MARRIOTT INCORPORATION

Marriott Incorporation



Marriott Incorporation

Introduction

Marriott was founded by Willard Marriott in 1927. He expanded the businesses to a chain of restaurants and hotels. Today, Marriott International has approximately 3150 property Houses located in the United States and 67 other countries and territories. Marriott International was founded in 1992, when the Corporation Marriott split into two companies; Marriott International and Marriott Corporation.

Organizational Culture at Marriott Inc

Marriott's organizational culture is based on the idea of self-motivation in the individuals through the empowerment. Marriott believes that employees would work harder if they feel free from the hectic of manager's assigned task. Marriott considers their employees to hold the responsibility of doing work as their primary goal to achieve. The distinctive structure of Marriott allowed it to innovate, grow and react more quickly according to the turbulent changes occurring globally. Marriott's organizational culture mainly focuses upon.

Marketing and Sales Strategy

With annual sales approaching $65 billion, on an average day, the hotel industry accommodates over 2.6 million guests in 3 million available rooms (and growing) in over 44,000 properties around the world. The industry is growing at an annual rate of approximately 3%, the industry is divided into four tiers, consisting of budget/economy, mid-scale, first-class and luxury. Though there are countless hotels around the globe, the major players in the industry are the 10-12 parent companies that operate a chain of hotels, often with brands that are spread across the four tiers. In addition to international players, each tier also contains an abundance of smaller hotels that compete in its respective tier.

Within the luxury tier, many of the players do not own the hotels themselves but instead manage the operation of the business similar to that of Marriott. In the luxury segment, affray for obtaining new administration agreements becomes very high as inn proprietors make their choices based on the quality and worth of a company's administration service and most significantly, its emblem name (Beldona, 2008, pp. 135-142). Moreover, guests who select to stay in luxury inns are routinely not very cost perceptive, and therefore, it is essential that an inn differentiate itself amidst its affray by providing worth supplemented services as well as sustaining an untarnished, reputable emblem name and image. In order to remain profitable, hotels should operate with round 65-70% capacity. Because of seasonality, political and economic events, some hotels are finding it difficult to maintain profitable occupancy levels and have started to provide services along multiple levels within the industry's value chain, from Internet reservations to providing meals on flights through alliances with airlines. Thus, the changing value string of links and the use of new expertise needs that inns be cognizant of these dynamic trends.

Five Force Analyses

The rivalry amidst competitors is high because guests have many choices of inns to choose. Rivals within this luxury hotel segment are relatively equal in size and capability, making it difficult for any one firm to significantly rise above the competition. The vying hotels should struggle for the identical guests within the ...