Marriott International's Business Strategy in Tourism and Hospitality

This report examines Marriott International's business strategy within the tourism and hospitality sector. It analyzes the impact of PEST and micro-environmental factors on the company's corporate strategy, utilizing analytical models to formulate effective strategies. The report critically evaluates the chosen strategies within an international context, emphasizing the role of portfolio management and resource allocation in business growth. Furthermore, it identifies the challenges involved in managing a global workforce and explores how organizational culture can motivate staff across different locations. The study concludes by highlighting the importance of adapting strategies to meet the evolving needs of the tourism and hospitality industry, ensuring sustainable growth and competitive advantage. Desklib offers this document as a valuable resource, providing students with access to past papers and solved assignments for comprehensive study support.

TOURISM AND HOSPITALITY BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................1
TASK 1.................................................................................................................................................1
Explain how PEST and micro environment factors can impact the business and influence the
corporate strategy.............................................................................................................................1
TASK 2.................................................................................................................................................4
Use a range of analytical models, define and evaluate the models that would be the most
appropriate to formulate the right strategy for the business.............................................................4
TASK 3.................................................................................................................................................6
Critically evaluate how the chosen strategy would work in an international context......................6
TASK 4.................................................................................................................................................8
Explain how effective portfolio management and resource allocation can play a key role in the
business growth strategy..................................................................................................................8
TASK 5...............................................................................................................................................11
Identify the challenges involved in managing global workforce and explain how the
organizational culture can help to manage and motivate staff based across the globe...................11
CONCLUSION..................................................................................................................................15
REFERENCES...................................................................................................................................16

INTRODUCTION
Tourism and hospitality industry seems to be the most important sector in the contemporary
scenario because it facilitates large number of innovations and developments in the business
services and facilities (Zhang Chong and Jenkins, 2002). The present research study has been made
on Hotel Marriott International which delivers the best services to the clients as per the
requirements. Internal and external conditions of the business entity have been stated in the research
study along with the strategies which the subsequent hotel has developed to manage work processes
as per the corporate strategies. Furthermore, researcher has also discussed the need of effective
portfolio and resource allocation management in growth of the business. Apparently, challenges
arise at the time when hotel Marriott International works across the globe. Similarly, several
strategies have been formulated by the hotel entity for the purpose of reaching all the aims and
objectives.
TASK 1
Explain how PEST and micro environment factors can impact the business and influence the
corporate strategy
Background of the environment of Marriott International hotel
The present research study has been made with an attempt to ascertain the external and
internal environment of Marriott International hotel which is one of the largest hotels in UK’s
hospitality industry. It is a brand conscious hotel which always emphasizes on serving quality
services to the clients (Witt and Song, 2012). The hotel is competitive enough and is delivering
innovative and luxury amenities to the end users which in turn aids in customer retention. External
environment of Marriott International hotel is much more influencing than the internal environment
because of the social and cultural factors included in it. At the same time, technology is also
impacting the business decisions of Marriott International hotel and similarly, they have to
emphasize on new and innovative things so as to gain competitive aspects. However, on the other
hand, internal business conditions of Marriott International hotel is also changing because of the
competition (Weiermair, 2000). There are so many players who are operating the business in
hospitality market of UK. This has been enhancing competition in the same sector. Suppliers have
been supplying proper resources to the hotel so that they can meet different needs and demands of
the customers.
PEST analysis of Marriott International hotel has been conducted in the present research
study so as to analyze the factors that impact the business conditions (Vivanco, 2001). Similarly,
with the help of such analysis, Marriott is able to undertake adequate strategies for proper business
management.
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 Political factors: The political condition of UK market place has been stable from past many
years and this has been helping out all the industries of nation to operate the business
functions adequately. At the same time, Marriott seems to get impacted through political
aspects because the business conducts trade processes with numerous industries and players.
