ANALYSIS AND STRATEGY OPTIONS OF BUSINESS: THE CASE OF MARRIOTT INTERNATIONAL

Bài viết Analysis and Strategy Options of Business: The Case of Marriott International là một nghiên cứu chi tiết về phân tích và các lựa chọn chiến lược kinh doanh của tập đoàn Marriott International. Bài viết tập trung vào việc phân tích các yếu tố quan trọng trong môi trường kinh doanh và đề xuất các phương án chiến lược để tăng cường hiệu suất kinh doanh của Marriott International.Bài viết bắt đầu bằng việc đánh giá các yếu tố môi trường bên ngoài ảnh hưởng đến Marriott International, bao gồm cả yếu tố kinh tế, xã hội, chính trị và công nghệ. Phân tích này giúp hiểu rõ về thách thức và cơ hội mà tập đoàn này đang đối mặt trong ngành công nghiệp khách sạn và du lịch.Sau đó, bài viết đi sâu vào phân tích nội bộ của Marriott International, tập trung vào các yếu tố như chiến lược sản phẩm, đối tác, kỹ năng quản lý và tài chính. Phân tích này giúp xác định các điểm mạnh và yếu của tập đoàn và đề xuất các phương án cải tiến và phát triển.

FOREIGN TRADE UNIVERSITY Faculty of International Education

-*** -REPORT STRATEGY AND INNOVATION TOPIC: ANALYSIS AND STRATEGY OPTIONS OF BUSINESS: THE CASE OF MARRIOTT INTERNATIONAL Student perform : Nguyen Thi Huong Giang Class : F-UON-M3E Major : Bachelor of Marketing Management Associate with University of Northampton Student ID : 2005081104 Instructor : Pham Thi My Dung HaNoi, March 2023 Table of Contents 1 INTRODUCTION

2 CONTENT

2.1 Overview of company

2.2 Vision, mission, and values of the company

2.3 External factors analysis

2.3.1 Pitch competitor - 5 FORCES

2.3.2 PEST/PESTLE

2.3.3 EFE Matrix

2.4 Internal factor

2.4.1. IFE Matrix

2.4.2. Resource Base Model

2.4.3. VRIN/VRIO

2.5 CPM

2.6 Strategy of company

2.6.1. SWOT Matrix

2.6.2. TOWS Matrix

2.6.3. Strategic options

2.6.4. Recommendation

3 CONCLUSION

4 REFERENCE

1 INTRODUCTION

Marriott International, one of the top hospitality businesses in theworld, has carried out extensive research to determine the primary patternsand problems the sector is currently facing In today's rapidly changingbusiness environment, it is crucial for businesses to adapt and respond tothese trends to stay competitive The study by Marriott provides insightfulmanagement suggestions for potential future business success In this article,

we will examine some of the most important study results from Marriott anddiscuss how companies can use this data to create future management plansthat will be successful

2.1 Overview of company

Marriott International is the largest hotel company in the world with morethan 4,100 properties in over 80 countries and territories around the world, over700,000 rooms, and an additional 200,000 rooms in the development pipeline Thefirm’s flagship brand is Marriott Hotels, designed to serve business and leisuretravelers as well as meeting groups Marriott traces its roots to an A&W root beerstand founded by Willard Marriott and his wife Alice in 1927 in Washington, DC.The firm experienced growth in the domestic market and international market overthe next two decades, even opening an additional fast-food restaurant and forming apartnership with Sun Line cruise ships Marriott now places envelopes in 160,000hotel rooms in the United States and Canada, urging its customers to tip thehousekeepers

2.2 Vision, mission, and values of the company

The goal of the Marriott International is very simple which is leaving alegacy of excellence in the service industry The company aims to be the favoritetravel company for the masses throughout the world Marriott InternationalOrganization has ensured continued success for close to a hundred years on a globalstage by following the vision of the founders of the company Marriott’s visionstatement put forth by the company is “To be the World’s Favorite TravelCompany.”

The mission statement for the Marriott International is “To enhance the lives

of our customers by creating and enabling unsurpassed vacation and leisureexperience.” They believe that the key to long term success of any service providingcompany is to offer its customers services of that quality that the customer is leftwith no other option other than choosing your brand Moreover, to retain customers,Marriott International goes an extra mile to provide the customer with a vacationexperience that is their money’s worth They do so by creating a vacationexperience and hotel experience full of comfort and enjoyment However, in themission of the company, there are some missing factors A standard missionstatement includes customers, services, markets, technology, philosophy, survival/growth/ profitability, distinctive competences, public image, and employees.Therefore, below is the proposal for an improved mission statement for Marriott:

“Our mission is to serve individual business and leisure travelers looking for thebest vacation and leisure experiences We connect with our customers all over theworld through our website and app, offering them top-notch accommodation,dining, room service, and venues to suit their every need We strive to be thenumber one hotel company in the world, and dedicate unparalleled service andexceptional experiences, while following our philosophy and appreciate ouremployees.”

