Marriott International: Ethical Issues, SWOT Analysis, and More

This report provides a comprehensive analysis of Marriott International, focusing on its ethical issues, strengths, weaknesses, opportunities, and threats (SWOT). The report begins by highlighting Marriott's recognition as a World's Most Ethical Company and then delves into specific ethical problems, such as environmental concerns arising from increased service demand. A detailed SWOT analysis is presented, examining Marriott's strategic partnerships, reputation, market leadership, global presence, and innovative practices as strengths. Weaknesses include negative publicity, civil lawsuits, data protection issues, and a family-focused market position. The report also identifies opportunities in emerging economies, shifting demographics, diversification of offerings, and expansion into related sectors. Threats such as terrorism, global pandemics, trade tensions, stiff competition, and looming recessions are also considered. The conclusion underscores Marriott's commitment to customers and workforce while acknowledging challenges like data breaches and the hurricane Irma incident, emphasizing the importance of capitalizing on opportunities to improve its image and minimize threats. The report also reviews Marriott's strengths such as advancement and inventiveness, strict controls, loyal clients, and strong partnerships, while also identifying weaknesses like claims, negative publicity, stiffness, and family trade. The document concludes by emphasizing Marriott's potential for growth and innovation and its commitment to adapting to changing market dynamics.

PESTELE (Ethical Issues which has impact on Marriott International)
 The World's Most Ethical Company assessment is based upon the
Ethisphere Institute’s Ethics Quotient ® (EQ) framework which offers
a quantitative way to assess a company’s performance in an objective,
consistent and standardized way. The information collected provides a
comprehensive sampling of definitive criteria of core competencies,
rather than all aspects of corporate governance, risk, sustainability,
compliance and ethics.
 Scores are generated in five key categories: ethics and compliance
program (35%), corporate citizenship and responsibility (20%),
culture of ethics (20%), governance (15%) and leadership, innovation
and reputation (10%) and provided to all companies who participate
in the process.
 Marriott International (Nasdaq: MAR) has been recognized by the
Ethisphere Institute, a global leader in defining and advancing the
standards of ethical business practices, as a 2017 World’s Most
Ethical Company®. Marriott has appeared on the list for 10 years and
is one of only three in the Lodging & Hospitality industry
underscoring the company’s commitment to leading ethical business
standards and practices. The full list of the 2017 World's Most Ethical
Companies can be found at
http://worldsmostethicalcompanies.ethisphere.com/honorees/.
 Ethical issue in Marriott International: One of the ethical
problems in Marriott Corporation is environmental issues. It is caused
by the increase in the demand for their services by customers. This
can destroy the natural resources thus, resulting in environmental
pollution which is against the laws created by the state. The primary
goal of these laws is to safeguard the surroundings. It is essential to
protect the environment to ensure that it is not depleted (Bratton and
Gold, 2017). At times, the hotel might experience difficulties when
trying to extend their operations. The environmental protection Act
can hinder them from constructing a hotel in specific natural habitats.
The regulations prohibit the hotel from establishing their business in
such areas.

SWOT ANALYSIS OF MARRIOTT
INTERNEL
VIEW
STRENGTHS WEAKNESSES
 Strategic Partnerships
 Excellent Reputation
 Market Leadership
 Global Presence
 Profitable Acquisitions
 Loyal Customers
 Strict Code of Conduct
 Highly Innovative
 Negative Publicity
 Civil Lawsuits
 Ineffective Data
Protection
 Poor Positioning
 Too Strict
EXTERNEL
VIEW
OPPORTUNITIES THREATS
 Focus on Emerging
Economies
 Shifting Demographics
 Diversify Offerings
 Expand into Related Sectors
 Risk of Terror Attacks
 Global Pandemic
 Trade Tension
 Stiff Competition
 Looming Recession

