Evaluating Internationalisation Strategy for Marriott's Global Growth

This research report explores internationalisation strategies within the UK hospitality industry, using Marriott as a case study to understand global business growth. It examines various internationalisation strategies such as multi-domestic, global, and transnational approaches, assessing their impact and challenges for Marriott's business functions. The report uses qualitative research methods, including secondary data analysis, to identify the most effective strategies for Marriott's expansion. Key findings highlight the importance of adapting to local markets while maintaining a global presence, and the report concludes with recommendations for Marriott to overcome potential challenges and optimize its internationalisation efforts. Desklib provides access to this report and other solved assignments for students.

TO IDENTIFY THE INTERNATIONALISATION STRATEGY THAT
WOULD BE USED BY UK HOSPITALITY INDUSTRY FOR IMPROVING
THEIR BUSINESS GROWTH AT GLOBAL LEVEL
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ABSTRACT
Purpose: The major purpose of this research is to determine the challenges faced by organisation
in their internalisation strategy. The report is also providing impact of internationalisation on
business functions within hospitality industry.
Methodology: In this research various research methods were used in order to collect and
analyse the research in desired manner. The current research is associated with qualitative
research methods in which in-depth information can be collected.
Results and findings: In this research the major findings are related with examination of issues
faced by businesses in their process of internalisation. Besides this the research report also
demonstrated that the impact of internalisation over business functions in positive and negative
manner.
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Table of Contents
ABSTRACT ....................................................................................................................................2
INTRODUCTION, AIMS AND OBJECTIVES ............................................................................4
Introduction to the research topic...........................................................................................4
Introduction to the organisation..............................................................................................4
Research questions ................................................................................................................5
Research aim .........................................................................................................................5
Research objectives ...............................................................................................................5
Rationale of the research........................................................................................................5
Snapshots of methodology.....................................................................................................6
LITERATURE REVIEW ...............................................................................................................7
What are the different types of internationalisation strategy used by UK hospitality industry?
................................................................................................................................................7
What is the effective internationalisation strategy that would be used by Marriott for its
business expansion? ...............................................................................................................9
What is the impact of internationalisation strategy for Marriott?........................................10
What are the challenges that Marriott could be faced for using specific internationalisation
strategy?................................................................................................................................11
RESEARCH METHODOLOGY ..................................................................................................13
DATA ANALYSIS AND DISCUSSION.....................................................................................16
CONCLUSION AND RECOMMENDATION.............................................................................22
Conclusion............................................................................................................................22
Recommendation..................................................................................................................24
REFERENCES .............................................................................................................................26
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INTRODUCTION, AIMS AND OBJECTIVES
Introduction to the research topic
Internationalisation strategy is defined as the strategy which is used by the businesses in
order to expand their business in various other nations and global market territory.
Internationalisation is the practice of designing of goods and acquiring internal operations so that
other market can also be adapted by the organisation (Magnani and Zucchella, 2018). These are
the strategy which is used in order to expand business in other markets and to develop global
existence as well. This process is used by the organisation when the business is tend to satisfy
needs and demands of their consumer at different nations. These strategy can be used when the
organisation is willing to expand beyond national boundaries so that to attract high customers
and to make customer base at global level. These are multidimensional in nature and related with
taking such decisions by which overall succession opportunities can be enhanced. These
strategies are emphasised over selling the goods and product at international level and to set
example for organisational competitors. In the current time internationalisation strategy has
gained higher prominence due to emergence of global economies and due to increasing market
flexibility. Internationalisation is a time taking process which is helping the business to grow at
multidimensional manner so that long term business goals can be set and such efforts can be
made in order to attain the same. The current research report is emphasised over examination of
internationalisation strategies and their importance for the organisation in business expansion.
There are multiple factors which are responsible for success or failure of internationalisation
strategy and in this some are internal and some are external (Kaczmarek and Nyuur, 2021). The
report is going to discuss various challenges which can be faced by the organisation when they
use internationalisation strategy and expand their business at global market.
Introduction to the organisation
Marriott is a selected American multinational hotel that was founded in 1927 by J.
