Review the case available on the course website. You are required to submit a two page preparation document to your tutor in response to the following 5 questions:
1. Thinking of the resources and capabilities of Marriott throughout the case. Which of these resources do you consider.
I may consider well organising rather than other resources. The business should be structured to reach maintain profit based on effective managing skills and developing company, for instance, pick right leaders, proper strategies, company goals and take caring employees. These components support Marriott become one of big franchise hotel globally especially leader effect on the company strategy that build an opportunity to develop Marriott. Other considerations are also important to lead business succussed such as inimitable and rare. However, when Marriott tried to run the business in different ways, for example, bought cruise ships and doing new style of hotel (courtyard hotels), they had being troubles to push forward the business (conflict with Greek company), they should proper research for the business effectively then goes into plan based on deployed strategic.
In terms of the 5Qs of business strategy (pp. 32-33 in the textbook), for Marriott:
2. What amount of growth and level of profitability does the organisation seek?
1970s’ the corporation focused on growing the hotel division aggressively. Bill Jnr spent 3 billion dollars for the new capital and increasing room numbers by 17% per annum. Therefore, for the first time, they made over 1 billion in 1977. Bil Jnr saw other chances in 1980s which tax law in US, the Economic Recovery Tax Act 1981 allowed investors 9 dollar of tax write-offs for every 1 dollar invested in new projects. It was great to make real estate investment.
3. What products and services does it plan to produce?
Courtyard hotels were launched in 1983 which a hotel has limited services, for instance, no meeting space, limited restaurant service and no room service for providing lower price hotel rooms with great condition. Moreover, the corporation also borrowed to acquire restaurant chains in 1982. Marriott also moved into timeshare which is a business model. For example, a customer buy weeks and share with others, it is keep paying maintenance costs to the parent manager.
4. What customer and geographic markets does it plan to service?
Based on Marriott quality of services, they may target generation X and Y have money to spend on quality accommodation, but who want an experience and memorable destination as well as a quality hotel product. The next geographic markets are scheduled for New York