https://research-methodology.net Necessary knowledge to conduct a business research Sat, 28 Oct 2023 03:30:08 +0000 en-US hourly 1 https://rm-15da4.kxcdn.com/wp-content/uploads/2020/08/cropped-logoBRM-32x32.jpg https://research-methodology.net 32 32 https://research-methodology.net/marriott-csr-a-brief-overview/ Sat, 28 Oct 2023 03:13:14 +0000 https://research-methodology.net/?p=76017 Marriott Supporting Local Communities In 2022 alone, employees contributed over 1.6 million volunteer hours across the globe, focusing on environmental and social issues to positively impact their communities. The company aims to locally source 50% of produce by year-end 2025   Marriott Educating and Empowering Workers In 2022, 78% of all associates* completed career- or skillsrelated training. The largest hotel chain in the world has been listed as Fortune 100 Best Companies to Work For® Great Place to Work® in 2022     Marriott and Gender Equality and Minorities A majority of Marriott’s Board are minorities or women Listed as one of 50 Best Companies for Latinas to Work for in the U.S., LATINA Style 2022 The company aims to increase representation of people of colour in U.S. executive positions to 25% by year-end 2025. 47% of Marriott’s global executives (vice president level and above) are women 22% of Marriott’s U.S. executives (vice president level and above) are people of colour   Energy Consumption by Marriott In 2022, numerous Marriott-managed hotels across the globe implemented energy efficiency projects, saving approximately 45,000 MWhs of energy. 9% Global Reduction in Energy Consumption per Square Meter of Conditioned Space from 2016 Baseline 1% of electricity consumption sourced from renewable energy in 2022   Water Consumption by Marriott The company aims to reduce water consumption per occupied room by 15% from a 2016 baseline by year-end 2025 3% Global Reduction in Water Consumption per Occupied Room from 2016 Baseline   Waste Reduction and Recycling by Marriott The hotel chain aims to reduce waste-to-landfill by 45% and food waste by 50% from a 2016 baseline by year-end 2025 In Thailand, 27 Marriott hotels donated over 33,000 kg (72,000 lbs.) of food and surplus food to Scholars of Sustenance (SOS) throughout 2022.   Carbon Emissions by…]]> https://research-methodology.net/marriott-ecosystem-a-brief-overview/ Sat, 28 Oct 2023 02:56:51 +0000 https://research-methodology.net/?p=76012 Key Components of Marriott ecosystem include the following: – Properties. Marriott has a portfolio of over 8,000 hotels in 138 countries and territories. This includes a variety of brands, from luxury to budget-friendly, to meet the needs of all types of travellers. – Loyalty programs. The hotel chain has three loyalty programs – Marriott Bonvoy, Ritz-Carlton Rewards, and Starwood Preferred Guest. These programs offer members exclusive benefits, such as free nights, room upgrades, and early check-in and check-out. – Technology platform. The largest hotel chain in the world has a robust technology platform that powers its website, mobile app, and loyalty programs. The company also uses technology to improve the guest experience, such as with contactless check-in and mobile keys. – Partners. The company has a wide range of partners, including airlines, car rental companies, and credit card companies. These partnerships allow Marriott to offer its guests a one-stop shop for their travel needs.     Marriott’s ecosystem is designed to provide guests with a seamless and personalized experience. For example, when a guest books a hotel room on the Marriott website, they can also book a flight and a rental car. They can also use their Marriott Bonvoy points to pay for their hotel stay, flights, and car rental. Marriott’s loyalty programs also play an important role in its ecosystem. By rewarding guests for their loyalty, Marriott encourages them to stay at Marriott hotels and use Marriott partners. This helps Marriott to build long-term relationships with its guests. The Marriott International ecosystem benefits both Marriott and its guests. For Marriott, the ecosystem helps to increase revenue and improve customer loyalty. The hotel chain is able to generate additional revenue from its partners, such as airlines and car rental companies. The company is also able to improve customer loyalty by providing guests with a seamless and personalized experience. For guests, the ecosystem provides a number of benefits such as convenience, savings…]]> https://research-methodology.net/marriott-mckinsey-7s-model/ Sat, 28 Oct 2023 02:42:18 +0000 https://research-methodology.net/?p=76008 Marriott McKinsey 7S model illustrates the ways in which seven elements of businesses can be aligned to increase effectiveness for the largest hotel chain in the world. According to this framework strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements. McKinsey 7S model stresses the presence of strong links between elements in a way that a change in one element causes changes in others. As it is illustrated in figure below, shared values are positioned at the core of Marriott McKinsey 7S model, since shared values guide employee behaviour with implications on their performance. McKinsey 7S model   Hard Elements in Marriott McKinsey 7S Model   Strategy Marriott International’s business strategy is focused on providing high-quality hospitality services to a wide range of customers. The company has a portfolio of over 30 brands, ranging from budget-friendly to luxury, to appeal to different needs and budgets.