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The given assignment is about the analysis of strategic and non-strategic decisions of the Marriott international in US. It is an American multinational diversified hospitality company that franchises and manages portfolio of hotels and lodging facilities.
Marriott International is a well –renowned leading franchisor, operator, corporate housing properties, licensor of hotels, and time share properties under the multiple brands at different charges and valuable domains. It has more than 3500 properties around the world. Leading performance, innovation, and quality of service is the key priority of Marriott international. It has expanded its business in approximately 74 countries and has 18 brands in total. Many international magazines like Fortune have included the Marriott international as the most admired company in the hospitality industry.
Marriott was mainly found by the J. William Marriott and his wife in Washington D.C in 1927 as a root beer stand. In the mid-summer, the hot Shoppe has become the famous place to get cool drinks to break the thirst at affordable prices. It has also brought multiple drinks and dishes for multiple occasions and according the seasons to attract large number of consumer around the world. Marriott did it first international expansion in the year of 1966 by obtaining an airline catering kitchen in Caracas. It is to be believed that Farrell’s ice-cream parlors became the part of Marriott international in 1972 and successfully taken the hotel to the next level. In 1972, it becomes the million dollar company and successfully entered in serving the international clients.
Marriott international has successfully maintained a strong and effective corporate culture; it is people serving people which resulted in increasing their core values and key factor in satisfying the customers. This is the true reason for its continued growth and satisfaction and also inspires the best performance during the client visiting. The prices are highly affordable and designed with genuine Caribbean hospitality for visitors to feel like home, when they are residing away from their home. It is at much at closed distance from the entertainment complex and the national stadium.
Effective strategy formulation and effective management is highly necessary to sustain in the competitive market. It helps in maintaining and managing the position of the market. In the hospitality industry, sustaining mainly means being environmentally steward, good corporate citizen, and promoting economic growth, inclusion, and diversity in our communities around the world. It is to be believed that Marriott International is growing bigger day by day and mainly focusing on Africa, Asia, and Middle East these days. Marriott international has well-planned strategies like brand distinction, technology leadership, New generation travelers, portfolio power, owner preference and global growth. These strategies are expressed to compete with the rivals or competitors. Along with these strategies, Marriott International also has the CSR strategy to serve the communities with their valuable and effective services to stay ahead in the competition. Company has also initiated its strategic management program to catch up the latest and recent trends in the hotel industry along with the growth and development in the marketplace. Marriott international has also developed a great lobby room involvement for the new Generation travelers in 2007 along with this it expanded its business in around 190 countries with more than 500 Marriott hotels and resorts (Auty, 2016).
Marriott International Hotel is also putting their efforts to reduce the cost of the labor in its corporate offices regardless of greater expansion of the company itself. Even in China, Marriott hotels are planning to open new hotels in short period than the rival hotels and resort. The economies in the China are slow but the tourism and hospitality industry is growing at fast rate. Marriott hotels want to capture the new emerging market of travel and tourism by adding new and unique rooms.
The vision of the Marriott hotels is to be the no. 1 hospitality company around the world. External and internal analysis is highly important to analyze the strategic decisions of the company.
SWOT analysis will helps in analyzing the real picture of the Marriott international hotel along with this it will also help in analyzing the strategic decision making as well (Salazar & Rita, 2010).
Marriott International is a well-renowned and global leader in the hospitality industry which has strong internet presence with the strong brand equity and effective IT solutions. Marriott International has highly concentrated on the specialized market segments and proper brand differentiation.
It is to be believed that Marriott International is mainly dependent upon the luxurious and unique brands of the US marketplace and lacks in lost cost brands which is highly popular in the developing countries and helps in attraction large section of the people around the world (Wilburn, 2007).
There is a high chance of growth in the Tourism and Asian travel market. Less costly market is now trending and Marriott has the higher level of chances to capture this segment with less investment. Environment friendly methods and eco-tourism can provide substantial success for the Marriott International hotels.
Marriott International Hotel has adopted time-sharing approach which is losing its uniqueness in these days. Due to the economic recession in the Europe, it is lowering the consumer spending. Political instability and threat of terrorism in some countries could be seen as a big threat for the Marriott international Hotel. It is to be believed that several taxes related scams are also lowering the brand image of the Marriott International Hotel (Knutson & Patton, 2008).
Timely analysis of the external environment is very crucial to increase the effective strategic decision making along with this it also helps in remain competitive in today market place. Due to the dynamic environment changes, keeping in touch with the new changes is very helpful in the further growth and development in any sector.