 Marriott’s Strengths
Ê Strategic Partnerships: Marriott partners with some of the biggest
players in different sectors, which has enabled the company to
undercut the competition. It recently partnered with Alibaba to enable
millions of customers to book directly without deposits.
Ê Excellent Reputation: Marriott is ranked #44 for diversity, #100
just companies, #243 world’s best employers, #84 top regarded
companies and #38 best employers for women. Also, it has been one
of the regulars on the Fortune 500 list for 21 years and was ranked
#151 in 2019.
Ê Market Leadership: Marriott is the largest hotel chain globally with
over 30 brands, 81 hotels, and $25.1 billion in assets under its
impressive portfolio and 6,500 properties offering over 1.2 million
rooms across the globe. Being the largest ensures it enjoys the full
benefits of economies of scale.
Ê Global Presence: Global operations and presence not only increases
revenues but also spreads the risk. If one revenue from one region
declines, the company can rely on the other regions. Marriott
operates across 127 countries and territories globally.
Ê Profitable Acquisitions: From Ritz Carlton to Starwood, Resorts
Worldwide, Bulgari Hotel, and Gaylord, Marriott has expanded its
portfolio, revenues, and profits through the acquisition of highly
profitable brands.
Ê Loyal Customers: A section Marriott’s customers will not even
consider switching to any other hotel. The company has nurtured one
of the most loyal customers using a combination of strategies,
including one of the largest loyalty programs.
Ê Strict Code of Conduct: The hotel service business is highly
sensitive to a wide range of issues. From cleanliness to etiquette and
punctuality in service delivery, Marriott’s strict code of conduct
ensures delivery of all these ingredients of success.
Ê Highly Innovative: Marriott delivers value by exploiting innovation
and technology effectively. From Villas and Homes venture to wallet-
free experience, innovative operations are at the core of Marriott’s
success. It ranked #21 Most Innovative Company.

 Marriott’s Weaknesses
Ê Negative Publicity: The Service industry is sensitive to public
perception. Marriott’s reputation has been tainted in 2017 by the
decision to rescue only its hotel guests from St. Thomas after
Hurricane Irma and kept non-guests off the cruise ship even though it
was half-empty.
Ê Civil Lawsuits: Issues with the law always portray companies in a
bad light. Marriott was sued for blocking customers’ personal Wi-Fi
citing security concerns and was fined $600,000.
Ê Ineffective Data Protection: Consumer’s distrust and avoid
companies that fail to protect their data. In 2018, the guest
reservation database of Marriott’s Starwood was hacked and personal
information of up to 500 million people was exposed, including names,
addresses, phone numbers, passport numbers, and so on.
Ê Poor Positioning: Marriott is marketed and structured as a family-
focused business from market position to management. The future of
the hospitality industry lies in young single millennials, which makes
Marriott’s family-focused positioning a major weakness.
Ê Too Strict: Although strictness is vital for success, breathing down
the neck of employees is a sure way to bring down morale,
productivity, and efficiency. Marriott requires employees to follow the
code of conduct to the letter and fired an employee in 2018 for ‘liking’
a tweet that offended China.

 Marriott’s Opportunities
Ê Focus on Emerging Economies: Demand for high-end hospitality
services in developing countries is increasing rapidly and presents
lucrative opportunities for hotel chains like Marriott.
Ê Shifting Demographics: As more and more millennials and Gen-Z
enter into the consumer market; the company has the opportunity to
grow its customer base by positioning as a cool youthful brand.
Millennials are already delivering change in the hospitality
Ê Diversify Offerings: Satisfying customers of the digital age goes
beyond offering basic services. They demand personalized services.
Marriott can differentiate itself from competitors by offering
customized services that cater to the specific needs of customers.
Ê Expand into Related Sectors: The hotel chain business is linked to a
wide range of sectors from tourism to catering, real estate, and many
more. Marriott can offer houses for hire like Airbnb.
 Marriott’s Threats
Ê Risk of Terror Attacks: Marriott is a five-star accommodation
facility that attracts customers of different nationalities. Terror groups
target star-rated hotels with a large number of foreigners.
Ê Global Pandemic: Marriot has already lost 92% of its profits as the
number of customers declines due to the pandemic. If the virus
becomes a permanent reality or comes in a second wave, Marriott’s
profitability will continue to suffer.
Ê Trade Tension: With the widespread adoption of isolationism, global
conglomerates and companies like Marriott are perfect targets for
tariffs by disgruntled populist governments. If Marriott is used as
leverage or pawn in the trade war, it can a substantial portion of its
revenues.
Ê Stiff Competition: The hospitality industry is highly competitive.
From Hilton to Novotel and many more, renowned hotel chains can
reduce Marriott’s market share drastically if they get a chance.

