Business Report on Marriott: Portugal Market Expansion Analysis

This report provides a comprehensive analysis of Marriott's business operations and its strategic expansion into the Portuguese market. It begins with an introduction outlining the advantages of business expansion and the specific context of Marriott's operations. The report then delves into the background of Marriott as an international hotel industry leader, detailing its structure, brands, and global presence. The subsequent section examines the business environment, particularly within the hospitality sector, and sets the stage for an in-depth PESTLE analysis, which assesses the political, economic, social, technological, legal, and environmental factors influencing Marriott's operations in Portugal. The report also includes a SWOT analysis, evaluating Marriott's strengths, weaknesses, opportunities, and threats, and concludes with an application of Porter's Five Forces model to understand the competitive dynamics within the Portuguese market. The report highlights key considerations for market entry and strategic planning, offering valuable insights for understanding the business environment.

Report on demonstrating the
understanding of the nature
of organizations

Table of Contents
INTRODUCTION...........................................................................................................................1
BACKGROUND TO THE BUSINESS ORGANISATIONS.........................................................1
BACKGROUND OF THE BUSINESS ENVIRONMENT............................................................2
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In order to develop effective results and outcomes, every business want to operate their
functions and operations in the new areas. With this regard, the organisations has several
advantages and disadvantages to operate their functions in the large market. In this way, the
business get main advantage is new and skilled employees working that create growth of the
business in systematic manner (Rogers, Guimarães and Rogers, 2015). Further, broader customer
base also created at workplace that make business expansion for ascertain advantages at
workplace. With this regard, present report based on the Marriott which is the largest hotel that
provide several kinds of products and services to attract customers. They offer several things in
order to attract customers in business environment. Now the company want to expand their
business Portugal, so that it is effective opportunities to increase effective results. Therefore, it is
the effective strategy for accomplish goals and objectives. For gaining insight knowledge about
the enterprise, report covers PESTLE and Porter analysis to develop effective functioning in the
business environment.
With considered PESTLE analysis, the organisations able to enhance tourism activities in
the nation for ascertain effective functions and operations. Individuals describes their effective
participation that creates modern modes to create easier operations and functions. On the other
hand, SWOT analysis is the important perspective that helps to manage functions and operations
to identify threats and opportunities that are exists in it.
BACKGROUND TO THE BUSINESS ORGANISATIONS
Marriott is the international hotel industry that assists to develop effective results in
diversify manner. They are determines different kinds of hospitality operations to attract several
customers in the market. Managers and franchises also develop their operations and function to
make portfolio that are related with lodging facilities. The company has headquartered which
exists in Washington area. They deal and the public company to earn more and deals with around
6000 properties in 122 nations. Marriott has several kinds of brands that recognise to make
effective and creative results at workplace. They develop their operations and outcomes to ensure
that customers are taking important part to enhance operations in Portugal.
In addition to this, Marriott also destroy due to attack in 2001 so that from 2002 it again
restructuring with many services in the communities. Distribution facilities of the organisations
1

