Strategic Management Report: Marriott International's Decision Making

This report provides a comprehensive analysis of Marriott International's strategic management practices. It begins by defining strategic and non-strategic decisions, illustrating how Marriott International makes decisions at corporate, business, and functional levels to sustain its competitive advantage in the hospitality industry. The report details the strategic planning process, including SWOT and PESTLE analyses, to identify the current state, define mission statements, formulate strategies, implement plans, and evaluate performance. The report also examines the risks inherent in strategic decision-making, such as political, economic, and social factors, and how Marriott International strategically manages these risks. Finally, the report offers recommendations for future strategies, emphasizing the importance of adapting to the dynamic external environment to ensure long-term success.

Strategic Management

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
ASSESSMENT 1.............................................................................................................................3
Strategic decisions.......................................................................................................................3
Non-strategic decisions................................................................................................................6
Risk..............................................................................................................................................7
Recommendations for future strategies.......................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In the competitive market scenario there is continuous rise in the customer demand as
well as other changes in the external environment has given rise to strategic management process
(Ivan and Ivana, 2012). However, strategic management is an ongoing process that include
planning, monitoring, analysis and assessment of all that is necessary changes for an
organization so they can easily meet their stated objectives and goals. Therefore, Strategic
management provides overall direction to the enterprise and involves specifying the
organization's objectives, developing policies and plans designed to achieve these objectives, and
then allocating resources to implement the plans. The present report focuses on one of renowned
hotel that is Marriott International, as with the continuous change in the external environment
they must focus on the strategic management technique which will help them to cope with
certain change and uncertainties.
Present report mainly focuses on the strategic and non-strategic decisions that are taken
by Marriott international so that, they can easily survive in the competent environment.
However, the report will also measure the different type of strategy which is being formulated in
the different levels of the organization. Lastly, the report also measures risks, uncertainty and
trade-offs play in the strategic decision making process of the organization.
ASSESSMENT 1
Strategic decisions
The strategic decisions are those decisions which are related with the external
environment in which the service organization operates their business and manages different
resources so that, they can determine the success of implementing the strategy. However, the
Marriott International mainly renders luxurious and leisure services to their guests and customers
in terms of providing luxurious accommodation facilities, food services etc. thus, strategic
decisions would help the organization to sustain in the competitive hospitality industry
(Alkhafaji, 2011). In order to expand Marriott business internationally in the different countries,
organization is adopting strategic management technique which primarily impact their success.
There are different types of strategic decisions that are taken by Marriott international so that,
they can easily sustain in the environment. For this, business organization needs to formulate
strategy that help Marriott International in accomplishing their goals and objectives and survive

in the long run (Huff and et.al., 2008). Therefore, business strategies exist at different
organizational levels. The different type of strategy includes: Corporate-level strategy: Corporate level strategy mainly aims to consider overall extent
of business organization and achieving aim of operations in order to meet the distinct
requirement of internal and external stakeholders. According to Walters and Rainbird
(2007) corporate level strategy in the Marriott International is being framed by the top
level authorities with the main aim to fulfil mission statement of the organization
(Walters and Rainbird, 2007). The corporate level strategy will be for the long time
period that will result Marriott to attain success in the market for the long time period.
However, it has been said that the mission statement of Marriott International is nearly
connected with corporate strategy of the business (Salaman, Storey and Billsberry, 2005). Business-level strategy: However, the main aim of Marriott International is to provide
the quality and luxurious accommodation and logging facilities for the customers. For
gaining the aim of service organization, they need to form different business level
strategy which results in determining the strategies that must be adopted to deal with
target audiences in the hospitality industry (Lasserre, 2012). This strategy comprehend
strategic decisions regarding their services, exposure to new possibilities, meeting
different expectation of guests and customers, to gain competitive advantage over their
rival companies etc. For example, Marriott International is introducing new restaurant in
their luxurious hotel so that, they can satisfy the demand of customers and gain advantage
over their rival organization thus, for this manager need to formulate business level
strategy.
 Functional level strategy: Functional level strategy is in the response to business level
strategy (Carton, 2006). Functional level strategy assist the business to see management
decisions to be specific with the functional or departmental area of the organization, such
as marketing, human resources, finance, information management and public relations.
The advantages of devising functional level strategy is that, they can systematically
assign human resources and other resources to the tasks. For example, an employee with
expertness in HR, thus it may be logical to assign the duties and tasks of HR instead of
providing them activities related with the finance (Cadez and Guilding, 2008).