Though, instead of stability, Marriott International hotel has to consider all the political and
legal policies and there in all the concerned strategies are required to be followed (Uzama,
2009). Political scenario of UK may change after a certain period of time and this can also
alter the business conditions of Marriott International hotel. However, stern concern towards
the political aspect leads the hotel entity to formulate different strategies for managing legal
framework. Economic factors: Economic capability of UK aids the government to invest resources
properly in all the sectors and industries and this can also improve the prosperity of the
nation (Uysal and Williams, 2013). The government of UK is supporting Marriott
International because the industry has been employing number of people in the same area.
Hospitality industry is populous in terms of generating huge opportunities of employment;
hence this enhances purchasing parity of consumers and as a result, they spend more
resources in travel and tourism services. Nonetheless, on the other side, change in the
economic condition of the hotel can transform the overall scenario of business
organizations; hence this can impact the demand for hospitality services as well (Tijana and
Tivers, 2012). Hospitality industry has been greatly contributing in raising the economic
power of the nation because every year; it generates around 2% of employment
opportunities in the same sector for varied positions. Social factors: In terms of social factor, it can be said that Marriott International hotel is
highly affected by the various community aspects. Needs and preferences of clients have
been changing which leads the hotel to adopt new and different things to satiate customer’s
needs. Social factors encourages Marriott International hotel to adopt different cultural and
social values so that the hotel can depict concern towards social diversity (Thompson and
Martin, 2005). The hotel has been recruiting culturally diversified people so that they can
deliver all types of services to the clients. Along with these facets, Marriott is also required
to connect customer's beliefs with company's services so that overall satisfaction rate can be
enhanced. At the same time, Marriott hotel has to follow social policies and strategies so as
to become a competitive entity. It is an apparent fact that social changes affect business
practices and to safeguard the business from all such aspects, it is vital to analyze needs and
demands of customers on continuous basis (Tallant, 2011). Further, social factors also
enhance sustainability aspect because according to social beliefs, hotel entity can meet needs
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and demands of clients on the consistent basis.
 Technological factors: Technology is regarded as the basic factor that impacts business
decisions of every organization because it is another aspect of adopting new and different
things (Swarbrooke and Horner, 2012). Hospitality sector of UK is greatly emphasized
towards these aspects because all the hotel entities wish to develop more opportunities for
growth and success. Similarly, Marriott International hotel has been focusing on
technological grounds and according to the same, the hotel entity facilitates more innovation
and development. Further, because of technological aspects, certain new changes have been
developed in the service provision. On the basis of overall analysis, it can be said that
technological factors have increased the scope of expansion and diversification (Stokes,
2006). The competency factor of hotel entity has been encouraging because new
technologies and tools have been adopted for service management.
Micro environment factors are discussed in the below mentioned section: Customers: The clients of Marriott International hotel have been changing their needs and
demands which further leads the hotel to make several changes in the service aspect.
Customers are considered as those resources that aid the hotel entity to acquire long term
sustainability and competitive advantage especially when they get retained by the business
(Spilsbury, 2011). Hence, for all such purposes, it is vital for Marriott International to satiate
all the requirements of the clients. Competitors: They have been impacting the business conditions of Marriott International
hotel because they all are delivering the same services to the clients. Sometimes, the level of
rivalry increases because all the businesses emphasis on creating competitive edge over the
rivalries (Sisay, 2009). Employees: Staff of Marriott International hotel have been changing the way of managing
things because they need more encouragement and benefits from the organization they work
for. Hence, Marriott International hotel has to consider the interest of employees on all the
levels because human resources aid the business entity to acquire numerous benefits as
compared to the competitors (Sharpley, 2006). Issues prevailing among human resources in
the hotel can also affect the business conditions and this may impact the management as
well. Hence, Marriott International hotel has to give more consideration to all the crucial
resources of the organization.
 Shareholders: It is essential for the organization to give proper share to all its shareholders
as per the level of investment. They need to get proper return from the hotel and that also
aids them to contribute in maintaining continuous flow of resources (Santana, 2000).
