Strategic Problems in Modern Business: Marriott Hotel Project

This project delves into the strategic problems faced by modern business organizations, using Marriott Hotel as a case study. It begins with an introduction to strategic management and its importance, followed by an aim and objectives section that outlines the research's goals. The literature review explores strategic issues such as high competition, economic recessions, government policies, and employee turnover. It examines factors increasing strategic problems like poor organizational culture and inflexible policies, and discusses the relationship between these problems and business performance. Relevant theories, including Maslow's motivation theory, are presented to address these challenges. The project concludes with recommendations and a critical evaluation of the findings, offering insights into how Marriott Hotel and similar organizations can navigate strategic problems and improve their performance. The project also includes a reflection, references, and an appendix.

PROJECT
(Strategic problems in modern business organization)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Aim of the research................................................................................................................1
Literature Review...................................................................................................................2
Research Methodology...........................................................................................................6
Data Analysis .......................................................................................................................10
Discussion.............................................................................................................................15
Conclusion and recommendations........................................................................................16
Critical evaluation................................................................................................................18
REFERENCES..............................................................................................................................19
APPENDIX....................................................................................................................................21
REFLECTION......................................................................................................................21

INTRODUCTION
Strategic management is considered as a systematic process in which top authorities
formulate plans and implement it in order to accomplish the goal of company. It is the
managerial process that identifies and describes strategies of firm through which entity enhances
its performance and gain competitive advantage (Cassidy, 2016). Management of an
organization has to make sound business decisions and has to monitor the performance of
corporation regularly so that issues can be identified and these problems can be resolved on time.
Strategic management is the planning tool that supports managers in preparing contingency plans
for predictable and unfeasible risks. Strategies are formulated on the basis of objective of
enterprise. It is the only way through which managers can make an effective control over
strategic problems of entity (Peppard and Ward, 2016).
Present study is based on strategic problems in modern business organizations. For the
current project, Marriott hotel is being taken into account. It is the global lodging firm which
operates in approx. 122 countries. In the year 2016, it has earned revenue of more than $17
billion. It has become the leading brand of hospitality industry. It offers luxurious services to
consumers and fulfil their desires in order to satisfy them. Present study will discuss the working
of modern business organization in recent era. Furthermore, it will examine various strategic
problems that are faced by Marriott hotel. In addition, it will explain the relevant theories related
to these strategic problems and will suggest ways to overcome from issues.
TASK
Aim of the research
Aim
“To analyse strategic problems in the modern business organization: A study on Marriott hotel”
Objectives
 To identify strategic problems of Marriott hotel that create issue for the entity.
 To identify factors that increases strategic problems at the workplace.
 To explain relevant theories to deal with these strategic problems in Marriott hotel.
 To analyse relationship between strategic problems and business performance.
 To suggest the ways through which strategic problems can be minimized.
Main objective of the study is to identify strategic problems faced by Marriott hotel in
recent era. In the modern business world, there are many big organizations which are running
1

their operations in hospitality industry. Another purpose of this investigation is to analyse the
strategic issues faced by modern business that create difficulty for them to sustain in the market
for longer duration. In addition, study will explain theories and models that can support in
identifying strategic problems in Marriott hotel and will support in minimizing these issues.
Research Questions
 What are the major strategic problems of Marriott hotel that create issue for the entity?
 What are the main factors that increase strategic problems at workplace?
 How strategic problems and business performance are interrelated?
 What are the relevant theories to deal with these strategic problems in Marriott hotel?
Literature Review
Strategic problems of Marriott hotel
As per the view of Peppard and Ward, (2016) Marriott hotel is the leading brand of
hospitality industry. It offers luxurious services to consumers and always works to provide
satisfactory services to guests so that they would feel satisfied and perform their duties well. But
in the modern business environment, it is very difficult for the organization to sustain in the
market for longer duration. These entities have to face many problems and need to make
effective strategies that can support them in sustaining in the market for longer duration.
According to Ferlie and Ongaro, (2015) Strategic issues are those fundamental policies that put
a direct impact on the business unit and bring critical changes in its operations. High competition
is considered as one of the major strategic issues that is currently faced by Marriott hotel. There
are many big hotels such as Hilton, Radisson, Milestone hotel, etc. These big firms are offering
luxurious quality services to consumers. It attracts new clients and turn their minds as well. Due
to high competition, it has become difficult for Marriott hotel to sustain in the market for longer
duration. Company has to make changes in its policies and operations in order to sustain in the
market for along span of time (Peppard and Ward, 2016). Organization always look at the market
situation and needs of guests. This policy of the firm has helped the entity in sustaining in market
and gaining competitive advantage. (Use Strategic Issues to Create a Better Organizational
Strategy, 2017).
Sonenshein, DeCelles and Dutton, (2014) If there is recession in nation then people will
not be able to spend much. In such condition, their purchasing capacity will get affected. It is the
drastic situation because people do not have satisfactory monitory resources and they prefer to
2

