Operational Activities at Marriott International Incorporated: An Evaluation - Case Study Example

 EXECUTIVE SUMMARY Marriott International, Inc. is one of the leading companies around the world with more than 3,900 properties, associates, and 18 brands (Marriott International, 2014). The aim of Marriott International is to offer the best service to its customers that will lead to a long term loyalty to the brand. It is all about offering unique experiences that differentiate them with their competitors (Jin, 2011). However, in order to offer this experience, the hotel needs to look at its operational activities. This paper looks at the strength, weaknesses, opportunities, and threats of this company and looks at challenges it faces in every operational activity. The paper the looks at areas for opportunities to devise a new innovative customer-focus service, how and where to search to devise and develop a new customer-focused service idea, and the new services development (NSD) process. The paper then looks at the potential risks and costs that will be determine by the successful development of new or modified services and the intellectual property issues. Finally, the paper makes a conclusion based on the discussions from the research conducted. INTRODUCTION There has been an increased attention on innovation which is the key to organizational growth and development. Most organizations today face increased competition because of the fast pace of improved technology, and the market external change that has pushed economic and organizational growth. Innovation has become a crucial part of organizations which has been driven by excellent labor force and advanced machinery. Therefore, innovation has become a powerful method of securing a competitive advantage and as a way of defending the strategic position. The research and development plays a crucial role in product and service innovation process. Innovation does not only apply to product or services, but also aims at improving the way people work, live, and play. Innovation has two aspects, which include radical and incremental innovations. Radical innovation refers to a total change in the way people think and use products or manufacture new products as compared to the way they did things before. This form of innovation aims at taking advantage of new technology, thus, creating new opportunities. On the other hand, incremental innovation is involves a day to day change in an organization in order to make sure that there is a continuous improvement in the productivity and quality of products and services through innovation. There are four types of innovation that includes the process innovation, the product innovation, the paradigm innovation, and the position innovation. Process innovation looks at improving the method of manufacturing in an organization with the aim of reducing costs. Product innovation aims at offering businesses or consumer’s new products and services. This is a crucial part in any organization in offering new products and in helping organizations to advance in the market and be in a position to respond to new products or service innovations. The paradigm innovation looks at how the organization can frame the ways in which it can expend to new markets for new products and services by innovation. Positional innovation looks at the target markets, including the target consumers for the new products and services. BODY INDUSTRY INFORMATION The hotel industry is part of the Travel and Tourism industry, which is one of the most rapidly expanding industries. The hotel industry has been growing rapidly over the past several years. This industry is based on two fundamental elements that include consumer and corporate. What drives this industry are the customers who can be attracted by the hotels and the type of services provided by the hotels. Customer selection in this industry is determined by the location of the hotel, the prices of products and services, the facilities that are available, and the size of the facility. Innovation is a key factor in the success of any hotel because it helps the management to improve production and to the distribution of goods and services, and thus increase the competitive advantage of the company. Innovation is crucial in the service industry because this determines the quality of products and service provided. The performance of the service industry is in turn dependent on the quality of service provided to customers. High quality service attracts more customers to the company which in turn improves the performance of the company. This is the reason why it is crucial for any manager to understand this concept. ORGANIZATION BACKGROUND Marriott International, Inc. whose headquarter is in Bethesda, Maryland, USA represents one of the biggest names in the hospitality and service industry in the market. This hotel started with a humble beginning in the year 1927, and now hosts many customers in the market. The hotel is well known for its effective and stylish services to its customers. This organizational establishment has been able to make a name for itself and has left a legacy of giving the best services and investing in innovation that aim at satisfying customers. They also offer affordable prices for its customers. It has a cost leadership strategy of offering brands which are aimed to satisfy costs sensitive customers. Services provided by the include event venues, accommodation, luggage storage, food and beverage, and lounge among other convenience and comfort services. The aim of Marriott International, Inc. is to offer the best service to its customers that will lead to a long term loyalty to the brand. It is all about offering unique experiences that differentiate them with their competitors. However, in order to offer this experience, the hotel needs to look at its operational activities. The hotel appreciates the fact that it operates in an industry where operations are largely