Strategic Management Project In Marriott Assignment Sample

Introduction of Strategic Management Project In Marriott Assignment

Hospitality and tourism are focused on the management, marketing and operation of restaurants, on the other hand, food facilities, lodging and other travel-related services. Tourism deals with attractions, activities and different events, whereas hospitality focuses on availing people with good accommodation, travel, restaurants and other facilities. The hospitality in the tourist spot supports attracting more tourists which supports generating revenue for the nation. Marriott is the hotel that has the largest chain in the world. It welcomes tourists maintains its hospitality and provides luxury service to its guests. Hospitality in the tourist spot supports the organisation to attract more tourists. It supports Marriott to gain more and more tourists and generate revenue for the nation.

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Overview of Marriott

Marriott International is in the hospitality industry and this industry expanding its business all over the world. Basically, this company operates its business in North America, Asia Pacific, and all over the world. This company was established in 1927 and headquarter is situated in Bethesda, Maryland. It is a famous company where females are friendly and independent in their work and always safe. More than 97000 people are working in this company (forbes.com, 2022). The company was established by J.Wiliard Marriot and Alice Sheets Marriot. This company expands its business through Europe, America, and, the Caribbean, also many African countries.

Strategic development

Target market

An ideal group of consumers is the target market of any business and they are interested in a particular product or good services. Marriot is a reputed hotel brand in the UK. A business is growing faster when this company or industry has a strong target audience. Any business runs faster because it has a strong customer base. Hospitality is the basic nature of people that attracts the target market of any business (Masaki et al. 2021). Tourism and hospitality marketing is the connections to promote products used and good services in the tourism industry. The target market is some particular person or customer of any industry where the industry wants to sell its products or services. The pleasure market is the target market of the tourism industry. More than the people of the UK are engaged in nature and more attractive people of nature and nature side. Many businessmen, people from the conference team, and most probably many interested people who want to travel are the main target audiences (mediaboom.com, 2022). They are the main part of running this business. Three types of target market have present in any business Mass, Broad, and Niche markets. Target markets help the business of the company and fulfil the primary goals.

Global competitive position

This company expands its business all over the world and has huge competition in the market. Marriott has now a competitive position all over the world. The quality of the product is good and its score is 3.8/5 out of 701 customers and its rank is 5th against the competitors like Hyatt and Hilton (comparably.com, 2022). The customer rate is 839 and the score of the net promoter is 26, it is 4th rank against its competitor. The score of net promoter tracks customers. Marriott’s customer rate is 627 and its score is 3.6/5 in cost of the price, which is 4th rank against competitors and below Hilton. Marriott's customer service run is stable, 3.6/5 and it has 4th rank against Hyatt and Hilton and has a 588 customers’ rate. The culture score of the company is good, 73/100 and its rank is 3rd against Hyatt which had 1363 employees. This company always helps its customers and provides good services also (Soatovich, 2019). Employees' net promoter score is 26 out of 1070 employees and it ranks 3rd against Hyatt and hotel of four seasons. Marriot’s employment rate is 239 and its gender score is 70 out of 100 and its rank is 4th below Hilton. Women are friendly in this company so the Gender Score tracks the safety of Women and their experiences.

Mission statement

Marriott has a mission statement and this aim is that customer satisfaction and providing good quality products and services and experiences are very good to attach in this company. In this statement, the first goal is to increase customers' satisfaction and their lives. The company always gives a good place to live and different types of packages are available in this company (Murrell et al. 2020). Customers choose any of them because all of the packages provide good quality and the best services. Customers get more satisfaction and flexibility to go out any time or any place and their lifetime also (mission-statement.com, 2022). This company built a good community and company employees, managers, and leaders are so good it wants to build a community so customers are flexible. In 2025, this company improves its sustainability and guide to care for societies and always save the environment and this industry is growing from these points of view.

Organisational culture of Marriott

An organisational culture provides the right direction for the employees and most of the time change employees' behaviour and their contributions and efforts. It helps to increase employees' belief system of the company's work and values and provides many benefits. An organisation is based on many rules and regulations for its growth or improvement. The company managers and leaders built a strong organisation and aim to communicate with the employees and stakeholders so all members of the projects focused on the company development and understand all types of strategies and philosophy of the company (Alshawabka, 2018). Marriott has three layers of the culture of organisation, Artefacts are the outermost and values and beliefs are the middle and all fundamental satisfaction is the inner layer of culture that is maintained by organisation (essay48.com, 2022). These three cultures circle culture and the Artefacts culture are more affluent and visible things of the culture of an organisation.