However, all the owners and shareholders of Marriott International hotel should be involved
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in decision making process and other meetings so that they can consider themselves as a part
of the organization. It is essential for the hotel entity to consider internal business practices
because that changes their conditions respectively. Further, Marriott International hotel is
also required to develop appropriate relationships with the shareholders and stakeholders as
well so that long term sustainability can be facilitated (Ryan, 2003).
TASK 2
Use a range of analytical models, define and evaluate the models that would be the most appropriate
to formulate the right strategy for the business
Business models needs to be developed by the organizational members so that their
concerned activities can be properly managed in a specific direction. In the present research study,
Marriott International hotel has been using competency framework model where in resources are
allocated as per the availability of requirement areas (Rodgers, 2001). Ansoff matrix has been used
by the hotel entity where in different marketing strategies are developed for the purpose of
promoting the services at market place. The major emphasis is given to the diversification strategy
in which Marriott International hotel establishes its branches in different part of the world and as a
result, more success is there for business projects. Ranges of new business entities are entering in
the same area which helps Marriott International to operate business with new collaborations
(Matthews, 2005).
In order to develop right strategies for the business, Marriott International hotel employs
workforce in these processes so that hotel can deliver proper services to the clients. Use of these
business models aids the hotel to allocate all the resources in feasible manner and this thereby is
also useful in terms of enhancing business competency aspects (Marvell, 2005). The models aid
human resources to deploy the efforts in different practices so that overall growth and success facets
can be accelerated. Financial resources are also required to use in proper manner so that investment
capacity of the hotel entity can be increased. Right strategies are requisite to develop so that all the
practices can help in promoting the value of organizational services. Different strategies should be
developed so that long term sustainability and competitive advantage can be acquired (Lane, 2007).
This is also vital in terms of reducing the challenges of business entities and at the same time,
constraints related to business operations can also be minimized.
Business models always consider external and internal environment and on that analysis,
strategies can be formulated for other work practices (Kimmm, 2012). In such respect, the
subsequent hotel has been focusing on setting of several metrics and benchmarks so that according
to the same, desired aims and objectives can be acquired. Furthermore, for the same aspect,
business models direct the hotel to emphasize more on service provisions and customer facets so as
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to satisfy them. This aids in customer retention that aids in promoting the value of business for
acquiring collaboration from other industry players. Hence, from the discussion, it is clear that all
the business processes are managed in right and accurate directions. As per the diversification
strategy, new products are developed that have been acquiring the interest of clients (Ketzes, 2003).
Business models are regarded as efficient for the hotel entity because that gives right
direction to the employees to manage the work practices; therefore as a result, issues and constraints
are minimized. From the entire discussion on the respective topic, it can be said that business can
enhance growth and profitability factor when right kind of business models and frameworks are
followed up (Zhang Chong and Jenkins, 2002). There are several financial tools with the help of
which managers of Marriott International Hotel can take decisions as well as formulate suitable
strategies so as to enhance the level of business enterprise and provide quality of services to target
audience. Operating in such a competitive market is important for the top level management of
Marriott International Hotel to undertake the suitable tools so that proper strategies and tactics can
be developed. Financial management is one of the major aspects for the firm and is essential for
manager to address this aspect in proper ways (Witt and Song, 2012). There are various financial
tools through the means of which senior authority of Marriott International Hotel can develop
suitable strategies which are as follows: Ratio Analysis: It can be defined as one of the most significant tool for understanding the
current position of business enterprise and then undertaking potential measures for
enhancing the performance of Marriott International Hotel. Further, it is the mathematical
comparison of financial statements with the help of which management can easily measure
the performance of each department and accordingly makes strategies for attaining future
sustainability (Vivanco, 2001). Through the means of financial ratios, manger can easily
understand the profitability, liquidity, solvency, efficiency, liquidity, investment and
coverage position of the business activities. With the desired results and outcomes generated
through these ratios, managers can easily take decisions regarding improvement of the
overall business performance. Financial Statements: In order to operate ethically, business has to prepare all the major
financial statements as per the defined standards and principles proposed by GAAP and
IFRS. However, top level management of Marriott International Hotel have the
responsibility to make decisions regarding the functioning of hotel so that needs and wants
of customers can be satisfied in effective and efficient manner (Uzama, 2009). Thus, with
the help of financial statement, management can easily evaluate the performance and
effectiveness of business activities so that appropriate and suitable strategies and tactics can
be framed. Furthermore, there are various stakeholders who are associated with the
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functioning of Marriott International Hotel which requires proper information to make
decision. Thus, financial statements provide detailed information about the current position
of business so that they can make smart and effective decision regarding the future
investment in the functioning of Marriott International Hotel (Uysal and Williams, 2013).
