ANALYSIS AND EVALUAITION OF MARRIOTT HOTEL

ANALYSIS AND EVALUAITION OF MARRIOTT HOTEL

Marriott International is a hospitality organization, which manages and operates abroad range of hotels and lodging faculties. The company was founded by Marriott Willard. Currently, it is led by Sorenson Arne who is the president and chief executive officer. Presently, the hotel harbors more than 3,900 properties and in more than 75 countries around the globe. The organization franchises the hotel facilities under 16 brands namely:  The Ritz-Carlton, Marriott, EDITION, Bulgari, JW Marriott, Renaissance, Autograph Collection, Gaylord Hotels, AC Hotels, TownePlace Suites, Marriott Executive Apartments, Autograph Collection, and ExecuStay. The company is widely recognized from its high quality, superior business operations worldwide. The business core values include embracing change, putting people first, integrity, pursuing excellence, and serving the world (Marriott International).

The SWOT Analysis

Marriott International
Category Resorts Hotels and Resort facilities
Sector Hospitality  and Tourism
Slogan A World of Opportunity: home away from home; Live Like a Local
USP World market leadership
STP
Segment business travelers, Leisure travelers, premium travelers
Target Corporates,  honeymooners,  families,  Upper class,
Positioning Luxury living and prime location
SWOT Analysis
Strength
  1. Possesses more than 3800 hotels and resorts in over 75 countries worldwide.
  2. Its brands are highly recognized.
  3. Brands range from aspirational to attainable.
  4. Well known for employee retention with total workforce of more than 160,000.
  5. Top of the range technical innovations in improving customer experiences and regular upgrade of business operations
Weakness
  1. Worldwide expansion and the many hotels may lead to brand dilution
  2. Limited market space due to Competition from long established hotel chains in the hospitality industry.
Opportunity
  1. Indian and other  hospitality sectors are looking at a boom
  2. Better finishing and renovations of its facilities.
  3. Innovation in client based services
  4. High potential in developing markets
Threats
  1. Stagnant growth.
  2. Competition on the pricing of its products
  3. Emergency of other international brands plus the stronghold of longstanding and established brands.
Competition
  1. Taj Hotels
  2. Hilton Hotels
  3. Hilton Hotels

 

Marriott Balanced Scorecard

The goal for Marriott Hotels is to create value for its client base, constituencies, owners and shareholders, strategic partners, team members and the communities where its hotel chains are located. It does this by offering a consistent value preposition. In accomplishing that mission, the organization relies on the adage that, what gets managed and measured gets delivered. The economic decline in the early years of 1990s was the excess capacity, which drove down economic gains. The continual establishment of new brands makes it increasingly cumbersome for the hotel chains to distinguish their goods and services and trying to meet their client’s expectations based on the changing value perceptions contribute to the need of understanding the crucial factors of value on how to achieve success against them. Consequently, the company needs to align itself with the processes, technology and people (Chief executive officer).

Marriott Value Chain

 

Score Card

Driver Measure
Brand Management Hotel compliance with brand standards

 

Value Preposition Client satisfaction,   interviewed through telephone, tracking study, survey of employees, invitation of third party auditors to survey the operations.
Operational effectiveness  General profit before tax,
Revenue Maximization RevPAR Index versus local market competitors.

 

 

Critical Successful Factors for Marriott Hotel

Factor Measure
Core Values Issuance of the statement of principles to every new employee, instilling the work values and principles to new hires, establishing corporate culture.
Innovations Encouraging creativity  and commitment among employees, IT resourcefulness, embracing culture of change and improvement,
Loyal and committed workforce/ ready to serve Motivating employees
Cost cutting operations Buying less expensive, recycling, doing more with fewer
Successive Partners and Strategist Building rapport with other service or goods providers.

 

Importance of Critical Success Factors in Organizations

Core Values

Douglas  (2010), points out that core values, goals and mission statements are the three important elements, which serious organizations should embrace for their survival. Particularly, the success of an organization could be determined by its adherence to the values that they recognize. Research has shown that when the company management, as well as employees understands the companies’ mission and goals, the organization is poised to achieve a high level of success. A mission statement   talks about on what the organization want to become. On the other hand, the companies’ goals define the approach to be considered in achieving that mission; the core values define the traits and qualities, which the organization regards as useful. The core values of that organization stands for its highest priorities and also the forces that drive it. 

