International Strategic Management in the Term Paper

Excerpt from Term Paper :

The following Table labeled Table 1.0 shows the Direct Competition Comparison in the industry sector of Marriott International, Inc.

Table 1

Marriott International is known for being creative and especially so in relation to the IT dollar. In a report entitled "The Keys to Marriott's Success" stated is that "Marriott and its IT department have documents and system, policies and procedures and even history and philosophy to guide their decisions frees them to focus on real resourcefulness creatively combined with the commitment to wring the most value from every IT dollar." (International Data Group)

The Courtyard by Marriott was found to be the "Champion in Best Practice" which is evidence in the Intranet System which replaced manuals and printed materials. Siguaw, et al. (2004) The Courtyard by Marriott also recently claimed the award as the Corporate-level Overall Best-practice Champion in the mid-scale segment. The Cornell Hotel School along with the Center for Hospitality Research states that elements required for best practice in IT in the hospitality industry is inclusive of the following:

Assuring that marketing and operations departments are involved in major IT initiatives Siguaw, et al. (2004)

Technology used to eliminate paperwork and reduce response time to guest requests. Siguaw, et al. (2004)

Take time to fully research third-party system and software providers to find the most cost-effective vendor Siguaw, et al. (2004)

Consider Network vs. PC-based work stations Siguaw, et al. (2004)

Design the system to accept future changes, Siguaw, et al. (2004)

Remember that technology should not detract from personal service to the guest. Siguaw, et al. (2004)

Courtyard by Marriott earned the award due to "a relentless focus on the customer." Dube & Renaghan (1999) Marriott knows that the drivers of value for their customers are: "a clean and functional room delivered in a friendly, comfortable and consistent environment. Marriott's key competencies are inclusive of its' redistribution system. Visits to the Marriott Courtyard sated that the things they like most were "friendliness of staff, cleanliness of the property, convenience of the location, aesthetics of the property, and quality room service." Dube & Renaghan (1999)

According to the Online Profile of Marriott International, Inc. Marriott was named one of the "100 Best Companies to Work For," and one of the "Top 50 Companies for Minorities." Further ranked by the NAACP as #1 in the annual industry report Marriott was also ranked by Latino Style Magazine ranked Marriott as being one of "The Best 50 Companies" for Latinos to work for in the U.S. As well as being declared one of the "Best Companies for Working Mothers" by Working Mother Magazine. A strategic analysis is needed to gauge the reality of the superior claims made on the part of Marriott and others to validate the numbers and the reasons why Marriott has gained success in the hospitality industry. The following is a statistical illustration of the days market in stocks for Marriott International, the date of this analysis, January 11, 2005 labeled Table 1.0:

In a recent news report Marriott International announced intentions to sell 85% of its Courtyard Joint Venture Interest for the approximate sum of $92 million.

Marriott International Stock prices have held steady over the last 1 1/2 years and even in the troubled economy have reached an all time high as is illustrated in the table below labeled Table 2.0.

Table 2

As demonstrated by the numbers in the above table average market opening on Marriott International stock was 59.35 per share between December 14, 2004 and January 10, 2005. The average market high on stocks was at 59.91 while average low market stock prices were at 59.16 between December 14, 2004 and January 10, 2005. Average close for this time period was 59.5, with the volume average totally 1,001,780.00 and the adjusted closing price per share at 59.5.

Marriott International has spas in the Hotel and is a luxurious amenity that assists in integration of health and wellness into a vacation promoting healing physically and mentally as well as spiritually and further alleviating and reducing stress. Marriott's spa experiences provides a sanctuary for every day life making one feel as well as look wonderful while cleaning the body of toxins and indulging the patron the need to experience being pampered and rewarded. Spas are located all across the continental United States as well as Hawaii and other territories as well as the UK, Turkey, Thailand, Spain, South Korea, Saint Kitts and Nevis of the British West Indies, Aruba, Australia, Brazil, China, Guam, India, Indonesia, Ireland, Jordan, Malaysia, Mexico, and Quatar.