Ê Looming Recession: Countries are sliding deeper into recession
with millions of jobs wiped off in a short period. The adverse effects of
the global recession have proven in the past to be particularly
destructive to companies in the hospitality industry.
Marriott SWOT Analysis Conclusion
Concluding, it can clearly be said that Marriott has managed to remain one
of the top players in the hotel management & hospitality industry. The way
Marriott has achieved this is by focusing on its customers and workforce.
However, Marriott has gained a bad reputation among the public in recent
years because of data breaches and the hurricane Irma incident. The way
the company can reduce the effects of these weaknesses is by capitalizing
on its opportunities. Using techniques to improve customer satisfaction and
shifting demographics may help create a better image for Marriott and even
minimize its threats.
References
 https://news.marriott.com/news/2017/03/13/marriott-international-named-as-
a-2017-worlds-most-ethical-company-by-the-ethisphere-institute
 https://www.prnewswire.com/news-releases/marriott-good-business-is-
ethical-business-251244131.html
 https://www.blogs.marriott.com/marriott-on-the-move/2014/07/a-better-
world-for-business.html
 https://swotandpestleanalysis.com/swot-analysis-of-marriott/
 How Marriott Plans to Supercharge Growth Starting With 1,700 New Hotels
in 3 Years.
 World’s Largest Hotels 2019: Marriott Leads Again, Hyatt & Accor Rise.
 Marriott International.
 Marriott’s Alibaba Joint Venture in China Is Part of Its Direct-Booking
Strategy.
 Company: Marriott International.

Strengths
Advancement & Inventiveness
Marriott is at the 21st position of the world’s most inventive and imaginative companies. Successfully
utilizing inventive innovation is the most reason behind the victory of Marriott. The brand offers a
wallet-free involvement, homes, and estates which is also a great strength of Marriot.
Rules & Controls
Marriott doesn’t take its trade delicately. The company makes beyond any doubt that it gives the ideal
proficient administrations to its clients. Customers encounter cleanliness, well-dressed staff, and quality
benefit. All of these things are the controls of the brand. The company makes beyond any doubt that the
representatives take after its directions and provide the ideal quality of benefit.
Faithful Clients
The clients of Marriott are among the world’s most faithful clients. They aren’t getting to supplant
Marriott with any other inn. The company moreover offers different dependability programs to
encourage its clients.
Achievements
Marriott has made exceptionally effective achievements of other inns like Gaylord, Ritz Carlton, Bulgari
Inn, and Resorts Around the world. Such achievements have intensified the company’s income to an
extraordinary degree.
Associations
As we know that the lodging and eatery industry is exceptionally competitive. Marriott has collaborated
up with the world’s greatest brands like Alibaba to decrease the competition. It has given the clients
with an opportunity to create reservations without putting in any store. Most vitally, it permitted the
brand to diminish the competition.