 

The classic route to the development of company values can be traced back to the intent of the company’s founder(s). Antony (1994) observes that, the distinctive culture existing in major successive organizations such as Ford Motors, Spencers, Marks, ICI, Nike and so on were not obtained through deliberate efforts, but were initiated by the founders  and were further sedimented by the  personnel as well as the changing aspects of their inheritors. In the same manner, Porras et al (1997) illustrates through examples of organizational value obtained from personal convictions of Johnson Roberts, Merck George, II, Watson Thomas, Hewlett Bob and Packard David, who were all leaders in their respective organizations.

In recent times, companies have opted to developing their core values and promulgating them in the similar manner which the strategies and statements are developed: as an output from the top management team, by fiat from the top executive officer,  off/away days, and as the result of task forces and project management teams. The major problem is however, the need to “resell” these values to the company.

Innovations

Innovations may be referred to as exploitation of new ideas, which eventually leads to the creation of new products, process or service (Shukla, 2009). Contrary to many people’s perception, innovations are not solely the invention of new “important” ideas but, it is in actual sense “bringing it to market” putting it into practice and exploiting it in a way that is leading to the creation of new products, systems or services, which could add, value or improve quality. Innovation also involves technological restructuring, management, and transformation. Moreover, it means exploiting new technology and thinking “out of the box” in generating new value and bringing out considerable transformation in the society.

Research has pointed out that the majority of business organizations want to embrace change and innovations. One such study established that 90% of business organizations had placed innovations among the first in their priorities. The importance of innovation in organizational development cannot be over emphasized. Moreover, its importance is increasing at a significant rate. In the present day economic stance, innovations have been regarded as a crucial element that influences strategic planning. In addition, it also widely acknowledged that innovations lead to the creation of wealth. Even though, business success depends on the efficiency, it cannot in the long run sustain growth without innovations.

Loyal and Committed Workforce

As many organizations are confirming, the age-old adage, which goes that a good man or woman is hard to find, is becoming more and more significant. Studies have shown that even when there is widespread unemployment, skilled, experienced and dedicated employees may be hard to find (Insight link, n.d). Challenges such as the changing economy and aging workforce ads up in creating an employment atmosphere where unhappy workers in their present situations are only motivated to look for “greener pastures”elsewhere. When such issues are combined with a weaker employee dedication to their work, organizations and employers in one critical problem:  unexpected employee turnover.

In essence, even though the workers may move from one job to another that pays even better, there could be reasons other than pay factor for leaving their current station. In most cases, the reason may be based on mistrust, not being given due respect, feeling unappreciated and also their efforts in their workplace not being recognized. The basic implication is to recognize the significance of the employer- employee relations and the need for the company to demonstrate their seriousness to their employees (Dearlove and Coomber, 1999).

 

In his writings on TouchPoints, Conant, who was one time a chief executive officer at the Campbell Soup organization, observes that each interaction of the management and staff could be very advantageous for business development. These interruptions are poised to   affecting many aspects of the business including boosting or lowering employee morale and the impact of the leader’s long-term strategy. There are however, those leaders who could consider interruptions from employees as a distraction. In this perspective, Conant explains that, each employee can give a leader a valuable insight in the development of their businesses and operations. In addition, they may also offer these leaders a chance   in bringing forth their values to life in a personal perspective to whoever they are talking to.

 

Cost Reduction

The significance of cost cutting program within an organization cannot be over emphasized (Miller, 2013). Organizations that are losing a substantial amount of money still need to make revenues, or they should become more competitive by cutting down costs so that they could be successive. The knowledge of effective cost reduction techniques is the determinant for an organization’s survival. An effective management team understands the necessity of cost reduction strategies to the wellbeing of the organization. Bloated expenses can turn out into reduced, no profits or losses to the company. Cost reduction programs are therefore, focused   in lowering the costs in every aspect of the business. Even though every business has different activities and operations, the concept of cost reduction remains the same.

 

The most obvious reasons that are related to  cost reduction programs includes but not limited to: reducing wastes, increased, and improved productivity, improved competitive standing,  need for increased revenues  and preserving organizational resources. Organizations may not find it easy to compete in the market today. This is because of the increased prices, global market competition, fluctuating fuel prices, and changing labor rates in the world and the rising costs in health insurance. These aspects have made cost control a moving target. In a particular time, it may seem that an organization keeps one set of expenses under check, and in the meantime, another different sector of the same organization start experiencing cost overruns. This makes cost reduction a never-ending struggle aimed at maintain company revenues (Rothberg, 2012).

 

Effectiveness of Critical Success Factors in Marriott Perspective

Core Values

Marriott Hotel adheres to   legal policies and high ethical standards. The business values offer the managers as well as the stakeholders with a specified guidance on the best manner to conduct the business operations. The company harbors a business training program labeled “How We conduct the Business is equally crucial as the business We Do,” This training kitty is necessary for the orientation process for employees and all its associates; moreover, it includes Marriott’s commitment to human rights safeguard.