For taking strategic decisions regarding the business organization, it is essential for the
organization to develop a systematic plan that will ensure the Marriott International to attain their
long term goals. However, strategic planning is significant for the success of organization and it
also assist in determining the current state of organization through conducting SWOT analysis
and PEST analysis (Beer and et.al., 2005). However, the planning process also involves devising
objective for Marriott, formulating and implementing the strategy considering environmental
assessment. Therefore, the view of strategic planning process include following step:
 Analysing current state: The first step in the strategic planning process include measuring
the internal as well as external environment of Marriott International with the help of
conducting SWOT analysis (Evans, Stonehouse and Campbell, 2012). Analysing current
state of Marriott International will assist the management in designing effective strategy
so that, they can take strategic decision for the organization. Identified strength,
weaknesses, threats or opportunities of Marriott International are:
Strength:
 High brand recognition (Shook, 2005).
 Effective employee retention
Weaknesses:
 Limited market share due to high
competition from the established hotel
chains.
Threat:
 Entrance of low budget leisure hotels.
 Stagnated growth
Opportunities:
 Continuous innovation in the services
 well equipped interior and exterior of
hotels
 Have potential to grow in the emerging
markets (Poister and Streib, 2005).
 Defining mission statement: After examining the current state of Marriott International
another step of strategic planning include defining the mission statement of the business
organization so that they can easily grab opportunities to succeed in the hospitality
industry. For example, from the above analysis Marriott International mission statement
is to become the global firm in the hospitality industry (Postma and Liebl, 2005).

 Strategy formulation: After defining the mission statement they should formulate
corporate strategy that will assist the Marriott international to become the leading
company in the industry. For example, the firm seeks to become top most company in the
hospitality sector for that they must develop their market by expanding their services in
the different countries (Wheelen and Hunger, 2011). Thus, they will formulate effective
market development strategy by setting new hotels chain in the different countries. Implementing strategy: After selecting the strategy, Marriott International will
implement the market development strategy by setting up new premises or hotel chains in
the different countries. However, implementation mainly involves managing the Marriott
resources and motivating their staff to accomplish objective which is to expand their
services in the other countries (Freeman, 2010).
 Evaluation and control: The last step in the strategic planning includes measuring and
controlling the implemented strategy so that they can not affect the external and internal
environment. Marriott International should focuses on developing control system to
facilitate any change in the strategy. The management must set a standard performance
and compare them with the actual performance of the hotel (Mador, 2011).
Non-strategic decisions
Non-strategic decisions are also known as operational decisions which are taken on the
daily basis that help the Marriott International in conducting their daily operations in the
effective manner. The aim of the non-strategic decisions is to attain budgeted sales and to get
revenue to meet targets (Janczak, 2005). Non-strategic decisions should be consistent with
strategic decisions. Effective operational decisions will have measurable outcomes such as
higher revenues, inflated profits, increased productivity and increase in the satisfaction level of
the customers.
For example, to determine that how many staff or employees will be needed in the
Marriott International to serve their customers then the decisions regarding managing the
employees or staff may be termed as operational decisions. These decisions are often taken at the
departmental level to ensure that day to day operation of Marriott International should be
accomplished. There are several departments or functional areas operating in the hotel and they
are required to take non-strategic decisions for conducting the daily work (Ivan and Ivana, 2012).
The different department are:

 Human resource department: The main function of the HR department in the Marriott is
to manage human resource so that they can properly render services to their guests and
customers. The department often take decisions regarding demand and supply of human
inventory in the hotel. The HR department also recruit employees and staff within the
premises so that they can render quality services to their guests (Alkhafaji, 2011).
Therefore, HR department is required to take effective operational decisions so that they
can successfully execute the operations. Marketing department: Another non-strategic decision is being taken by the marketing
department so that they can easily frame effective marketing or advertisement strategy for
the Marriott International and can easily promote their services in the different countries
(Huff and et.al., 2008). Marketing department also focuses on framing different
marketing strategies for their hotel so that; they can effectively succeed in the other
countries.
 Finance department: Other non-strategic decisions are taken by the finance department
that mainly concentrate on allocating the fund properly within the hotel so that day to day
operational functions can be carried out properly and effectively. For example, it is
essential to allocate proper fund to the food and beverage department as with the help of
this they can easily purchase the raw material for preparing food for their guests who
visits their hotel (Walters and Rainbird, 2007).
Risk
A business always assumes risk when deciding to change its methods. Strategic decisions
always represent a risk because these decisions deal with the future. While a company can make
strategic decisions based on relevant information, the organization can never predict the future
with certainty. Because of this, a business must take precautions when implementing both
strategic and non-strategic decisions (Salaman, Storey and Billsberry, 2005). Thus, managing
risks management must adopt risk management techniques which will assist the Marriott
International in taking strategic decision without any issue. There are certain risks existing in the
hospitality industry which are increasing competition, dynamic demand of the customers and
guests, pace of technology etc. need to be responsive so that they can manage change within the
internal environment. Marriott International strategically programs their risks, rather than making