 Investment appraisal techniques: The main aim of investment appraisal techniques is to
compare the potential proposal for the business and assist in making investment decisions.
There are several investment appraisal techniques which are used by the managers of
Marriott International Hotel to evaluate and analyse the reliability and validity of the project.
These appraisal techniques consist of net present value, payback period and internal rate of
return (Thompson and Martin, 2005). With the help of these techniques, managers can easily
evaluate and analyse the suitability of the proposals thereby make smart and effective
decisions to generate better financial position in the near future. In addition to it, net present
value is the most common and often used method to evaluate the discounted values because
it considers the time value for money which helps in making the best possible decision for
the future investment. Therefore, it is important for the senior authority of Marriott
International Hotel to undertake this method before making any decision so that long term
sustainability of hotel can be maintained in such a competitive environment (Tallant, 2011).
There are the financial tools with the help of which senior authority of Marriott International
Hotel can easily understand each and every aspect of business and accordingly formulate the
strategies so that desired results and outcomes can be generated. It is important for the managers to
make sure that they take better and effective decisions because intensive rivalry may affect the
course of functioning adversely (Swarbrooke and Horner, 2012). Hotel needs to provide quality of
services to its customers so that they can be retained for the long run and brand loyalty can be
developed. Thus, management should undertake analytical tools to analyse the performance of
business so that desired results and outcomes can be generated.
TASK 3
Critically evaluate how the chosen strategy would work in an international context
It is essential for the hotel entity to formulate corporate strategies so that long term aims and
objectives can be acquired and at the same time, competitive advantage can also be acquired
through this aspect (Kárpáti, 2001). Market research analysis is required so that external and
internal business environment can be found out and through this; essential strategies can be
formulated for business management. In general, it can be said that Marriott has developed wide
range of strategies through which all the functions of business are managed. These strategies work
as guidelines for the entity and the strategies also develops the scope of same. Further, for the same
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aspect, it is essential for Marriott International hotel to develop strategies in different sectors and
areas so that every work process can produce optimum result for the business management
(Jayawardena and et.al., 2013). It is vital for the hotel entity to align organizational strategies with
corporate objectives because this aids in developing more opportunities for growth and success.
At the same time, Marriott International should have to develop effectual and competent
strategies so that business can differentiate itself with that to the competitors (Ireland and et.al.,
2008). The corporate strategy of Marriott International guides the business to focus on long term
sustainability; thus according to the strategies, business conducts all its functions and operations.
Human resource strategies are also developed at the hotel which helps in allocating job roles and
responsibilities and through the same, organizational practices can also be managed. Similarly,
Marriott International hotel has to develop wide range of corporate strategies especially at the time
when the business enters into international market place (Inskipp, 2008). This is essential because
changes arise at the time when new things are involved and adopted in the workplace. Corporate
strategies of Marriott International generally describe the aims, vision, mission and other things
which give proper direction to the business entity.