also focuses to the effective management and ownership. In this regard, the chosen organisations
contributes major participation for enhancing and developing several activities at workplace.
BACKGROUND OF THE BUSINESS ENVIRONMENT
In the hospitality industry, there are several aspects has been included that make creative
results and outcomes. In this regard, hotel, motel, lodging, trade, etc. In addition to this, it also
consists restaurant and institutional education which provides food services, recreation services
and many other activities that assists to promote effective results at workplace. Mainly
establishment of the hospitality industry divided into the five categories such as transient,
commercial, hotels, etc. (Shalhoub, Marshall and Ippolito, 2017). With this regard, in each
country several operations and functions operate that assists to meet with development of the
goals. In the Portugal, there are different analysis has been develops that make creative functions
and operations. Therefore, the organisations need to analysis the market through they can get
effective functioning in the business environment.
PESTLE analysis
Marriott hotel is the international and one of the largest hotel industry in the world. In
this aspect, they are providing products and services in more than 4200 branches in 79 nations
(Budică and Dumitru-Traistaru, 2015). This enterprise operate their functions in more than 19
brands so that it impact positively on the functions and operations of their activities such as
luxury, suites, apartments, resorts, etc. In order to operate functions in Portugal, following are
different elements exist that create impact on their functions and operations: Political factors: Major political factors create impact as the danger of terrorism,
international relations, climate changes for the tourist destinations. In this context, the
biggest threat is attack and conflict which could be disrupt Marriott operations in
Portugal. In addition to this, in Portugal Marriott also face terrorists that attack to the sites
and hotels directly (Marriott, 2016). There are several evidences also available which
impact on the company operations and functions. Economic factors: Major economic factor affect to the Marriott operations and functions
because of the slow growth of the Portugal. Therefore, it reduces buying power of
individuals and require for increasing their ability to travel. The Biggest effect of this is
determines and dependent on the exchange rate (Zalengera, Blanchard and Gondwe,
2

2014). Further, long term economic threat also growing income inequality and stagnation
to the middle class people which diminish staying in hotels of customers. Social factors: Social factors look to the future look for developing effective results for
Marriott operations and functions. In this regard, there are several numbers of activities
planned to travel in the international market. Therefore, in Portugal Marriott has
opportunities to increase average money and spending to attract several people in
systematic manner. However, in this area's customer demand and market trend change
continuously so that Marriott require deal in such manner (Rogers, Guimarães and
Rogers, 2015). Technological factors: Technological elements create huge impact on the hotel business
of Marriott. With this regard, online rental services also develops for private individuals.
Therefore, rooms are available on rent and homes are directly transfer for travellers. In
Portugal, there is advance technology implemented that assists to accomplish goals and
objectives through providing products and services in creative manner. With the help of
advance technology, the chosen organisation can avoid their expenses and implement
regulations for lower operating costs (Shalhoub, Marshall and Ippolito, 2017). Legal factors: Legal factor also create impact on the future outcomes of Marriott. In this
aspect, in Portugal the chosen organisation need to follow effective regulations of health
and safety. Therefore, it is the best opportunities to the chosen organisation that assists to
accomplish goals and objectives in systematic manner (Pestle, Crowley and Weirauch,
2014). It also increases revenue of municipalities so that increasing minimum wages
assists to work in significant manner. All the operations require operating activities in
healthy and safety manner. There are several sources need to be develop that enhance
effective results at workplace.
 Environmental factors: Recently, environmental are major element that impact on the
production of the Marriott. Due to falling oil prices, the chosen organisation has
advantages to increase their operations and functions in different areas of the world (Bull,
Jobstvogt and Carter-Silk, 2016). In this context, increasing in the fuel cost also create
major impact on the functions and operations of the organisation. Therefore, it is the
threat to company in Portugal to operate functions in significant manner. Increasing in the
electricity cost also create efforts to limiting the greenhouse impact. Further, the chosen
3

organisation has responsibility to develop their operations and functions which never
harm to the environment. It is the best way to accomplish goals and objectives in
systematic manner.
Marriott international operate their functions in all over the world. Therefore, at different
branches they are getting more money and revenue for ascertain profitability at workplace.
Several numbers of franchises also helps to operate functions and operations in market that make
creative results at workplace (Dan, 2014). With this regard, following elements determines
creative results in the business.
In the selected business unit, following are different strength can be develops that make effective
results in Portugal:
 The chosen organisation has very effective position in the market through they can easily
diversify their operations and functions in Portugal.
 Marriott has strong financial position so that they are able to target several numbers of
customers in systematic manner (E. Dobbs, 2014).
 In the international areas, the selected enterprise determines wide range of the products
and services for their customers so that it is the best way to accomplish targets and
outcomes in significant manner.
 With the help of developed strong position, the chosen organisation can easily attain
loyalty program for the customers.
4
Illustration 1: PESTLE analysis
Source: (PESTLE Analysis, 2017)

