Innovation Management Report: Marriott Hotel's Strategic Analysis

This report provides an in-depth analysis of Marriott International's innovation strategies within the hospitality industry. It begins with an executive summary, followed by an introduction that highlights the importance of innovation for business growth. The main body covers the future of the industry, focusing on PESTLE analysis to identify opportunities and threats, and examines Marriott's innovation requirements. The PESTLE analysis considers political, economic, social, technological, legal, and environmental factors influencing the hotel's operations. The report identifies gaps in Marriott's performance and proposes the 'Recycling Drone' innovation to enhance Corporate Social Responsibility and sustainability, reduce operational costs, and improve environmental friendliness. The report also includes a discussion of Porter's Five Forces model. The report concludes with a roadmap for implementing the innovation plan and includes references. The report is designed to explore the learner's understanding of managing innovation for growth and success in the market.

Managing Innovation

EXECUTIVE SUMMARY
The following assignment is a continued part of the previously submitted coursework in
which the information was provided about the innovation history and capabilities of the Marriott
Hotel for their future opportunities to grow and develop. In the following coursework the
information provided is about the importance of innovation for the Hotels in Hospitality Industry
and the contribution made by them towards making the business as successful one. The
assignment is based on Marriott Hotel which is providing lodging and various facilities to their
customers in around 127 countries.
The major purpose of this report is to exploring the idea and knowledge base of learner in
regards to managing innovation for the purpose of attaining growth and success within market.
This study signifies a broad area to explore the knowledge base towards implementing a business
plan with the help of innovation.
In this assignment, the information will be provided about the PESTLE Analysis done on
the Marriott Hotel which provides the possible opportunities and threats to the Hotel.With the
help of Innovational Requirement Analysis, the gaps and deficiencies in the performance of the
hotel has been identified. The Marriott Hotel must bring the innovation which is “Recycling
Drone” suggested so that the Hotel could also fulfil its Corporate Social Responsibility and make
contribution towards the sustainability and development of the company. The following
innovation will be proceed by making use of Recycling Drones to recycle the waste material and
converting that into a useful one. It will also lower down the overall cost of operation of the
company and is also beneficial as well as environment friendly.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Future of industry 2020 and beyond(500)...................................................................................1
The organisations innovations requirement 2020 and beyond(500)...........................................3
Building the future innovation capability for the organisation(1500)........................................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation can be defined as the process by which the translation of an idea, invention or
thinking takes place of a good or service so as to create value for the customers and provide
satisfaction to them (Brow and Osborne, 2012). The company chosen for the successful
completion of this assignment is The Marriott international Inc. which his an American
Multinational Hospitality Company founded in the year 1927 and is providing their customers
with the facility of lodging.
The main purpose of this assignment is to explore the opportunities which are available in
the Hospitality Industry by bringing the possible innovations so as to enhance the growth and
development of the hotel. In addition to this, the assignment will also take into consideration the
impact of macro environmental factors on the working of an organisation with the help of
PESTLE Analysis (Abdelkafi, Makhotin and Posselt, 2013). In addition to this, the assignment
will also focus on the ways by which the Marriott Hotel could make innovations in order to
cover up the gaps and deficiencies faced by the Hotel. Finally the assignment will put focus on
exploring the capabilities of the Marriott Hotel in order to innovate further in future with the help
of Roadmap that provides step by step execution of the innovation plan.
MAIN BODY
Future of industry 2020 and beyond(500)
Hospitality industry is a group of companies which offer services related with lodging,
transportation, accommodation, event planning and many more. It is one of the fastest growing
industry among them hotel segment is considered to be more profitable sector and competitive
sector. This become possible due to innovations that players bring on regular bases within the
industry to stay competitive and bring variation in services to provide maximum customer
satisfaction (Bartlett, Doz and Hedlund, 2013). sThe pestle analysis of hotel industry fro future
innovation is explained below:
Political:- After the event of Brexit government has simplify several rules and
regulations in order to promote business (PESTEL analysis of the UK, 2017). This act as an
opportunity for hotels as they focuses toward improving their services by bringing new
innovations in order to attract more and more tourist to avail services. For instance, with the
increasing demand of security, Hilton has invented its process with the help of internet of thing
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where it connect the smart phone with door as a key to open it up. Marriot hotel operates at large
level and majorly works for attaining higher growth and success within market place. The
company has future plans.
