1 Analyse the objective of business
Marriott hotel is one of the leading hotel brand in hospitality industry. This is an
American multinational diversified hospitality company with large portfolio of hotels and
resorts. Marriott hotels was founded in 1927 by J. Willard Marriott and Alice Marriott. This
company has largest hotel chain in the world which includes 30 brands in more than 7,000 hotels
properties across worldwide. Its company has majorly classified its services into Luxury,
Premium, Select,Longer Stays and collection. Marriott hotel aims is to provide worlds best
offering and hospitality services to customers (Ma and et. al., 2018). This hotel is Scope of
Marriott hotel is to open more hotels in other countries and increase their services and efficiency
to gain competitive advantage over other rival companies. Long term goals of Marriott hotel is to
grow in market by providing high quality services to customers and providing leisure and
business experiences across the globe. Short term goal and objective of this hotel is to create
environment which is conducive for customers as well as employees of company. Company is
focusing on encroaching employees to work by maximum capacity in their services. Mission: Marriott mission is to enhance lives of their guests by providing unsurpassed
vacations and creating leisure experiences.

 Vision: It work with vision to become premiere provider of leisure and facilitator of
unforgettable vacation experience to customers.
1.2 Factors that impact on business
There are various factors which affect business operations and have impact on business
(Ciullo, 2016). Internal and external environment in which Marriott hotel is performing its
activities can influences it in positive and negative way. In order to understand impact on internal
and external factors various models has been analyse such as PESTLE, Porter's five forces and
SWOT analyses.
PESTLE analysis
Marriott hotel is operating in many area and macro environment can influces its business
operation. Factors in external environment can have negative as well as positive impact on
Marriott hotels. In order to analyse these factors PESTLE analyses is used. PESTLE analyses in
context of mar riot hotel is mention below. Political factor: This factor play a major role in determining impact of external
environment on Marriott hotels. Political factor consist of various rules and regulations of
political party. It also includes tax policy, trade regulation as well as tariffs related to
services of Marriott hotels. Interest of UK government towards hospitality industry and
improvement in safety regulation will have positive impact. Political instability in UK
can have negative effect on business as it will leads to change in rules and regulation set
by governments which affect Marriott hotel operations. Economic factor: Economic environment factors includes inflation rates, economic
condition of country, interest rates, foreign exchange rates etc.(Lesaca, 2017)These
external factors can have positive and negative impact on Marriott hotels. UK economic
condition is a strength for Marriott hotels as its will help in growth of company and
increase its services by earning high profits. Recent recession in country is responsible
for creating negative effect on hospitality industry and this leads to reduce in overall
profitability of Marriott hotels. Social factor: This factor is related to behaviour of society and its people towards
hospitality industry and social culture factors which influences Marriott hotels. Social
factors includes attitude, leisure interest, culture, education level, class structure and
power structure in society. Changes in behaviour of people towards staying in hotels and

increase in consumer spending on travel or vacation is advantage for Marriott hotel.
Society is full of different culture and different demand and it is quite impossible for
satisfying needs of all customers and this creates negative impact on Marriott hotels. Technological factor: Technology factor can have huge impact on Marriott hotels as this
factor includes new and innovative technology (Stevens, 2019). This external factor can
helps company in attracting more customers. UK country have new and updated
technology and Marriott hotel can use this opportunities by providing personalized
services to their guest and improve in services provided by Marriott hotels. By using
modified techniques and technology company can have competitive advantage over its
rival companies. Drawback of technology factor on Marriott is that use of innovative
technology is very costly and have impact on overall profitability on business. Environmental factor: This factor includes climate and weather conditions, law of
government regarding environment protection, pollution, endangered species, renewable
energy and attitude towards ecological system. Social activities conducted by Marriott
hotels to full fill its social responsibilities have positive impact on business as it will leads
to build strong relationship with customers. Changes in climate condition can have
negative effect as it will have impact on travelling of people and reduces demand of hotel
rooms.
 Legal factor: Legal factor includes various law made by government on hospitality
industry for safety of customers as well as hotels (Patrick, 2019). These law are anti trust
law, discrimination law, intellectual property law, consumer protection law, employment
law etc. these law provide support to Marriott hotels by saving intellectual property of
Marriott hotels and resorts. This law provide protection from imitating or copying
companies services by any other rival company. Increase in minimum wages in UK can
have negative effect on hotel as high minimum wages will leads to increase in labour cost
to Marriott hotels.
Porter's Five Force Model
This model will have in identifying different forces which is creating impact on Marriott
hotels. Porter five force model is helpful in determining strengths and weakness of company by
different forces such as threat from new entrants, bargaining power of suppliers, bargaining
power of buyers, threat from substitute and threat from competition.