[1] The hotel chain pursues asset-light business model and growth through acquisitions business strategy. Moreover, Marriott has been focusing on bleisure travellers as part of its business strategy.   Structure Marriott International has a decentralized organizational structure, with each brand operating as its own business unit. This allows the company to tailor its offerings and services to the specific needs of each market. Marriott also has a strong focus on operational excellence, with a number of systems and processes in place to ensure that its hotels are run efficiently and effectively.   Systems Marriott International has a number of systems in place to support its business operations, including a reservation system, a loyalty program, and a property management system. The company is also investing heavily in new technologies, such as mobile check-in and self-service kiosks. Marriott International Inc. Report contains a full analysis of Marriott McKinsey 7S Model.…]]> https://research-methodology.net/marriott-value-chain-analysis/ Sat, 28 Oct 2023 01:12:27 +0000 https://research-methodology.net/?p=76003 Value chain analysis is an analytical tool that helps to find business activities that can create the most value and competitive advantage to the business. Figure  below illustrates the essence of Marriott value chain analysis. Marriott Value Chain Analysis   Marriott Primary Activities Marriott Inbound logistics The inbound logistics activities for Marriott International involve the procurement, transportation, and storage of the goods and services that the company needs to operate its hotels and resorts. These activities are essential to the company’s ability to provide its guests with a high-quality experience. Marriott International procures a wide range of goods and services from suppliers such as food and beverage, linen, furniture, toiletries and other supplies. The largest hotel chain in the world has a strong supplier network and is able to negotiate competitive prices. The company also has a team of experienced procurement professionals who are responsible for managing the inbound logistics process.   Marriott Operations Marriott’s operations can be divided into four key areas: 1. Hotels. Marriott operates and franchises hotels under its various brands. It also manages hotels on behalf of other owners. 2. Vacation ownership. Marriott operates a vacation ownership program called Marriott Vacation Club International. This program allows members to purchase vacation points that can be used to stay at Marriott-affiliated vacation resorts. 3. Timeshare exchange. Marriott operates Interval International, a timeshare exchange program that allows members to swap their timeshare weeks for stays at other resorts. 4. Food and beverage. Marriott operates restaurants and bars in many of its hotels. It also provides catering services.   Marriott Outbound Logistics Generally, outbound logistics within value chain analysis refer to all the activities involved in delivering the finished product or service to the customer. This includes warehousing, order fulfilment, transportation, and delivery. For Marriott International outbound logistics activities include the following:…]]> https://research-methodology.net/marriott-porters-five-forces-analysis/ Sat, 28 Oct 2023 00:53:41 +0000 https://research-methodology.net/?p=75998 Porter’s Five Forces analytical framework developed by Michael Porter (1979)[1] represents five individual forces that shape an overall extent of competition in the industry. These forces are illustrated in figure below: Porter’s Five Forces   Threat of new entrants in Marriott Porter’s Five Forces Analysis The threat of new entrants into the global hotel industry is moderate. There are a number of factors that make it difficult for new entrants to enter the hotel industry. These include high capital requirements, the importance of brand recognition, lack of access to distribution channels and the importance of economies of scale.   Capital requirements The hotel industry is highly capital-intensive. New entrants need to have a significant amount of capital to invest in building or acquiring hotels. According to data from hospitality consulting firm HVS, ground up construction of a full-service hotel typically costs USD 323,500 per room in the US.[2]  The similar pattern is echoed in many other markets as well. Accordingly, capital requirements are a significant entry barrier for new players into the hotel industry.   