impulsively decisions (Lasserre, 2012). The following PESTLE analysis the external factors
which can influence or affect Marriott International risk management strategies. The factors are: Political factor: One of the major risk or uncertainty is caused due to changing political
norms and regulations of the different countries (Carton, 2006). Thus, constant change in
the international trade policies will result in affecting Marriott International decisions
regarding expanding their business. For instance to operate their operations in the
different region, they need to adopt the rules and regulations of the different countries so
that they can operate in that country. Economical factor: Thus economic factor also act as the major risk for the Marriott
International as due to unsteady interest rate and rise in the economic growth of the
country the demand of luxurious hotels are reducing (Cadez and Guilding, 2008). Thus, it
will ultimately decline the profitability of the Marriott International. Social factor: Another risk in the external environment include social factors as with the
increasing ageing population in the different countries customers have become more
careful with their spending and now they focus on luxuries rather than fulfilling
necessities (Beer and et.al., 2005). However, with the change in lifestyle, people or guests
are shifting their preferences to the budgeted hotel as compare to the luxurious or brand
hotel chain. Thus, these factors can act as the risk for Marriott International to operate
their services in the new region. Technological factor: However, technological factor consider as a major issue for the
Marriott International as competitors can take advantage by using internet technology as
their strategy to capture the market. Legal factor: The legal factor include regulation regarding international advertisement,
equal pay etc. that sometime negatively affect Marriott operations. For example, legal
factors mainly impact international advertisement which can obstruct the strategic
decisions made by Marriott International (Evans, Stonehouse and Campbell, 2012).
 Environmental factor: Another external factor that acts as the risk and impact internal
environment of Marriott International is environmental factor. Now a day’s customers are

aware about the environment so Marriott International needs to ensure sustainable
business environment to attract customers (Shook, 2005).
Thus, for managing the risks that are associated with the external environment, company
should implement certain risk management techniques which will assist the Marriott hotel in
lowering risks and accomplishing their objectives to be successful in the external environment.
The different risk management techniques are being used by Marriott International to manage
impact of risks in the internal environment. Therefore, for starting up a new business in the
international market Marriott International has to follow several risk management strategies for
avoiding risks and uncertainty within the organization (Poister and Streib, 2005). Avoidance - This is a risk management strategy which helps to avoid the actions and
activity that brings failure or loss to the organization. For instance, Marriott International
could proceed in purchasing the location for their hotel chain in other country if the
location or site is not generating enough revenue to cover the cost of building (Postma
and Liebl, 2005). Risk control – It is another strategy which is used to minimize the risk in Marriott
International by making some rule and regulation at the workplace that assist to control
the risk in the organisation.
 Adoptive organizational culture - However, another strategy for managing risk or change
within the Marriott International is by creating an effective culture that encourages or
prompt the staffs to manage different financial risks that exists outside the organization
(Teece, 2009).
Recommendations for future strategies
By conducting the situational analysis of Marriott International with the help of
determining certain strength, weaknesses, threats and opportunities it has been recommended
that Marriott International should adopt different future strategies which will assist them to
become the leading organization in the hospitality industry. Merger and acquisition: Recommended future strategy for Marriott International include
merger or acquiring the organization that serve in hospitality industry to increase their
market share and target audiences. This is an effective future strategy which is adopted

by many of the organization to be successful in the competitive environment and to
reduce the extra cost of production in the different region (Klein, 2009). Effective usage of technological factor: Another opportunity for Marriott International is
that with the increasing technological era, they should create their own mobile
application which offers discounts coupons or loyalty points for their regular customers
to stay with Marriott. Thus, they can also expand their services on the online platform so
that, customers or guests can easily reserve the rooms for their family (Wheelen and
Hunger, 2011).
 Expansion in the different countries: Another recommended future strategy for Marriott
International would be to build or set up large number of hotels in the expanding
technological countries such as China or Japan. Thus, expanding business in the other
countries will result in enhancing their reach and brand image among customers
(Freeman, 2010).
CONCLUSION
From the above report it has been concluded that to be successful in competitive
environment business required to take strategic and non-strategic decisions. Strategy and
operational decisions addresses different aspects of the organization. Strategy influences overall
direction of the organization whereas operational decisions affect its day-to-day operations.
However, it has also concluded from the above report that there are different types of strategy
which an organization frame to be successful in the industry. Different types of strategy are
corporate level strategy, business level and functional level strategy. Furthermore, the report also
measures strength, weakness, threat and opportunities so that Marriott can easily take strategic
decisions to be sustainable in the environment. Lastly, the report has also measured the risks
which are present in the external environment and that can affect internal environment of the
business and result in bringing failure.

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