Emphasis is required to be given on cultural norms and values because that generates many
issues in business entity. Further, on the other hand, it has been observed that business strategies of
Marriott International are competent and efficient and that aids the entity to reach towards
organizational aims and objectives (Hjalager, 2001). Similar to this, Marriott International has also
developed several marketing strategies which help the business entity to promote the services
among different customer segments. Moreover, chief emphasis has been given on product
development and market development strategies which support the business to facilitate more
success and growth. Apart from this, Marriott seems to be focused towards the expansion and
diversification aspects wherein business involves new product and services so that customer
satisfaction rate can be enhanced to new terms (Hemmington and King, 2000). Marriott
International hotel believes in promoting different cultural aspects and for that purpose, they recruit
more number of people from different parts of the world. It has been seen that employees of the
hotel are satisfied because they are valued by the management. This not only promotes the
organizational culture but also aids the management to derive support from all the employees in an
adequate manner (Hassanien, 2006).
As per the corporate culture, Marriott International hotel gives more concern to corporate
cultural facets wherein employees are allowed to communicate with the top management
adequately. This allows them to encourage the employees for more growth and success and at the
same time, it also aids in retaining them for longer span. Nonetheless, employees of Marriott
International hotel have been delivering prominent services to the clients and on the next hand, it
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satisfies them. This helps them to promote the services to other customer segments as well and as a
result, market share of the business entity is enhanced. Similarly, under corporate culture,
employees are directed to consider social, cultural and legal aspects so that business functions can
be properly operated as per the dimensions (Dollinger, 2006). Moreover, ethical aspects are also
maintained by the employees which helps Marriott International hotel to become successful and
competent entity. Ethical dimensions help customers to get accurate services which they see in the
advertisements.
As per the promotion strategies, only accurate and reliable information is delivered to the
clients who also protect their interest in company's services. Hotel entity deals in delivering only the
authentic information to clients as it is mentioned in the corporate strategic aspects. Moreover, legal
aspects are also followed in the hotel entity and as per the framework; services are provided to the
clients appropriately which on the other hand minimizes legal issues (Delmar, Davidsson and
Gartner, 2003). Thus, it can be said that major emphasis has been given towards marketing
strategies because that enhances the scope of business entity in different market places. Marriott
International Hotel has adopted Adaptive Standardized strategy in which chief attention is given on
customer's cultural values and norms; hence on that basis, changes have been made in service
delivery aspects (D'Amico and et.al., 2011). The subsequent hotel entity seems to work on the basis
of different themes and there in varied cultural norms are included. This helps the entity to persuade
attention of clients from different regions and as a result, services are expanded to different market
places.
Similar to this, Marriott International hotel works with diverse themes in different countries
as per cultural aspects and this supports the hotel to retain the end users for longer span. For
instance- Marriott hotel promotes hospitality industry in India through including different cultural
and social aspects and all types of service provisions are also added in the same facet. Hence,
preparing themes that helps Marriott International hotel to differentiate itself from the competitors
and new position can be developed at the market place (Croes, 2000). Through this, standards of the
business are maintained among the competitors and further it also generates more competition at
market place.
TASK 4
Explain how effective portfolio management and resource allocation can play a key role in the
business growth strategy
There should be proper resource allocation in organizational practices so that business
performance can be properly managed and improved. Effective portfolio is required for hospitality
management and is also essential for Marriott International hotel since that aids in utilizing all the
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resources in adequate manner. There are so many players who are operating their business in
hospitality market of UK and this has been enhancing competition in the same sector. Suppliers
have been supplying proper resources to the hotel so that they can meet different needs and
demands of the customers. As per the portfolio, hotel Marriott International can include all types of
resources and aspects so that business entity can manage its performance in prominent manner
(Covin, Green and Slevin, 2006). Similarly, with the help of effective portfolio, the ability to
allocate resources can be improved as it is a process which ensures that the hotel entity spends the
scarce resources on work which is of most value. The process of managing portfolio helps Marriott
International hotel to allocate organizational resources in valuable aspects for more growth and
prosperity. Hotel entity is required to prioritize the work as a part of managing things; hence this
also allows in delegating the roles and responsibilities in proper manner (Conrady and Buck, 2011).