Fame
Concurring to the positioning of Forbes, Marriott has the 44th position of the World’s Most Differing
Organization, 99th position of Best Employer for Ladies, 28th position of World’s Best Employer, and
84th position of America’s Best Employer.
Advertise Pioneer
Marriott is one of the world’s driving lodging and resort chain brands. Around more than 31 brands are
working beneath the company’s umbrella. It has got 665 inns, 174,000 workers, and more than 26 billion
dollars of the resource. It gives the brand with an opportunity for economy of scale.
Worldwide Brand
Marriott is working the lodging and resort trade in more than 131 nations over the world. The around
the world nearness makes a difference the inn brand to expand its resource and minimize the potential
dangers. The company can keep up the income adjust on the off chance that it’s not working in one
nation.
Weaknesses’
Claims
Marriott has continuously had troublesome relations with the law and it caused the negative promoting
of the company. For occurrence, a client recorded a claim against the brand for blocking his wifi security
and it put a punishment of 600,000 dollars on Marriott.
Discrepant Promoting
Irma Storm and the company’s reaction depicted a negative picture of Marriott 2017. When the
administration protected as it were its visitor and cleared out others behind, indeed in spite of the fact
that half of its voyage dispatch was purge. The company is within the benefit and neighborliness
industry and it ought to use caution around such choices.
Stiffness
Proficient rules and controls are the keys to the success of any organization. Marriott’s directions are so
strict that they’re choking its workers. As a result, their execution, efficiency, and work fulfillment level
are declining. For occasion, the inn and resort company ousted an worker for enjoying a tweet on
Twitter that had irritated China in 2018.
Family Trade

Marriott features a advertise notoriety as a family-owned business. On the other hand, youthful
millennials are long run of the company. They consider the family-owned trade boring and it’s one of the
major shortcomings of the brand.
Insecure Information
The programmers broke the online security framework of the Starwood lodging of Marriott in 2018. It
compromised the individual information of over 500 million clients. It included individual points of
interest like account number, passport IDs, names, e-mail addresses, etc. It postured a genuine address
of believe and secrecy.
Opportunities
Benefit Development
As we know that Marriott is growing and building 160 more lodgings within the up-and-coming future.
Presently the company ought to grow its benefit portfolio by including significant administrations. Like
transportation, genuine domain, tourism, lodging, and numerous others. It would offer assistance
Marriott to pull in more clients.
Customize Ministration
The clients of the 21st century is living a really comfortable life in their homes. In this manner, it’s an
awesome challenge for the neighborliness industry to fulfill them. In the event that Marriott offers them
customized and personalized administrations shifting from client to client. It would offer assistance the
company to distinguish itself by giving an extraordinary competitive edge to the lodging and eatery
brand.
Creating Economies
The developing nations don’t have numerous extravagance lodgings to serve the tip top trade class
visitors. Marriott has got an extraordinary opportunity to open its chain lodgings in those nations and
abuse the advertise imposing business model.
Statistic Changed
The statistic of the buyer has changed. The showcase comprises of millennials and generation and they
request a youthful and enthusiastic brand. Marriott has the opportunity to reevaluate the youthful soul
and include it to its neighborliness commerce agreeing to desires of the clients.
Threats

Business pressure
Ever since the Trump administration propelled protectionist and patriot arrangements, other nations
have too begun taking after the same approaches. It brought about within the frame of expanded
charges, limitation on the multinational brands, and boycott in a few cases. It made it troublesome for
brands like Marriott to function commerce globally. Hopefully, things would go back to typical beneath
the administration of Joe Biden and Kamala Harris.
Terrorist Attacks Possibility
Marriott is a 5-star lodging and it gives high-quality convenience administrations and other offices to its
clients of distinctive nationalities. The psychological militants ordinarily target top-rated 5-star inns
which include a plenty of outsiders, so that they seem make a explanation. The company ought to fix its
security.
Competition
Novotel and Hilton are some of the main competitors of Marriott. They have the resource and brand
title to extend the advertise share of the company. Hence, the lodging and resort brand ought to
separate itself and increment customers’ dependability programs.
Financial Recession
2020 was the year of the widespread of covid-19 and it driven the worldwide economy into
retreat. Thousands of individuals misplaced their work amid and after the widespread. The
lockdown, shutdown of businesses, and social separating are still in advance. The longer it would
take the analysts to create the immunization, the more troublesome things would be after the
pandemic.
Marriott falls beneath the category of the extravagance neighborliness industry. The widespread
influenced the company the foremost. That’s why the yearly income and net productivity of the
chain lodging brand declined to a incredible degree.