Critical Analysis of Marriott International - Case Study Example

Critical analysis of Marriott international Executive Summary The tourism and hospitality industries have grown quite diverse in the past few decades. Emerging trends such as the modern technology and increased innovation have been quite influential in the operations of the two industries. The purpose of this study is to assess the developments and operations of firms in the tourism and hospitality industry. The study is based on the case of the Marriott Group Corporation. The study also focuses on the Marriott Grand Hotel in Moscow. There exist numerous external and internal environmental factors that affect the operations of the firm. Therefore, the PESTEL and SWOT analysis are important to understanding the success story of the Marriott Group Corporation. In addition, it is crucial to focus on the sustainability strategies employed by the company and give recommendations to improve the situation. Introduction The tourism industry has experienced massive transformation over the past two decades. Many developments and new features have been introduced in the industry. Essentially, the transformation in the tourism industry has led to the development of the hospitality sector. Several companies have emerged to provide hospitality services to people touring various destination. In essence, the international market of tourism has expanded quite rapidly to incorporate over one million hospitality firms (Enz, 2010). The Marriott Hotel Group is one of the companies that have portrayed profound success in the tourism and hospitality industries. Basically, the Marriott Group is a multinational company that operates in almost all the continents. It is imperative to note that the effectiveness of the management team and establishment of sound expansion strategies have been the basis for the progressive growth of the company. . Moreover, the corporation operates in a number of business lines including offering accommodation and catering services. In essence, the company offers 16 brands in almost all of its establishment. The brands are designed to meet the diverse customer needs and wants in the various destinations. In essence, most of the Marriott Hotel Group establishment have shown remarkable development, and they portray a bright future for develop. The US market has proven to be the most profitable for the company. However, the company has penetrated the Russian market with rejuvenated energy and more strategic planning. The Marriott Grand Hotel in Moscow has shown widespread success in the Russian market. The profits generated by the hotel have been increasing from time to time. In essence, the much success of the hotel can be attributed to its ability to produce several brands of products and services to customers. Moreover, the increased tourism activities in Moscow have also contributed to the success of the hotel. Moscow has a diverse culture and unique natural features that attract tourist from different parts of the world. Generally, tourism in Moscow has experienced enormous transformations that have led to the much success of the hospitality industry (Charlton, 2012). Global importation of the Marriott Group Corporation Apparently, the company has established businesses all over the globe. The international image of the company has profound importance to the social, political and economic developments in the world. For instance, the corporation enhances provision of quality services in all of its establishment. In this regard, tourists from various parts of the world strive to enjoy their vacation or holidays in the various Marriott establishment. As a result, international integration is enhanced since people from different country meet and share some good time together. For this reason, people create friendship thereby forming a global family. In this regard, the international security and global integration are enhanced thereby facilitating the growth international peace and integration. In essence, when people have friendly relations, perception in solving international social problems such as food problems, diseases, and education is significantly increased. The Marriott Group Corporation has made significant contribution to the global economy (Marriott International, Inc., 2014). For instance, the company offers thousands of job opportunities in its various establishment. In addition, the company has offered a room for the growth of other business and industries such as the transport and communications industries. In essence, people visiting the Marriott Group Company hotels have to be transported from one location to another. In this regard, the taxi drivers operating near the establishments of the company have benefited abundantly. Essentially, support the growth of other business and industries has been one of the strategic mechanisms for job creation by the company. Therefore, it can be identified that the company has played a significant role in promoting the people’s level of income (Gilson & Altman, 2010). With increased earnings, people can assess quality health services, good education, and improved lifestyles. In essence, the company has made enormous contribution to improving the people’s living conditions in all its establishment. The company contributes to government revenue in the various countries where it is located through tax remittance. In this regard, the company has facilitated establishment of various