Main Factors that will affect Hotel in 2020 beyond include corruption, conflicts,
terrorism, hostility, technology management challenges, understanding of global context and
services spectrums demand learning system. One of the best effective opportunities is technology
with the help of which numerous advancements can be gained.
Economical:- It analysis factors like inflation-deflation rate, FDI, taxes, foreign
exchanges that directly influence the business operations. UK is considered as 5th largest
economy around the world and most popular place for FDIs. This provided several opportunities
in front of hotel industry as they call investors to fund their ideas in order to bring innovation in
services (Belussi and Staber, 2012). The major focus of the firm is to become the largest
hospitality industry within 2020 in terms of financial norms, thus company is concern over its
operations and economical aspects in respect to attaining higher growth and success.
Social:- This includes custom, norms and culture which group of people follows at the
place where company is operating its business. After recovering from Brexit issue the living
standard of people in UK get improved as a result of which they started demanding for more
better and customised services from hotels to enjoy their holidays and special events. This help
in influencing the players of hotel industry to bring more innovative services in front of its
customers fro creating value and achieving sustainability at marketplace. For example, Holiday
Inn is providing online service of customisation in accordance with the demand and budget of
the customers. Marriott is focused on adopting all social changes in respect to become a
competitive brand for the other hospitality organisation dealing in the same industry.
Technological:- UK is technologically advanced that lead towards supporting Hotel
industry upto a great extend in improving their services by performing technological
advancement in its service offering and operations (Berglund and Sandström, 2013). For
instance, Holiday Inn heritage augmented reality within its hotels in UK for providing more
realistic and virtual representation of Olympic in front of customer using smartphones. The
company is majorly providing facilities to corporate and high standard people, so the company is
focuses over adopting all kind of technological changes in their operations for betterment of
customers services. for adopting rapid advancement company will focuses on implementing the
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advancement that will taken place during the year of 2020 beyond for offering effective services
than its rivals.
Legal:- Hotels are required to focus toward bringing innovation to improve their security
facilities. For example, The Dragon Hotel Hangzhou in China is making use of Smart Cards to
unlock the rooms for the safety and security of their customers items. The company mainly
works for attaining future benefits, thus Marriot is majorly concern over legal norms and
regulatory frame works as the operations of the firm are implemented as per the legal norms
which are providing by the government. The company will assure to adopt all required changes
in respect to maintaining their sustainability in future.
Environmental:- The government of different countries have become much strict in
relation to the environment due to the emission of harmful gases which made the government
strict for all industries. In order to avoid legal issue related with environmental errors, Wyndham
Worldwide focuses over performing actions that promote environmental sustainability and for
which it uses solar panels for electricity so that natural resources can be kept safe for longer
duration.
Porter's five force model:
Porter's five force model is considered as a holistic strategy framework which took proper
strategic decision away from determining the current available competition within market. This
model helps Marriot hotel in building a sustainable position within market and attain higher
growth and success. This model is based on five aspects that are associated as below:
Threats of new entry: New entrants is basically emphasises on brings innovation, new ways of
doing things and put pressure on Marriott hotel by implementing lower pricing strategy, reducing
costs, and rendering new value propositions to the buyers. If there is strong chance of entry a
new rival within market then Marriot Hotel will be willing to earn less revenue and profits to
reduce the threats from new players and maintaining its sustainability.