Corporate social responsibilities (CSR) of the company

Marriot is one of the largest hotel brands in all over the world. Corporate social responsibility is essential because it is able to provide a good position for the business and it provides potentialities of customers and employees and community also. Many companies can use this strategy because of more engages customers in positive work and builds a strong community. CSR has four types of responsibilities, ethical, environmental, and economic also philanthropic. Most of the company have different responsibilities such as the engagement of employees and the diversification and security of the customers (goodfellowpublishers.com, 2022). All types of ethical manners and human rights are maintained by the company and have a good commitment keeps on the company. The environment should be kept safe, it is one of the human behaviours maintained by this company and employees follow all types of procedures (Xie, 2022). This tourism industry provides huge priority to customers’ and employees' health, mentally and physically.

PESTEL analysis

Table 1: The PESTEL analysis

(Source: self-created)

Political stability of the nation and change in the policies has high impact on the growth of Marriot. The Brexit situation in the nation affected the organisation, on the other hand, the tax rates, GDP, inflation and FDI have a high impact on the development of this organisation. Technology is the key factor for the growth and development of any organisation as it helps to fasten the procedures and help the organisation to campaign and do publicity (Matovic,2020). This helps the organisation to marketwise its services which supports the rise of the organisation hence, the technological factor has a high impact on the development of the organisation. Marriott maintains all supports of laws like the consumer protection law, employee’s protection laws and many other laws, along with that their services do not oppose any rule (marketingtutor.net, 2022). Hence, the legal factor has a moderate impact on the functioning of the organisation. The environmental standards, laws and regulations are necessary to be maintained by all organisations and it varies across different markets. The environmental factors have a moderate impact on the growth of Marriot (marriott.co.uk, 2022). They are concerned about the reuse and recycling of products and concerned about not harming the environment and maintaining environmental protection laws. Social factors have a moderate impact on the functioning and development of the organisation. It maintains the social norms and follows the trend.

The social, economic, political, legal, technological and environmental factors affect the functioning and growth of Marriot. It maintains all sorts of relevant rules and regulations while managing the tourism and hospitality of the organisation (marketingtutor.net, 2022). These factors influence the strategic decision-making process of Marriott international.

Porter’s 5 forces

Porter’s five forces are supportive to determine the market condition and the competition in the market. It has five different concepts which support the organisation to implement strategies based on that (Bruijl and Gerard, 2018). The managers of Marriott International use these five forces to analyse the influence on profitability to enhance long-term profitability and competitive advantage in this industry. Porter’s five forces include;

• Bargaining power of suppliers: There are many suppliers who supply raw materials in this industry. There are various options of suppliers that Marriott gets. Thus the supplier cannot bring changes in the price of raw materials, because, the rising price of the materials will lead the organisation to shift to other suppliers in order to get the products at a low cost (edrawmind.com, 2022). Hence, the bargaining power of the suppliers has a low effect on the functioning and profit-making of Marriott international.
• Bargaining power of buyers: Buyers prefer the organisation that avails them of good offers. They want quality goods and services at reasonable prices. This puts pressure on the organisation to gain profit, hence they go for putting discounts and offers to attract customers (marriott.co.uk, 2022). It has a high impact on the functioning and development of the organisation.

Figure 1: porter’s five forces

(Source: edrawmind.com, 2022)

• Threat of new entrants: There was the situation of Brexit in the UK, along with the pandemic covid-19 has had a harsh effect on the UK market. The development of a new organisation demands huge funding, thus any new competitor won’t get the courage to develop a new market (edrawmind.com, 2022). Hence, this has a moderate impact on the profitable market of Marriott.
• Threat of substitutes: There are many substitutes in the existing market Marriott. Customers always prefer the goods and services that they get at minimum costs. They had to bring policies and services considering the policies of other substitute organisations to gain the attraction of tourists (marriott.co.uk, 2022). Hence, the availability of substitutes has a high impact on the profitability of the organisation.
• Rivalry among existing competitors: There are many organisation that maintains hospitality while dealing with tourist and provide all sorts of facilities to the customers. Marriott has many competitors in the UK market, like; Hilton Worldwide, Intercontinental hotels and many others (edrawmind.com, 2022). The existing competitors have a high impact on the profitability and functioning of Marriott.