controlled by the type of guests that it attracts and their proffered needs. The aim of the hotel is to grow and increase its market share not only in this market but in other markets around the country. SWOT ANALYSIS The SWOT analysis looks at the strengths, the weaknesses, the opportunities, and the threats of Marriott International, Inc. To be able to improve the quality of product and services provided, the hotel needs to look at the SWOT analysis in order to determine areas of improvement. The SWOT analysis helps the business utilize on its strength, change the weaknesses to strength, and be able to put in place strategies that will help the business overcome its threats. All this will make sure that the company achieves its goals. Summary of the SWOT Analysis Strengths Business location High customer service Strong Marketing Qualified employees Technical Innovation Brand Recognition Weaknesses Research & Development Service Improvement Opportunities New Technology Business expansion Loyal customers Threats Competition from existing companies Business risks Strengths One of the strengths which Marriott International, Inc. enjoys is that it is located in a strategic location where it is easily accessible, high security and there is less traffic jam. This location also has potential businesses that would bring customers to our doorstep. This location has other offices that help the business have a constant flow of customers. The hotel also provides high customer service because its holds high value on the price paid on products and services and the quality received. The hotel always aims at satisfying the customers and gives them value for their money. The hotel believes that concentrating on the needs of the customers and giving customers extra services will also give the business a competitive advantage. This quality service is supported by quality employees whom the hotel has employed. The hotel is strong in its marketing strategies. The hotel takes advantage of its customer relations by researching information about its customers in order to give personalized services. Customers are also encouraged to give feedback on the services provided and areas for improvements in order to improve the services. The hotel also takes advantage of the internet in order to increase the public relations activities. This is by taking advantage of social networks like Face book and Twitter to advertise the products and services to potential customers. This is also a channel where the business interacts with its customers and gets feedback. The company utilizes the Marriott’s Automated Reservation System for Hotel Accommodations (MARSH), which is a technical innovation that helps the hotel ease its business processes and increases a hassle-free experience for its customers. This technology helps Marriott have an advantage over its competitors. The company also uses the Property Guest Object Oriented System (PGOOS), which is a technological innovation that automatically audits the central reservation system every night to ensure that there is efficiency in processes. Finally, Marriott has strong brand recognition because it is known around the world for its luxury, elegance, and prestige. The company even managed to be ranked 37 in the Fortune’s 2011as the World’s Most Admired Companies. Weaknesses Marriott faces a number of weaknesses include the ability to research on the current competitors in order to identify areas to improve on, which in turn will improve the hotel’s competitive advantage. Marriott International still mainly depends upon luxury brands in the United States market. The company lacks low cost brands that are popular in developing nations. Opportunity There are a number of opportunities which the hotel can take advantage of in order to improve on its products and services. The hotel can take advantage of improved technology like the internet to further expand on its market; this is by advertising about its products and services globally in order to attract not only local customers, but also international customers. New technology in its operations will also give the company a competitive advantage from the rest of the hotels in the market. This will also give the hotel an opportunity to expand in other markets. Threats Some of the threats expected by the hotel include increased competition from existing companies and potential new businesses that might come up in the market. The company also faces potential risks that include disasters like terrorism, political instability, and other unexpected occurrences that are likely to affect the operations of the business negatively. The risks that are associated to the growth of the business include losing of clientele to other hotels, reduction in the quality of product and services, and the risk of losing touch with current customers. Tax scams also prove to be a threat to the image of Marriott International, Inc. Key to Success The hotel appreciates that in order to succeed in this industry, it needs to provide high quality product and services, and give quality customer services. AREAS FOR OPPORTUNITIES TO DEVISE A NEW INNOVATIVE CUSTOMER-FOCUS SERVICE Looking at the SWOT analysis, there are many areas where the hotel has an opportunity to take advantage of new innovative strategies that will help the hotel improve on its competitive advantage. These specific areas are in increasing the level customer service because its holds high value on the price paid on products and services and the quality received and improving on its marketing strategies. The hotel also needs to conduct research on its customers' information in order to give personalized or regional services. Marriott International, Inc. needs to improve on its ability to research on the current competitors both nationally and internationally in order to identify areas to improve on, which in turn will improve the hotel’s competitive advantage. The hotel has also needs to able to