save money. In such condition, they do not go to any hotel frequently which affects the sales of
these hotels. In such condition, overall performance of company gets affected (Peppard and
Ward, 2016).. On the other hand, if there is stable economy condition and people have income
sources then they will love to go hotels. This can raise business performance of these firms to a
high extent. As per the view of Schein, (2017) government policies are another strategic issue
that is faced by modern business organizations in recent era. Now- a-days, government keeps
monitoring the performance of all firms and they make their regulations accordingly. If
authorities make changes in tax legislation or increase tax rate, it can create many difficulty for
the entities because they will have to pay high tax to government that will minimize their net
profit. On the contrary, if government put restriction in export or make changes in food safety
legislation, in such condition, hotels will have to make big changes in their operations in order to
run their operations smoothly. It will increase burden on the entities and affect their growth and
revenues as well (Use Strategic Issues to Create a Better Organizational Strategy, 2017)
Bresman and Zellmer-Bruhn, (2013) argued that increasing rate of employee turnover is
the strategic issue for Marriott hotel. In such condition, company losses its skilled workers and it
has to hire new candidates. It affects the efficiency level of firm and fails to meet the needs of
consumers. The main reason of increasing turnover rate of workers is that people are not satisfied
in the organization due to its culture and structure. Apart from this, other global hotels are
offering high salary packages and incentives to the talented staff members (Use Strategic Issues
to Create a Better Organizational Strategy, 2017). In such condition, they move towards the
other firm which affects operations of the corporation to a great extent.
Main factors that increases strategic problems
According to Galliers and Leidner, (2014) one of the main element that increase strategic
issue in organization is poor culture and structure. Hospitality industry has to provide quality
services to its consumers so that they be loyal towards the brand and be associated with the
organization for longer duration (Use Strategic Issues to Create a Better Organizational
Strategy, 2017). For that it is essential to have skilled employees those who serve the firm for
longer duration. In the absence of healthy culture and structure people will feel demotivated and
they will not be satisfied towards the enterprise. Due to tall structure management fails to make
effective coordination with its employees. In this condition people fail to share their feeling and
problems with higher authorities (Use Strategic Issues to Create a Better Organizational
3

Strategy, 2017). Apart from this company has strict rules and regulations which are necessary to
follow by all workers. This makes the person irritating because they do not get flexibility which
impact on their personal life. It affects their working practices and they move to other firms those
offer them attractive salary packages and satisfactory working environment. It is the main
element due to which Marriott hotel is losing its skilled employees and it has to hire new staff
and have to train them again.
Aarons and et.al., (2014) argued that modern organizations makes norms, policies as per
the market condition but when sudden market conditions get changed then they have to make
drastic modification in their operation. Marriott hotel has fixed polices, it does not make big
changes in its operations. Poor policies and inflexible polices are the main cause due to which
company has to face strategic issue. Due to which when there is inflation or recession condition
then corporation has to do struggle a lot. At that time consumers do not prefer to go to such
places where prices are high. They move to other brand where they can get satisfactory services
at affordable rates (Use Strategic Issues to Create a Better Organizational Strategy, 2017).
Relationship between strategic problems and business performance
According to Madanoglu, Okumus and Avci, (2014) there is strong relationship between
strategic problems and business performance. If company does not pay attention on its issues
then it may get failed to sustain in the market for longer duration. If there is high employee
turnover then it may create difficulty for hotel because in such condition it will fail to deal with
consumers well. Skilled employees are lifeblood or assets of the organization. If they are
satisfied with the entity then they will retain in the workplace for longer duration. But if they are
not satisfied with the enterprise then they leave their job and join other hotel (Use Strategic
Issues to Create a Better Organizational Strategy, 2017). By this way entity has to hire new
people and has to train them again. New staff members need time to understand needs of clients
and they do not know how to serve them well. In such condition consumers feel dissatisfied
because they do not get satisfactory services and they move to other brans. That is the biggest
reason due to which sales revenues of hotel gets down to great extent. Thus, due to high
employee turnover profitability and productivity of an entity get badly affected. On other hand if
company has skilled employees those who can deal with customers well then people will feel
satisfied and will give positive review about the corporation to others. It can assist in increasing
revenues of the entity to great extent.
4