Brand recognition Established hotel brands such as Marriott, Hilton, IHG Hotels & Resorts, Hyatt and Wyndham Hotels & Resorts have a significant advantage over new entrants. These companies have been developing and promoting their brands for decades and accordingly, have a strong reputation and customer loyalty. Moreover, effective branding enables established market players to command premium prices, further solidifying their position. New entrants, on the other hand, will have no visible brand, making it difficult for them to successes in the market.   Distribution channels Distribution channels for hotels include direct channels, such as their own websites and reservation call centres, and indirect channels, such as online travel agencies (OTAs), global distribution systems (GDSs), and tour operators. Established hotel brands such as Marriott have well-established distribution channels.…]]> https://research-methodology.net/marriott-marketing-communication-mix/ Fri, 27 Oct 2023 10:39:04 +0000 https://research-methodology.net/?p=75990 Marriott marketing communication mix consists of communication channels to communicate the marketing message to the target customer segment. These channels are print and media advertising, sales promotions, events and experiences, public relations and direct marketing.   Marriott Print and Media Advertising   Print advertising Marriott International’s print advertising campaigns typically appear in high-end magazines and newspapers, such as Condé Nast Traveler, Travel + Leisure, The New York Times, and The Wall Street Journal. These ads often feature stunning photography of hotels and resorts from Marriott portfolio brands, as well as aspirational messages about the travel experience. For example, a recent Marriott print ad for the St. Regis Bora Bora Resort featured a photo of a couple swimming in a crystal-clear lagoon, with the headline “Where dreams come true.” The ad also highlighted the resort’s luxurious accommodations, world-class dining, and exclusive amenities.   Media advertising Marriott International also invests in media advertising, such as television and radio commercials. These ads are typically more general in nature than print ads, and they focus on Marriott’s core brand values, such as comfort, convenience, and quality. For example, a recent Marriott television commercial featured a group of friends travelling to different cities around the world. The ad showed the friends staying at different Marriott hotels, and it emphasized the fact that Marriott offers a variety of accommodations to suit every budget and travel style.   Omnichannel approach Marriott International takes an omnichannel approach to its print and media advertising. Specifically, the company uses a variety of different channels to reach its target audience, and it integrates its advertising campaigns across all channels. For example, a Marriott print ad might include a QR code that allows consumers to learn more about the hotel or resort featured in the ad. The QR code might also allow…]]> https://research-methodology.net/marriott-segmentation-targeting-and-positioning-an-overview/ Fri, 27 Oct 2023 09:41:29 +0000 https://research-methodology.net/?p=75986 Marriott segmentation, targeting and positioning involves a series of marketing decision making for the largest hotel chain in the world. Segmentation involves dividing a market into smaller groups of customers with similar needs, wants, and behaviours. Generally, companies can engage in segmentation using a wide range of variables, such as demography, geography, psychographics, and behaviour.   Marriott International uses the following segmentation bases: Segmentation Variable Description Demographics Age, income, education level, occupation, family size, and household income. Geography Region, country, city, and type of location (e.g., urban, suburban, rural). Psychographics Interests, values, lifestyle, and travel habits. Behavior Travel frequency, type of accommodations booked, and loyalty program membership. Segmentation bases for Marriott International   Targeting is the process of selecting one or more of the identified segments to focus marketing efforts on. Businesses generally target segments that are most likely to be interested in their products or services, and that are most profitable to serve. Marriott targets business, leisure and luxury customer segments. Positioning is associated with creating a unique identity for a product or service in the minds of target customers. Effective positioning involves defining the product or service’s key features and benefits, and communicating them to customers in a way that differentiates the product or service from competitors. Customer Segment Marriott Amenities and Services Economy travellers Basic amenities and services Business travellers High-speed internet, business centres, meeting rooms, concierge services, executive lounges, complimentary breakfast Leisure travellers Swimming pools, kids’ clubs, family-friendly activities, restaurants, bars, fitness centers, spas Luxury travellers High-end accommodations, personalized service, gourmet dining, luxury amenities, exclusive experiences Customer segments and Positioning of Marriott Amenities and  Services   Marriott International Inc. Report contains the above analysis of Marriott segmentation, targeting and positioning and Marriott marketing strategy in general. The report illustrates the application of the major analytical strategic…]]> https://research-methodology.net/marriott-marketing-mix-marriott-7ps-of-marketing/ Fri, 27 Oct 2023 09:15:44 +0000 https://research-methodology.net/?p=75981 Marriott marketing mix (Marriott 7Ps of marketing) comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence.   