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 Group Member

Amna Javed

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 Outline
 Introduction
 External Environment (PESTLE)
 Internal Environment (SWOT analysis)
 Value
 Out sourcing
 Substitute
 conclusion

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 Introduction
 Marriott International, Inc. is a leading lodging company based in
Bethesda, Maryland, USA.
 Opened in Washington, D.C. in 1927 by J. Willard and Alice S.
Marriott.
 It has more than 3,700 properties in 73 countries and territories.
 The company operates and franchises hotels under 15 brands.
 There are approximately 300,000 employees at the company’s
headquarters and other offices.
 In fiscal year 2011, Marriott International reported revenues of over
$12 billion.
 The company is dedicated to providing exceptional service to
customers, growth opportunities for associates, and attractive returns
5 to shareholders and owners.
 MARRIOTT
In Pakistan Marriott International has two branches:
 Islamabad
 Karachi

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 History
 1927-1956
It all began with an A&W root beer stand. Founder J. Willard Marriott and
his wife, Alice, got their young business off the ground by quenching
people’s thirst during Washington D.C.’s hot, muggy summers. Good food
and good service at a fair price became a guiding principle for Hot Shoppes
restaurants--and for Marriott International as it grew.
 1957-1985
Marriott made a historic shift into the hotel business in 1957. The world’s
first motor hotel opened in Arlington, Virginia, under the management of J.
Willard Marriott’s son, Bill. Over the next 25 years, Marriott became a
diverse global enterprise, and Bill Marriott became a visionary CEO whose
leadership transformed the hospitality industry.

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 History

 1986-2011
One company, many brands--that's the innovative model that Marriott began
building in the late 1980s. From pioneering the extended-stay business to
launching distinctive brands geared toward the business traveler to
increasing its presence overseas, Marriott International broke new ground in
its quest to become the #1 hospitality company in the world.

 2012 & Beyond

Today we are on a mission to shape the future of travel through technology
and innovation. From mobile check-in and lobby Great rooms to
transforming the meeting experience with our Red Coat Direct app, we are
making travel more brilliant for our guests. Use the circles below to explore
milestones in this era.
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 History

 2016
Marriott International acquires Starwood Hotels & Resorts, creating the
world’s largest hotel company with 5,700+ properties offering more
than 1.1 million rooms across 30 brands in over 110 countries.

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 Statement

 Marriott International does not have a mission statement;

rather, we have a vision statement which is
"To be the World's Favorite travel Company."

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 External Environment

 External environment needs to be analyzed in timely manner in

order to be competitive on today's market place.
 The environment is changing all the time and company must be
responsive to the changing environment.
 To take effective actions. PESTLE is the effective tool to analyze
external environment of the organization.
 Marriott International is the leading hospitality management
company.
 Its political, economic, social and technological environment
analysis (PESTLE) are as follows:

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 PESTEL Analysis
Political Environment
 The political stability is important factor.

 The major political factors that could affect Marriott are international
relations and the political climate in popular tourist destinations.

 The another threat is a terrorist attack that could disrupt

international air travel or frighten people away from travelling.
.

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 Conti.
Economic Environment
In this Factors include economic growth, Interest rates, exchange rates.

 These factors greatly affect how businesses operate and make

decisions. For example, interest rates affect a firm's cost of capital and
therefore to what extent a business grows and expands.

 Exchange rates can affect the costs of exporting goods and the supply
and price of imported goods in an economy.

 The growing economy of the Asia and other developing region is

motivating Marriott International to invest more in these areas
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 Conti.
Social and Cultural Factors
 Factors include the cultural aspects and health consciousness,
population growth rate, age distribution, career attitudes and
emphasis on safety.
 People wants to explore the new places in this aspact the Marriot
accommodate their customer.
 High trends in social factors affect the demand for a company's
products and how that company operates.
 Companies may change various management strategies to adapt to
social trends. Marriot International must recognize this market and
develop plan to attract these markets.
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 Conti.
Technological Environment

The world today is like global village. Technological factor are R&D
activity ,automation etc
These factors influence the decision of outsourcing.
 Reservation, payment, check in and check out can be done through
advancement of technology
 Marriott International has adopted technological innovation in faster
pace than the competitors.
 Technological and innovation is the key priority of Marriott
International.