Marriott International Hotel has clearly understood the value of effective and strict laws and legislations of the individual nation to work as per their way of working in the past and present. It is to be believed that political scenario in every country is unique which must be addresses effectively and efficiently. Marriott International Hotel has strictly followed the framework designed by the individual nations, i.e. low calorie diet, non-fat food, and no-smoking policy.
The emerging economy of Asia and other developing nation is encouraging the Marriott hotels to invest more in these particular areas as this could bring massive profit. In addition to this, the increasing price of the gasoline is motivating the Marriott hotel to focus on the clean energy and to be somehow more environment friendly by reducing the use of synthetic fuels that helps in reducing the cost of the productions.
Today, people like to explore and travel new places. Marriott is also trying to extend the travel network in America, Australia, Asia, Europe, and Africa. Visiting family and friends in abroad is very easy and convenient due to the advancement in the transportation system. Marriott international must analyze the uniqueness of its market and develop plan to attract new emerging market (Benavides et al., 2014).
Today, technology plays a crucial role in connecting the world and congregation of the people at one place. Earlier, people have to be stand in queue to take the tickets or to book in hotel but now, check-in, check-out, payment, and reservation can be done flawlessly. Marriott International Hotel has adopted new and innovative technology than their competitors. It is to be believed that Innovation and technological is key factor for the success of the Marriott International Hotel (Bass & Wind, 2008).
Non-strategic decisions refer to the occurrences where it is undertaken regardless any individual profit motive, for example; ethical CSR and altruistic CSR. It mainly refers to the responsibilities and duties of the businessmen to pursue those decisions, policies and which are highly desirable in terms of values and objectives of the society. It is the duty of the well-established organizations to look after the society and environment along with their investor and customers. The Marriott International Hotel is largely depending upon eco-friendly products which will not only help in protecting the environment but also helps in reducing the cost of the production or overall manufacturing process. Engaging in non-strategic decision making is as important as strategic decisions for the further growth and development. The benefit of the doing good work towards the society and environment outweighs the cost even if the organization is not expecting any specific monetary return in its activities.
The Marriott International Hotel involvement in the CSR activities can improve its brand uniqueness and its true loyalty for its customers. As the services involved in the service sector are intangible based on the perception of high quality rather than product attributes as this helps in build good brand image, creates differentiation among numerous brands, that can become an advantage in the highly competitive industry that provide unique services like beautiful and different hotel rooms. Non-strategic decision needs to done with less investment but gives high level of advantages in all direction as people are always preferring the companies which are highly conscious for society and environment. In reality, a few examinations have discovered that buyers will pay an excellent amount (now and then past 15%) for green and feasible lodgings and eateries utilizing nearby as well as non-hereditarily changed or natural fixings. Strikingly, clients are highly aware of an organization's CSR activities are significantly bound to "excuse" the firm for a minor administration disappointment, in this way permitting quicker administration recuperation (Browne, 2005).
The stakeholders of the hospitality sector plays a crucial role in encouraging corporate social responsibility by making sure that the way in which they are conducting their business is fair and good for all the involved members and society as well. The stakeholders are continuously encourages the organizations to look after the safety and security of the environment and work in the way which should not provide harm to the surrounding at all levels. The multiple stakeholders like customers, investors also help in reducing the rate of pollution in the environment. The stakeholders of the Marriott hotel helps them to keep in touch with the new innovation in order to work according to the new and trending technology in advance to achieve competitive advantage. The stakeholders also help in preservation of numerous cultures which mainly acts as a tourism attraction. Marriott Hotels always tries to give effective working environment to their workers to make sure they are serving the customer without any stress and satisfied them at all levels. The stakeholder theory mainly helps in recognizing the important environmental decisions for which they also get the full support of the society as well in the further productivity and profitability of the hotels (Law et al., 2008).
However this theory faces logical inconsistencies dependent on the utilization of the benefits that organizations make. The contention behind is that whether the increases made by the organization ought to be given initially be given to the investors. The expansion of the organizations' duties to the general public who are not investors or partners is vital. The stakeholder theory considers the non-investors to the organizations likewise thinks about the workers to the organizations, the networks that are restricted, and the foundations that are in charge of offering accounts to people in general in type of advances the clients lastly the associations who are offered tenders to supply merchandise and enterprises to the friendliness business.