Product Element in Marriott Marketing Mix (Marriott 7Ps of Marketing) Marriott offers a wide range of services to its guests. These include, but not limited to accommodation, meetings and events, food and beverage, as well as, fitness and recreation. The level of services varies according to the brand tier. The table below illustrates Marriott brand tiers and respective brands.   Brand Tier Brand Names Classic Luxury The Ritz-Carlton, St. Regis, JW Marriott, Ritz-Carlton Reserve, The Luxury Collection, W Hotels, EDITION, Marriott Hotels Premium Sheraton, Delta Hotels, Le Méridien, Westin, Renaissance Hotels, Gaylord Hotels Select Courtyard Hotels, Four Points, Spring Hill Suites, Protea Hotels, Fairfield Inn & Suites, City Express, AC Hotels, Aloft Hotels, Moxy Hotels Long Stays Marriott Executive Apartments, Residence Inn by Marriott, TownePlace Suites by Marriott, element by Westin, Homes & Villas by Marriott International Distinctive Autograph Collection Hotels, Design Hotels, Tribute Portfolio Marriott International brands   Place Element in Marriott Marketing Mix (Marriott 7Ps of Marketing) At the end of 2022, Marriott International had nearly 8,300 properties and approximately 1.5 million rooms in 138 countries and territories. [1] The largest hotel chain in the world directly operates 2,053 properties with 576,243 rooms and the remaining properties are franchised. The company has a strong presence in major cities, tourist destinations, and business districts. Marriott also has a growing presence in emerging markets.   Price Element in Marriott Marketing Mix (Marriott 7Ps of Marketing) Marriott International uses the following pricing strategies: Dynamic pricing strategy. Marriott International uses dynamic pricing to adjust the prices of its hotel rooms based on demand. According to this strategy the price of a room can vary depending on…]]> https://research-methodology.net/marriott-marketing-strategy/ Fri, 27 Oct 2023 06:08:42 +0000 https://research-methodology.net/?p=75974 Marriott marketing strategy is designed to reach its target audience of travellers and to encourage them to book a stay at a hotel or resort belonging to it portfolio. Marketing costs for the largest hotel chain in the world amounted to USD 635 million in 2022, USD 470 million in 2021, and USD 276 million in 2020[1]. Marriott marketing strategy focuses on the following key elements: – Brand differentiation. Marriott International differentiates its brand from other hotel companies by emphasizing its commitment to quality, service, and innovation. The company also offers a wide range of hotel brands to suit the needs of different travellers, from budget-minded travellers to luxury travellers. – Unique selling proposition. Along with its world-class amenities, commitment to customer services is unique selling proposition for Marriott hotels. Employees are trained to go the extra mile to make guests feel welcome and valued. – Customer segmentation. Marriott International segments its customers into different groups based on their travel needs and preferences. This allows the company to develop targeted marketing campaigns that are relevant to each segment. – Omni-channel marketing. Marriott International uses a variety of marketing channels to reach its target audience, including online, offline, and social media. The company also integrates its marketing campaigns across all channels to provide a seamless customer experience. – Product placement strategy. Product placement is one of the key elements of Marriott marketing strategy. One of Marriott’s most famous product placement deals was with the popular TV show “The Real Housewives of Beverly Hills.” The show featured the cast staying at the Ritz-Carlton, Los Angeles on several occasions. This exposure helped to position the Ritz-Carlton as a luxury hotel brand that was popular with celebrities and other high-profile individuals. Marriott has also placed its hotels in a number of successful movies, including “The Devil Wears…]]> https://research-methodology.net/marriott-pestel-analysis/ Fri, 27 Oct 2023 04:44:16 +0000 https://research-methodology.net/?p=75969 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Marriott PESTEL analysis involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects of the international hotel chain.   Political Factors in Marriott PESTEL Analysis There are some political factors that may affect Marriott International. Such factors include political stability, security and the risk of terrorism in a given territory, US-China trade wars, the rise of nationalism and terrorism and others. Moreover, the level of bureaucracy and corruption, freedom of press and trade union activities are also political factors with the potential impact on Marriott and other international hotel chains.   