update its rooms as compared to what customers currently expect. The hotel also needs to take advantage of innovative ways of expanding its market and advertising its products and services. HOW AND WHERE TO SEARCH TO DEVISE AND DEVELOP A NEW CUSTOMER-FOCUSED SERVICE IDEA The service component in any organization has become a source of strategic and sustainable competitive advantage. In order to search for a new idea, some steps need to be followed. The first step is to identify potential areas that can offer profitable opportunities (Edgett, 2010). This can be by involving all the employees in giving their ideas on how the hotel can improve on how it provides its products and services. This is because they are involved in the day to day activities are in a better position to know areas that need improvement. The next step is involving customers in the process because in most cases, they are the once who initiate the ideas through their feedback. Once new ways have been developed, it is crucial to involve new customers in giving feedback on areas of improvement. This will help the innovation to focus on the customers’ needs. THE NEW SERVICES DEVELOPMENT (NSD) PROCESS New service development involves the activities that are involved in coming up with new service opportunities that include business model design, product and service design, and marketing. When looking at service development, it is crucial for the hotel to look at these components as two different items. Service in this case includes the managerial, economic, and finance activities, marketing, prices, and competition. Development on the other hand looks at the technological development, improves relations, and cost reduction (Frauendorf, 2006). The best NSD process to adapt in the hotel is service the customer feedback program. This service strategy aims at enhancing the customer feedback in order to measure the loyalty and satisfaction level. The new service is then developed based on the customer feedback and the industrial data that will lead to changes that would increase the satisfaction and loyalty level. This approach is crucial because being in the service industry, the main objective of the hotel is to satisfy customers. This will make sure that they remain loyal to the hotel and this will also increase the competitive advantage of the hotel. This approach typically includes reviewing the existing feedback from customers on processes. TIMEFRAME The research and development initiative is expected to take a period of one year. This will include brainstorming on the idea, doing the actual research and finding some finances that will support the initiative. The process will then involve employees and customers who will give their feedback on areas of improvement. It will also be crucial for the company to look into the intellectual rights before the new innovation is implemented (Reitsma, 2011). POTENTIAL RISKS AND COSTS The success of the research and development effort in the hotel will be determined by the successful development of new or modified services. However, services that undergo minor of big changes can be determined to meet the classification of having failed or being successful depending on the success of the outcome of the new service. Potential risks expected is in terms of the time when the research and development department can be able to come up with innovative ways. The longer the period, the higher the costs that will be incurred by the hotel during this process. The hotel does not have a big budget for the research and development activity which means that for this to succeed, it is crucial for the time frame to me maintained for the initiative to be successful. INTELLECTUAL PROPERTY ISSUES It is crucial to look at the intellectual property issues that may affect the hotel. Unlike manufacturing industries which deal with tangible innovation, the service industry deals with intangible innovation that are aimed at improving the existing processes. The nature of these innovations make it complicated to protect and manage them. Intellectual property protection is crucial in preventing competitors from patenting innovations (Cornish, 2004). One of the issues to consider is that some services may complement products that are protected by intellectual property rights. This makes it difficult to measure the innovative inputs and outputs of a service (Bader, 2006). CONCLUSION This paper shows that it is crucial for the company to implement innovative wais in order to offer the best service to its customers that will lead to a long term loyalty to the brand. It is all about offering unique experiences that differentiate them with their competitors. However, in order to offer this experience, the Marriott International, Inc. needs to look at its operational activities. Research and development is crucial in the success of any company because this makes sure that it gains a competitive advantage. Bibliography Bader, M. A. (2006). Intellectual property management in R & D collaborations: The case of the service industry sector. (Springer e-books.) Heidelberg: Physica-Verlag. Cornish, W. R., Vaver, D., & Bently, L. (2004). Intellectual property in the new millennium: Essays in honour of William R. Cornish. New York: Cambridge University Press. Developing a Product Innovation and Technology Strategy for Your Business2010Research Technology ManagementPg. 33- 41 Frauendorf, J. (2006). Customer processes in business-to-business service transactions. Wiesbaden: Deutscher Universit̃ts-Verlag. Jin, Z. (2011). Global technological change: From hard technology to soft technology. Reitsma, R. O. (2011). Innovating mass-customized service: Application of a service perspective lifecycle innovation management (SLIM) model in an ICT-intensive firm in a fast-changing environment. Delft: Eburon. Marriott International. About Marriott International - Find Your World. https://www.marriott.com/marriott/aboutmarriott.mi Read More