Bargaining power of suppliers: In the hotel industry, If suppliers bargaining power is high then
suppliers will extract higher price from the Marriott for the purpose of attaining growth and It
will impact the potential of Marriott to hold over above average profits in Hotels industry.
Bargaining power of buyers: Buyers are the key aspect of organisational growth and they wants
to taking the benefits of best offering of the firm in less prices. This put pressure on the hotel
industry. If the buyers bargaining power is high then Marriot Hotel usually tend to cause the
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product price down thus limiting the potential of the Marriott to gain higher and sustainable
profits by facilitating good services.
Threat of substitute products: This is the major threat for an organisation, thus When a new
product or service is effective in meeting the needs and wants of people in different manner, then
the profitability of the firm suffers. In the case of high substitute product Marriott Hotel is
concern over analysing new needs by conducting R&D or it risks losing out to disruptors in the
business.
Rivalry among existing players: In the situation when the competition among the available
players in the same industry is intense then it will drive down the organisational prices and
decrease the overall profitability of the the firm. If competition within market is intense then it
becomes hard for current available players such as Marriott hotel to earn sustainable profits.
The organisations innovations requirement 2020 and beyond(500)
Marriott international Inc. is belongs to hospitality industry which maintain its business
operations by managing a range of franchises of hotels and lodging related facilities over several
geographical regions. It is a five star hotel which always tried to maintain variations in its high
quality services for capturing larger market share through innovating its practices on regular
basis as per the changes in external environment. But apart from these efforts, there are number
of competitors present in industry who are racing over capturing one another's share by bringing
innovation in regular basis. So in order to maintain sustainability at marketplace it is very
essential fro Marriott International to determine the gap between performance and deficiency in
its practices (Björkdahl and Holmén, 2013). This will help Marriott in identifying the
innovational requirement that support in improving practices to stand apart from crowd and
achieve sustainability in marketplace.
Gap & deficiency:- The Marriott international hotel stands over second position within
the hotel industry in term of its quality of services and broader customer base. Marriott is
required to bridge the gap between the performances of Wyndham international hotels as it stand
over first position. Wyndham international has decide to focuses toward using innovational
technology for involving solar panels, ozone and uniform made with 100% recycled material in
order to contribute toward reducing wastage and promote healthy environment (Sustainability
and Innovation go Hand in Hand, 2019). But Marriott hotel is only working toward reducing the
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wastage and not to recycling product which is a gap between the both hotels (Sustain responsible
operations, 2019).
This is the main cause behind the deficiency which Marriott hotel is facing in term of its
profitability, market share and performance of hotel at industry. Marriott hotel requires to
remove this gap by working over their deficiency (Brown and Osborne, 2012). This can be done
with the help of bringing new innovations that help in improving its practices and performance at
large.
Requirement:- In order to improve its market position and achieving industrial
sustainability, Marriott hotel is required to bring new innovations that contribute toward
improving its performance and attracting more customers. Following are the innovations that
Marriott can bring by 2020: Recycling drone:- The most common use of drone nowadays in world is for recycling of
material on instant basis. Marriott hotel can use drone to recycle its waste material and
convert it into useful things. For this the managers of housekeeping department will send
drone over the round in the gap of 2-3 days which are attached with a small pickup hook
which took all the waste material such as cans, paper and other stuff which would be then
recycled to make it a useful thing (Drones Increasingly Finding a Place in the Solid
Waste Industry, 2019). Integration of AI assistance:- Artificial intelligence has now become a part of every
industry such as hospitality, healthcare, manufacturing, automotive, retailer and many
more to provide them a medium for improving their services. Hence, Marriott hotel can
also use artificial intelligence for providing its customer a better experience throughout
their stay in hotel (Dawson and Andriopoulos, 2014). For this they can use smart
speakers in hotel room that customer can use to control the surroundings (5 Innovations
that are Reshaping the Hospitality Industry, 2019). With the help of this customers can
improve place their order and manage the instruments present in their room by ordering
smart speaker such as adjusting room temperature, curtains, music, lighting, locking door
etc.