These forces helped the organisation to bring an effective strategy. Its impact helped to determine the risk in the marketplace. This helped to bring changes in the functioning to attract more and more tourists. Hence, these forces are effective in bringing changes in the organisation and making a profitable business in the marketplace.

VRIO Analysis

VRIO is a strategy tool that is used to evaluate the uses of the resources of the company. It helps the organisation to identify its resources and capabilities to remain a competitive advantage (Gazoni and Silva, 2022). It deals with four concepts that are; the value of resources, the rareness of the resources, imitation of risk and organisational competence. The managers and the leaders use this tool to build sustainable competitive resources by getting knowledge about the available resources and their role in supporting the business models.

Table 2: The VRIO analysis

(Source: Self-created)

The track record of Marriott has a positive impact on the competitive market. It shows a high chance of gaining a sustainable competitive advantage in the marketplace. The organisation has a high financial background as it is an industry that has a great chain (Astawa, 2022). The financial background is supportive in gaining the advantage to sustain in the competition. The flexible supply chain helps the organisation to run the business in an uninterrupted way. Marriott has implemented a digital strategy that helped to grow its business but it is not supportive to bring a sustainable competitive market.

SWOT analysis

Table 3: SWOT analysis

(Source: marriott.co.uk, 2022)

Marriott has various strengths and weaknesses in itself, on the other hand, it has some external features like; threats and opportunities in the marketplace.

• Strengths: It has the largest hotel chain in the world and they have a good reputation in the world market. It is operated in approximately 127 countries and different territories (bstrategyhub.com, 2022). It has a high rank in diversity, employee performance and many other concepts. It has partners that arise from the biggest sectors and its partnership enabled the customers to make bookings without any deposit, which supported attracting customers (bstrategyhub.com, 2022). They have a code of conduct and they follow all sorts of rules to improve its functioning.
• Weaknesses: This organisation has family-focused positioning which is the major weakness of the organisation. It had failed to keep the customer's data safe as it was once hacked and all details of the tourists were exposed (Djellabi et al. 2021). Their negative attitude is also found as they are concerned about their customers only. They are too much strict with their rules and regulations. The disobedience of rules even led to the firing of many employees.
• Opportunities: The world population is increasing day by day, hence they get the opportunity to grow their business. This is the age where people prefer digitalised and modern services (Teoli et al. 2019) Hence they would get the opportunity to bring diversified and digitalised services to the people, along with that they can open some sectors that are connected and related to tourism and hospitality to expand their business.
• Threats: The pandemic has had a harsh impact on the market condition. It lessened international tourism, which led to a decrease in the business of the tourism industry (Baum and Hai, 2020). There was an atmosphere of recession which had a severe impact on the market of tourism. There are threats of different attacks like terrorist attacks as it is a highly reputed organisation.

Competitors, resources, competencies, and financial performances 450

Marriott has many competitors because this company is running faster immediately. Hilton and Hyatt are two hotel brands that are the competitors of this company Hilton have 142,000 employees and Hyatt has 44,000 employees. This company maintains the largest catalog of global hotel rooms and developed other hotels. Marriott has famous because of its customer service, always focused on customer needs, and fulfilling all things. Many types of training programs and courses provide by this tourism industry and provide an orientation program for good performance of the employees and keep the stability of the culture. Marriot provides practical training in some skills and knowledge, every day this company managers provide 15 minutes of training. Managers of the company provide 20 types of training programs to help with customer satisfaction. The company improves service quality and offers opportunities provides for consumers. Many core competencies of the company are three levels, leadership, managing performances and building good relationships and generating all types of talents, and implementation of personal skills and pieces of knowledge. The leadership team is designed for hotels when a new one is opening, it is a strategy to develop the company's profit. It focused on effective service and food and pricing rates.

Financial performance: Financial performance is essential performance of the tourism industry because a company did not run without financial calculation. Marriott is an international hotel and it generates 13.84 billion dollars in 2021 its total revenue and it increases the previous year by 10.57 billion. Hence, the company's performance dropped in 2020 because the pandemic situation stopped all business (wsj.com, 2022). In 2020, the company expands its business online and overcome all types of distractions and problems. This company has a value of its brand and it is five valuable brands all over the world. Marriott’s performance of total value is increasing day by day.

