Report on Internal and External Issues Affecting Marriott's Management

This report provides a comprehensive analysis of Marriott International's internal and external issues, utilizing SWOT and PESTLE frameworks to identify key challenges and opportunities. Internal issues include over-dependence on the American market, rising labor costs, difficulties in underdeveloped countries, reliance on tour operators, and managing global operations. External issues, identified through PESTLE, encompass political, economic, social, technological, legal, and environmental factors. The report also examines Marriott's competitive landscape, highlighting major competitors such as Hilton, Hyatt, and Starwood, and discusses Marriott's future outlook, including anticipated growth, expansion plans, and strategic investments. Furthermore, it outlines implementation tools for measuring business success, emphasizing communication, documentation, senior management alignment, recognition, and leveraged temporary professionals. This analysis offers valuable insights into Marriott's strategic position and potential for future growth within the global hospitality industry. Desklib provides access to similar solved assignments to aid students in their studies.

RUNNING HEAD: Management 0
Marriott
Management

Management 1
Internal and external issues
Marriott International is the major operator of the hotels. The internal and external issues of
Marriott can be identified from the SWOT analysis and Pestle analysis.
Marriott has attained strong position in the market due to the CSR (Corporate Social
Responsibility) activities associated with customer and community. It has also strong revenue
growth from last five years and continues to achieve 3% growth every year. The
technological enabled services like CRS has made hotel successful in the market.
Marriott has strong overdependence on the American market. The cost related to the labor
force and training is continuously increasing of the hotel. The hotel also faces internal issues
in the underdeveloped countries like Pakistan because of the high level of standards. There is
lack of qualified staff in the country. The hotel also relies on the tour operators to generate
business. It makes innovation impossible in the distribution channels. The hotel is even
forced to keep prices high because of the high quality. The global branching of Marriott also
faced difficulties in managing operations. The hotel is not very exclusive so it does not get
the most exclusive customers.
Other than these internal issues, the hotel also faces some threat. The impact of the economic
recession causes reduction in the national and international airlines. The threat is faced from
the competitors as latest and sophisticated technology is used by them. Due to the global
terrorism, the travellers also prefer to choose the destination which does not require air
journey. The poor presence of the hotel in the global markets can lose presence along with
revenue. The hotel also faces strong competition from the renowned brands like Hilton,
Novotel and more. These competitors are continuously making efforts to become market
leaders. The company also faces issue due to the controversies. It hinders the business growth
of the hotel. The guests prefer to go for the competitor hotels. The organization is unwilling
to change due to the rooted family values.
Pestle analysis
The external issues of the Marriott can be identified from the Pestle analysis.
Political factors: Marriott always believe in the value of laws and regulations of every nation
where it operates. The organization faces external issues due to the different political

Management 2
scenarios. Marriott is even required to follow protocol designed by each nation. The problem
of illegal immigrations is also registered by Marriott (Assaf, et al. 2017).
Economic factors: Marriott is having pressure of expansion in the Asia and other developing
nations. On the other side, the increasing prices of gasoline is making hotel to focus on the
clean energy and be more environmental friendly. The hotel is required to focus on
decreasing use of the synthetic fuels. It has role in controlling cost of operations. The high
cost of labour also creates problem for the company to maintain margins.
Social factors: The green issues are very important in the nations now days. The company
faces issues in recycling and being 100% eco-friendly which is sometimes not possible. The
hotel is even required to update the transportation system due to the increasing demand. The
issues are faced by the hotel in the external environment to recognize and develop the market.
Technological factors: Marriott faces issues when it comes to update with the latest
technologies as staff is not expert in the emerging countries. The reservation, check-in,
check-out, payment has to be done seamlessly by the hotel (Gupta, 2018). Whenever any
technology arrives in the hospitality sector, Marriott has to adopt it as a priority.
Legal factors: The lobbying and legislative actions affect to the taxation and card check.
These are the significant issues for the organisation like Marriott. The association considers
that this move will have a significant impact on the hospitality industry.
Environmental factors: The hotel sometimes faces issues when it comes to introduce greener
solution to the vendors. It puts extra burden on Marriott such as Greener key cards, earth
friendly towels, eco-pillows, recycled pens and biodegradable laundry bags.
Competition
The major identified competitors of Marriott are Hilton, Hyatt hotels, Starwood hotels and
Wyndham worldwide corporation. Marriott is running ahead of its competitors in the
hospitality business. The organization is facing competition by acquiring the rival firms.
Marriott has recently acquired Starwood in an agreement (Josephi, Stierand & Van Mourik,
2016). Combining, both the organizations now have over 5000 hotels. Starwood has been
main competitor of the company but this acquisition has resulted in one of the biggest player
in the hospitality in industry. The hotel encounters strong competition both as a lodging
operator and franchisor (Huang & Cai, 2015). The revenue grew faster but less than the