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 Conti

Environmental Factors

 Factors include ecological and environmental aspects such as

weather, climate, and climate change , which may especially affect
industries such as tourism, farming, and insurance.
 Growing awareness of the potential impacts of climate change is
affecting how companies operate and the products they offer, both
creating new markets and diminishing or destroying existing ones.
 Marriott International to focus on clean energy and to be more
environment friendly by decreasing the use of synthetic fuels, which
also helps in controlling the cost of the operations.
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 Internal Environment

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 Internal Environment

 An organization's internal environment is composed of the

elements within the organization, including current employees,
management, and especially corporate culture, which defines
employee behavior. Although some elements affect the
organization as a whole, others affect only the manager.

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 Conti
7 Factors Determining the Internal Environment of a Business
which are:
1. Value System
2. Mission and Objectives
3. Organization Structure
4. Corporate Culture and Style of Functioning of Top
Management
5. Quality of Human Resources
6. Labour Unions, and
7. Physical Resources and Technological Capabilities.

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 Conti
 To take effective actions. SWOT is the effective tool to
analyze internal environment of the organization

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Value
“We believe our strength is rooted in our core values: putting people first, pursuing
excellence, embracing change, acting with integrity, and serving our world. These
values are our legacy and our future. As we pursue our vision of making Marriott the
#1 hospitality company in the world, we never lose sight of our founding principles and
our proud heritage. Our business is always evolving…but we’ll always stay true to who
we are.” – Marriott Hotels and Resorts

 Putting people first

 Pursuing excellence
 Embracing change
 Acting with integrity
 Serving our world

This list is a classic for a successful business. It has all the ingredients for a growing
organization and is lead by an insightful senior leader team and chairman Mr. J.W.
Marriott. The first four values are necessary for any company to succeed but Marriott
has added an unusual fifth item “serving our world”.

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 Outsourcing
 Outsourcing is a business practice used by companies to reduce
costs or improve efficiency by shifting tasks, operations, jobs or
processes to an external contracted third party for a significant
period of time. The functions that are contracted out can be
performed by the third party either onsite or offsite of the
business.
So Marriott also do outsourcing.

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 The Power of Marriott

 GROW WITH our PARTNERSHIP APPROACH

 GROW WITH our POWERFUL PORTFOLIO OF BRANDS
 GROW WITH our INNOVATIVE EDGE
 GROW WITH a FOCUS ON PROFITABILITY

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 Substitute
 All firms in and industry compete with other industries offering
substitute products or services.
To avoid or to overcome the threat of substitute firm (MARRIOTT)
should apply the five forces.
The five forces model that shall be analyzed is comprised of:
1. Buyer power,
2. Supplier power,
3. Threat of new entrants,
4. Threat of substitutes, and
5. Degree of rivalry.

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 Substitute
 Are any changes taking place in the macroenvironment that might
have an impact, positive or negative, on the industry in which your
company is based? If so, what are these changes, and how might
they affect the industry?
 Identify whether your company has a competitive advantage or
disadvantage in its primary industry. (The primary industry is the
one in which it has the most sales.)
 Evaluate your company against the four generic building blocks of
competitive advantage: efficiency, quality, innovation, and
responsiveness to customers.

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 Conclusion
 Marriott International has become one the world's leading
hospitability service provider with it providing world class
facility, innovation, smartly leading the market.
 It has its hotel strategically located .It also employs skillful and
educated employees. It has been focusing on the sustainable
management of its resources.
 With the increased in standard of living of the people around the
world, coming of ecommerce, it has significantly taken
advantage of both the situation to its favor.

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