Objectives, Effectiveness and Business Plans of Marriott

TASK 1

1.1 Analyse the objectives of the business

Every business organization determines smart objectives that should be attain in within a specific duration of time. The goals may be short term and long term that can be achieved as measurable and realistic form. The Marriott Internationals also wanted to be the premier provider and assistant of leisure and vacation experiences in the world. Thus, the corporation is one of the top ranked organization in the world which is providing the highly compatible franchises and lodging and hotels facilities across the world. The hotels are one of the top players in the accommodation sector. It has successfully achieved its objectives in the previous year and after that the Arne Sorenson CEO of the organization sets the growth plan for the next term fro an example, the owners of the company desires to open new hotel across the world till 2019 with approximately 285,000 to 300,000 new rooms. The company also reveals the financial guidelines that it wish to reach from the last years (Camp, Mittelholzer and Papandreou, 2018). 

The objectives of the company defines the target that is needed to achieve in terms of profit against the investments made. Through investments the company wanted to get some benefits by setting up the specific and timely achievements that the Marriott has to achieve in the year 2019 with financial benefits.

1.2 Explain factors that impact on the business

There are several factors that impacts on the business and these can be refer as macro and micro factors. The macro factors are includes -

PESTEL Analysis

Political factors – One of the major political factor is terrorism, international relations and political climate in popular tourist destinations. The biggest threat of the terrorist attacks that can disrupt the air travel and can also decrease the number of people on tourist destinations (Edwards, 2018).

Economic Factors – The major economic factor is the slow economical growth in China and the ongoing economic disturbance in Europe. The slow economy resist the buying power and the ability to travel of the population and it also impacts on the business of Marriott as it dependent on the travel and tourism.

Social Factors – The people who are willing to travel across the world can pay the amount for the great experience. Culture changes also results in increasing number of travellers with the packaged tours and luxury resorts.

Technological Factors – The technology supports a business in order to online reservations and other rental services, etc.

Environmental Factors – The decreasing fuel charges can reduce the travel cost and increase in the travel and that is fruitful for the hotel business. Climate change could harm Marriott's business because of the rising in ocean level that are caused to flood and storms.

Legal Factors – The legal rules and regulations should be follow by the Marriott for smooth working in the market. If in case the rules would be avoided then they need to pay the fine (Sandnes and Neyse, 2018).

Porter's Five Force Model

Buyer power – As the industry has a diversification in price so the price the customer's can bargain for the price with other brands. This allows the customers to switch to the rivals. 

Supplier Power – The suppliers can experiments for the product design using the materials to increase the price but in these circumstances the firm can shift to other company. But there are some third parties who are solely depends on the firm may have less bargaining power of suppliers.

Threats of New Entrants – New entrants brings innovation but this can also implement pressure on the Marriott International Inc. The good thing is that it can manage the entry by lower pricing strategies with reduced costs to indulge the customer.

Threats of Substitute – The threats to a business occurs when the similar products are going to enter in the market or already exists. For an example, Taj Hotel is one of the eminent hotel across the globe, so it is one of the giants in the industry that can give impact on the Marriott's business (Yang, Levi and LEZAUN, 2018).

Competitors – Competition is good for the innovation cause it sets the new targets for any business. The Oberoi hotels, Le Meridian are two big competitors of the Marriott.

SWOT analysis

1.3 Determine potential improvements to the business organization and/ or operation

Ansoff’s Growth Matrix

TASK 2

2.1 Review the effectiveness of the business

There are various aspects that makes a business effective and these aspects are evaluated to know the impact of these factors on the business. These factors are as follows -

Product and service – Marriott needs to innovate the product and services to earn the profit. These innovative products and services should available on affordable prices.

Marketing – Marketing encourages the business with some of the its strategies like sponsorship in big events like football. Because marketing is a tool which shows presence of the brand in the market (Edwards, 2018).

