KPI Analysis: Evaluating Marriott International's Performance

This essay provides a comprehensive analysis of Marriott International Corporation, focusing on its key performance indicators (KPIs) from 2010 to 2014 and benchmarking them against competitors like Hilton and Starwood. It examines financial metrics such as revenue, net profit, gross profit, ROA, and EPS, alongside operational metrics like occupancy rates and revenue per available room. The analysis extends to Marriott's business model canvas, detailing its key partners, activities, resources, value proposition, customer segments, distribution channels, cost structure, and revenue streams. A SWOT/TOWS matrix is presented, outlining Marriott's strengths, weaknesses, opportunities, and threats, followed by an overview of its strategic alliances, acquisitions, and supplier relationships. The essay concludes with an evaluation of Marriott's systems, strategy, skills, and shared values using McKinsey’s 7s framework, highlighting its revenue management and e-business strategies, sustainability initiatives, and customer-focused approach.

ESSAY

Marriott International Corporation, 1927
Key
performan
ce
Indicators
Marriott International Corporation 1927
2014 % change 2013 % change 2012 % change 2011 % change 2010
Revenue 8370782.5 2.48% 8168061.4 9.53% 7457441.8 -2.90% 7680409.3 1.55% 7563537.4
Net profit 456,886.00 14.23% 399,969.20 10.97% 360,436.70 191.93% 123,465.20 -58.33% 296,304.90
Gross profit 1,192,879.0
0
5.84% 1127069.8 9.94% 1,025,130.0
0
2.62% 998,945.80 4.68% 954,256.90
Gross
margin
14.25 3.28% 13.80 0.38% 13.75 5.69% 13.01 3.09% 12.62
Net margin 5.46 11.46% 4.90 1.31% 4.83 200.66% 1.61 -58.97% 3.92
Number of
employee
123500 0.41% 123,000.00 -3.15% 127,000.00 5.83% 120000 -6.98% 129000
Revenue
per
employee
3.70 13.77% 3.25 14.58% 2.84 175.84% 1.03 -55.21% 2.30
ROA 11.03 15.74% 9.53 2.25% 9.32 250.38% 2.66 -50.92% 5.42
EPS 2.54 27.00% 2 16.28% 1.72 212.73% 0.55 -54.55% 1.21

Contd.
Current
ratio
0.76 -8.43% 0.83 0.00% 0.83 -5.68% 0.88 -27.27% 1.21
Quick ratio 0.39 -13.33% 0.45 12.50% 0.4 5.26% 0.38 -33.33% 0.57
Debt to
equity ratio
1.57 -17.80% 1.91 -3.05% 1.97 -2.96% 2.03 -8.56% 2.22
Assets
turnover
ratio
30.79 1.92% 30.21 -7.73% 32.74 -26.23% 44.38 162.91% 16.88
Operating
expenditure
s
7,667,554.2
0
1.81% 7,531,049.7
0
634.64% 1,025,130.0
0
2.62% 998,945.80 -85.96% 7,113,904.4
0
Total assets 4,408,497.2
0
7.20% 4,112,341.9
0
4.45% 3,937,149.6
0
3.53% 3,802,844.1
0
-33.72% 5,737,553.1
0
occupancy
%
73.10% 1.81% 71.80% 1.27% 70.90% 0.14% 70.80% - -
Revenue
per $
112.25 -8.23% 122.32 -1.53% 124.22 -3.90% 129.26 - -

Hilton Incorporation, 1919
Hilton Incorporation, 1919
Key
performa
nce
Indicators
2014 % change 2013 % change 2012 % change 2011 % change 2010
Revenue 6372134 2.45% 6219968.5 6.26% 5853379 6.88% 5476602.3 4.92% 5219624
Net profit 408,346 54.00% 265,155 19.37% 222,120 40.80% 157,757 90.50% 82,810.10
Gross
profit
1037550 21.37% 854886 21.50% 703592 13.52% 619805 -29.03% 873388
Gross
margin
16.28 18.47% 13.74 14.34% 12.02 6.21% 11.32 -32.36% 16.73
Net margin 6.41 50.32% 4.26 12.34% 3.79 31.74% 2.88 81.57% 1.59
Number of
employee
157000 3.29% 152000 - - - - - -
Revenue
per
employee
2.60 49.10% 1.74 - - - - - -
ROA 2.59% 50.58% 1.72% 30.30% 1.32% 47.05% 0.90 - -
EPS 0.4 122.22% 0.18 -25.00% 0.24 50.00% 0.16 -164.00% -0.25

