This study is focused in analysis the environment factors and strategic options available for Marriott International. This study includes an external and internal analysis for Marriott International, an rating of schemes options available with a hazard appraisal and the recommendation of the schemes options that will hone tantrum in the company.

The subject of strategic direction is one of those hot button concerns that had attracted a important sum of attending over the past four decennaries. Strategic is a agencies adopted by the direction in order to accomplish the long term aims.

Strategic direction is a procedure through which organisations analyze and learn from their internal and external environments set up strategic way, create schemes that are intended to travel the organisation in that way, and implement those schemes, all in an attempt to fulfill cardinal stakeholders.

In Organization context the traditional procedure for developing schemes consists of analysing the internal environments such as Owners/Board Directors, Managers and employees and external environments of the company such as rivals, militant groups, providers, brotherhoods, fiscal mediators, authorities bureaus, local communities, clients and media to get at organisational strengths, failings, chances and menaces ( SWOT ) . The consequence from this state of affairs analysis are the footing for developing missions, ends and schemes and the typical inquiry that the organisation have to happen out in order to hold a clear concern definition are who is being satisfied? What is being satisfied? and how are client demands satisfied? In general, a company should choose schemes that take advantage of organisational strengths and environmental chances or neutralize or get the better of organisational failings and environmental menaces. After schemes are formulated, plans for implementing them are established and carried out. The environment is the primary determiner of any strategic success. A good direction is associated with finding which scheme will outdo fit environmental, proficient, and human forces at a peculiar point in clip, and so working to transport it out. Some surveies show that the ability to aline the accomplishments and other resources of the organisation with the demands and demands of the environment can be a beginning of competitory advantage. ( Cathy Enz, Strategic Hospitality Management, 2010 ) .

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To Sum up, organisations need to develop schemes in order to optimise the usage of these resources otherwise will non acquire the success. Particularly, it is indispensable to look into the sustainable competitory advantage that will let the organisation to last and thrive against competition. In other words it is indispensable for a company to make and develop schemes in order to accomplish the long -term ends and aims. The importance of the strategic direction is extremely important, merely allows and organisation to be more proactive than reactive in determining its ain hereafter ; it allows an organisation to originate and act upon activities and therefore to exercise control over its ain fate. Small, concern proprietors, main executive officers, presidents and directors of many for-profit and non-profit organisations have recognized and realized the benefits of strategic direction. Historically, the rule benefit of strategic direction has been to assist organisations explicate better schemes through the usage of the more systematic, logical and rational attack to strategic pick. Such as fiscal benefits ( betterment in gross revenues, betterment in profitableness and betterment in productiveness ) and non fiscal benefits ( improved apprehension of rivals schemes, enhanced consciousness of menaces, reduced opposition to alter and heighten problem-prevention capablenesss ) . But in today ‘s universe we can easy reflex the undermentioned betterment benefits in organisation ‘s strategic procedure direction like for illustration: taking an organization-wide, proactive attack to a altering planetary universe ; constructing an executive squad that serves as a theoretical account of cross-functional or horizontal teamwork ; holding an intense executive development and strategic orientation procedure ; specifying focused, quantifiable results steps of success ; doing intelligent budgeting determinations ; clear uping your competitory advantage ; cut downing struggle authorising the organisation ; supplying clear guidelines for daily determination devising ; making a critical mass for alteration, authorising in-between directors, concentrating everyone in the organisation in the same overall model, rushing up execution of the nucleus schemes and supplying touchable tools for covering with the emphasis of alteration.

