Marriott Hotel: Analysis of Strategic Choices and Environment

This report provides a comprehensive strategic analysis of Marriott Hotel, focusing on its internal resources, competitive advantages, and external environment. It begins with an analysis of the company's internal resources, including management, human resources, machineries, market, and materials, and identifies their roles in contributing to competitive advantage. The report then examines the impact of industry changes and the external environment on Marriott's entrepreneurial activities, using SWOT and PESTLE analyses to assess strengths, weaknesses, opportunities, threats, and political, economic, social, technological, and environmental factors. Finally, the report evaluates two strategic options for Marriott to increase its entrepreneurial opportunities: providing high-quality services at a low price and enhancing employee skills. The report utilizes SAFe analysis to assess the suitability, acceptability, and feasibility of each strategic option, providing recommendations for the company's future strategic direction.

STRATEGY, ENTERPRISE
& INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
Question 1: Analysis of strategic capabilities and external environment........................................1
a) Critical analysis of internal resources and competences that sources of competitive
advantage.....................................................................................................................................1
b) Impact of changes in the industry and external environment on the entrepreneurial activities
.....................................................................................................................................................3
Question 2: Analysis of strategic choices for Marriott hotel...........................................................4
a) Critical evaluation of two strategic options that can increase entrepreneurial opportunities. 4
CONCLUSION................................................................................................................................6
REFERENCE ..................................................................................................................................7

INTRODUCTION
Strategy, Enterprise and Innovation can be determined as a subject group that includes
activities for engaging in research that is transferred in four key areas which includes risk
management, innovation management, entrepreneurship and business strategy. There are many
organizations which provide their customers with similar products and services (Ma, 2013).
Companies make use of strategies through which they aim at developing unique image among
customers mind. Present report is about Marriott hotel which is well known for its luxury
services. This report covers critical analysis of companies internal and competences that are
sources of competitive advantages. Lastly, it also includes of two strategic options that could be
pursued by the company in order to increase its entrepreneurial opportunities in the industry.
Question 1: Analysis of strategic capabilities and external environment
a) Critical analysis of internal resources and competences that sources of competitive advantage
Within Marriott hotel there are different set if activities that take place. All these
activities work in order to achieve the organizational goals and objectives. There are different
internal resources that help firm to direct the effort towards common goal (Markides and Sosa,
2013). Below given are the internal resources within Marriott hotel:
Management: Ultimate aim of any organization is to gain maximum profit and this is
only possible when firm understands their customers needs and requirements. There are different
operations that work in order to attain the objectives. With this respect, Marriott hotel has diverse
set of operations and these are required to be managed effectively so that service users can be
satisfied (Rothaermel, 2015). However, there are issues that are faced business when
management fails to operate their business operations efficiently.
Human resource: Employees are the face of organization as they have direct interaction
with customers. They are the one who present the services that are provided by the cited firm.
Company can attain competitive advantage when they have workers with effective skills and
knowledge. In contrast to this, issues arises when employees do not understand their customers
requirement and this negatively affects the perception towards the services that are provided by
the firm (Shan, 2016).
Machineries: These are the tools and equipments that are provided by the firm to
employees. It enables to provided high quality services. In this context, it is the responsibility of
company to provide their staff member with training so that they will be able to make use of
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equipments that are provided to them. However, it is the responsibility of management to make
sure that they use updated or new technology so that they can satisfy customers.
Market: There are different countries in which cited firm provide their services.
However, taste and preferences differs from country to country (Suarez, Grodal and
Gotsopoulos, 2015). Marriott hotel face losses when the services that are provided to customers
are not effective enough. In this context, completive advantage can be attained when
management conduct market research and gets to know the preference of people of that
particular market. Accordingly, changes needs to be developed among the products and services
through which customers can be satisfied.
Materials: As stated above, there are organization at different market that provide
customers with similar products and services (Weerawardena and Mort, 2012). However, to
develop positive perception among mind of service users is by making use of high quality
materials and so that organization can deliver satisfying products. This enables the organization
to achieve their goals and objectives and attaining competitive advantages.
SWOT analysis:
Table 1: SWOT analysis of Marriott hotel
Strengths:
 Make use of innovations and improves
customers experience.
 There are about 3700 hotels and resorts
and its operations are spread over 70
countries. High brand recall and recognition
(Caiazza, Volpe and Audretsch, 2014).
Weaknesses:
 Limited market share due to long
established hotel.
 High risk caused due to global
expansion.
Opportunities:
 New emerging market
 innovations in services of customers Developing creative interiors.
Threats:
 Price related strategies adopted by
competitors.
 Easy entrance of new businesses.