The Center for Hospitality Research performed a case study with relevance being the comprehensive study of "current exemplary practice" which provided "detailed examples of innovation with case descriptions, methods for introducing the practice and information on who to contact within the hotels featured." Siguaw et al. (2004) The study was conducted in cooperation with eighteen individuals that represented the best practice companies in marketing in which champions were selected from 3,000 plus nominations in survey provided nationwide of the industry. Information garnered from the champions in implementing these practices were as follows:

Carefully define your target markets

Don't undertake these practices unless they show a positive impact on yield or REVPAR, and Examine the practices of hotels in other segments to obtain inspiration and stimulate good ideas Siguaw et al. (2004)

Applied Strategic Analysis: SWOT Analysis


Strengths for Marriott International are:

Hotel discounts

Food discounts

Stock purchase



Employee credit union

Tuition assistance

Discounted child care program

Fortune 50 in diversity

.Marriott has been in the business for 75 years



Recent corporate organization is considered to be a weakness in the hospitality industry.


Implementation of energy-saving features in the hotels which have been utilized by others in the industry.


Gasoline prices are in danger of rising and that is a factor in the demand for lodging. In a 13-year analysis conducted by The Center for Hospitality Research it was found that a mere 1% rise in gas prices results in a 1.74% drop in rooms. Canina et al. (2003) Furthermore this effect is worse and hits hardest on the mid-scale and economy hotels. Canina et al. (2003) According to the "combined effects of hotel location and market segment effects of gas prices is a larger threat to hotels along highway who depend on travelers by automobile and their patronage.

Environmental and ecological earth events are a threat to the industry due to events such as the Tsunami and the after effects.

Travel since the September 11, 2001 event has been stifled due to fear on the part of travelers as well as stricter regulations toward identification issues in security.

The availability, terms and development of capital to finance growth in the industry is uncertain

General supply and demand changes

Competitors in the Industry:

"Hilton Hotels Corporation" and "Intercontinental Hotels" are the main competitors of Marriott International. The following figures (Table 3.0) are those stated as of January 10, 2005 in the "Services Sector" of the "Hotels and Motels Industry":

Table 3

Community Contributions and Participation:

Children's Miracle Network is beginning the 20th year as an acting national sponsor for the Network. Giving to the community is important to Marriott. From a corporate perspective underwriting support which Marriott lends to Children's Miracle Network through ownership of the property Marriott presented to Concert for Kids. The Marriott has a Rewards Program that awards points to frequent visitors which are in the form of donations to Children's Miracle Network. Marriott Pride is the name assigned to the program which is the fund-raising vehicle of Marriott International. Marriott Pride is a raiser of funds as well as provisioning opportunities to involve the employee in the community relationship both assisting in fund-raising as well as volunteering in community hospitals. Children's Miracle Network [Online]

Ritz -- Carleton which is a division of Marriott International is opening a new resort in the Cayman Islands. Highlights will include restaurant from Eric Ripert of New York City's Le Bernadine, a four-star establishment and a golf course designed by Greg Norman. As a matter of fact Marriott International has a future outlook that is defined by growth and is positioned to integrate with the expanded demands of the hospitality industry in modern times.


There is a lack of information and evidence concerning the contributions of Marriott International in relation to the environment. Therefore, it is recommended that Marriott International pursue environmental friendly plans as well as proactive plans within the industry as to processes of protecting and enhancing the environment on the part of Marriott International.


1. Deng, Ni (2004) Can Service Recovery Help When Service Failures Occur? Journal of Hospitality and Tourism Management 2004 Aug 01 [Online] Highbeam Research

2. For Global Hoteliers MICROS-Fidelio Financials is the answer; MFF Provides an Integrated, IRFS Complaint Solution (2003) M2 Presswire 2003 Dec 9 [Online] Highbeam Research

3. Wyndham and NYU Release…

Sources Used in Document:


1. Deng, Ni (2004) Can Service Recovery Help When Service Failures Occur? Journal of Hospitality and Tourism Management 2004 Aug 01 [Online] Highbeam Research

2. For Global Hoteliers MICROS-Fidelio Financials is the answer; MFF Provides an Integrated, IRFS Complaint Solution (2003) M2 Presswire 2003 Dec 9 [Online] Highbeam Research

3. Wyndham and NYU Release Completel Women Business Traveler Study Online; Profile of Today's Woman Business Traveler Determined (2000) PR Newswire Dallas 2000 June 6 [Online] Highbeam Research

4. Campbell, Steven. E. Dr. (2000) Prosperity Bodes Well for the Hospitality Industry in the New Millennium The Black Collegian 2000 Feb 1 [Online] Highbeam Research

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