Starwood Swot Analysis

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  • Topic: Hotel, Vacation rental, Revenue
  • Pages : 13 (2471 words )
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  • Published : October 23, 2010
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Starwood Hotels

Mission and Current Performance
A) A vision statement needs to include what the company wants to become. In Starwood’s vision statement the vision is vague. They are not in the Life Style business, nor strongly in the Consumer Products business. Their business is the hospitality business and it is not emphasized properly. Starwood lacks a mission statement. As so they do not address the nine components of the mission statement that describes what the business is. There is a statement of company values. It is a very generic and all encompassing statement, but it does sets the standard for the culture the company wants to establish. B) Starwood suffered poor performance in 2006. Evidenced by a decline in Gross profit, decline in Cash on hand and Decline in Tangible assets. Starwood is in a process of changing their business model. They are divesting of non-core hotels and investing in Time Share properties. They are also in a process of major expansion of their overseas operations, especially in China and India, and the Middle East. Starwood is adding franchised and managed hotels to their portfolio

External Analysis

Political, Legal, Regulatory
|Opportunity |Threat | |Comply with local laws in all countries they operate and particularly |Employment law and safety regulations are different in other countries.| |in China, India and the Middle East where they plan to develop highly |Political instability in Africa and Middle East countries | |desirable properties | |

Economics
|Opportunity |Threat | |Depressed value of the dollar will increase overseas tourism to the |Recession in travel industry | |USA |Less disposable income | |According to plans has access to capital to be able to finance new |Wyndham Hotels owns RCI, which is the primary system in the world for | |ventures |Time Share exchange | |Go to new untapped markets with huge potential like China and India |Hilton Hotels $ 900 million renovation of their hotels, which are | |Command good locations in emerging markets |direct competition to the Sheraton brand | |Expand on retail brands to maximize brand recognition and increase |Hayatt is a similar company in size based on 2005 revenue report, with | |revenue |additional luxury amenities such as golfing | |Increase number of franchised and managed hotels |Marriott is another large competitor | |Larger portfolio of managed properties allows for increase in |All competing companies own time share properties and all have better | |advertizing budget |scale economies | |Specific hotel brands are geared toward niche target markets |2006 revenue in US and Italy decreased | |Large unemployment in US market allows for better qualified pool of |Getting involved in retailing, which is not a part of core competencies| |potential employees |Increasing dividend by 7% when net operation income did not increase, | |Low interest rates makes borrowing...
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