In this regard, several weaknesses of the company occurs to operate functions and operations of
the new market. They are as follows:
 Marriott has weak management system so that their performances create huge impact on
the operations and functions of Portugal.
 Further, the organisation also facing problem of high debt so that their financial position
is stabling which create impact on the target market (Rothaermel, 2015).
 Infrastructure in the field of the information and technology consists backward
experience so that it impact negatively to the effective results of the business unit.
 Decline position of the also reduce market share and Marriott facing issue of instability
for their market share.
However, the company has several opportunities to enhance their market share and maintains
effective functioning for business development. With the help of following opportunities,
Marriott can easily operate their effective results in Portugal:
 Marriott continuously try to enhance their market share and operations through deliver
effective products and services. In this context, in Portugal they can merge their business
with other that assists to accomplish goals and objectives in profitable aspect.
 Enhancement also made with the business through grow services for access customer
loyalty program (Rogers, Guimarães and Rogers, 2015).
 With the help of planning and strategies, Marriott can supervise their operations to
acquire different assets which generate more money.
 The chosen business also need to take steps that grow market and improves marketing
plans with advertisement activities in Portugal.
In the international market, the chosen company has several threat due to changes in the
several things. Therefore, they are facing following threats at workplace:
 High risk of the potential issue and involvement of the government in Portugal create
major risk for the businesses. Therefore, it impacts to the operating functions in foreign
market (Shalhoub, Marshall and Ippolito, 2017).
 In Portugal, there are several hotels exists so that high rates of substitution create
negative impact on the functions and operations of Marriott.
 Because of the high rate of fluctuation, prices of the products in market very high. Hence,
there is intense competition exists to operate functions in foreign hotels.
5

 Further, in the selected market, there is unrestricted issuance and allowance towards the
several products (Budică and Dumitru-Traistaru, 2015). Therefore, Marriott suffers large
amount of losses as compare to the other businesses.
 Crises and issues of the housing sector is the major threat to the chosen organisation.
Porter's five forces model
Marriott operate their functions and operations as the global industry so that their stages
are continuously develops to make prosperity and dominance position in the country. In order to
operate functions and outcomes in international areas, Portugal is the effective market to develop
functions and operations. In order to understand the future expansion, external environment need
to be analysis therefore, porter five forces is the suitable technique that assist to identify market
functions and its impact (Budică and Dumitru-Traistaru, 2015).
Buyer power (Moderate) : Buyer power in the Portugal for Marriott is moderate. This is
because, in these areas there are not qualified businesses exists who could operate functions and
operations as the chosen organisation with the help of strong brand recognition, customers could
be attracted that assists to repeat the organisation to switch costs. Price competition is the good
stimulator which assists to increase innovations. In Portugal, Marriott operating several functions
and operations with new ideas and operations so that it assists to make premium segment.
Supplier power (Moderate) : In the Portugal, supplier power in the country is also
moderate. Because of the several circumstances, suppliers has advantages to make variety of
position from several people such as companies, real estate, etc. There is high competition
among the suppliers so that it create impact on the Marriott international business environment.
Due to low concentration of supplier also impact on the functions and operations of the Marriott.
Volume is the other critical supplier that assists to accomplish effective results in the business
environment (Mathooko and Ogutu, 2015).
Competitive rivalry (Low) : Competitive rivalry in the Portugal is low because there are
no other businesses exists which create impact on financial and logistic factors. Most of the hotel
in Portugal exists but they are unable to provide products and services as the Marriott. Therefore,
it creates major impact on the business performances and outcomes. With this regard, at global
expansion acquisition and franchising can be ascertain to make strong results at workplace. With
the help of assets, business model will expand their operations for diversify and raising capital to
compete with several competitors (Budică and Dumitru-Traistaru, 2015). Hence, it increasing
6