 Biometric for security:- The safety and security at hotel premises is one of the major
concern which influence the choice of customers toward their hotel visit. Hence, Marriott
International can improve security at premises by adopting face feature recognition
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biometric for the entry of customers (Dodgson, Gann and Phillips, 2013). In this room
lock will connected with the face feature recognition system which can only be opened
with the eye scan of customer (Hotel Technology Trend, 2019). This will help in
enhancing and strengthening the security system in hotel that help in attracting large
number of customers.
Building the future innovation capability for the organisation(1500)
In order to build up future capabilities there are number factors that must be consider by
Marriott hotel that have an direct influence over its practices such customer centric process,
cultural development, knowledge sharing and many more. This will help it in bringing several
innovations in future that contribute toward its success and performance at marketplace by
improving its business practices (Drucker, 2012). But for implementing the innovation
effectively Marriott hotel must use road map which help in guiding it toward the number of
actions that must be taken in order to accomplish the success within innovation. An innovational
roadmap is consist of number of stages which help in performing each task in systematic and
effective manner. These stages are given below:
Suggest and reason:- From the above analysis of innovation that are suggested for
Marriott hotel, Recycling drone is consider to be the best one for it. The reason behind this
selection is that now a day customer prefer to avail services from the brand which is more in
practices that contribute toward the social and environmental development. In addition to this the
biggest competitors of Marriott hotel i.e. Wyndham international hotels is also involve in
environmental sustainability practices. By adopting this Marriott hotel will be able to achieve
competitive sustainability at marketplace and also become able to improve its brand image.
Impact of change:- For bringing this innovation by 2020, Marriott hotel is required to
improve its current process and practices. For this it is required to work over following areas of
business: Research & development:- In order to bring innovation R&D department plays a crucial
role by gathering all the required information regarding the marketplace in term of need
and expectation of customers in this regard and competition present. This will help in
analysing the requirement of innovation and it also support in providing a product which
is more customer centric (Drucker, 2014). For bringing recycling drone, Marriott hotel is
required to bring changes in its existing operations to make it more advanced that help in
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performing research for this innovation more effectively. For this it can hire or call
expertise from the recycling industry who have experience regarding the use and
implementation of drone so that they can guide existing employees. In addition to this it
also help in sharing knowledge which contribute toward bringing expertise in operations. Required Resources:- For working over this innovation, Marriott hotel is required
several resources so that this plan can be implemented more effectively and provide
positive result. Main resource that are required by company includes financial resources
for performing activities effectively, tangible resources such as machineries and other
equipments hat are required to create and manage drone (Frankenberger AND ET. AL.,
2013). In addition to this it also required key staff expertise in this field and help in
performing operation effectively. Apart from this some intangible sources such as
knowledge, skills, software etc. are also required. Technical skills required:- Marriott hotel is required some kind of technical skills among
their employees in order to bring and manage recycling drone for improving its internal
practices. This is because the drone will be managed through GPS i.e. it is connected with
a software and to handle this technical knowledge is required among employees so that
they can manage operations successfully and also deal with the technical errors. This
knowledge includes data management, analytical and programming skills. For this
company can arrange training session for its employees that also help in developing a
culture of organisational learning.
 Legal aspects:- Marriott is required to take permission from government before
implementing this and licensing its activities so that it would be able to perform
operations without any legal compliances (Jansen, Cusumano and Brinkkemper, 2013).
Feasibility:- In this step it is required to perform internal analysis to determine the
feasibility of this innovational plan. This help in determining the viability of project and Marriott
will be able to determine that whether it would be able to manage this innovation and can
achieve profitability. Following are the factors that Marriott hotel must analyse to determine the
feasibility of plan: Financial feasibility :- In this current economical condition of the Marriott hotel can be
examined, so that it would be able to evaluate whether it has adequate fund which is
required to bring this innovation or it has to arrange it from outside. Since, the
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innovational plan of recycling drone required high investment for this crowd sourcing
will be used in order to gather the fund. It helps Marriott hotel in gaining fund along
with public attention. Technical:- In this a deep analysis would be performed to determine the technical
capability of Marriott hotel for brining and managing that innovation. For this Marriott
Hotel is required to perform a deep analysis over its existing technical resources which
includes staff knowledge, machinery and other resources (Schneider and Spieth, 2013) .