government structures and services to the people. Additionally, the company has funded various infrastructural development projects such as construction of roads and social amenities. Therefore, it can be seen that the establishment of the company’s hotels in different countries has resulted in an unlimited economic benefits. It is imperative, to recognize that the company has also led to the development of other factors indirectly. Several studies have identified that global business enterprises have unlimited benefits to the countries in which there are located. However, international corporations can be very dangerous to a country’s affairs if not monitored appropriately. Therefore, the governments of various nations should be vigilant about international establishments to mitigate or avoid the adverse consequences associated with such business, The global contribution of the enterprise cannot be exhausted. Apparently, the company has contributed to the world’s political development in a number of ways. However, many contributions of the company to the world’s politics are indirect. For instance, the revenue collected through taxations is used to fund various political developments. For example, a scrutiny of the usage of the tax collected from the enterprise’s establishments in various nations shows that a certain percentage goes to the salaries of political leaders. Moreover, the funds are also used to fund various developments in the judiciary or executive organs of the various governments in the world. Essentially, it can be observed that the corporation has unlimited benefits to the social, economic and political advancements. Strategic position and strategic alternatives available to the Marriott Group Company The company enjoys a broad customer base and a promising economic prosperity. In essence, the much success of the company can be attributed to its much strategic position and target marketing. Essentially, the company targets the urban population and the international tourists. Most of the company’s establishments are located in close proximity to major tourist destinations. In addition, the establishments are well served by transport and communication means thereby accessible to everyone. PESTEL analysis Political The Marriott Group Company operates in over fifty countries around the world. The countries in which the corporation operates have varied political structures and policies. In this regard, the concern has organized its business to meet the political policies established by various governments. For instance, the Marriott Grand Hotel in Moscow operates per the Russian political limits. Therefore, the administration techniques of the hotel vary from other establishments of the company in other countries. For instance, some countries dictate that for an international company to establish a business on their soil, it must provide jobs to the local population. In this regard, the political structure of some countries such as Russia, USA and China affects the company’s employment policies. It is important to note that the company is a renowned employee in the areas where its businesses have been established. Essentially, the political environment has been quite influential on the Marriott Group Corporation. Economic The Marriott Grand Hotel in Moscow has portrayed a continued development of its capital base (Charlton, 2013). The annual profits have been increasing tremendously in the past few years. However, several economic factors influence its profit margin and capital expansion. For instance, the taxation policies affect the hotel’s profit margins. In essence, the more the profits generated, the higher the tax revenue remitted to the government. Moreover, the variations of currency in the foreign market affects the cash flows of the enterprise. It is important to recognize that the company operates in the international market and, therefore, changes in the value of the foreign currency is quite influential on profit margin. Studies have revealed that irregular variation of the value of international currencies destabilizes the planning efforts of enterprises operating in the global market. Social The enterprise has established friendly ties with the community and the workers. The enterprise offers affordable social amenities facilities such as gymnastics and sunbathing infrastructure. Additionally, the business concern has installed internet in its facilities to ensure that customers enjoy their stay and time in the hotel. Moreover, the business concern participates in various corporate social responsibilities services to boost the living conditions of the surrounding communities (Kurtz & Young, 2009). Technology The adoption of technology has been one of the fundamental factors for the success of the enterprise. Marriott & Brown (2012) points out that the enterprise has established effective online structures when customers can make orders for reservation. Moreover, customers can enquire about the prices charged for accommodation and the various dishes offered in the hotel. In addition, the enterprise has laid a reliable online payment platform that facilitates payment for orders made from different parts of the world. In essence, with the current technology, people can pay for goods and services without physical appearance to the business providing the product or service. Apparently, the modern technology has made the operations in the hotel quite simple and accessible to everyone. Customers