Storey, (2014) argued that there is not significant relationship between strategic issues
and business performance. Organization can make modifications in its operations at any time. In
such condition it is easy for these firms to continue their operations. If there is sudden economic
fluctuation then it will affect entire industry so all hotels will get affected. So it specifically do
not impact on Marriott hotel. As per the view of Crane and Matten, (2016) strategic issues and
business performances are closely interrelated with each others. In the condition of changes in
government polices, entities have to modify its operations. If firm fail to do the same them it may
have to face huge legal complications. In such situation corporation will get failed to sustain in
the market for longer duration (Use Strategic Issues to Create a Better Organizational Strategy,
2017). It may also affect its brand image and can increase financial burden on the organization. If
there is sudden changes in policies then corporation will have to implement it and have to change
its entire operations. This will require huge investment and entity has to make its staff members
aware with the importance of these modifications. This can enhance burden on the corporation
and its net profit may get reduced to great extent.
Relevant theories to deal with these strategic problems
As per the view of Schein, (2017) Maslow's motivation theory is the appropriate model
that can help modern business organizations to deal with strategic issues in recent era. On of the
main problems faced by entity is high employee turnover. The main reason of this turn over is
that people are not satisfied with the organizational culture and structure. That makes them
uncomfortable in the workplace and they leave their jobs. This theory pays attention on different
needs of workers; physiological needs, safety needs, belongingness and love needs, esteem need
and self actualization needs. By identifying their requirements and fulfilling these desires
management can motivate their skilled staff members and can retain them in the workplace for
longer duration. Maslow's motivational theory is the relevant model that can aid in dealing with
strategic issues and minimizing staff turnover rate in the organization. By applying these
conceptual framework entity will be able to gain trust of their employees and it will help in
motivating them to contribute well in accomplishing goal of the business unit (Use Strategic
Issues to Create a Better Organizational Strategy, 2017).
According to Galliers and Leidner, (2014) SWOT analysis is considered as one of the
main theoretical framework that support the organization in understanding their internal business
environment. With the help of this tool company can identify strength, weakness, opportunities
5

and threats of a business unit. It supports the firms in developing contingencies planning through
which entity can be prepare to face issues and resolve them. It supports in minimizing
complications of the corporation and sustaining in the market for longer duration. SWOT
analysis aids the organization in creating favourable situation in the workplace so that future
complications can be minimized. Apart from this PESTLE analysis is another tool through which
external environment can be examined by the management. By this way managers can make
effective strategies to minimize external risks and conducting operations in smooth manner. Both
these models are appropriate to deal with strategies issues significantly. It aids the management
of hotel in identifying problems in the business and preparing contingency plan to minimize
negative impact of these strategic issues.
Research Methodology
Research methodology can be defined as systematic study that supports in addressing
problems and gathering data about the topic. The main objective of applying these tolls and
techniques are to test important facts and analysis phenomenon. With the help of these methods'
researcher can find out cause of issues and relationship with business performance (Mackey and
Gass, 2015). It is the great tool that supports in answering research questions in appropriate
manner. It can also be define as methods used by scholar for conducting investigation in
effective mode.
Research philosophy
It is the process of developing background of the study by involving in-depth detail about
the subject matter. It is the broad framework which defines beliefs, perception of an individual. It
is the procedure through which investigator can build relationship between reseach objectives
and questions (Glesne, 2015). Positivism, interpretivism, realism are the types of philosophies
that are applied in different types of investigations.
Positivism is the tool which is much more based on objectivism. This approach do not
give value to researchers own beliefs, it is related with observations and experiments in order to
gather detail about the topic. On other hand interpretivism is another tool that gives more
attention to beliefs and values of scholar (Brinkmann, 2014). This tool supports investigator in
highlighting facts and figures as per the problems of the researcher. It involves human being in
the investigation in order to develop understanding and knowledge about the topic. Realism is
6

another type of philosophy which is completely based on reality that already exist in
environment.
In the present investigation scholar has applied interpretivism philosophy. It has
supported scholar in identifying strategic issues faced by modern business organizations in recent
era and getting answers of research questions. It has developed knowledge of scholar about the
subject matter and has helped in getting optimistic results (Silverman, 2016).
Research Design
It can be defined as detail outline of the investigation that directs the scholar the way of
conducting a research. It defines a way of collecting data, analysis it and way to reach to the final
results. Selection of design completely depends upon objective and problem of the study.
Explanatory, descriptive, experimental, exploratory are various kind of research designs.
Explanatory research design is the tool in which scholar uses own imaginations (Smith, 2015).
Scholar applies own judgement in order to obtain information about the topic. In this type of
designing there is no need to formulate hypothesis. Descriptive research design is another type of
method in which researcher has to describe situations. It is theoretical tool that takes support of
models and theories in order to develop understanding about the subject matter. It involves
features of people those who are involved in this investigation, material used etc.
Present project is on the analysis of strategic issues in modern business organizations in
recent era. For that scholar has applied descriptive research design (Gast and Ledford, 2014). It is
suitable method because by this way individual can collect relevant detail about strategic issues
in the organization easily. As it is qualitative research so use of descriptive research design was
appropriate for the current project.
7