This help in analysing the ability of Marriott hotel to adapt the innovation.
 Operational:- By performing operational feasibility, Marriott hotel become able to
evaluate the skills as well as capability of its existing employees. This will further
support in determining the skills that are needed within the employees in order to make
this innovation of recycling drone successful. With the help of this innovation Marriott
hotel will be able to evaluate the training and development requirement of employees in
order to improve their skills as well as capabilities to manage innovation effectively that
leads to its success.
Approval process:- Once each and every attribute that are required for the
implementation of innovation in Marriott hotel has been analysed effectively and provide
positive outcome. Next step is to take approval regarding this innovation i.e. “Recycling Drone”
from the key persons of Marriott hotel i.e. Board of Director and investors. For this a meeting
can be arranged with broad of director where proposal regarding the innovational plan of
recycling drone can be presented to take permission from the key persons to work over it (Tidd
and Bessant, 2014. In addition to this it also required to take governmental permission and
licence from the regulatory authorities in order work over this plan.
Apply the change:- After analysing all the requirement for the development of
innovation and getting approval from regulatory authority, next step is to implement those
change. This stage is the execution of innovational plan after gathering and managing all the
required resources that are being identified in previous stages. Hence in order to work over
recycling drone innovation first of all Marriott hotel is required to call expertise for providing
training to its existing staff members. In addition to this it also required to hire an software
developer to create a system that can track all the activities performed by recycling drone and
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also guide it over the performance. Apart from this some technical expertise must be recruit be
Marriott hotel for managing the drone and rectify the errors that may found in its execution.
Review the impact of change:- After execution is being performed toward brining
recycling drone, next step is to experiment over the success of innovation. For this before
commercialisation of recycling drone an experiment would be perform with the help of sending a
prototype over a round in hotel. This help in determining how it work and what changes required
to be made in order to make it successful after improvising the errors, drone will be
commercialised and started using in operations of hotel for reducing the wastage and recycling
material.
CONCLUSION
From the above given report it can be summarized that innovation plays a significant role
in the success as well as market performance of an organisation. This is because regular
innovation in business product and practices support a company to remain competitive and
adoptable to changing environment. Innovational practices within hospitality industry plays a
crucial role this is because with the globalisation culture and place get integrated as a result of
which tourism activities enhanced worldwide. Hence, customer become more demanding in term
of availing effective and innovative services at any cost to make their tourism experience more
better. Because of this hospitality industry is consider to be one of the most competitive sector
throughout the world where players are focusing toward grabbing one another's market share by
brining innovation on regular basis.
There are number of innovations that are expected to be launched in near by future that
are Recycling drone, Integration of AI assistance and biometric for security. But before brining
innovation it is very essential for a hotel to analyse the gap and requirement of innovation so that
positive outcomes can be extract out of efforts. Despite of all these for the successful
implementation of innovation, a hotel must focuses toward implementing its with the help of
road map which help in performing the activities in sequential manner so that innovational
objective could be achieve from them.
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REFERENCES
Books and Journals
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Belussi, F. and Staber, U.H. Eds., 2012. Managing networks of creativity (Vol. 19). Routledge.
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Biemans, W., 2018. Managing innovation within networks. Routledge.
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Drucker, P., 2012. Managing in turbulent times. Routledge.
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Schneider, S. and Spieth, P., 2013. Business model innovation: Towards an integrated future
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Tidd, J. and Bessant, J., 2014. Strategic innovation management. John Wiley & Sons.
Online
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