can find all the necessary information on the hotel’s official website before visiting the hotel. Basically, technology has significantly boosted the quality of services in the hotel. Environment The entire Marriott Group enterprise operates under the principle of sustainable development. In this regard, all its establishments (including the Marriott Grand Hotel in Moscow) have to engage in operations that do not contribute to environmental pollution. The Marriott Grand Hotel has restructured its catering techniques and introduced facilitates that do not emit greenhouse gases. In addition, the present catering facilitates are energy conserving and use little or no fossils fuel. The company major concern is to enhance safe expansion strategies that do not worsen the present world environmental condition. Raggamby & Rubik (2012) argue that environmental conservation is a basic developmental factor and, therefore all the necessary precautions should be taken to avoid pollution. Legal The company has always worked in accordance with the legal requirements. The company’s management ensures that the employees do no engage in unethical practices that might result in adverse legal repercussions. Essentially, the management has established effective strategies that monitor employees’ code of conduct to avoid falling on the wrong side of law. SWOT Analysis Strengths Massive adoption of technology in most of its application Provision of quality products and services to customers A diversified brand portfolio and widespread recognition by customers Weakness Does not offer favorable price for low-income earners Concentrates on urban population Opportunities The continued financial growth of the company offers unlimited chances of expansion The company can diversify its services to include transport services for customers Threats Stiff competition from other business concerns in the industry Insecurity in some countries Climate change and the unpredictable weather changes Sustainability strategy The company bases its sustainability efforts on environmental conservation and bettering the living condition of people in its neighborhood. The company conducts sustainability sensitization campaigns via the social media and other advertising platforms. In essence, all the company’s advertisements have a certain element that sends the message for sustainable development. The company’s efforts to have a safe expansion plan has led to clean economic development in the countries where it operates. In essence, the company donates funds to support organizations that spread the information regarding environmental. Apparently, the company has enhanced both the economic and social developments in the areas where it operate. The communities in its surroundings have be offered first priority in job recruitments. In addition, the company has aided the local communities to form organizations that can aid in maintain a healthy environment in present days and the future. In essence, the benefits of the company to both the community and the governments of the various countries in the country where it is located can never be estimated. Recommendations and conclusions based on established theories There exists various on which future developments in the tourism industry can be based (Enders & Reming, 2015). For instance, the regulation theories provides some useful knowledge upon which future developments of the tourism industry can be based. The theory suggest that the operations of a firm should be controlled to avoid harmful expansion. The theory gives an insight of what should be done to enhance progressive advancement of operations in the tourism industry. In this regard, business concerns serving in the tourism industry should practice regulated development to enhance sustainability in the economic, social and political development. Moreover, companies should ensure that the products and services they offer do not cause health complications to users. In summary, all n business organizations should be vigilant on emerging trends and the various developments in their respective industries. In addition, the public should be made aware of the issues that contribute to environmental pollution and how they can be avoided. References: Charlton, A. (2013). Frommers moscow and st. petersburg. Hoboken, N.J: John Wiley & Sons. Enders, J., & Reming, M. (2015). Theories of Sustainable Development. Retrieved on 6th June 2015 from: http://www.tandf.net/books/details/9781138796362/ Enz, C. A. (2010). Hospitality strategic management: Concepts and cases. Hoboken, N.J: John Wiley & Sons. Gilson, S. C., & Altman, E. I. (2010). Creating value through corporate restructuring: Case studies for bankruptcies, buyouts, and breakups. Hoboken, N.J: Wiley. Kurtz, D. L., & Young, V. (2009). Contemporary marketing. Mason, Ohio: South-Western Cengage Learning. Marriott International, Inc. (2014). Annual Report. The World’s Favorite Travel Company. Retrieved on 6th June from: http://investor.shareholder.com/common/download/download.cfm?companyid=MAR&fileid=819614&filekey=987062c0-247a-422a-b2ee-5a76ff60e1ed&filename=Marriott_2014AR.pdf Marriott, J. W., & Brown, K. A. (2012). Without reservations: How a family root beer stand grew into a global hotel company. San Diego: Luxury Custom Publishing. Raggamby, A. ., & Rubik, F. (2012). Sustainable development, evaluation and policy-making: Theory, practise and quality assurance. Cheltenham: Edward Elgar Pub. Read More