Marriott International takes great pride in its employees and their behavior,which is the reflection of the core values and the culture of the company Five corevalues of the company are “We put people first”, “We pursue excellence”, “Weembrace change”, “We act with integrity”, “We serve our world”

2.3 External factors analysis

2.3.1 Pitch competitor - 5 FORCES

2.3.1.1 Barriers to entry (threats of new entry)The hotel industry is a lucrative but challenging sector One ofthe most challenging is high capital requirements When they decide to enter themarket, they have to invest a considerable budget in various aspects namelybranding, advertising, research and development fees, etc Moreover, governmentpolicy for the restaurant-hotel industry requires strict regulations Finally, the hotelindustry is a service-based industry It means that the company needs to develop theservice constantly to attract the new customers and retain their existing ones The

company has to analyze the customer behavior frequently to solve their problemand improve the quality of service.

2.3.1.2 Power of buyer

In the fast-paced, the service industry becomes developing, itmeans that the customers have more choices to choose from Therefore, thecompetitors in this market strive to offer the best quality services at the mostaffordable prices to attract and retain their customers The customers can access theinformation on the Internet to compare and evaluate between different serviceproviders One of the contributing factors to verify the power of buyers is the lowswitching cost because they can easily switch to other service providers if their needwas not met

2.3.1.3 Power of supplierThe service industry has seen exponential growth in recentyears, the number of buyers does not always match the suppliers, often resulting in

a situation where the number of product suppliers is more than the customers'demand This is the reason why several competitors offer competitive prices anddevise strategies such as bundling or discounts to attract customers' attention Thelow switching cost also makes it easier for buyers to change their suppliers Theyneed to focus on improving the quality of their products consistently by adoptingnew technologies, materials, and innovative production methods, providing bettercustomer service, quick complaint resolution, and hassle-free switching experience

to retain their customers

2.3.1.4 Substitutes of product

The customers have several options to choose such as camping,homestays, and staying at the house of relatives and friends They offer customersthe opportunity to immerse themselves in local culture, meet new people, andexplore new places In addition, they are often much more affordable than hotels

2.3.1.5 Intensity of RivalryHigh levels of product differentiation may help a businessstand out from its rivals and gain an edge over them High industry growth rates

generally draw more competitors, yet highly differentiating items can assistbusinesses surpass their rivals in the market.

2.3.2 PEST/PESTLE

2.3.2.1 Political

Marriott International operates in a global politicalenvironment that can be challenging due to varying levels of political stability.Growing tensions and instability may hinder the gold industry's expansion as well

as the prospects for the company to succeed The political climate of the nation ischanging, and Marriott International should be aware of these developmentsbecause they could affect the government's goals for various industries Moreover,the corporate environment is negatively impacted by bureaucracy and corruption,which can also have an impact on activities like contracting, licensing, andfraudulent agreements Finally, profitability of the company can be directlyimpacted by entering high-tax countries, but the protection of intellectual propertyrights is crucial for a company's success

2.3.2.2 EconomicalThe economic/business cycle stage plays a vital role indetermining the performance of Marriott International A country's economicdevelopment directly influences the business environment and growth opportunitiesavailable to the organization Additionally, Organizational effectiveness is alsoimpacted by how much money the host country's government has invested indeveloping its fundamental infrastructure A well-developed infrastructurefacilitates the business environment and increases the growth potential of the goldindustry in the respective country Inflation, employment, interest, and exchangerates also affect the organization's performance, as they determine the consumers'ability to spend on offered products Moreover, labor market conditions can affectbusiness efficiency, making talent attraction and retention more challenging if there

is a shortage of skilled labor Financial market efficiency also plays a significantrole as operating in highly efficient financial markets leads to improved liquidityposition and strengthened ability to enter new markets The health and efficiency offinancial markets will determine Marriott International’s ability to raise the capital

at fair prices Lastly, the prevailing economic structure influences the businesspractices of Marriott International The economic and regulatory environment in a

monopolistic or oligopolistic structure will be different from the monopolisticcompetition and perfect competition.

