A Case Study of Marriott International

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EXECUTIVE SUMMARY

Marriott International envisions itself to be the world’s lodging leader. Its mission is to provide the best possible lodging services experience to customers who vary in backgrounds, language, tradition, religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement.  We value our shareholder’s so we will only take steps that will ensure our growth. Most importantly, through our “spirit to serve”, we emphasize the importance of Marriott’s people and recognize the value they bring to the organization’s growth and success. It aims to increase revenues by 9% every year, to increase profits by 5% annually, to gain brand loyalty from their international customers, and lastly, to increase their market share in the lodging industry by 3% within 3 years.

Marriott International is ranked as number one in market capitalization and revenues in the lodging industry. In fact, it has been ranked by Fortune as among the “100 Best Companies to Work For.” It has a total of six business segments in its portfolio, namely: the North American Full-Service Lodging Segment, North American Limited Service Lodging Segment, International Lodging Segment, Luxury Segment, Timeshare Segment, and the Synthetic Fuel Segment. It has a deep history, which started way back to 1927 when J. Willard Marriott and his bride opened a 9-seat root beer stand. Through the years, competition has been tight, and Marriott International’s closest competitors would be the Accor, the Hilton Hotels Corporation, and the Intercontinental Hotels Group PLC. Financially, Marriott International is doing well, but growth is not as high compared to the previous years. Furthermore, there is potential for growth in the international market.

To improve its financial performance, Marriott International should penetrate the full-service, limited-service and luxury lodging segments in the domestic and international markets. After three years, Marriott International would evaluate the chosen strategy through financial, customer, internal process, and learning and growth perspectives. Each perspective would have a measure of collection, which are accorded to the objectives of each perspective.

INTRODUCTION

VISION

Marriott’s vision is to be the world’s lodging leader.

MISSION

Marriott International’s mission is to provide the best possible lodging services experience to customers who vary in backgrounds, language, tradition, religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement.  We value our shareholder’s so we will only take steps that will ensure our growth. Most importantly, through our “spirit to serve”, we emphasize the importance of Marriott’s people and recognize the value they bring to the organization’s growth and success.

SWOT

I. EXTERNAL VARIABLES

Opportunities

1. Growth in demand of hotels worldwide

- Since there is growth in demand of hotels worldwide, Marriot should take advantage of this opportunities. There will be fewer difficulties in this strategy since Marriott is already well-established. This idea will give them more opportunities for expansion.

Threats

1. High oil prices

- Because of the high oil prices, Marriott has a loss of $76 million for synthetic fuel operations mainly caused by production suspensions in 2006. And this is an addition to an operating loss of $144 million in 2005. Even administrative and other expenses decreased by $76 million in 2006. High oil prices could greatly threaten the operating activities of the company.

2. Intense competition

- Marriott competes with 676 lodging management companies in US and several of them operate more than 100 properties. Marriott’s...
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