The Marriott fraternity believes that its success is grounded on its values, purpose and the conduct, which is depicted daily through its high-class services, ethical business practices, commitment to employee welfare, as well as the organizational culture. The values, purpose, principles, and responsibility are vividly demonstrated through human rights and employment policies. Corporate ethics is an integral part   of the daily operations at Marriott hotel. The companies’   business conduct guide advises the associates and the managers alike on laws that relate to antitrust, unfair competition, political contribution, and unfair competition, commercial and political bribery, abuse of purchasing power and others.

Marriott’s business ethics training program emphasizes the necessity of upholding corporate values and ethical responsibility to the consistent success of tourism and travel industry. The internal audit department at Marriot conducts a regular audit of all the company associates to determine their adherence to the company ethical policies. Since the year 2006, the organization has continued to publish policies and principles regarding human rights. Moreover, it has also endeavored to communicate the same to all its associates. The policy so assigned is made to align with those of state governments in the country of their operations (Managing director, Marriott).

Over a number of years, Marriott has been known for its excellence in its operational services. The company offers top of the range kind of products and services in the seam less management of its food and beverage sectors, management of room operations, retail sector, event management, and engineering, spa, and vendor relations and quality assurance. These are all designed at enhancing customer satisfaction and creating increased revenue.

The consistent innovations by Marriott Hotel are poised to create a multi- brand capacity and measurable solutions that are cost effective, ensuring best practices that will act as a driver to the improvement and the enhanced  performance of operations, quality brands that are designed specifically for operational excellence, quality measurement systems which reinforce the standards of products and services offered at the hotels and finally training programs that accelerate the development of job related skills  at the right price (Director , Marriott Hotel).

Treatment of Employees

One anonymous businessperson once explained, “A business develops not because it has stayed long in the business arena or because it may be big, but because there are women and men who dream it, sleep it and plan for it”. The management at Marriott has realized that one cannot   have a business of this kind with many employees without having good and effective management team. Therefore, the company seriously undertakes the training of its management team in understanding how to manage effectively and also how the employees operate on their jobs. Effective management team and trained employees who are motivated on their works are the most crucial aspects of any organizations.

Marriott Concern for its workforce begins with the guarantee of “equitable and fair treatment” policy. This policy is an internal means of decentralization for all its workers to express hiccups, and have them dealt with as fast as possible. “We have high morale in our, hotels, restaurants, and other operation departments since the workers know we are concerned in them and do all we can for them” (Chief executive officer, Marriott).

 

The firm rewards and inspires its employees with regular retreats and in stay in a place of the employee’s choice. The award features for Marriott are guaranteed   last standard room availability including accommodations for two individuals and parking space for two cars. Any day stay award also includes   a guaranteed breakfast for two individuals as well as applicable gratuity. In identifying and recognizing the dedicated and effective performers, best performing employees at Marriott are regularly awarded for better performance. At Marriott, there exist several options for such reward systems.

 

 

 

 

Cost reduction

During tough economic moments, leisure travelers spend more of their time at home and cut their travelling costs that they could do sightseeing in distance nations. The business people could rather use videoconferencing techniques rather than traveling across countries. With few customers in overnight accommodation, Marriott hotel has been forced to reevaluate their own spending behaviors. The hotel management has been able to implement a number of cost saving measures that could assist in sustaining the operations with fewer rooms that are filled each day. This is aimed at reducing the costs for clients and a same time ensuring that the organizations is sustained. Some of the measures that have been used by the hotel include cutting down labor costs, checking on water temperature, and installing energy saving bulbs.

Also by a reduction in its trash and taking the initiative at recycling more, Marriott hotel has generated more savings from this initiative.

After initiating a recycling and composition ventures back in 2008, the University of College Inn, The conference -centre and University of Maryland have for instance achieved a substantial amount of savings. Comparison can be made from its 2008 initiative to 2007. In 2008, 28tons of trash were removed from the hotel each month, this translated to 336 tons per year. In 2007, 37 tones of trash were generated from the hotel each month, translating to 444 tons per Annum (eLeader, 2009). Of the 336 tones generated in 2008, about 15 % was recycled (cardboard, paper, metal, glass). 35% was composted, plant materials, scraps, food). 55% of the trash ended up in the land fills. The recycling and composting endeavors resulted into savings of $6,000.