Management 3
competitors. The organization reported a decrease in the total revenue by -8.82% in the fourth
quarter of 2018. The decrease was faster than the decrease in the competitors of Marriott
which is -8.78%. On the other side, company reported net margin of 7.77% of the
profitability registered in the same year (CSI Market, 2018).
Future outlook for the organization
The future outlook is an important aspect for Marriott. The company is expected to increase
by 64% in the coming years which indicates a highly optimistic future. It can even result in
the robust cash flows along with feeding into a higher share value. The company will speed
up its growth by adding 285,000 to 300,000 rooms globally by the end of 2019. It can return
$675 million annually as stabilized fees (Marriott International, 2017). The expansion will
enable Marriott to capitalize into the leading loyalty programmes such as Marriott rewards
which comprises Ritz-Carlton Rewards and Starwood preferred guest. The members of these
programs will keep growing in future (Kolb, 2018).
The acquisition of Starwood is also a significant leap taken by Marriott. The worldwide travel
is estimated at a 7% compounded rate for the coming ten years. Whereas the international
trips are anticipated to top 1.8 billion by 2030 (Marriott International, 2017). The hotel is
even well positioned for benefiting its strong global footprint in more than 120 nations and
territories. The hotel has even planned its investment in the strategic and technology based
partner known as Place Pass. This partnership will enable Marriott to provide guests and
members more experiential opportunities whenever they travel (Marriott, 2018).
Implementation tools for measuring business success
The project management techniques are used by the organization throughout the process in
order to attain the ultimate success.
Communication: The consistent communication throughout the Marriott is essential to keep
the daily process taking place smoothly. The communication methods are used depending on
the depending on the type of information being used and the resolution of the message. The
hotel uses e-mails, memos, conferences, photos, Marriott intranet and job aides to
communication audiences affected by the organization (Sharma, 2016).
Documentation and project management: These processes are well implemented in the
organization. The record keeping, forming clear goals and defining specific tasks helps to

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keep the hotel on the track. It is ensured that the daily activities take place on time and within
the budget. The processes are checked during the phase of product implementation.
United alignment from senior management: The support exists at every level in the
organization starting from chairman to CEO. It enables decisions to be made rapidly and at
senior level within the organization (Su & Reynolds, 2019).
Recognition: The recognition is considered an important tool used throughout the processes
taking place at the organization. It keeps the team members motivated and working hard
further. The achievements are acknowledged in the meetings and status reports (Sheresheva,
Oborin & Polyanskaya, 2018).
Leveraged temporary professionals in the procurement process: The procurement team in the
organization relies on the few skilled agents to manage the lodging and bedding. A strong
team of the trained individuals is in the organization maintained in order to submit the trained
individuals rapidly.

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References
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CSI Market, 2019. MAR’s Competition by Segment and its Market Share. Retrieved on 19 March,
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Huang, Z. J., & Cai, L. A. (2015). Modeling consumer-based brand equity for multinational hotel
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Josephi, S. H., Stierand, M. B., & Van Mourik, A. (2016). Hotel revenue management: Then, now and
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Kolb, B. (2018). Marketing Research for the Tourism, Hospitality and Events Industries. Routledge.
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19 March, 2019 from https://news.marriott.com/2017/03/marriott-international-maps-future-
growth-investor-day/
Marriott, J. (2018). The Problem of Incontinence in the Elderly. In Geriatric Medicine (pp. 121-135).
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