There are numerous level of risk associated with the Marriott International Hotel. It is to be believed that out of 4500 Marriott hotels, 4300 plus properties and nearly 780,000 rooms and about 60% of the rooms are mainly in US. Due to the slowing US economy, it is pushing the hotel industry down as the customer has been left with less spending on their luxurious life. International level of growth and development is a crucial aspect for the hotel industry or Marriott long – term development plan, especially what is happening in the U.S. The violence in numerous places like Turkey and France in the past few months has thrown the negative impact on the Hotel industry. Marriott is highly focused on building large number of rooms around the world along with the more than 285,000 rooms is in pipeline. The increased rate of terrorism attack would possibly affect the non-significant travel to the areas which have high possibility of risk or which could hurt the Marriott international growth prospects as well. It is to be believed that on November 30, 2018, it was arguably reported that Marriott International Hotels confronted a breach that expose the personal information of the around 500 million customers. Marriott Internal safety and security team has detected the issue in the month of September but the company was not able to analyze the leaked information till November. With the attack, the hackers have successfully gained the contact details, names, travel details, passport details to use them for personal benefit.
Guests may represent to the fuel for any hospitality organization. Without visitors and explorers, these organizations wouldn't profit. Be that as it may, visitors can likewise possibly be the greatest dangers – both specifically and by implication – to benefit. Claims from individuals who are harmed or harm to guestrooms can speak to a major hazard to the main concern.
Take, for instance, Plim Plaza. In October 2011, the Maryland Department of Health and Mental Hygiene found Legionella microorganisms in water gathered from different areas. Six individuals fell tired in view of the infection, and one of them passed on. The California-based inn network was later sued for $6 million by the individuals who gotten the sickness. (Baum, 2016).
The main principles of the Marriott International are meeting the needs and demands of its clients and to be balanced to a standard set by the hotel industry. Proper different is highly needed in their respective Marriott hotels. The Marriott international hotels can cater the needs and wants of the individual clients in regard of their nationality. It can also separate their vacation resorts from the business resorts by changing the overall dynamic environment and making both unique and different. Marriott Hotels should invest more in sustainable development and green technology, this will helps in increasing the revenue along with this also helps in increasing the operating efficiency of the Marriott hotels. Marriott International has turned out to be one the world's driving hospitability specialist co-op with it giving world class office, development, intelligently driving the market. It has its inn deliberately found .It likewise utilizes capable and taught workers. It has been concentrating on the supportable administration of its assets. With the expanded in way of life of the general population around the globe, happening to internet business, it has fundamentally exploited both the circumstance to its support. The Marriott International must choose a unique location which plays a crucial role in the success of the hotel industry as convenient, easy accessibility that will also help in gaining a competitive advantage in the market place. The hotels must try to employ trained, skilled, educated, and well-mannered employees will helps in creating a better workforce which can help in creating a better management of the Hotel and helps in giving better customer service to its visitors. The Marriott hotels may opt for the franchising strategy in its management and marketing mix as these strategies will help the company’s management to focus on its core instructions of products growth and development. It will help in reducing the financial risk associated with the hotels while allowing non-participatory approach for further growth and development. The Marriott Hotel must think about franchising the hotels as there are multiple investors who are ready to fund them in expanding their business. This effective and efficient strategy will reduce the threat of hard competition in the hospitality industry for the Marriott Hotels. The stakeholders are continuously encourages the organizations to look after the safety and security of the environment and work in the way which should not provide harm to the surrounding at all levels (Kivela, 2002).
The given assignment discussed about the analysis of strategic and non-strategic decisions of the Marriott international in US. Marriott international has successfully maintained a strong and effective corporate culture; it is people serving people which resulted in increasing their core values and key factor in satisfying the customers. It has more than 3500 properties around the world. Leading performance, innovation, and quality of service is the key priority of Marriott international. Marriott International Hotel has adopted new and innovative technology than their competitors. It is to be believed that Innovation and technological is key factor for the success of the Marriott International Hotel. The stakeholder theory considers the non-investors to the organizations likewise thinks about the workers to the organizations, the networks that are restricted, and the foundations that are in charge of offering accounts to people in general in type of advances the clients lastly the associations who are offered tenders to supply merchandise and enterprises to the friendliness business. This is the true reason for its continued growth and satisfaction and also inspires the best performance during the client visiting. The prices are highly affordable and designed with genuine Caribbean hospitality for visitors to feel like home, when they are residing away from their home. It is at much at closed distance from the entertainment complex and the national stadium. The vision of the Marriott hotels is to be the no. 1 hospitality company around the world. External and internal analysis is highly important to analyze the strategic decisions of the company. The stakeholders are continuously encourages the organizations to look after the safety and security of the environment and work in the way which should not provide harm to the surrounding at all levels.
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