The hotel established a green team in 2011 and hired another company Envirelation Inc., as its compost vendor. The company also undertakes programs aimed at training its workforce on recycling programs and how to conduct them. The green team did a closer examination of the entire hotel, which could be reevaluated including the kitchen and restaurants. It was just this year when the hotel began offering its clients the opportunity to “green” their hotel for an extra dollar per day.

 

Conclusion

The expression “thinks globally and act globally “has been vividly indicated in Marriott hospitality firm. Managing this kind of business and tangling it with its various operations across several nations can prove to be very challenging. Yet making sure that the services, rooms, and amenities meet expectations across the various nations and cultures is just enough even forward even the most strong business entities to the breaking point.

Marriott International is one of the global leaders in the filed of the hospitality industries. The company has also a large geographical presence in the world perspective with nearly 5% value share in the global market. The hotel’s emphasis on franchising has facilitated the increased expansion of its portfolio. The hospitality firm is seen to pursue a growth strategy in consolidating its presence in the global markets, and capitalizing on the booming tourism and travel industries in the developing markets in the global perspective. This is expected to serve its operations well in terms of revenue generation over a particular period. Unfortunately, the worldwide economic depression is affecting its development programs, more especially as confidence in consumer softens and demand for worldwide travel accommodations declines.

 

Marriott International hotel has designed a development and improvement strategy in an attempt of consolidating its presence in global markets maximize the gains derived from the booming tourism and travel industry of the developing  market. This aspect is aimed at serving its business effectively in terms of generating more revenues over the anticipated period. Unfortunately, the global economic distress is hampering Marriott’s expansion project, especially as the confidence level of consumers comes down and accommodation demands for travel declines.

 

Despite the international market expansion, Marriott hotel industry relies strongly on American market, making it be extremely sensitive to the changing trends in its domestic market. The upscale and midscale hotel brands make Marriott International to be vulnerable to potential economic depression, more especially at the time when the accommodation sector is achieving increased penetration in the major global markets. Another note to be taken is that Marriott Hotel does not harbor a brand that is low cost, like its competitors such as the star hood, Hotel Indigo and others. These give its competitors a competitive advantage in the hospitality industry.

All in all, the global lodging organization, Marriott International is still popular for its range of quality products and services, which they deliver to their clients. The combinations of factors are responsible for this aspect. The factors include but not limited to: employee and people management, innovations, social responsibility, financial performance, adherence to its core values, use of corporate assets, use of cost cutting strategies and quality of its products and services. These aspects, in accordance to fortune magazine (2007), make Marriott International be among 100 best organizations to work for.

 

 

However, the companies’ mission statement has greatly contributed to its successful operations. The mission statement for Marriott includes the following aspects, dedicated workforce and associates. The workers are constituted of professional team members who depict an exemplary experience, and are trained to show friendliness and happiness in welcoming visitors. The International  hotel facility is also recognized  for its quality  goods and services that appear hygienic, beautiful, comfortable, safe and property  where each visitor  is offered special attention  and receives his or her expectations including more of it. Therefore, Marriott’s  mission statement  could be shortened to read as follows:  establishing an  a favorable environment  both for the customers and associates  where even workers are motivated to do their best  in ensuring that clients are adequately satisfied.

 

 

 

 

Reference

Collins, J. and Porras, J, (1997). “Built to Last” paperback edition

Marriott International. Available on

http://www.linkedin.com/company/marriott-international

Douglas , E. (2010). “The Importance of Core Values” Available on

            http://ezinearticles.com/?The-Importance-of-Core-Values&id=4892792

Dearlove, D   Coomber, S (1999). “Heart and Soul’ Blessing/White, p8.

ELeader, (2009). “Hotel Reduces Costs by Recycling” Available on

http://www.environmentalleader.com/2009/03/02/hotel-reduces-costs-by-recycling/

Fortune , (2007). “Americas most admired companies” Available on

http://money.cnn.com/magazines/fortune/mostadmired/2007/index.html

Insightlink, communications (2013). “Employers and Employees – Making the Marriage Work:

            The Importance of Employee Commitment”

Miller,L (2013). “Importance of Cost Reduction” Available on

http://www.the-cost-reduction    consultant.com/ImportanceofCostReduction.html

Peter A (1994). “Managing Culture” Open University Press, 1994.p29.

Rothberg, A (2012). “The Importance of Strategic Cost Cutting” Available on

            http://www.cfoedge.com/resources/articles/cfo-edge-strategic-cost-cutting.pdf

Shukla, A(2009). “What is Innovation? Why Innovation is important?” Available on

http://www.paggu.com/getting-into-roots/what-is-innovation-why-innovation-is

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