Threats of new entrants
Marriott hotel is a well established brand and it does not have much treat from entry of
new companies (Saifullah, 2018). This hotel is providing luxury and customized services which
is quite impossible for new entrant as its require huge amount of cost to company. Marriott
hotels is well known brands and customers have trust on products and services offered by this
hotels. Loyalty of customers towards brand reduces the changes of switching to any other hotel.
Bargaining power of buyers
This factor have moderate impact on Marriott hotels. Customers or buyers of room in
hotel have ability to use internet. Buyers can search from different alternatives according to their
preferences or budgets. This factor can have huge impact on Marriott hotels as internal facility
will provide various options to customers. Marriott hotel is provide high quality service and
serving value to their money with the use of innovative technology and techniques. This reduces
the chance of bargaining as customer are more focused on quality of service than amount
charged for it.
Bargaining power of suppliers
Bargaining power of suppliers have less effect on Marriott Hotels. There are mainly
suppliers for Marriott hotels and bargaining power of supper does not much effect its business.
Suppliers in this industry has less control over prices of hotels services. Therefore bargaining
power of supplier have low effect on Marriott hotels.
Threat of substitution
There are many substitute available in market of hospitality industry. Threat from
substitution have moderate power to impact on Marriott hotels. This is threat for business
because of low switching cost (Hersey and et. al., 2013). Customers can search for different
alternative available in market and chose according to there requirement. Marriott hotel is
providing differentiate products and services which reduces the chances of substituting Marriott
hotel with any other hotel. This hotel is providing customised services and have strong
relationship with its customers and it leads to maintaining loyal customers of Marriott hotels.
Threat from competition
Marriott hotels operate in very competitive environment and threat from competition
force have high impact on Marriott hotel business. There are many rival companies of Marriott
hotels is existing in hospitality industry. Strategies used by rival company can directly affect

business and its profitability. Long term establishment of rival company in market leads to limits
the market share of Marriott hotels. Rival company of Marriott have large market share and
operating with competitive strategies in market.
SWOT Analysis
This model will help company to analyse its internal and external environment. By
SWOT analysis Marriott hotel can identify its strength and weakness as well as opportunity and
threat for company in external environment. Strengths: Marriott hotels have strong presence all around the world and have build
strong brand image. This hotel has gain trust from their guest by providing effective and
high quality services to customers (Alexander, 2014). Marriott hotel is focusing on
innovative technology to provide comfortable and unforgettable experiences to
customers. It is constantly updating its service and techniques in their operation which
leads to provide luxury experience to customers. This will leads to Marriott hotels as
leading company in hospitality industry by using most competitive strategies for business
services. Marriott hotels biggest strength is it employees and staff which helps in buiding
strong relationship with customers and providing quality services. Weakness: Marriott hotel needs to improve in some area to overcome its weakness. Key
weaknesses of Marriott hotels includes its huge extended business. This hotel has been
located in many countries and it is very difficult to maintain quality and standard of
services of hotel (Torjesen, 2015). Its will affect brand image when quality of services is
not provided by Hotel. Competitors of Marriott hotels such as Hilton, Accor hotels these
competitors are long established in market is weakness for Marriott hotels as it limits the
market share of company. Opportunity: This hotel can take advantage from potential and emerging market. Marriot
hotels have opportunity for expanding its services in different other countries also as it
will leads to target new market area. Customer behaviour is shifting and they are more
open to stay in luxury hotels. Marriott hotels can also tie up with airlines and other hotels
in order to exploit opportunity of increasing global presence. Company can also provide
personalized products and services which helps in attracting more customers and increase
value of services provided by Marriott hotel. Marriott hotels should train their employees
which help in increase their effectiveness and efficiently.

