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Marriott International Case Study

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Marriott – 2007

Forest David:  Francis Marion University

A.                Case Abstract

Marriott (www.marriott.com) is a comprehensive business policy and strategic management case that includes the company’s fiscal year-end December 2006 financial statements, competitor information and more.  The case time setting is the year 2007.  Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company.  Headquartered in Washington DC, Marriott is traded on the New York Stock Exchange under ticker symbol MAR.

Marriott operates hotels and timeshare properties across the world.  In addition they operate in the synthetic fuel market.  The company has over 150,000 employees and is led by CEO Willford Marriott Jr whose base pay was over $2.5 million in 2006..  The firm’s major competitors are Hilton and Accor.

B.                Vision Statement (proposed)

The Marriott International, Inc. wants to become the leader in creating significant value by exceeding customer’s expectations, providing career growth opportunities for associates, and presenting attractive returns to shareholders and owners.

C.         Mission Statement (actual)

We are committed to being the best lodging and management service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value.

        

        (proposed)  

Marriott International is committed to being the best lodging and management service company in the world by providing superior service for men and women who are traveling on business or for leisure.(1, 2) Our emphasis is based on North American markets and global opportunities. (3) We provide information technology reservation systems to serve our customers more efficiently. (4) To maintain and gain customer loyalty we are dedicated to quality and consistency. (6) We are dedicated to growth and profitability(5) by treating employees (9) in ways that create extraordinary service for our customers, and that create high shareholder value, while upholding a social responsibility to any community that we serve. (8) The Marriott name is synonymous with quality and high customer service wherever it may be found.(7)

1.   Customer

2.   Products or services

  1. Markets
  2. Technology
  3. Concern for survival, profitability, growth
  4. Philosophy
  5. Self-concept
  6. Concern for public image
  7. Concern for employees

D.                External Audit

                Opportunities

  1. Currently the U.S economy has a history of success.
  2. Inadequate amount of new building activity in full service sector in US.
  3. There is a growing business class that has evolved and has started to travel more and more; Disregard for price sensitivity among business travelers; they just want to accomplish the goals of the company.
  4. India's booming economy is projected to grow at 7- 8% over 2007-2008.
  5. Asian economy doing well; inflation in Asia has been on a low side despite a surge in oil prices.
  6. Global travel is up overall and continues to increase each year.
  7. Indian government changed its restrictive laws in February 2005, to allow 100 percent foreign direct investment to develop new housing, commercial properties, hotels and hospitals.
  8. Does not actually own many of its hotels, but rather manages them. This allows for international operations to supply customers with the understanding of the market, while Marriott operates its management skills to supervise the whole process.
  9. Consumer demand for luxury goods and services, including lodging, is increasing.
  10. India's share of GDP in the world expected to rise from 6-11 percent.

Threats

  1. Growth of information technologies that allows business men and women to stay at the office.
  2. Increase travel security measures causes most consumers to travel less.
  3. Regional and national development of competing brands in the area of our properties.
  4. Increase in costs labor, wages employee benefits cost, and other expenses that are essential to the conduct of business.
  5. Currency exchange rates/Interest rates may fluctuate.
  6. Unfavorable political conditions in foreign countries.
  7. Increases in oil prices which leads to less travel in the US.
  8. US share in world GDP is expected to fall to 18 percent.
  9. Hotels located near areas of terrorists activities.
  10. Skyrocketing price of land in Indian cities is keeping more projects from getting under way.

CPM – Competitive Profile Matrix

          Marriott                    

Hilton

Accor

Critical Success Factors

Weight

Rating

Weighted Score

Rating

Weighted Score

Rating

Weighted Score

Price Competitiveness

Internet Sales

Financial Position

Global Expansion

Management

Product Quality

Customer Loyalty

Market Share

0.05

0.15

0.10

0.20

0.05

0.10

0.20

0.15

2

3

4

2

3

4

4

4

0.10

0.45

0.40

0.40

0.15

0.40

0.80

0.60

3

3

4

3

2

4

3

3

0.15

0.45

0.40

0.60

0.10

0.40

0.60

0.45

4

2

2

4

3

3

2

2

0.20

0.30

0.20

0.80

0.15

0.30

0.40

0.30

Total

1.00

                  3.30

                          3.15

                         2.65

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