2.3.2.3 Social

Social factors impact a lot on Marriott International operations.First, the performance of the organization can be strongly impacted by changes inpopulation aging, migration patterns, and socioeconomic factors For instance,elderly populations in specific areas might favor various hotel facilities, promptingMarriott International to adjust its product offers Growing inequality in manycountries is also changing the power structure, which has serious implications forinternational organizations such as Marriott International The company must studytraditionally assigned gender roles to align its marketing and communicationpractices Moreover, societal norms and class distribution also affect the company.requiring the creation of local teams and partnerships to comprehend variouscultural situations Understanding online shopping behavior by considering thegenerational differences as younger consumers are more inclined to shop onlinethan older customers Marriott International attempts to understand the degree ofconsumer ethnocentrism and consider the country-of-origin effect to determine localconsumers’ evaluation of foreign products

2.3.2.4 Technological

In the high-tech era, technology becomes more and moredeveloped and has some certain influences on the success of Marriott International.Firstly, Marriott International can leverage the opportunities offered by social mediamarketing to improve business performance Technological developments can beused to initiate innovative social media campaigns for building online brandcommunities However, to keep ahead of the competition, Marriott Internationalshould carefully analyze the ongoing technology developments The potential forthe 5G to produce beneficial business outcomes through improved user experience,better speed, and increased access should be closely monitored Furthermore, newtechnologies influence the firm’s value chain and prevailing cost structure soMarriott International needs to consider the investments made by competitors on amicro and macro level

2.3.2.5 Legal

When creating human resource policies, anti-discriminationregulations (such as those pertaining to equal employment opportunity) must also becarefully considered because discriminating lawsuits against employers undermine

an organization's reputation and impair its capacity to recruit and retain talent.Given that some nations have severe laws enforcing labor safety, MarriottInternational is required to adhere to employee/labor health and safety rules Aboutthe Consumer protection laws, consumer worries over their privacy and security,data protection has become a crucial problem To safeguard client data, MarriottInternational must research data protection laws

Finally, regulations governing intellectual property are intended to safeguardbusinesses' valuable ideas and patents Lack of IP protection can lead to a loss ofcompetitive advantage, which could harm Marriott International's position relative

to other market participants

2.3.2.6 Environmental

With the development of industry, businesses have been forced

to implement cutting-edge recycling and waste management strategies due to thecombination of rising degradation of the environment and innovations intechnology Recycling has almost become the commercial standard in severalnations Due to improved brand perception, this investment will also result in higherstakeholder satisfaction and a larger consumer base Having an attitude towardseco-friendly products is also crucial Marriott International could take the chanceand implement green business strategies to gain the belief of stakeholders andclients Lastly, some countries had environmental regulations to avoid resourcedepletion To determine which resources (such as water, electricity, etc.) are rare orwhich species are threatened with extinction owing to excessive consumption,Marriott International must research the country's particular environmentalregulations

KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED

CRORESOpportunities 0.067 1-4

1 Developing smartphone apps to help

speed up check-in for travelers

4 The improving economy, higher room

prices, and a willingness to travel by

both individuals and businesses

0.07 4 0.28

5 Over the last decade, hotel fees have

risen by 100%

0.08 4 0.32

6 Favorable geographical location 0.08 4 0.32

7 The individuals who run the hotel are

required to pay franchise fees (usually a

percentage of sales to the major brand

company)

0.04 1 0.04

8 The acquisition of Delta Hotels is in line

with Marriott’s plans to expand

internationally, focused on emerging

markets

0.06 1 0.06

1 some hotels have made smart app

technology updates over the past few

years

0.06 2 0.12

2 Growth rates varied greatly between

different regions and price points

0.09 3 0.27

3 With a large population, a growing

middle-class population, and China’s

growing tourism, the long-term outlook

remains positive for China’s hotel

industry

0.06 2 0.12

4 Many thousands of hotel/motels

compete for travelers’ dollars

0.05 1 0.05

5 Hotel occupancy rates vary by location 0.1 3 0.3

6 New players have entered the market 0.07 3 0.21

7 Many emerging markets are struggling,

strong dollar hurts overseas sales that

are converted back to dollars

0.06 2 0.12

It can be seen from the table that the most crucial elements for success in thisbusiness are "Favorable geographic location" and "Over the last decade, hotel feeshave increased by 100%" as indicated by the 0.32 weight Also take notice of howwell Marriott is managing "The improving economy, higher room prices, and awillingness to travel by both individuals and businesses." This implies that bothgeographic location and economic variables are crucial to the organization's

success Finally, the total weighted score of 2.58 is above the average (midpoint) of2.5, so Marriott International is doing pretty well, taking advantage of externalopportunities and avoiding the threats facing the firm

2 The firm has numerous female executives,

consistent with its exemplary record on

4 Policy reverses a long tradition of allowing

customers to cancel their reservation “up to

6 pm the day of arrival without penalty.”

7 Great financial potential 0.03 3 0.09

8 Marriott Hotels is one of the notable brands

by property types

0.04 3 0.12

9 High sales in the premium segment 0.07 4 0.28

10 Marriott plans to focus on overseas markets 0.03 3 0.09

11 Marriott has plans to get into the more

middle-class market as this demographic in

China grows

0.04 3 0.12

Weaknesses

1 Hotel demand in 2014–2015 has exceeded

supply in many cities, giving hoteliers the

upper hand

0.02 1 0.02

2 Big most rival hotels are staying the course

with traveler-friendly cancellation policies

5 Marriott is the largest hotel operator in

Beijing and Shanghai, but not in China as a