Sales – Increasing the sales is the focused area of the business. The Marriott can measure its sales on the basis of previous years. The marketing is the tool to encourage the sales among the customers. Sales can be noticed on the previous record and that also supports to determine the strategies to increase the sales.

Finance – Business can be fail because of its poor financial management or lack of planning. Marriott can implement a financial management system that can be a good step to start. It is good to take a review of finances through the cash flow, working capital, cost base, borrowing and growth (Sandnes and Neyse, 2018).

Staffing – There is a huge staff in the Marriott so it is needed to evaluate the staff that they need some training and skill development training. So that they can perform best and attend the clients efficiently.

Business image –  Running a business is different thing and run a business which has an identity is quite different thing. Because it is necessary that a business should have an image among the public cause they are end users of product and services which a business is providing. Marriott has an outstanding image across the globe.

Record keeping – There are many business which maintains the record books because these records help to gain benefits on the basis of the previous year. All the profits and loss are calculated on the basis of the previous year that defines the ratio difference of the profit. For an instance, Marriott earn approximately profit US$22.894 billion in the year 2017 and now it has set a goal for the 2019.

2.2 Develop plans to improve the business, justifying their values

Business plan – Before implementing any strategy it is good to formulate a plan and accordingly that can bring success to the organization . The business plan forecasts about such factors -

Marketing and sales – Marketing is essential tool to increase the sales through promotional activities that can encourage the customers to purchase the product. For an illustration, the Marriott can offers several packages and offers to improve the sales. There are several other strategies of marketing like sponsorship, campaigns and hosting and events that can make the people aware about the brand which also affects the sales.

Productivity – It is preferable to identify the productivity of the company to forecast the productivity that can gain the profits. It is also help in maintain the productivity to attract the people and manages the services that are required by the customers of Marriott.

Financial management system – Financial management system is a methodology that uses to record the income, expenses, and assets that are required to maximize the profits and ensuring the sustainability in the market (Yang, Levi and LEZAUN, 2018).

TASK 3

3.1 Evaluate the current skills of management and staff

This is necessary to evaluate the current skills of management and staff because there are is a huge staff of the Marriott hotel chain so there is need to provide skills training to improve the services that can satisfied the customers. The management should prepares the strategies that can be satisfied to the employees and the customers both. The management should maintain the culture of the organization with some values that are needed to take the organization ahead. Staff should be cooperative and polite with the customers as they are the face of the organization and they can make a rand image among the people (Arroyo, Bauman and Block, 2018).

3.2 Devise and justify plan for the development of skills for management and staff

The Marriott is has so many branches across the world so it can give communication training to the management and staff because the the tourist comes from across the borders and they may have language obstacles so they can give them a prominent services. They can also provide the training for the health can safety of the customer's cause they the guests safety is the prime motive to get the customer satisfaction. The training of new developing technologies are also necessary for the staff so that they can handle the operations successfully (Camp, Mittelholzer and Papandreou2018).

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CONCLUSION

The businesses has their own strengths and weakness that's why the health check-up of every business is required for them. The report covers the objectives, effectiveness and business plans that can improve the business along with the external and internal factors of Marriott International Inc.

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REFERENCES

Arroyo, J.P., Bauman, E.M., Block, T.R., and et.al., 2018. Detecting and sparing of optical pcie cable channel attached io drawer. U.S. Patent Application 15/826.338.

Camp, C.J., Mittelholzer, T., Papandreou, N., and et. al., International Business Machines Corp, 2018. Page-level health equalization. U.S. Patent 9,990,279.

Edwards, P., 2018. Business and Health Planning in General Practice. CRC Press.

Sandnes, F.E. and Neyse, L., 2018. An Image Based Automatic 2D: 4D Digit Ratio Measurement Procedure for Smart City Health and Business Applications. In Information Innovation Technology in Smart Cities (pp. 63-74). Springer, Singapore.

Yang, X., Levi, M.I., LEZAUN, E.A., and et. al., 2018. Distributed health-check method for web caching in a telecommunication network. U.S. Patent 9. 948.741.