Willard Marriott and Alice Marriott. Marriott is one of the powerful organisation which is having
30 brands in their business portfolio and having their business in more than 131 countries around
the globe. The major principle of the organisation is to manage their culture in such a way that
customers can be served in better manner. The company has their fundamental value which is to
include equality and diversity at their workspace so that most precious inheritance can be
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maintained. The company is continuously making efforts in order to expand their business in
various countries so that to cover all the global market and to earn market prominence as well.
Research questions
 What are the different types of internationalisation strategy used by UK hospitality
industry?
 What is the effective internationalisation strategy that would be used by Marriott for its
business expansion?
 What is the impact of internationalisation strategy for Marriott?
 What are the challenges that Marriott could be used for using specific internationalisation
strategy?
Research aim
The aim of this research is “To determine the internationalisation strategy that would be used by
an organisation for improving their business growth at global level”: A study on Marriott
Research objectives
 To determine the types of internationalisation strategy used by UK hospitality industry
 To identify the effective internationalisation strategy that would be used by Marriott for
its business expansion
 To evaluate the impact of internationalisation strategy for Marriott
 To determine the challenges that Marriott could be used for using specific
internationalisation strategy
Rationale of the research
The rationale behind selecting this topic or research is to help Marriott in its business
expansion. This research helps them by providing accurate information regarding the
internationalisation strategy (Braga, Marques and Serrasqueiro, 2018). Current research is
essential by increasing their understanding regarding the suitable internationalisation strategy
along with its importance in their business expansion. This research is also important for various
stakeholders such as Marriott hotel, students and researcher. For students, this research helps
them by increasing their knowledge about the internationalisation strategy that would be used by
an organisation for improving their business growth at global level. For the researcher, this
research helps them by improving their various types of research skills such as data collection,
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decision making, time management and many others. All these are main skills and helps an
investigator in its personal along with professional development. For Marriott hotel, this research
or study is essential for them by enhancing its understanding about the effective
internationalisation strategy along with its significance in its business expansion.
Snapshots of methodology
Methodology is the process used by a researcher for gathering and evaluating accurate
information regarding a research topic. For collecting information regarding the the
internationalisation strategy that would be used by an organisation for improving their business
growth at global level, secondary research is used by an investigator (Nawaz, 2018). Within this
research secondary sources of data collection are used. These sources are books, journals,
articles, publication research etc. Along with this, there are also various methodologies that
would be used by an investigator such as interpretivisim philosophy, inductive approach,
qualitative secondary data etc. Thematic analysis is an analytical technique that is used by an
investigator for evaluating qualitative secondary data within minimum time period.
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LITERATURE REVIEW
Literature review refers to the systematic process of gathering secondary data from available
sources that are articles, publication research, books, journals, magazines and many others.
These are main sources that helps an investigator in collecting secondary and in-depth
information regarding the topic (Eduardsen and Marinova, 2020). The purpose of literature
review is to find out research gap in existing research. In this research, main gap is that there was
lack of information regarding the internationalisation strategy that would be used by an
organisation for improving their business growth at global level. In previous studies, there was
lots of data available about the internationalisation strategy but there was lack of information
regarding the role of internationalisation strategy in business expansion. This is a main gap and
for addressing this, research questions are explained below;
What are the different types of internationalisation strategy used by UK hospitality industry?
As per the viewpoint of Torkkeli and et. al., (2019), international strategy is a plan which
is developed to run the business activities in international market. The International strategy
mainly requires defining goals, analysing the international market, studying resources,
understanding market dynamics and developing offerings. Through implementing international
strategy, company can gain recognition and also consolidate management with economies of
scale. Through implementing international strategy, UK hospitality industry can gain various
benefits as it helps in increasing revenues, decrease competition also focuses on longer product
lifespan. International strategies help in attracting more and more customer towards the brand
and increase the market influence. By international strategy, companies can expand their
business in oversee market and establish growing presence. It also helps in allowing businesses
to grow, generate revenue and gain competitive advantage in market. In order to develop
international strategy, it is important to set goals, identify product, research new markets,
understand the competition, plan marketing strategy, plan international organisational structure,
determine distribution strategy and assemble strategy document. International strategy helps in
improving the business performance by targeting new market and increasing the penetration in
existing market. There are mainly three types of internationalisation strategy which can be used
by UK hospitality industry in order to run the business activities in effective and efficient manner
such as multi-domestic, global and transnational strategy.