Contd.
Current
ratio
1.11 0.00% 1.11 -7.50% 1.2 -12.41% 1.37 - -
Quick
ratio
0.74 4.23% 0.71 4.41% 0.68 -1.45% 0.69 - -
Debt to
equity
ratio
2.43 -16.21% 2.9 -57.16% 6.77 -22.89% 8.78 - -
Assets
turnover
ratio
0.4 11.11% 0.36 5.88% 0.34 9.10% 0.31 - -
Operating
expenditur
es
5334584 -0.57% 5365082 4.18% 5149787 6.03% 4856798 11.75% 4346236
Total
assets
16776692 4.35% 16077719 -4.05% 16755502 -4.66% 17574159 - -
occupancy
%
78.40% 3.29% 75.90% - - - - - -
Revenue
per $
$156.18 7.71% $145 - - - - - -

Starwood incorporation 1980
Key
performa
nce
Indicators
Starwood incorporation 1980
2014 % change 2013 % change 2012 % change 2011 % change 2010
Revenue 3630211 -7.09% 3907048 -2.05% 3988703 13.74% 3506821 6.89% 3280703
Net profit 384076 -5.33% 405720 14.40% 354636 16.31% 304914 -1.19% 308597
Gross
profit
2593875 -3.13% 2677749 6.92% 2504534 9.92% 2278436 7.67% 2116186
Gross
margin
71.45 4.25% 68.54 9.15% 62.79 -3.36% 64.97 0.72% 64.50
Net margin 10.58 1.88% 10.38 16.80% 8.89 2.26% 8.69 -7.56% 9.41
Number of
employee
180,400 -0.55% 181,400 - - -100.00% 154000 6.21% 145000
Revenue
per
employee
2.13 -4.91% 2.24 - - - - - -
ROA 7.30% -6.84% 7.83% 13.36% 6.91% 19.16% 5.80% -0.35% 5.82%
EPS 2.19 12.89% 1.94 -15.65% 2.3 84.00% 1.25 48.81% 0.84

Contd.
Current
ratio
0.95 -8.65% 1.04 10.64% 0.94 -25.98% 1.27 4.96% 1.21
Quick
ratio
0.85 -7.96% 0.92 21.99% 0.76 -12.32% 0.86 2.89% 0.84
Debt to
equity
ratio
1.59 250.09% 0.45 -14.14% 0.53 -39.93% 0.88 -32.46% 1.30
Assets
turnover
ratio
0.65 -11.38% 0.74 1.24% 0.73 27.64% 0.57 8.50% 0.53
Operating
expenditur
es
3095054 -6.66% 3316039 -5.09% 3493980 11.84% 3123964 8.00% 2892531
Total
assets
5560550 4.85% 5303553 -3.25% 5481784 -10.89% 6151470 -1.48% 6244052
occupancy
%
70.10% 2.04% 68.70% 1.03% 68.00% 0.00% 68.00% - -
Revenue
per $
$123.08 3.30% $119.15 2.27% $116.51 1.70% $114.56 - -

Interpretation
• Marriott’s GM got shows a
continuous upward movement as it
got increased from 12.62% to
14.25% in the year 2014. It reflects
that Marriott hotel is generating
increased return on their total sales
throughout the years in 2014; the
percentage increase in GM is
3.28%. However, comparatively the
ratio is higher in Starwood
Incorporation and Hilton
Incorporation to 71.45% and
16.28% respectively that indicates
that both these competitors are
generating higher profit on their
total sales.
1 2 3 4 5
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Gross margin
1 2 3 4 5
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Net margin

