Marriott: External Analysis of Hospitality Sector, Business Report

This report presents an external analysis of Marriott, a prominent hospitality company. It begins with an introduction highlighting the importance of external analysis in business strategy and its role in enhancing market share and profitability. The main body encompasses an industry analysis, examining Marriott's position as a global enterprise and its strategies for revenue generation. The report then delves into Porter's Five Forces, assessing the competitive landscape, threats of substitutes, new entrants, bargaining power of buyers and suppliers, and the level of competition within the hospitality sector. A PESTLE analysis follows, evaluating the political, economic, social, technological, legal, and environmental factors impacting Marriott's operations and strategic decisions. The report concludes with a summary of findings and a discussion of opportunities and threats, providing a comprehensive overview of Marriott's external environment and its strategic implications.

External Analysis in Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Industry analysis..........................................................................................................................1
Porter five forces analysis............................................................................................................2
PESTLE analysis.........................................................................................................................3
Opportunities and threats.............................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
External analysis play very important role in success of the business operations. In this
context, there are different kinds of activities perform by business to enhance their market share
and profitability in different areas of the world (Hill and Jones, 2013). Furthermore, it also
includes different types of activities to run their operations in competition so that managers
perform their functions and operations to develop effective market in different areas of the
world. In this way, different kinds of strategies determines by the business that assists to make
proper environment and operate functions in several parts of the world. Moreover, external
analysis also assists to use all resources effectively so that operations can be improves that assists
to meet with goals and objectives in systematic way in different areas of the world. It consists
important planning process which require perform functions in different areas of the world.
In this context, present report based on the Marriott which is the hospitality sector
business that deals in different areas of the world to enhance profitability. They are launched
different kinds of plans through they can attract many customers towards the business.
Furthermore, they are also making qualitative products and services through profitability will be
increasing that assists to meet with market objectives and goals in systematic way (Rosburg and
Mecklinger, 2017). For gaining insight knowledge of the company, present report covers
PESTLE analysis, porter five forces model, industry analysis and assessment of opportunities
and threats. Therefore, they are able to meet with each profitable outcomes of the world. In order
to carry PESTLE analysis, the company can identify its impact on the functions and operations
that assists to get overview of the environment. Furthermore, porter five forces assists to develop
impact of different elements that require for assess issues that are take place within the
environment (Leonidou, Christodoulides and Palihawadana, 2017). Opportunities and threats
assists to enhance operations in different areas and solve issues that make threats in the business.
MAIN BODY
Industry analysis
Marriott is the international business enterprise that deals in the different aspects which
assists to promote effective results in business. They are leading as the global business enterprise
that create more revenue and profits in all over the market. They are continuously making several
kinds of operations that required to enhance market share and create profitability in it. With this
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regard, good times also develops that make successful operations to enhance traditional things in
the business. Specially, they was made efforts to enhance profitability in selling of foods and
drinks products. With this aspect, they can easily cater to enhance profitability and performances
in crucial aspect. Micro and macro environment analysis assists to make the greatest impact on
the company on its performances. It assists to make profitable outcomes through developing
target market (Cai, Zhang and Lin, 2016).
In addition to this, there are different kinds of other products exist in which Marriott deal.
Therefore, there target market continuously expanded that make successful results to focus on
the generic strategy. It is the best way through business will focus on the particular buyer group
to enhance their market and profitability as well. It is the best way through organisation will
easily enhance their operations and functions (Almodaresi, Akbari and Zadeh, 2015).
From 1927, Marriott determines operations to crate culture that put people first.
Therefore, they are growing very fast and develop operations to create experience and
opportunities for the people. The company creates values and pride that are recognised in all over
the world. With the help of commitment and creating better place in business for customers.
Marriott international business also offers several kinds of advantages that make strong relations
and sound management to lead as the performer. This organisation started by three members
such as J. Willard Marriott, Bill Marriott and Alice Sheets Marriott. With the help of guidelines
principles, company culture will be develops by these three members that are taking important
participation for community services.
This enterprise provides several kinds of services that make successful results and
operations which assists to promote profitable results. Marriott also celebrate there achievements
and success with customers through providing them discount. Central section also enhances that
required to build effective functioning in the business. Hotel development also done through
creating promotion with brand and regions. In this way, corporate diversity can be made that
enhance performances for working in effective manner. There are several branches has been
develops by the business to enhance effective performances in Marriott.
Porter five forces analysis
In hospitality sector business, competition going very fast so that there are many
problems face by Marriott to diversify there market in different areas. In addition to this,
competition also apparel and food items towards its quality and performances. Therefore, the
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chosen organisation facing many competitions with Tesco, John Lewis, etc. (Kotler, Berger and
Bickhoff, 2016).
 Threat of substitute (High): In the UK market, there are different competitors exists and
they are also providing substitute products of Marriott. Therefore, it impacts high on the
performances and objectives of the business environment (Douglass, 2015). Furthermore,
there are many businesses exists that male many kinds of alternative products and
services so that it can be stated that there is high substitute effect on the chosen
organisation. With the help of different substitute products and services, other
competitors of Marriott can operate their functions in respect to attract them. It is the best
way to accomplish business targets in systematic way.