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Multi-domestic strategy:
Multi-domestic strategy is one of the strategy which can be used by UK hospitality
industry by investing in creating a strong presence in foreign market and fulfilling the needs and
preference of local markets. Through adopting multi-domestic approach, hotels and restaurants
can invest in various localities where they can actively market their products. In order to connect
with consumers, organisation can use multi domestic strategy in order to create wide range of
tactics for creating strong presence. UK hospitality industry can adopt this strategy and offer the
services according to the customs, cultural traits and tradition of foreign market. Each country
has different tradition and customs due to which it becomes difficult for company to attract the
customer of foreign market. It is important for UK hospitality industry to take into account the
foreign tradition, customs and cultural traits. By using multi-domestic business strategy,
hospitality industry maintains their headquarters in the country of origin. They can also establish
localised headquarters overseas so that they can easily manage the relations with foreign
customers. Multi domestic strategy focuses on establishing a strong presence in market and also
tailors the products to suit new markets. This strategy is mainly used by hospitality industry and
food and beverages industry.
Global strategy:
Global strategy is another internationalisation strategy which can be used by UK
hospitality industry in order to expand business. By adopting global strategy, company focuses
on treating the world as one market and also leverages the economy of scale in order to generate
revenue and increase reach. The global companies generally have central office and headquarters
in their country of origins and also they focus on establishing their repartition in foreign markets.
Through implementing global strategy, hospitality industry generates revenue potential and also
diversifies their markets in order to create strong customer base. While adopting global strategy,
hospitality industry treats each foreign market differently and also adapts their products and
services to foreign market. For example, Marriott generally alter, add and remove the certain
items from their menus in order to suit the needs of local markets.
Transnational strategy:
Transnational strategy is also an internationalisation strategy which focuses on combining
the elements of global and multi-domestic strategies. The transnational strategy depicts that
organisation operates their business activities from its headquarters in its country of origin and
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also they focuses on expanding their business activities with full scale operations in foreign
markets. Through implementing transnational strategy, hospitality industry can offer their
products and services in multiple countries across the globe but they have to understand how the
product can be marketed in each country. The product and services in transnational strategy
doesn't get changed in order to suit a new market. There are few challenges which can be faced
by hospitality industry such as large investment cost and effective management tactics. While
using transnational strategy, company must have separate marketing and research and
development departments so that they can respond to local customer.
What is the effective internationalisation strategy that would be used by Marriott for its business
expansion?
As per the opinion of Jia and et. al., (2017), the effective internationalisation strategy
which can be used by Marriott for its business expansion is multi domestic strategy. Through
adopting multi-domestic strategy, company can achieve maximum local responsiveness by
customising the product and service offerings and marketing strategies in order to match
different national conditions. While adopting multi-domestic strategy, Marriott have to sell their
products and services according to the custom and tradition of the local market so that they can
attract and retain more and more customers towards the brand. This strategy tailors the product
selection, payment methods and marketing to the regulations and values in each country where
they operate business. The main purpose of multi-domestic strategy is to attract maximum
customer towards the brand by offering them product and services according to their taste and
preference. In order to create strong market presence, it is important for Marriott to serve their
communities and stay ahead of competition. The hotel has its unique product strategy which
aims on attracting luxury travellers. The core product of Marriott which helps in grabbing the
attention of maximum customer is hospitality services. The product strategy of Marriott
generally includes everything that goes into running the hotels. Marriott has expanded their
business in different countries and cities by having headquartered in their country of origin. In
order to reach maximum number of audience, Marriott advertise their products and services in
digital, national TV and print media in last years. The brand generally focuses on investing in
premium ads with multiple media formats. By using multi-domestic strategy, Marriott make their
customers feel valuable and important due to which they gain loyalty of their consumers. The
strategy also helps hotel to compete with competitors in effective and efficient manner. It is
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important for Marriott to create its strong presence in different countries in order to enhance the
profitability and growth of business. While implementing global strategy, Marriott can customise
their products and services according to the need and preference of customer in order to make
them satisfied with the brand. When Marriott customise their products and service according to
the taste and preference of customer it helps in gaining competitive advantage in market and also
helps in creating strong presence in market. Multi domestic strategy enables individual
subsidiaries of Marriott in order to compete independently in different domestic markets. The
multinational headquarters of Marriott coordinates financial controls and marketing policy in
order to run the business activities in effective and efficient manner. Marriott operates their
business in more than one country due to which it is necessary for company to adopt multi-
domestic strategy so that they can smoothly run their business activities in each of the markets.