Introduction:

2.1 Introduction to Marriott International:

Presently Marriott International is a taking lodging company with more than 3,500 lodging belongingss in 68 states and districts such as Americas, Middle East, Africa, Asia and Europe. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard and Fairfield Inn. The company is headquartered in Bethesda, Maryland, United Stated and about has 146,000 employees at twelvemonth 2010. Marriott International reported gross revenues from go oning operations of about $ 11 billion dollars. Marriott International chief merchandise is all about deluxe, comfort and high manner adjustment. This company has been success for its high degree of guest service satisfaction, positioning it as one of the best cordial reception company all over the universe. Marriott International mark market is chiefly defined by age, gender, geographics, socio-economic grouping, ethnographic, or any other combination of demographics but the most prevailing beginning is the in-between upper category. The industry is extremely disconnected and no participant commands more than 20 % of the market portion. Competition in the industry is by and large based on the quality of the suites, eating houses, meeting installations and service, attraction of locations, handiness of planetary distribution system, monetary value and other factors. Although Marriott ‘s planetary presence across 68 states enables it to offer services to a big figure of clients, it lags behind its rivals who are present in 80-100 states such as Starwood ‘s Hotels and Resorts ; Choice Hotels International ; InterContinental Hotel ; Hilton Hotels ; Orient-Express Hotel and Hyatt Hotels Corporations.

Marriott International mission statement: “ To win in service by proactively offering clients theA most valuable aid, A information and support in a uniquely warm and lovingness mode ” .

Marriott International Vision: “ To be the universe ‘s first pick for full-Service Hospitality.

The Hotel Valuess: The cardinal ideals of service to associates, clients, and community which serve as the basis for all Marriott associates are exemplified by Marriott’sA ” Spirit to Serve ” doctrine.

Marriott International Core Valuess:

Our employees:

Marriott international believes that the most of import elements that the company has are their employees.

One of the of import undertakings for the company carefully follow is to back up employee ‘s growing and personal development.

The company ever treats employees with regard and trust.

The company provides comfy and friendly work topographic point environment for its employees

The company provides a wages plan when employees achieve company ‘s ends.

Our Guests:

The company manages the concern through the manner of “ direction by walking around ” .

Company is focus to inside informations.

The company ‘s attending is focused to introduce in guest service satisfaction through creativeness.

The via media in quality of service and criterion is high in any individual belongings

Our Community: the company strives to show and turn out every individual twenty-four hours of the twelvemonth by corporate support of local, employees, national and planetary enterprises and plans of how of import is making concern through Marriott manner.

2.2 PESTEL analysis

Political Factors: Marriot International has been paid attending to psychological and physical working environment conditions since the United States governments exhaustively regulate it. The authorities supports touristry industry because it is a moneymaking industry for the state ; nevertheless is one of the industries that host more than 50 % of the illegal in-migrations.

Economic Factors: In the short-run, Americans are affected by the economical crisis, so they should concentrate on giving an image of affordability. In the long term, they have a really solid repute so when the economic system bounces back, they will be able to return to their original position which is a concatenation of luxury hotels. The high cost of the skilled labour in United Stated force Marriott to depend on a solid net income to counterbalance.

Social Factors: Green issues are really of import in America so the Marriott would hold to concentrate on recycling, non being uneconomical and in general be every bit eco-friendly as possible. Aged population in America is affluent that means that spend on leisure, going and hotels.

Technological Factors: Marriott is defined by luxury therefore it should be up-to day of the month with the latest engineerings such as free, fast and accessible Wi-Fi, functional and easy to utilize website and paying measure on cell phone.

Ecological Factors: Each twelvemonth, Marriot International and its proprietors spend about $ 10 billion yearly purchasing merchandises and services for its more than 3500 hotels around the universe. Acknowledging this buying power, Marriot has teamed up with its sellers to present this greener solution at no excess cost such as Greener cardinal cards, Eco-pillows, Earth-friendly towels, Recycled pens and low VOC pigment and Biodegradable wash bags.

Legislative Factors: the inns in America are about to anticipate lobbying and legislative action that will impact travel company revenue enhancement and card cheque which are of import issues to the housing industry. Harmonizing to the American Hotel and Lodging Association, the association believes that this move will bear an impact on the industry.

2.3 SWOT analysis

Strengths

Marriott International is good known for be figure one in invitee service satisfaction in the bulk of its hotel portfolio.

Marriot International has a broad assortment of offers. ( mentioned in company debut ) .