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b) Impact of changes in the industry and external environment on the entrepreneurial activities
There are different set of changes that take place in the hospitality sector. However, one
of the major impact is due to change in climate. People prefer to visit different places when the
climate is favourables (Davila, Epstein and Shelton, 2012). When there is effective climate, then
the sales and revenues generated by cited firm is very high when compared with other seasons.
In such situation, Marriott hotel has to hire more employees and this is because this is due to the
number of people visit to hotel will be high. To provide adequate services to customers
organization hire new employees. Further, people visit from different countries and management
has to make sure that all the needs that are requested by service users is fulfilled.
Moreover, changes in hospitality industry also has impact over external environment of
entrepreneurial activities (Foxall, 2014). With this respect, below given are the PESTLE analysis
done for Marriott hotel:
Political factor: Major political factor that can affect Marriott hotel are issues in relation
with terrorism, political climate and international relations. When there is major dispute among
military or issues in relation with terrorism, then it affects international air travel and this way
the revenue and profitability gets affected. Further, changes in policies like fiscal and monitory
also affects the business operation of Marriott hotel negatively. When these policies increases,
then management has to raise the prices of their products and services and this inversely affects
sales (Henttonen and Ritala, 2013).
Economic factor: Different countries have diverse set of economic conditions and this
inversely affect the business operation of the firm. In this context, the growth rate of economy of
China is going on slow due to which the firm is facing losses. China is market in which it has
worlds the highest population and so Marriott hotel get high revenue. However, due to low
economic conditions people are not able to spend their money to make use of the services
provided by Marriott hotel.
Social factor: The taste and preference of customers changes frequently and it is the
responsibility of organization to make changes accordingly (Johnston and Bate, 2013). At
different countries, the requirements and wants are different. In this context, management should
conduct market research so changes in services can be made as per their wants. As per the
findings, it can be stated that number of travellers have raised to 13% (PESTLE ANALYSIS.
2016).
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Technology factor: Changes in technology take place frequently. Entrepreneurial
activities gets affected when there firm do not make changes in their technology as per the
changes (Caiazza, Volpe and Audretsch, 2014). Further, management has to face losses when
they fail to make improvement. Changes are generally made in order to provide customers with
high quality services. When changes are not made as per the change in technology, then it affects
the sales and management fail to provide proper services.
Environmental factors: One of the major factor that affect Marriott hotel is raise in price
of fuel. When the price of fuel increases, then it increases travel cost and this reduces the demand
for hotel rooms. When cost of any element increases, then the activities that are planned gets
affected (Davila, Epstein and Shelton, 2012). However, it is can be stated that raise in price of
fuel is one of the major threat that Marriott hotel faces.
Question 2: Analysis of strategic choices for Marriott hotel
a) Critical evaluation of two strategic options that can increase entrepreneurial opportunities
There are different strategic options that can be followed by the Marriott hotel that can be
adopted through which organization can attain their goals and objectives. In this context, below
given are the strategic options that will enable the firm to increase their entrepreneurial
opportunities:
Providing high quality services at low price: As stated above, there are many
organizations that provide their customers with similar products and services (Foxall, 2014). In
order to develop entrepreneurial opportunity by providing their product at low price and at high
quality. Below given are SAFe analysis in order to meet entrepreneurial opportunity:
Suitability: This will be suitable for Marriott hotel as they can develop positive
perception among customers mind. Currently, all the services that are provided by cited firm is
of high quality. However, when they reduce the price then people who were not able to afford
them will also start making use of the services (Henttonen and Ritala, 2013). This way firm will
be able to attract more and more customers. In today's world, people are health conscious and
when services are provided with low price, then this will be beneficial.
Acceptability: The ultimate aim of company is to gain maximum profit and this is
possible when more and more customers make use of the services provided by the firm.
However, through implementation of this strategy, management will be able to direct achieve
their goals to raise their share and profit. Marriott hotel needs to make their operations effective
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so that they can save their money and make sure that they can reduce the price of the services
and products (Johnston and Bate, 2013).
Feasibility: In order to reduce the price, management needs to have strong relationship
with their suppliers so that they provide materials at low price. Further, they should also need to
have proper interaction with government so that they do not make frequent changes in the
policies as this increases the price. It will be helpful for the Marriott hotel to reduce the price and
in developing strong customers base (Kim, Min and Chaiy, 2015).
