Marriott Hotel Expansion Case Analysis

Although initially founded by J. Willard Marriott, Marriott International has been conducting it operations under the supervision of Bill Marriott as the Executive chairman and Arne Sorenson as the President and chief executive officer. With its headquarters in Maryland, Washington D. C, Marriot Company is considered to be arguably the largest chain of hotels in the globe today. The hospitality franchise claims ownership to more than 6,500 properties in over 127 nations across the world. On the other hand, high foreign exchange rates are also likely to alter Marriot’s operations. For instances, some countries often tend to have high exchange rates for the American dollar which is expected to deter American tourists from traveling to such destinations. This could also prevent other people from visiting the United States which as a result could adversely make it difficult for Marriott to enjoy fluency as far as running its routine operations is concerned.

Creation of a state of income inequality among the general public could also deter Marriott from meeting its overall objectives. Cases of middle-class wage stagnation could also aid in reducing the ability of people to pay and travel to their respective hotels hence affecting Marriott international (Nyangwe, 2018). When this trend continues for a considerable time, the company is expected to experience reduced profit margins. Also, increased travel bans to distinguished destinations are likely to lead to a reduction in demand for hotel rooms (Barfi-Adomako, 2018). Technological Factors The advancements in the technological filed have positively impacted different development sectors today. As such, a majority of business enterprises have since seen the need of coming up with relevant measures that could enable them to integrate modern tools of technology as a means of boosting their respective business endeavors.

Similarly, the technology is likely to bear great impacts on the hospitality industry. Such services could also allow customers to rate the hotel depending on how well their visit was. If the company issues adequate services, this could works in the company’s favor since more customers are likely to gain interest. If this continues to be the case, the chances are high that this could grow the company’s consumer base hence allowing for growth in its profit margins. Natural Factors In the modern world, one of the major environmental factors likely to adversely affect Marriott international includes the price of fuel. The price of fuel directly impacts the manner in which the company can conduct its operations. As such, Marriot Company provides such customers with elegant yet simple relaxing environment where business people are likely to enjoy minimal disruptions or distractions (Wei, 2018).

Evaluation of Marketing Strategies Product Marriott international in an international company specialized in offering hotel and hospitality services to its services. The company specializes in issuing hotel and lodging facilities to its various customers across the world. Price Depending on the brand, Marriot International offers a variety f price ranges with regard to the services being issued to its customers. as such, different brands are more likely to bear a unique pricing that is adequately suited for the target market share. For instance, the company uses online platforms as a means of enhancing customer interaction with respect to serving its customers. SWOT Analysis Strengths Because Marriott International has several of its branches in counties across the world, this is essential as it allows for increased brand recognition and recall.

This allows for customers to refer each other with regards to service being issued by the company from either country. Also, the company bears over 3700 hotels located in more than 70 countries worldwide enabling it to increase its chances of accommodating a broader consumer base (Bruns-Smith, 2015). The fact that the company has been ranked as the 33rd best place to work by Fortune, the company is likely to retain more customers who on the other hand allows consumers to enjoy specialized services at all time. Threats As a result of increased market competition, the company often tends to experience stagnated growth as a result of limited customer reach. If this continues to be the case, the chances are high that the company could face closure in the long run.

Another major threat facing the company include the fact that the company’s prices are affected as a result of competition. In such a case, competitors could choose to reduce their prices which automatically makes it difficult for Marriott Company to retain its customers (Heller, 2016). Problems Facing Marriot International Terrorism and Political Unrest As discussed earlier, these two factors adversely affect the functionality of any business enterprise. Evaluation of Strategic Alternatives Through the introduction of new partnerships, the company is more likely to learn about the dynamics of the local market. Similarly, the company could also do this by partnering with local hotels to understand ways of overcoming the various problems facing them such as political unrest or unfavorable fiscal policies, also; the company is likely to introduce experts to enable the employee are adequately educated on the importance of effective communication at the workplace.

By doing so, this will enable the company to effectively carry out its respective functions in a manner that guarantees adequate results (Bruns-Smith, 2015). Recommendations For Marriott International to effectively conduct its respective business operations. The study proposes the following recommendations. This could work to its advantage (Bruns-Smith, 2015). The company should come up with an application that allows customers to make room reservation from the comfort of their homes before the visit. The company can do so by employing a highly competitive information communication staff to ensure there is the 24-hour maintenance of the application. Control Procedures To ensure that the company can achieve all its strategic alternatives, the management should employ strict measure which requires each staff member to face a punitive measure whenever h/she fails to meet what is expected of them.