3 ) Marriott International has a strong market place due to its Corporate Social Responsibility activities related with associates, clients and community.

4 ) Marriot international has a strong gross growing continue since the past 5 old ages, accomplishing 3 % growing twelvemonth over twelvemonth.

5 ) Marriott International is successful in the market for its technological enabled services such CRS.

7 ) Marriott International has high fiscal resources and human resources up to 146,000 employees.

Failings

Marriott International has a strong overdependence in its American market.

Marriott International ‘s cost related to labour force and preparation are increasing twelvemonth over twelvemonth.

Because of its high degree of criterions Marriott International is confronting challenge happening qualified work force, particularly in undeveloped finishs where they have presence like in Pakistan.

Marriot International seems to depend to a great extent on its cardinal histories and circuit operators to bring forth most of its concern and this is the chief ground that is unable to introduce in others distribution channels.

Because of its high quality Marriott International is force to maintain high monetary values.

Because of its planetary ramification are confronting troubles to pull off.

Due to Marriott International is non really sole does non acquire the most sole clients.

Opportunities

Expansion into new markets such as Mexico, China and Asia.

The impact of the Economic Recession could coerce Americans to go in their ain state.

Partnership with local air hoses such as northwest and sou’-west may lend to increase gross revenues.

As a consequent of the changeless weakening of the American dollar, Americans will non go to International finishs.

Innovate ( penetrate ) into new market offering new merchandise.

Marriott International should redesigns its web site as user friendly manner.

Menaces

The impact of the economic recession could do fly decrease in many national and international air hoses.

Rivals are acquiring stronger because of the latest sophisticated engineering which helps them to understand client ‘s demands and penchants.

As a consequence of planetary terrorist act, travellers may prefer choose vacation finish that does non necessitate air travel.

The negative effects that the swan grippe cause last winter to the full universe may go on once more if the undeveloped states do non take necessary safeguards.

Due to its hapless presence in international markets Marriott International may lose gross and presence.

Its huge presence in major metropoliss does non let suiting those going to other little metropoliss.

2.4 Evaluation of schemes options

After a deep analyzed of internal and external environment the following schemes options were developed. This provides the chance to choose the most appropriated schemes for Marriot International. However is critical for the company that those schemes been evaluated

The strategic options are evaluated on the undermentioned standards:

The needed resources

The grade to command over future schemes

The velocity with which a alteration in the place of SBUs can be achieved.

Strategic Options

Environment

Competences

Expectation of the company

Hazard involved

Market Development ( New opening hotel in CSL, Mexico )

Current market is saturated, it is necessary new geographical market

Current merchandise portfolio, with a combination of high fiscal and manpower resources.

Increase return and market presence using this scheme

Very high

Market incursion ( cut down rate through one of the trade name merchandise )

Addition market portion and unafraid laterality of growing markets

Combination of competitory monetary values and aggressive promotional run

Increase gross with the volume of gross revenues and go the leader of the market.

Low hazard

Business variegation ( Acquisition of green hotels )

Increase net income and fiscal resources

New merchandise portfolio, high fiscal and manpower resources

Increase fiscal return and expanding of the concern

Very high

Merchandise development ( latest engineering in room map )

Increase merchandise attraction and merchandise value

High fiscal resources

Increase net income, optimize merchandise public presentation and high degree of service

centrist

2.5 recommendation and justifications for schemes options

As a consequence of internal and external analysis of Marriot International and rating of the schemes options, the undermentioned growing schemes will hone tantrum for the company:

Schemes

Attraction

Company ‘s strengths

Degree of importance

Market Development ( New opening hotel in CSL, Mexico )

Very high

High trade name acknowledgment.

Very high

Market incursion ( cut down rate through one of the trade name merchandise )

high

Number one company in invitee service satisfaction with high trade name acknowledgment

high

Business variegation ( Acquisition of green hotels )

Very high

Will depend on the success of the new concern

Very high ( green touristry is the current tendency and a possibility of innovate )

Merchandise development ( latest engineering in room map )

centrist

Merchandise value

centrist

Market Development: Open a resort in Cabo San Lucas, Mexico is a good chance for the company due to is the most sole touristry finish in Latina America. The competition is really low, merely was funded the Hilton and Sheraton ‘s presence in the finish which will give to Marriott International the chance to retrieve and increase the investing in a short period. This finish has a possible national, European and Canadian market that will assist to the company to non overdependence of the American market.

