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Business Law - Assignment Example

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MARRIOTT INTERNATIONAL, INC. Name: Professor: Institution: Course: Date: Marriott’s Major Expansion Initiatives Marriott International is a multinational company that manages lodging properties. The company is based in Maryland, and operates in up to sixty eight countries around the world…
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Download file to see previous pages This expansion is part of its major plan to extend its portfolio and business context around the world, especially in the countries that it has not established its premises. The company’s main expansion idea is the establishment of hotels in the potential areas of business. It will set up Residence Inns in the projected areas. For instance, in the early 2012, the company is expected to launch such a hotel in Bahrain. Saudi Arabia is also set to have the company set up its premises by June 2010. In the year 2014, Marriott International projects to open a residence Inn hotel in Algiers (Derdak, 2007). Other regions identified in the major expansion initiative are Abu Dhabi and Dubai. Ed Fuller quotes, “We will probably open 20-30 Residence Inn hotels in the Mena region within the next 10 years” (Derdak, 2007). The President and the Managing Director of the company admits that the strongholds of the company lies in USA and Canada, but the major expansion plans over the next several years will allow the company to diversify its portfolio. The company is interested in making its brand name recognized globally and not only in USA and Canada. Administrative Laws Relevant to Marriott’s Expansion Initiatives Marriott is a USA abased company. ...
The expansion that the company seeks to make over the next few years is influenced by administrative laws observed in the individual countries that it seeks to establish its premises (Korper, 2001). The company will not be the first to enter into the markets in which it seeks to start its operations in. Marriott will therefore be expected to observe fair competition laws in the context of every market it penetrates. Price level issues may also characterize the operations of the company in foreign markets. When it starts its operations in foreign countries, it will be expected to act fairly to the existing domestic and foreign firms. Its pricing will not be expected to make the already established firms worse off. Operational and competition laws are the major administrative laws that the company will have to deal with. The company will also be expected to follow the required protocol in setting up its operations in the new regions that it targets. This means that the company will have to assess individual regional laws in the context of its interests in those regions. If these laws will be found to be favorable to the operations of the company, then the company can go ahead and establish its premises. If not, then the company management will be forced to evaluate the way forward. The most important thing to consider in this case is the negotiating and contract actualization procedures. The company must ensure that negotiations are effectively carried out prior to the establishment of the new premises. The required contracts will have to be effectuated before the company begins operations in the new regions. Such contracts will be required to meet ...Download file to see next pagesRead More
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