driven location to ascertain effective functioning in the business environment. As per the guest
and customer requirements, the chosen organisation provide products and services so that it is
the best strategy to accomplish goals and objectives.
Threat of substitution (High) : In the market, there is high threat of substitutions
because customer want products and services at less amount so that it impact high on the
operations and functions of the organisation. With this regard, the highest profitability will be
ascertain at workplace that assists to accomplish goals and objectives. Foreign investment
require increasing growth and develop capital that is ascertained effective results in the country.
Regulations and rules also create major threat to the new substation which impact on the
business performances.
Threat of new entrants (High) : In Portugal, there is experienced people exists which
create high threat of new entrants at workplace. In this regard, substantial degree of growth will
be develops from last several years. It is the best way to attract new entrants at workplace. In this
regard, travel and tourism trends create prime opportunities to enter in new areas of market.
Economic also down turn to the global market so that Marriott continuously grow and operate
functions in systematic manner. Threat of new entrants is very high because there are several
people exists which require success that is uncertain (Rogers, Guimarães and Rogers, 2015).
7

CONCLUSION
From the above report, it can be concluded that, Marriott hotel has effective advantages
to develop their operations and functions in effective manner. In this aspect, they are operating
several activities through goals and objectives will be accomplish. They way to expand their
business in Portugal so that report summarized about the goals and objectives which they want to
accomplish in systematic manner. Furthermore, it concluded about the SWOT analysis that helps
to identify strength, weaknesses, opportunities and threats which impact on the functions and
operations of chosen industry. At last it articulated about the Porter five forces model which
determines effectiveness to ascertain profitability at workplace. In this aspect, different factors
impact on the performances. Therefore, threat of substitution create high impact on the functions
of chosen organisation.
8
Illustration 2: Porter five force model
Source: (Five Forces by Michael Porter — Fundamentals Through Graphics,
2013)

REFERENCES
Books and Journals
Budică, I. and Dumitru-Traistaru, A., 2015. The Ascending Trend of Environmental Marketing
in the Current Austerity/Crisis Period. Polish Journal of Environmental Studies, 24(5).
Bull, J.W., Jobstvogt, N. and Carter-Silk, E., 2016. Strengths, weaknesses, opportunities and
threats: A SWOT analysis of the ecosystem services framework. Ecosystem services, 17,
pp.99-111.
Dan, N.I.E., 2014. A SWOT analysis of Beijing Marathon game operation. Journal of Physical
Education, 6, p.005.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Marriott, G., 2016. Synthetic and Genetically Encoded Fluorescence Probes for Quantitative
Analysis of Protein Hydrodynamics. In Perspectives on Fluorescence (pp. 271-286).
Springer International Publishing.
Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in
Kenya. International Journal of Educational Management, 29(3), pp.334-354.
Pestle, W.J., Crowley, B.E. and Weirauch, M.T., 2014. Quantifying inter-laboratory variability
in stable isotope analysis of ancient skeletal remains. PLoS one, 9(7), p.e102844.
Rogers, C.D., Guimarães, R.M.L. and Rogers, S.A., 2015. Spatial and temporal analysis of wheat
bulb fly (Delia coarctata, Fallén) oviposition: consequences for pest population
monitoring. Journal of pest science, 88(1), pp.75-86.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Shalhoub, J., Marshall, D.C. and Ippolito, K., 2017. Perspectives on procedure-based
assessments: a thematic analysis of semistructured interviews with 10 UK surgical
trainees. BMJ open, 7(3), p.e013417.
Zalengera, C., Blanchard, R.E. and Gondwe, K.T., 2014. Overview of the Malawi energy
situation and A PESTLE analysis for sustainable development of renewable energy.
Renewable and Sustainable Energy Reviews, 38, pp.335-347.
Online
9

Five Forces by Michael Porter — Fundamentals Through Graphics, 2013.
<http://masonmyers.com/five-forces-michael-porter-business-fundamentals/>.
PESTLE Analysis, 2017. [Online] Available through:
<http://ivanteh-runningman.blogspot.in/2016/05/pestle-analysis.htmlz>.
10