 Threat: Marriott hotel have threats from changes in political policy and regulations in
hospitality industry as it will direct affect hotel operations. Increase in competition from
new hotels as well as rival companies can have negative effect on overall profitability of
Marriott hotel (Gladden, 2016). Different price changed by other companies and new or
creative services offered can leads to reduce in sales of hotel. Economic recession can hit
hospitality industry and can have adverse effect on Marriott hotel. Biggest threat to
Marriott hotel is from terrorist attack.
1.3 Determining potential improvement to business
In order to determine improvement in Marriott business and its operations, company
needs to evaluate Ansoff matrix. This model will help in developing growth strategies for
business by analyses different strategies (L'Heureux, 2019). Ansoff matrix model focus on
Marriott product or services and potential products and services. This model will leads to analyse
different strategies such as market penetration, market development, product development and
differentiation strategies in context of Marriott hotels. Market penetration: Market penetration refers to those strategies when Marriott hotels
focuses on increasing its sales by offering existing products into current market area.
Marriott hotels should increase its marketing activities in order to attract more customers
towards Marriott hotels. Market development: Market development strategies consist of strategies which leads to
entry in new market area. Marriott hotels can improve its services my expanding market
area. In this strategies company will try top sale its current products into new market
area. Product development: In this strategies Marriott hotel will try to develop new product for
serving in its current market. Marriott hotels will identify needs and demands of their
customers and provide innovate services to customers. This strategies will be very
helpfully in providing different products to customers and gain competitive advantages
over rival companies.
 Differentiation: Differentiation strategies includes providing new and different product
and services to new market area. This strategies will be helpful in moving to complete
different market or segment by providing new products and services according to needs
and demands of new market area.

Marriott hotel should use market development strategies in order to gain competitive
advantage over its rival companies. Company can increase its area of market and provide
personalized services to their guest and customers. Product development strategies will help
company by providing new products to current market area. Hotel should conduct market
research to identify needs and wants of their customers and improve services according to needs
and wants of customers. This strategies will help in increasing market share of company.
M1. SMART criteria for organisation
In respect of Marriott, it is required for firm to implement new strategic plan and
practices that assist them in attaining desired objectives of firm (Moore, 2016). As firm wants to
expand their business at different location therefore they needs to analyse requirement of
customer's for the specific services of firm. These strategic practices assist them in implementing
new target strategy in firm effectively.
D1. Effectiveness of Ansoff matrix
Strategic planning practices always aid an organisation to attain target objectives and
goals effectively. With the help of Ansoff growth matrix, Marriott can analyse required area for
development through which they can enhance opportunity of growth. Aspect of this approach
define new strategic practices for an organisation that denotes area of development. With the
help of Ansoff matrix, Marriott can implement market development strategy so that they can
expand their business.
TASK 2
2.1 Effectiveness of the business.
Business effectiveness refers to the process by which goals are accomplished and specific
problems are resolved. In other words, it is define as a level of attribute by which a task is
performed which leads to increased business effectiveness (MENG and et. al., 2017). In context
of Marriott hotel, employees perform their task which creates value in their performance and
increase effectiveness. Subordinates of Marriott hotel must have good communication skills,
advance knowledge and skills, using resources in optimum way and making effective use of
advance technology. Highly effective firms possess strength in five sectors i.e, leadership,
decision making, work process and system, culture and organisation structure. Some of business
effectiveness areas are as follows:

 Product and services: The important area of any firm which improve its effectiveness is
to provide quality goods and services to its customers. In respect of Marriott hotel, the
hotel provides rooms as per the requirement of customers with their services like free Wi-
Fi, intercom facility, swimming pool and so on. In addition to this, it also provide
suggestion to customer regarding rooms according to their budget which will increase the
effectiveness of the Marriott hotel.
 Marketing: Marketing is an essential part of a business that helps in personal growth and
promote goods and services to attract customers. In context of Marriott hotel, the
company provides attractive offers, discounts which act as a source to attract potential
customers. Along with this, customers will able to afford premium rooms at an affordable
price. This will enhance their goodwill as well as effectiveness of the hotel. For example:
providing offer and discounts to regular customers, improving their after-sales services
and so on.
 Sales: Sales act as a source of exchange of commodity in term of money or in terms of
another commodity i.e. barter system. In Marriott hotel, hotel can provide the offer to
afford the premium room i.e. Superior King Room of Marriott at a price lower than the
regular day in the season of winters.
 Finance: It refers to management of funds related to investing, banking, borrowing,
capital markets and so on which is particularly managed by governments and large scale
business or corporates (Sinclair and et. al., 2019). As per Marriott hotel, manager of
finance department allocate funds to other departments such as marketing, HR, operation,
production and so on. These departments perform functions like recruitment and
selection, advertisement promotion etc. For example: company require a candidate who
have good communication skills, knowledge to influence customers and have a charming
personality. For this HR department will hire a candidate as per the requirement of the
hotel.
 Staffing: It refers to the process of hiring a candidate having skills and knowledge for a
specific position in an organisation. In context of Marriott hotel, the firm hires candidate
and provide them training that will enhance their skills, knowledge as well as
communication skills (Sorrentino, 2016). The employee who is well trained and

developed will contribute more towards the achievements of targets of hotel which will
enhance effectiveness of respective hotel.
 Business Image: Business Image plays a major in a firm because it act as source that
customer go behind i.e. brand. In respect of Marriott Hotel, the firm has a strong brand
name world wide. For example: If Marriott Hotel wants to expand its business in Vatican
City, it will be easy as it carry a strong brand image and goodwill through which
customers will able to trust their products and services.
2.2 Develop plans to improve the business, justifying their value.
Business plan refers to the written representation that summarizes business goals and
objectives that need to be attained. With the help of business plan, company can maintain their
targets on daily basis, modify it as per the requirement and visit it to see if targets are met or not.
Business plan helps in attracting investors because before investing in any business they examine
their business plan (Ward, J, 2012). Along with this it also depict the nature of firm, information
regarding the organisation, financial plan and its strategies that help a firm to achieve goals and
objectives. The following explains the areas of business plan:
Executive summary:
For an organisation, it is required to implement new strategic plan that assist them in
maximising growth opportunities easily. Marriott apply new strategic plan in their organisation
that aid them in expanding business at desired location with the help of strategic planning
process.
Vision:
To become the premium provider and supporter of relaxation and holiday experiences
across the globe..
Mission:
The mission of Marriott hotel is to best and quality services to satisfy customer needs and
demands.
Objectives:
 To expand business in Vatican city within 2 year in order to enhance market share of firm
30% more.
Market planning:

It refers to the plan that company define to achieve marketing objectives and goals. In
context of Marriott hotel, the company can adopt market development strategy and analyses the
market of Vatican city to expand its business and provide luxury rooms and services to
customers at affordable price.
Sales and productivity:
In respect of Marriott hotel, the managers must provide special offers, discounts and
services to their potential customers (Williams, 2015). The hotel can launch the offer of holiday
packages with several services like site seeing of Vatican city, night parties and so on. These
offers will attract customers which will increase sales and productivity of the hotel.
Planning the organisation’s Financial Management Systems:
In Marriott hotel, the finance department should make the optimum utilisation of funds so
that it should be cost effective for the hotel as well as customers of Vatican city will be satisfied
with their quality products and service. This will result in retaining potential customers and build
strong relationship with them as well as will increase their market share.
Planning the Roles and Responsibilities of Staff and Management:
As per Marriott hotel, the manger train and develop their employees as per the new
location i.e. Vatican city to attract customers such as leaning language of the city. The manager
must delegate roles and responsibilities according to the skills and capabilities of the employees
(Zikmund and et. al., 2013).
Planning Performance Monitoring:
There are different tools to measure performance of the organisation such as feedback,
management and objectives and so on. In respect of Marriott hotel, the manager of firm must
make the use of these tools effectively to determine the position as well as performance of the
hotel in Vatican city.
Hence,it can be concluded that by using these areas of business plan, Marriott hotel can
expand its business in Vatican City and increase its market share by 30% in 2 years.
M2 Effectiveness of areas of the business an contribute to organisational growth.
There are various areas that contribute to the organisational growth are product and
services, marketing, sales, finance, staffing, business image. Each area of business increases the
effectiveness of a firm. These areas help in analysing customer needs and demand, determining
sales techniques, promotional tools such as advertisement, recording data of customers with