Market incursion: Marriott International is good known for its assortment of hotel portfolio and this scheme will be use merely into one of the hotels trade names ( Courtyard ) , that in this instance is the lone 1 that can offered really competitory rates in footings of monetary values guaranting to the company to rule the market as a consequence of putting to death competition. At this phase, the end of addition gross based on increase the volume of sale will accomplish.

Business variegation: based on the latest tendencies and clients ‘ demand of contribute to get the better of environment issues, Marriott International could lend to this new emerging market runing green hotels. This new merchandise ( Green Hotels ) will necessitate a high fiscal investing as good skill work force. However, this new concern enlargement will give to the company the possibility to increase in fiscal resources and optimize net income.

Merchandise development: several surveies in demand behaviour had been demonstrated that costumiers are willing to pay more for new advanced room. For this ground is extremely recommend for the company to better their merchandise including the latest engineering in room map, such as air status ordinance, unfastened and close drapes, turn off and on visible radiations and order any service that the hotel offer through the LCD ‘s controlled ( the latest engineering in telecasting ) . This will give the company merchandise value and the possibility to monetary value up the merchandise obtaining better gross rate and addition net income.

Decision

As discussed earlier Marriott International may better to a great extent. With travellers acknowledging that Marriott ‘s trade names represent the highest value and quality in the industry its hotels could take progress of this state of affairs an enjoyed at least a 15 % gross per available room premium to direct rivals. Over the following old ages, the company will necessary hold to anticipate proprietors and franchisees to put a important sum of money in belongings betterments, that reflect its “ new expression and feel ” . One of the most transformative alterations is the new bedclothes, which is now in about all Marriott branded hotels in add-on to high yarn count sheets and multiple pillows, the replacing of the traditional bedcovers with newly laundered linens is doing Marriott ‘s bedding the cleanest and freshest of any mayor hotel concatenation. Eight out of 10 concern travellers said they would be willing to pay more for the new, advanced room.

The company has announced programs to add over 600 hotel belongingss by 2015, the majority of the add-ons will be in the emerging markets of India, where it plans to hold 100 hotel belongingss and other states include China and Southeast Asia. This will add a great dimension to the success of Marriott International. The growing of the Marriott ‘s operations outside of the United States besides makes them susceptible to the hazards of making concern internationally due to geopolitical factors and region-specific economic resections. Certain countries such as China and Asia are dining, which could well increase net incomes due to part specific economic roars. However, concentrated recession could take down grosss, addition costs, cut down net incomes or otherwise crippled concern.

The recent economic recession has caused a enormous impact on all the industry sectors including the cordial reception industry. The company must invariably detect the alteration in the client tendencies in all the major parts it operates. An innovate program sing direction system in Marriott International should be transportation directors from one part to other part in order to increase the flexibleness of the directors. The following possible measure is to avoid investings in the parts that are involved in political and war struggles such as Afghanistan at this minute.

Meanwhile the rivals are implemented IT strategies confederations that are non productive, Marriott International continue to concentrate on service, leveraging its apprehension of invitee and engineering, through such industry taking enterprises as “ Spirit To Server its Guests ” , for illustration today guest can utilize the web to order room service prior to arrival. Local civilizations must non be compromised irrespective of the success the organisation achieves in its international ventures. By organizing strategic confederations with international circuit operators Marriott can happen new influx of invitees. The Marriott system continues to turn with a healthy grapevine of hotels that means that invitee will hold more picks across more trade names in more locations than of all time. In few words Marriott is ready to present what its clients want, when they want it, the manner they want it. Its superb trade names, merchandises and services are making a new audience and dramatically altering perceptual experience of travel.

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