 Threat of new entrants (Low): In the market threat of new entrants is quite low because
there is high capital require for making successful business operations (Yang, Lin and
Fang, 2014). Therefore, it impacts positively on the Marriott. In addition to this, new
entrants also need to offer the best quality with unique features so that it impact negative
on new businesses. Along with this, homogeneous also increasing so that customer will
buy from exiting company rather than purchasing from new business (Nakano, 2015).
Due to several new entrants, Marriott continuously expand their operations to enhance
profitability at workplace. However, it impacts negative on the business to enhance their
market share and profitability.
 Bargaining power of buyers (High): Bargaining power of buyers also high because they
are dictates their rules and taste. Due to many competitors, buyers have several options to
switch for particular products and services. Therefore, it assists to make many
alternatives options towards them (Gao, Emaminejad and Lien, 2016). In addition to this,
many competitors continuous making their new products with adding new features in it.
Therefore, it will impact negative on the Marriott. Due to large number of customers,
there is high impact exists on the performance and outcomes of the business enterprise.
With this regard, effective performances can be develop through providing several
services.
 Bargaining power of suppliers (Low): In UK there are many suppliers exist. Therefore,
Marriott huge listed in the company so that they have many options to purchase products
from the different businesses. With this regard, the organisation can develop there
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operations (Suissa, Lachaud and Mahagne, 2014). With the help of different alternative
and switching costs as low. Income become more uncertain that are making effective
results. Bargaining power of the supplier quite low because Marriott has several options
to enhance their market share and outcomes in different areas of the world.
 Level of competition (High): Competition is the another effective element that make
successful results in the business. There are many competitions exist in the market for
development of the business success (Palinkas, Horwitz and Hoagwood, 2015). In the
market there are many competitors such as Hilton, Ritz, etc. that are also providing
effective products and services to their customer to interact with them in business. It is
the best way to cater effective information towards the organisation and outcomes. High
level of competition impact negatively because, Hilton, Ritz, etc. businesses also create
major role for developing market in effective way.
PESTLE analysis
PESTLE analysis assists to develop effective market results through identifying
competition that exist in market. It is the best way through people will easily develop their
operations and functions in new market (Leonidou, Christodoulides and Palihawadana, 2017).
Furthermore, Marriott can identify impact of different element on its functions and operations.
Political factors: Marriott has effective impact with this factor because it increases free
trade in all over the market. It is the best way to enhance profits and revenue in different areas of
the world (Chatha, Butt and Tariq, 2015). In this regard, sourcing cost of the organisation will be
decreasing that assists to enhance its profits and revenue in different areas of the world. It is the
best way through organisation able to develop their target market in several areas of the world.
However, there are many negative impact also exists that reduce effective results of the
company. In this regard, government regulation create negative impact on the functions and
operations of the business. Less efficiency impact adverse on the business functions and its
operations. Therefore, it is important to enhance target market as per the business requirement
(Leonidou, Christodoulides and Palihawadana, 2017). Political stability of the business
encourage to the organisation for creating their effective operations and functions in different
areas of the world. It is the best way to enhance profitability results in the organisation.
Economic factors: Due to discounting price, Marriott highly affected. This is because,
the company focusing on their quality that led on the short term loss and customers are also
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attracted to make qualitative products and adding value in it. Customers are very loyal towards
the company because its quality and effective functioning as well. Therefore, the chosen
organisation need to work to flow the market to deals with online and offline selling of the
products and services. It is the best way to enhance operations and functions in different areas of
the world. Further, falling of the oil prices also create negative impact on the chosen enterprise in
term of developing their operations and functions in different areas (Chatha, Butt and Tariq,
2015).
Social factors: Social factors also create crucial impact on the functions and operations
of the business environment. This is because, customer taste, preferences, lifestyle, etc. change
continuously that impact negatively on Marriott. As per the changing in customer demand and
requirement, the chosen organisation need to make modifications in products and services.
Therefore, it impacts adversely on its functions and operations. Further, fashion trends also
change continuously so that it make effective results to create new operations in the business
environment. With this regard, new design also require to introduced by the company for their
customers. Therefore, their profits and revenue will be expanded in successful aspect (Leonidou,
Christodoulides and Palihawadana, 2017).
Technological factors: Internet become so powerful that require develop operations and
functions of the business. In this context, Marriott need to make their products and services
online that assists to promote effective results in the business. In this way, they have to focus on
the advance technological aspect that make successful results in the business environment. It is
the best way to accomplish goals in less time. Further, expansion of Internet sources growing
very fast so that the company need to reach towards high sales which done through online
promotion (Almodaresi, Akbari and Zadeh, 2015). It is the best way to increase effective results
in the business environment. The company need top make changes in their retaining methods so
that they will easily develop their target market. Online selling is the best way through business
will be promote for ascertain effective operations and functions in new areas. In order to execute
the products and services, it is the best way to create online marketing activities to make
competitive advantages.
Legal factors: In this way, Marriott has responsibilities to follow all health and safety
regulations at their workplace so that they are able to deliver effective results in the business.