Figure 2: Financial Performances of Marriott

(Source: seekingalpha.com, 2022)

From 2009 to 2021 this company's financial revenue is stable and increased faster. The total revenue of finance is 20.76 billion dollars in 2018 and it increases in 2019 to 20.97 billion dollars (seekingalpha.com, 2022). The company's net growth of income is highly increased and in this year sales revenue is high 5.31B in 2022, September. Company balance sheets are minimal changes for 2021 September and it increases in September 2022. This company built a strong team in 2021 and approximately the total rooms of the company are 92000 and 50,000 have markets all over the world.

Total gross rooms of 86,000 are distributed in annual revenue and it also increases after years. Marriot’s future is continued to recover and huge growth has coming soon (statista.com, 2022). Marriott’s total investment money is $600 million to $700 million and it increases on daily basis, all challenges overcome the company.

Business level and corporate level strategy of the company

All company is needed strategies to fulfill goals and any type of work, this company has two types of strategies such as business-level strategies and corporate-level strategies. These strategies are developed the business growth and improve employees’ performances. Any company begins with some strategies and after a few times, it has changed to rebuild the business structure and company growth.

• Business strategy: This strategy is based on basically customer attraction and more improvement of its business and increased profit for selling products. Business strategies help to design the company and expand a huge market all over the world. Some particular goals have present in the company because every company maintains some specific goals to fulfil the target and achieve short and long-term goals. The tourism industry did not run without goals and strategies. Some unique strategies follow this company to fulfil the company goals. It helps to motivate customers and fulfil customers' needs so they are satisfied and increases its profits. Therefore, many customers are attracted to new strategies and get more profits with the help of unique strategies (Mody et al. 2020). This company follows Swot analysis, maintained core values, and follows many tactics also a measurement plan. Cross-selling is working very effectively through many online retailers and many online apps. Many types of unique strategies are involved in newly launched products. Customer services are good and strong because of specific business strategies that focus on the delivery time and the right product delivery (Ge, 2020). Some big companies have many competitors so many unique strategies are improving the company goals. Price strategies are one of the most important factors to attract customers.
• Corporate business strategy: A corporate strategy is a process that improves the company’s organisation. These strategies are trying to diversify and enter a new market. Stakeholders of the business have the responsibility for their work and they follow these strategies to commit to the company’s work. Upper-level managers are used in these strategies to improve company growth and business growth. The manager of finance helps the company to calculate recent data with the help of these strategies. Managers get financial results and many data that help to calculate the total revenue of the turnover and its profitability. These strategies are to develop product value. Employees are motivated to see the unique strategies that help to increase the company growth and overall business strategies. Many analysts help company’s strategies to improve business growth. They build good relationships with customers and employees and other stakeholders so the business of the tourism industry is increasing day by day using some new strategies and technologies. Projects managers provide many recent updates and many personal skills that are developed for the improvement of the tourism industry.

Recommendations

Marriott is an organisation that has a large chain in the world market and it acquired a great space in the world market of this industry. It has branches throughout the world and it needs to implement some strategies to get the top position in tourism and hospitality (Rosa et al. 2022). The management and authorities are recommended to bring some changes in their functioning and working procedures to improve their system.

The organisation is recommended to improve data protection security as the personal details of the tourists are to be stored in a secure way. They need to use improved and developed IT systems to maintain the safety of customer details (Mulyani et al. 2020). This would help the organisation to bring safety to the customer details and the employees' details.

It is recommended that the organisation improve its positioning. They have family-focused positioning which is not preferred by all the customers (Nyanga et al. 2019). They need to bring changes in this field to attract all types of customers.

The organisation is recommended to improve the way of treating its employees. They are very strict with their employees this affects the working of the staff (marriott.co.uk, 2022). The employee would give positive outcomes if they get a familiar working atmosphere. Hence, this would help to bring a positive working atmosphere to the organisation.

It is recommended that the organisation improve customer satisfaction, the company focused basically on customers satisfactions and provides more opportunities to build a strong community, and gives always flexibility. Therefore, the company follows many strategies to improve the company turnover and customer performance. Many stakeholders are managed by the company work and are responsible for all business related work.