Illustration 1: Research onion
Source: (RESEARCH DESIGN AND METHODOLOGY , 2017)
Research Approach
It is another part of research methodology that supports the scholar in carrying out
investigation in effective manner. There are two main types of approaches; inductive and
deductive. Both these have unique features and both these are applied in different types of
researches. The main difference in both these approaches are from relevance of hypotheses point
of view. Deductive approach is the tool that works on the principles of validity of assumptions
(Scott-Parker and Senserrick, 2016). On other hand inductive approach pays more attention on
development of new theories in the investigation. Deductive research approach is the tool which
works on the logic that when premises are true then it is essential to draw true conclusion
whereas inductive approach explains that premises are used in the investigation in order to
generate untested conclusion. In addition, deductive approaches conduct study from general to
specific manner whereas inductive approach carry out research from specific to general way. In
the deductive approach individual has to formulate hypotheses but in inductive approach
individual does not formulate any hypotheses, theories and models are used in order to develop
understanding about subject matter (Gabriel, 2015).
8

In the current project scholar has applied inductive research approach, it is considered as
one of the suitable tool that has supported researcher in identifying various strategic issues faced
by modern business organizations in the recent era (Lakatos, 2014).
Data Collection
Data collection is considered as tool that assist in gathering relevant information about
topic and developing understanding about the subject matter. There are primary and secondary
two types of data collection sources that support scholar in gathering realistic detail about topic.
In the primary data collection method individual applies observation, interview, survey,
questionnaire techniques in order to gather first hand fresh data about topic (Grenier and Collins,
2016). These are considered as great method that supports in developing in-depth understanding
about subject matter. In this type of method individual involves human being in this investigation
that assists in gathering such detail that can help in accomplishing objective of the investigation
in effective manner. On other hand secondary data collection is another tool that aid the
researcher in gathering already available data that have been used by other authors in their
studies. Books, newspapers, magazines, Journals, internet articles are great sources of secondary
data collection. In this method scholar used these already available data in their research and
develop understanding about subject matter (Mackey and Gass, 2015).
In the present investigation researcher has applied primary and secondary data collection
sources. In the primary source individual has applied interview technique and in the secondary
data researcher has used books and journals. This has helped in gathering in-depth detail about
the topic and reaching to the final results.
Sampling
Sampling is the technique that supports in selecting appropriate samples from the
universe those who can give accurate information about the topic. Probability and non
probability are two methods that are applied in different types of investigations. In the
probability sampling technique all individuals get equal chance to being selected in the research.
Simple random sampling, stratified, cluster sampling etc. are several methods that are being used
by scholar in different types of investigations (Gast and Ledford, 2014). In non probability
sampling researcher may use convenience, purposive sampling methods in order to collect detail
about the subject matter.
9

In the current project scholar has applied random sampling technique. Scholar has
selected respondents on random bases. These are participation have shared their views that has
supported in gathering realistic detail about strategic issues faced by modern business
organization in recent era. Researcher has selected 5 managers of Marriott Hotel for the current
project.
Data Analysis
It is the process in which researcher analysis each data in order to get desire results.
Researcher needs to chose tool for analysis data as per the nature of the investigation and type of
study. In qualitative type of investigations scholar takes support of thematic analysis tool
(Glesne, 2015). It supports researcher in presenting detail in effective manner and getting
findings as per the objectives. On other hand in quantitative types of investigations scholar takes
support of statistical tools such as SPSS etc. By using numbers and statistical data individual try
to find results.
Current project is qualitative and scholar has applied theories and models in this study.
Thus, researcher has used thematic analysis tool, it was sustainable for the current investigation.
It has supported scholar in presenting and analysing detail in effective manner by using graphs,
charts etc.
Ethical consideration
It is one of the most important part of research project, dissertations. It helps the scholar
in minimizing issues and completing study in effective manner. As present study was based on
analysis of strategic issues that are faced by modern business organizations in recent era. In order
to gathering information about the topic individual had selected primary data collection sources.
In this method, researcher has to involve respondents. Before involving them into this
investigation scholar has taken prior permission with them (Gabriel, 2015). It has helped in
minimizing further complications. After getting their positive response researcher has conducted
interview with them. Furthermore, scholar has not copied material from any website. For
developing understanding about strategic issues' scholar has used books, journals and has
translated information of these articles in current project in own worlds. It has supported in
avoiding issue of plagiarism.
Validity and Reliability
10