To enhance employees skills: There are different operation in the organization that are
undertaken. In all these activities, it includes employees who could support the firm. However,
there are cases in which firm fail to operate their business and this is due to lack of skilful and
knowledgeable workers. To perform certain set of tasks it is essential to have skills that will help
to perform effectively and efficiently. With this respect, below given are SAFe analysis so as to
meet entrepreneurial opportunity:
Suitability: Workers have direct interaction with customers so that should be capable
enough to make sure that service users are satisfied (Klingebiel and Rammer, 2014). There are
cases in which employees fail to understand their customers and this is due to lack of skills. In
this context, when there will be skilful employees, then management will be able to attain their
goals and objectives effectively and efficiently. Firm will get highly benefited as they will be
able to attract more and more customers and develop a strong customer. When there are skilful
workers, then they can provide better and high quality services. Further, the opportunity that
organization gets is that they can retain their customers when employees will be able to
understand and satisfy their needs.
Acceptability: There are many business operation around the world for Marriott hotel.
Further, there are many employees who make contribution to attain the goals and objectives
(Kodama and Shibata, 2014). The growth and revenue of cited firm depends upon the type of
raise in customers who make use of services compared with other companies. All the
stakeholders will get benefited when management develop strategies to enhance workers skills.
Moreover, this way company can attract more and more customers and other stakeholders can be
satisfied.
Feasibility: Organization can provide their employees with training and development
program. This will be effective when management identifies the issues or problems that are faced
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by workers. Further, this with be helpful for the company to enhance their performance level. In
this context, firm should hire professional who will be able to provide effective training
programs (Lusch and Nambisan, 2015). With this respect, firm needs to spend highly over
training and there are cases in which management do not get the expected result. This is because
the areas should be identified before providing training. This will enable to enhance the
performance and to provide better or high quality services to customers.
CONCLUSION
From this report, it can be articulated that stakeholders are very important in order to
perform business activities effectively. It is the responsibility of organization to understand their
needs and accordingly steps should be taken through which they can be satisfied. Further,
management should understand their customers wants and this is possible when frequent market
research is conducted. This way firm can make changes in their services and they achieve their
desired goals. Moreover, employees should be provided with training as this will help in
increasing the sales and profitability.
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REFERENCE
Books and Journals
Caiazza, R., Volpe, T. and Audretsch, D., 2014. Innovation in agro-food chain: Policies, actors
and activities. Journal of Enterprising Communities: People and Places in the Global
Economy. 8(3). pp.180-187.
Davila, T., Epstein, M. and Shelton, R., 2012. Making innovation work: How to manage it,
measure it, and profit from it. FT press.
Foxall, G., 2014. Corporate Innovation (RLE Marketing): Marketing and Strategy. Routledge.
Henttonen, K. and Ritala, P., 2013. Search Far And Deep: Focus Of Open Search Strategy As
Driver Of Firm'S Innovation Performance. International Journal of Innovation
Management. 17(03). p.1340007.
Johnston, R. E. and Bate, J. D., 2013. The power of strategy innovation: a new way of linking
creativity and strategic planning to discover great business opportunities. AMACOM
Div American Mgmt Assn.
Kim, N., Min, S. and Chaiy, S., 2015. Why Do Firms Enter a New Product Market? A Two‐
Dimensional Framework for Market Entry Motivation and Behavior. Journal of Product
Innovation Management. 32(2). pp.263-278.
Klingebiel, R. and Rammer, C., 2014. Resource allocation strategy for innovation portfolio
management. Strategic Management Journal. 35(2). pp.246-268.
Kodama, M. and Shibata, T., 2014. Strategy transformation through strategic innovation
capability–a case study of Fanuc. R&D Management. 44(1). pp.75-103.
Lusch, R. F. and Nambisan, S., 2015. Service Innovation: A Service-Dominant Logic
Perspective. Mis Quarterly. 39(1). pp.155-175.
Ma, D., 2013. Innovation strategy and leadership dynamics in a technology-intensive industry:
evidence from South Korea. International Journal of Technological Learning, Innovation
and Development. 6(3). pp.209-224.
Markides, C. and Sosa, L., 2013. Pioneering and first mover advantages: the importance of
business models. Long Range Planning. 46(4). pp.325-334.
Rothaermel, F. T., 2015. Strategic management. McGraw-Hill.
Shan, F., 2016. Enterprise innovation with data mining method based on naive bayes model
algorithm. Metallurgical and mining industry. (1). pp.148-153.
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Suarez, F. F., Grodal, S. and Gotsopoulos, A., 2015. Perfect timing? Dominant category,
dominant design, and the window of opportunity for firm entry. Strategic Management
Journal. 36(3). pp.437-448.
Weerawardena, J. and Mort, G. S., 2012. Competitive strategy in socially entrepreneurial
nonprofit organizations: Innovation and differentiation. Journal of Public Policy &
Marketing. 31(1). pp.91-101.
Online
PESTLE ANALYSIS. 2016. Available through: <http://pestleanalysis.com/what-is-pestle-
analysis/>. [Accessed on 18 October 2016].
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