Analysis of the Strategy of Marriott International Inc.

Table of Content

1. Introduction to Strategy 3

2. Conducting an Environmental Analysis 5

3. Investigating Strategic Alternatives 8

4. Formulating a Strategy 11

5. Implementing a Strategy 13

6. Monitoring and Evaluating Strategic Performance 15

Bibliography 17

Appendix I: Porter’s 5 Forces Model for Marriott International Inc. 19

1. Introduction to Strategy

Strategic management is the set of managerial decision and action that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long range planning), strategy implementation, and evaluation and control (Hunger & Wheelen, 2011). In this report I will do research about the strategy of Marriott International, Inc. I will give advise on how Marriott can improve their strategy and I will come up with an advisory strategy.

Marriott is organized like picture 1.1, focused on their vision;

Marriott did come up with a vision; To be the number 1 hospitality company in the world.

In order to achieve this vision there are several parts which are helpful.

The purpose of this vision. Which explains why Marriott choose this vision and who is involved.

Furthermore there are values, which are helping Marriott by gaining a competitive advantage.

Moreover there is a strategy involved, in which is stated where Marriott has to focus on (those focus points are listed in picture 1.2).

Finally, Marriott also had to measure how this vision is performing. They are looking at 3 success measures; Loyalty, Profitability and Growth.

Marriott International, Inc is founded in 1927 and in 1983 it became the first hotel chain designed for business travellers. Up till now, Marriott has grown to a chain with 18 different brands and broad segment groups, with 3,900 properties over 72 countries all over the world and with around 42 million members in their loyalty program.

As of March 2013, Marriott International Inc owned six hotels, leased 38 hotels, managed 1,021 hotels and franchised 2,571 hotels. Furthermore Marriott is having 387 hotels (67,000 rooms) in the pipeline since the start of 2013. (Freed, 2013) (Hampton, 2014)

In order to keep consistent, Marriott has a strategy for all their brands and properties. This strategy consists of six parts, which is shown in the picture 1.