With this regard, consumer rights need to be follows in effective methods that are terms as the
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production for natural renewable resources. It is the best way to closely monitoring the practices
of the companies to evaluate legal restrictions that are exists in the business environment.
Environmental factors: Further, the chosen organisation need to make environment
friendly products and services which assists to protect the environment in significant manner. It
is the best way to use all resources of the firm that are developing in successful way. With this
aspect, the company can easily reach towards the great advantages to making products in
Marriott. For the business, recently fabric use and raw material is greater concern which required
to promote effective functioning in it. In addition to this, the company need to reduce their
wastage and increasing the renewable resources that are required at workplace for gaining
effective results in it (Chatha, Butt and Tariq, 2015).
Opportunities and threats
Opportunities
In respect to determines effective functioning, there are various opportunities exists for
Marriott. In this way, they will easily expand their operations and functions in developing market
such as China and India. This is because, in the area of developing market the company has
several opportunities to increase their operations and functions (Leonidou, Christodoulides and
Palihawadana, 2017). It is the best way to enhance profitability in Marriott. Furthermore, the
company can also design and promoting clothing store to target the young generation people.
With the help of online sale, the company will easily cater effective information that make
several opportunities at workplace. It is the best way to enhance margin in online market for
higher productivity and profitability at workplace (Almodaresi, Akbari and Zadeh, 2015). In
addition to this, the company also possessing healthy lifestyle that are developing sales of
healthy food and sports items in all over the world. Hence, it assists to create several advantages
that are taken to attract so many customer together in the market. In order to expand operations
and functions in international market, new segment is the best way through new products and
services will be introduce in the market. Therefore, it assists to enhance profitability and
functions through gathering relevant results.
Threats
In this aspect, there are different kinds of threat exists that impact negatively on the
Marriott. With this regard, older customers over the age of 45. It can be create risk to make
products for them. There are different kinds of strategies exists through organisation will able to
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develop their target market in successful way (Almodaresi, Akbari and Zadeh, 2015). Specially
in order to take the account of people obsession, younger people need to be attracted at
workplace that assists to meet with goals and objectives in successful aspect. Further, poor
government also create negative impact on the functioning and outcomes of the reputation and
brand image of the organisation. Therefore, it impacts adversely to develop the target market in
different areas of the world. Along with this, in the market there are different competitors exists
that assists to make creative results in the business (Leonidou, Christodoulides and
Palihawadana, 2017). In this way, discounted price is the main aspect that create impact on its
functions and operations to operate functions and global market.
CONCLUSION
From the above report, it can be concluded that Marriott has effective advantages to
enhance their target market in new areas through assessing many opportunities with development
of its operations and functions. In this regard, present report summarized about the products and
services in the external environment analysis that assists to make support the business in
effective way. It is the effective results to identify impact of different factors when the business
operating their functions in international market. Furthermore, report articulated about the
PESTLE analysis that assists to make profitable results in new areas through assessing different
factors impact on its target market. It is the best way to develop the operations and functions
which required to promote in international areas. Moreover, it discussed about the development
of market through assessment of porter five forces model with ascertain effective functioning in
business.
In addition to this, the company also able to assess the impact of different element on its
functions to operate functions in front of several markets. In this way, competition will be
identified that assists to make proper development to cater effective results at workplace. In
addition to this, it also explained about the opportunities and threats that are exists and create
negative impact on the business results when opportunities are determines. With the help of
different opportunities the company able to adopt several aspects that make proper utilisation of
resources that are ascertained effective functioning.
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REFERENCES
Books and Journals
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strategy for preventing mother-to-child transmission of hepatitis B virus. Zhonghua liu
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Chatha, K.A., Butt, I. and Tariq, A., 2015. Research methodologies and publication trends in
manufacturing strategy: A content analysis based literature review. International Journal
of Operations & Production Management. 35(4). pp.487-546.
Douglass, J.D., 2015. Soviet Military Strategy in Europe: An Institute for Foreign Policy
Analysis Book. Elsevier.
Gao, W., Emaminejad, S. and Lien, D.H., 2016. Fully integrated wearable sensor arrays for
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Strategy Determination, Their Principles, and How They Interact. In The Quintessence of
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performance consequences of small firm green business strategy: the moderating role of
external forces. Journal of Business Ethics. 140(3). pp.585-606.
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paradigm. The International Journal of Logistics Management. 26(2). pp.381-400.
Palinkas, L.A., Horwitz, S.M. and Hoagwood, K., 2015. Purposeful sampling for qualitative data
collection and analysis in mixed method implementation research. Administration and
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Rosburg, T. and Mecklinger, A., 2017. The costs of target prioritization and the external
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analysis. Psychonomic Bulletin & Review. pp.1-12.
Suissa, L., Lachaud, S. and Mahagne, M.H., 2014. Continuous ECG monitoring for tracking
down atrial fibrillation after stroke: Holter or automated analysis strategy?. European
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Yang, H., Lin, H. and Fang, S., 2014. Analysis of a novel switched-flux memory motor
employing a time-divisional magnetization strategy. IEEE Transactions on Magnetics.
50(2). pp.849-852.
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