Political stability Political stability is essential for international hotel business. It allows hotel chains to operate in a predictable and safe environment, which is necessary for investment and growth. When there is political instability, it can lead to a number of negative consequences. For example, political instability can deter tourists from visiting a country, which can lead to a decline in demand. It can also increase the costs of operations, such as the cost of security measures and insurance premiums. In some cases, political instability can even lead to Marriott having to close its hotels in a country. For example, in 2022, Marriott was forced to close some of its hotels in Ukraine following the Russian invasion.   Trade union activities Trade union activities can have a significant impact on hotel business, both positive and negative. Trade unions can help to improve the working conditions for employees. They can negotiate for higher wages, better benefits, and safer working conditions. This can lead to a more motivated and productive workforce, which can benefit Marriott’s bottom line. Trade unions can also help to improve the…]]> https://research-methodology.net/marriott-swot-analysis/ Fri, 27 Oct 2023 03:11:36 +0000 https://research-methodology.net/?p=75961 SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following illustrates Marriott SWOT analysis: Strengths 1.      Diverse portfolio of brands 2.      Global presence 3.      Strong loyalty program 4.      Asset-light business model Weaknesses 1.      Labour issues 2.      Brand image damaged due to data breach   Opportunities 1.      Targeting millennial and Gen Z segments 2.      Increasing focus on alternative lodging 3.      Focusing on emerging economies 4.      Entering into adjacent industries Threats 1.       Increased competition from alternative lodging 2.      Currency fluctuations 3.      Geopolitical tensions 4.      Global pandemic Marriott SWOT Analysis   Strengths in Marriott SWOT Analysis 1. Diverse portfolio of brands. Marriott International has 30 brands[1] in its portfolio appealing to the needs and wants of a wide range of customer segments. The company has something to offer every type of traveller, from budget-minded backpackers to luxury-seeking executives. This diversity gives the hotel chain substantial competitive advantage. Specifically, it allows the company to reach a wider range of customers. A traveller looking for a budget-friendly hotel is just as likely to book a room at a Fairfield Inn by Marriott as a traveller looking for a luxury hotel is to book a room at a Ritz-Carlton. 2. Global presence. Marriott is the largest hotel chain in the world and operates properties in 138 countries and territories[2]. Such a global presence gives the company a number of advantages. For example, global presence gives the company a competitive advantage over smaller hotel chains. Smaller hotel chains typically do not have the resources to expand into new markets and build new hotels. Marriott’s global presence allows the company to quickly and easily expand into new markets and compete with local hotel chains. Second, the hotel chain’s global presence allows it to leverage its brand recognition. Marriott is one of the most…]]> https://research-methodology.net/marriott-ansoff-matrix/ Fri, 27 Oct 2023 02:57:01 +0000 https://research-methodology.net/?p=75958 Marriott Ansoff Matrix is a marketing planning model that helps the international hotel chain to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for businesses.  These are market penetration, product development, market development and diversification. Marriott Ansoff Growth Matrix   Within the scope of Ansoff Matrix, Marriott International uses all four growth strategies in an integrated manner: 1. Market penetration. Market penetration refers to selling existing products and services to existing markets in increased quantities. Market penetration is one of the main growth strategies for Marriott. The company uses this strategy through competitive pricing for some of the brands within its portfolio, promotional discounts, targeted marketing and other means. Moreover, Marriott Bonvoy loyalty program plays in instrumental role in increasing the effectiveness of market penetration. 2. Product development. This growth strategy involves developing new products to sell to existing markets. Marriott has a strong track record of developing and launching new brands and hotel concepts that meet the evolving needs of its customers. For example, the company launched several new brands in recent years, such as Moxy Hotels, AC Hotels by Marriott, and Autograph Collection, as well as, new hotel concepts such as Tribute Portfolio and Element Hotels. 