Financial resources of the hotel need to be used in feasible manner so that investment capacity of
the hotel can be augmented. Hence, Marriott hotel has to develop portfolio management so that
resources can be properly used and balanced structure can be maintained between all the financial
instruments.
Business portfolio management also looks to achieve a proper balance of work and through
this; cost factor of firm can be managed (Connell and Page, 2006). Effective portfolio management
is required so as to foster an environment where collaborative decision making is easier and more
fruitful. Further, it also minimizes the risks to individual projects in terms of business impact and as
a result, organizational work processes can also become more productive. Similarly, portfolio
management is also essential for Marriott International hotel to enhance the value of human
resources by utilizing the resources in requisite areas only (Chon and et.al., 2012). This is also
suitable for stakeholders because through that proper sharing of the shares and dividends can be
made. Hence, stakeholders of Marriott International hotel will be able to acquire greater benefit
from the management. The resources of the hotel need to be allocated and utilized in those areas
only where it can produce optimum results and outcomes. It is an apparent fact that having adequate
resource management helps the hotel entity to minimize the aspects of risks and can also avoid
issues and constraints (Carlsen and Andersson, 2011).
Therefore, with the help of good financial management, Marriott International can make
comparison regarding benefit and costs aspects; thus it is also vital in managing poor performance.
Business can grow and prosper more only when all the organizational resources are productive and
when they are used in optimum manner. It is essential for the entity to distribute the scarce
resources in limited quantity so that all the projects can produce optimum results (Burns and
Novelli, 2008). Hence, in such respect, the management of hotel Marriott International should
emphasize on proper resource allocation aspects so that organizational competency can be
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encouraged. Human resources are considered as vital for the organization because it aids the entity
to generate more resources for other business practices (Buckley, 2012). For instance- Marriott
International hotel has to invest suffice resources for employee’s training and development because
this is integrated with their performance which maximizes sustainability aspects. However, instead
of crucial resources, Marriott has to make sure that the investment is made according to the
capability of the employees (Cooper, 2005).
Another contribution of portfolio management in business growth is that it maximizes
hotel's resources and helps in reducing cost of operations. It has been observed that having adequate
management of resources helps the organizations to reduce the degree of resource wastage which is
yet another beneficial dimension for the business (Stokes, 200). Similarly, manpower resources of
Marriott International hotel should be delivered with numerous benefits and advantages so that they
can serve varied benefits to the organization for longer span. At the same time, new opportunities
for business growth and success can be developed and subsequent hotel will also be able to acquire
more projects. At the time of serving amenities to the clients, Marriott International hotel has to
make sure that they are delivering all the services to the end users. This shows that the hotel has
sufficient idea regarding proper resource allocation and business management. Doing such thing,
will help the subsequent hotel to retain customers and this in turn can directly maximize
profitability aspects of the business (Spilsbury, 2011).
Marriott International hotel is also able to facilitate innovation and creativity in the
business due to utilizing manpower in requisite areas. People working with them are provided with
numerous benefits that aid them to learn different things which are vital for hotel's success and
prosperity. Resource allocation process of Marriott International hotel is effective because specific
limit is provided to all the sectors which in turn help in using resources feasibly. Marriott
International hotel is able to plan different aspects of business; thus up to some extent, it reduces the
opportunities of risks and uncertainties (Sisay, 2009). Hence, the chances of failure and business
constraints get reduced when the entity has developed an appropriate structure for resource
management. Along with the same, cost benefit analysis can also be made through the same; thus
accordingly resources can be allocated for future job roles effectively. Collecting all the resources in
a portfolio assists Marriott International hotel to acquire information about the value of business
processes; hence on the basis of that, more clients can be persuaded towards the products and
services. From the above discussion, it is clear that resource allocation is significant for business
growth because it maximizes the scope of adopting new and innovative things (Sharpley, 2006).
Human resources are required to be utilized for achieving business success and prosperity
for the management of Marriott International hotel. They have to deliver several benefits to the
workforce. At the subsequent hotel, resource allocation is the process whereby different strategies
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