What is the impact of internationalisation strategy for Marriott?
According to Hazarbassanova (2016), there is a huge impact of internalisation strategy for
Marriott as it helps in improving the business performance and profitability. Internationalisation
strategy creates a positive impact on the performance of business by achieving economies of
scale, improving brand awareness and converting unique abilities to advantages. Through
international strategy, company can enhance their recognition and also lower their cost with
centralisation and streamlined operations. It also gives an opportunity to Marriott to develop
connection with other markets and enhance their communication and awareness.
Internationalisation strategy provides access to new investment opportunity and new market due
to which Marriott can enhance their customer base and profitability. It creates vision and
direction for organisation in order to expand business in international market (Jafari-Sadeghi,
2021). There are various benefits of internalisation strategy which helps organisation as it gives
an opportunity to enter into new markets and also increase the business growth. Through
implementing internationalisation strategy, company can stay ahead of competition and also gain
competitive advantage in market. It also helps in providing larger market access and offer
economies of scale with additional learning opportunities. Internationalisation strategy gives
multiple opportunities to company in order to enhance their sales performance and productivity.
The impact of internationalisation is positive as it helps in increasing the growth of business by
attracting more and more customers towards the brand and getting out of saturated market.
Marriott can also stay ahead of the competition and also avail access to new customers. By
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expanding business in new market, organisation can gain access to pool of potential employees
with unique skill set. Through internationalisation strategy, company can also gain competitive
advantage by offering products and services according to the need and preference of customers.
Thus, it is important for company to focus on developing effective internationalisation strategy
that helps in creating strong presence in market and also enhance the profitability of business.
What are the challenges that Marriott could be faced for using specific internationalisation
strategy?
As per the viewpoint of Morais and Ferreira (2020), there are various challenges which are
faced by company while using specific internationalisation strategy. In order to expand the
business in international market, there are various challenges which can be faced by Marriott it is
important to overcome the issues in order to run the business in effective and efficient manner.
The challenges are as follows:
Language barrier:
Language barrier is one of the challenges which can be faced by Marriott while expanding
the business in international market. While expanding the business in international market,
Marriott have to consider the language which is spoken in the country so that they can run the
business in effective and efficient manner. It is important for the company to hire interpreter and
consultant with native speaker in order to represent their business in new market. Language
barrier can influence the performance and growth of company. It is essential for Marriott to
identify the language of the chosen country so that business continues to separate in smooth
manner.
Managing global teams:
Managing global teams is also a challenge faced by company while expanding business in
international market. It becomes difficult for Marriott to manage the employees who live all over
the world. For Marriott, it is important to build and maintain strong working relationship with
global teams, use video conferencing platform and also facilitate regular check-ins in order to
interact with employees in real time. Through managing global teams effectively, organisation
can achieve their goals and objective in effective manner and also employees contribute their
productive outcomes. Thus, it is necessary to manage the team in smooth manner so that
business can generate revenue and enhance their growth.
Legal and compliance issues:
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It is also an issue which can be faced by Marriott in order to expand the business in
international market through adopting specific internationalisation strategy. Legal and
compliance issues are the major concern for the business while expanding business in
international market (Franco and Haase, 2016). While expanding the business in international
market, it is necessary to understand the legal and compliance issues of the country in order to
run the business sin significant manner. Some of the compliance and legal issues are lack of
training, laws and regulation, lack of accountability and inability to establish best practices of
managing business.
Cultural difference:
Cultural difference is also a challenge which can be faced by company while establishing
business in new market. It is important for Marriott to understand the culture of the country in
order to run the business activities in effective and efficient manner. Through understanding the
culture, Marriott can offer product and services according to the taste and preference of
customers as it helps in increasing the customer base and also improve their experience.
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