It is recommended that the organisation improves its financial performance, in 2018, the company improves its financial performance and gradually it increases (Bates, 2020). Many competitors occur against the tourism industry and all challenges are overcome by the company and improve performance.

Conclusion

Marriott is an organisation that attracts many tourists as it is highly reputed and avails all sorts of facilities to its customers. It has many strengths and weaknesses, hence it implements various strategies to get rid of its weaknesses and improve its functioning. It adopted many strategies and techniques to enhance its quality of services and attract more tourists to its organisation. They prepared plans for their future and adopted some strategies to enhance the future performance of the organisation. It has maintained social responsibilities while establishing its business. The organisation has researched its available resources and used those resources in a way to make a sustainable business environment. The organisation faced various difficulties but it has taken effective measures to recover from those harsh situations. The management team of Marriott is provided various recommendations to enhance its performance in the future and reach the peak of tourism and hospitality industry in all over the world.

References

Journals

Alshawabka, K.E., 2018. Staff Perceptions of Lesson Observation and Feedback in a UK Secondary School: CPD, Identity, and Organisational Culture. Open University (United Kingdom).

Astawa, I.P.M., 2022, March. VRIO Model as a Framework for Developing Tourism Competitiveness. In International Conference on Applied Science and Technology on Social Science 2021 (iCAST-SS 2021) (pp. 173-178). Atlantis Press.

Bates, B., 2020. Navigating Corporate Social Responsibility. Marriott Student Review, 3(4), p.25.

Baum, T. and Hai, N.T.T., 2020. Hospitality, tourism, human rights and the impact of COVID-19. International Journal of Contemporary Hospitality Management, 32(7), pp.2397-2407.

Bruijl, D. and Gerard, H.T., 2018. The relevance of Porter's five forces in today's innovative and changing business environment. Available at SSRN 3192207.

Djellabi, R., Giannantonio, R., Falletta, E. and Bianchi, C.L., 2021. SWOT analysis of photocatalytic materials towards large scale environmental remediation. Current Opinion in Chemical Engineering, 33, p.100696.

Gazoni, J.L. and Silva, E.A.M.D., 2022. System Dynamics framework for tourism development management. Current Issues in Tourism, 25(15), pp.2457-2478.

Ge, X., 2020. Exploring factors of corporate social responsibility in luxury hotels: The case of Marriott Hotel (Doctoral dissertation).

Masaki, E.A., John, W.F. and Abel, C., 2021. Impact of ICT tools and apps on tourism destination marketing: A case of RDB and Marriot Hotels, Kigali, Rwanda. International Journal of Social Science and Economic Research, 6(4), pp.1232-1249.

Matovic, I.M., 2020. PESTEL analysis of external environment as a success factor of startup business. ConScienS, p.96.

Mody, M., Wirtz, J., So, K.K.F., Chun, H.H. and Liu, S.Q., 2020. Two-directional convergence of platform and pipeline business models. Journal of Service Management, 31(4), pp.693-721.

Mulyani, A., Kurniadi, D., Septiana, Y. and Wahyono, T., 2020. Strategic Planning For The Implementation of Tourism Information Systems. Int. J. Sci. Technol. Res, 9(2), pp.4714-4717.

Murrell, A., Onosu, O.G., Petrie-Wyman, J., Bichsel, L. and Cooper, M., 2020, March. Designing Business Case Writing as an Experiential Learning Project. In Developments in Business Simulation and Experiential Learning: Proceedings of the Annual ABSEL conference (Vol. 47).

Nyanga, C., Pansiri, J. and Chatibura, D., 2019. Enhancing competitiveness in the tourism industry through the use of business intelligence: A literature review. Journal of Tourism Futures, 6(2), pp.139-151.

Rosa, P., Bento, P. and Teotónio, T., 2022. The internal competitive advantage of adventure tourism operators: An exploratory approach. Journal of Outdoor Recreation and Tourism, 39, p.100555.

Soatovich, Y.A., 2019. The Conceptual Bases of Multinational and Global Competitiveness Environment and Strategic Alliances. World Science, 3(5 (45)), pp.9-15.

Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.

Xie, Y., 2022, April. Corporate Social Responsibility: Concept and Cases. In 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022) (pp. 1394-1399). Atlantis Press.

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