Contd.
• Marriott’s ROA is 11.03% more
than that of Hilton and Starwood
hotel to 2.59% and 7.03%
respectively. High ratio of the hotel
highlights that Marriott is generating
more return on their total assets and
performing well as compare to both
the competitors.
• Marriott’s earnings per share (EPS)
shows a rising trend as it got
increased from 1.21 to 2.54 each
holding in 2014. However, Hilton
and Starwood’s EPS is 0.4 and 2.19
respectively lower than return of
Marriott’s shareholders .
1 2 3 4 5
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
ROA
Marriott International Hilton Incorporation
Starwood Incorporation
1 2 3 4 5
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
ROA
Starwood Incorporation
Hilton Incorporation
Marriott International
Axis Title

Business model canvas
Key
partners
 In 2007, Marriott announced its partnership with boutique hotel, Ian Scharger which was the first global
boutique hotel brand operating at a larger scale. Moreover, it announced partnership with Nickelodeon and
Miller Global Properties and LLC in order to develop a new lodging resort brand. The main aim of this key
partnership is to provide fun and adventure to the travellers by introducing “Nickelodeon by Marriott”.
 Marketing partnership with Universal Music Group in 2015.
Key activities
 It supply food and beverage, retail and spa, event management, vendor relationship and give quality assurance
as well. Moreover, it also aims to deliver innovative products and services to serve consumers beyond
expectations and ensure operational excellence. In addition to this, best quality of goods and services enable
Marriott hotel to meet their consumer demand and enhance performance.
 Marriott’s operates numerous market-sales activities to generate more revenue, customer base, loyalty, market
share and competitive strength as well .
Key
resources
 Liquidity and Capital resources
 Human resources
 Information Technology (IT) resources
Value
preposition
 Best quality and innovative products and services.
 E-commerce facility
 Effective marketing and advertisement campaign
 Designer and innovative infrastructure
Customer
segment
 It delivers services to both the businesses and individuals to enjoy their travelling experience such as
accommodation, catering, travelling, entertainment and many others.

Contd.
Distribution
channels
 Marriott implement multi-platform distribution strategy, in which, it connect to the clients through
online, mobile apps, telephone call centres and different intermediaries such as internet travelling web
sites, travel agents and other distribution channel.
 Moreover, it is regularly striving for establishing a broad or multinational distribution system.
Mariott.com is a strong revenue engine or e-commerce web site that generates high revenue.
 Marriott Worldwide Reservation System (MARSHA) also considers powerful network that helps in its
Global Distribution System (GDS).
Cost structure
 Marriott hotel incurred both direct and indirect cost such as cost of goods sold, salaries and wages,
interest obligation, marketing and selling and distribution expenditures.
 Research and development activities are also conducted by the hotel which incur R&D expenses.
 Apart from this, it also incur capital expenditures like construction of hotel, acquisition of fixed assets,
property, new technology etc.
Revenue streams
 Its revenue segment segregated into two parts, that are illustrated as follows:
1. North American Full-Service comprises Autograph Collection Hotels. Renaissance Hotel, Marriott
Hotel, Gaylord, Delta JW Marriott, Ritz-Carlton situated in US and Canada. In the year 2015, this
segment generated 6% higher revenue from that of earlier year to 8825 dollar million.
2. North American Limited-Service comprises all the AC hotels by Marriott, Residence Inn, Spring Hill
Suites, Tower Place Suites, Fairfield Inn and Courtyard located in Canada and US. Its total revenues got
increased from 2962 dollar million to 3193 dollar million in 2015 by 8%.
3. International segment which includes properties that are situated outside US and Canada. In 2015, its
total revenue grown up from 2255 dollar million to 2200 dollar million by 2%.
 Apart from this, it also generates revenue through Licensing and Franchise Fees, Owned and leased
units and other income like third party residential sales etc.

SWOT/TOWS matrix
Strength  Strong market position and diversified
operations across world
 Leading organization in hospitality
industry
 Top--quality products and services
 Loyal customers
Weakness  Lack of managerial efficiency
 Backwardness in the Information
Technology management
 Excessive debt
Opportunity  Market expansion
 Ease to access financial resources
 Eco –tourism
 Technological advancement
 Merger and Acquisition
Threats  Political instability and risk
 Sudden price fluctuations
 Tough competition
 Availability of substitute products
 Fluctuations in foreign exchange
currency