3. Market development. Market development strategy is associated with finding new markets for existing products. An extensive focus on market development business strategy has allowed Marriott International to become the largest hotel chain in the world operating in 138 countries and territories under 30 brand names.[1] 4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. Marriott uses diversification sparingly, preferring to stick to its core hotel business. The rare cases of diversification for the hotel chain include entering into vacation rentals, timeshares and operating…]]> https://research-methodology.net/marriott-organizational-culture-overview/ Sun, 22 Oct 2023 11:09:36 +0000 https://research-methodology.net/?p=75923 Marriott organizational culture integrates the following five key elements: 1. People-first approach. Putting people first is Marriott’s top priority. The company believes that by taking care of its employees, they will in turn take care of customers. This commitment is evident in Marriott’s many employee-focused programs and initiatives, such as its tuition reimbursement program, its employee assistance program, and its diversity and inclusion initiatives. 2. Pursuing excellence. Pursing excellence is another core value that is integrated within Marriott organizational culture. The company sets high standards for its employees and encourages them to continuously strive to improve. This commitment to excellence is reflected in hotel chains many awards and accolades. These include recognition as one of Fortune’s 100 Best Companies to Work For and one of Ethisphere’s World’s Most Ethical Companies. 3. Acting with integrity. The largest hotel chain in the world expects its employees to be honest, ethical, and fair in all their dealings. This commitment to integrity is reflected in Marriott’s code of conduct and its many policies and procedures designed to promote ethical behaviour. 4. Serving the world. Marriott International declares its commitment to making a positive difference in the world. The company supports a variety of charitable organizations and encourages its employees to volunteer in their communities. Marriott also has a number of sustainability initiatives in place, such as its commitment to reducing its environmental impact and its investment in renewable energy. 5. Embracing change. The company understands that change is essential in the hospitality industry, which is constantly evolving. Marriott is committed to staying ahead of the curve and adapting to the changing needs of its customers. This commitment is evident in the company’s willingness to invest in new technologies and its focus on innovation. Marriott International Inc. Report contains the above analysis of Marriott organizational…]]> https://research-methodology.net/marriott-organizational-structure-overview/ Sun, 22 Oct 2023 10:38:58 +0000 https://research-methodology.net/?p=75918 Marriott organizational structure had to change significantly with new executive appointments early in 2023. Following the departure of company’s president Stephanie Linnartz to become president and CEO of Baltimore-based sports equipment company Under Armour, Anthony Capuano became Marriott’s President and CEO[1]. Marriott International has a hybrid organizational structure that combines elements of both a matrix and functional structure. The company’s matrix structure is evident in the combination of functional and divisional configurations. Marriott has functional divisions such as marketing, sales, and operations, but it also has divisional units organized by geographic region. This allows the largest hotel chain in the world to achieve both global uniformity and local diversification and responsiveness. Marriott Organizational Structure   The matrix structure works in conjunction with a regional structure, with each region having its own functional divisions. For example, the Greater China region has its own marketing, sales, and operations divisions. This allows Marriott to tailor its operations to the specific needs of each region. Marriott’s organizational structure is also characterized by a high degree of centralization. The company’s CEO and executive team have a significant amount of authority over decision-making. This centralization allows Marriott to maintain a consistent brand image and service quality across all of its properties. Marriott International’s hybrid organizational structure has several advantages. The matrix structure allows the company to achieve both global uniformity and local diversification and responsiveness. The regional structure allows the hotel chain to tailor its operations to the specific needs of each region. The centralization of authority allows the company to maintain a consistent brand image and service quality across all of its properties. However, there are also some potential disadvantages to Marriott organizational structure. The matrix structure can be complex and time-consuming, and it can lead to conflict between functional and divisional units. The centralization…]]> https://research-methodology.net/marriott-leadership-an-overview/ Sun, 22 Oct 2023 05:16:10 +0000 https://research-methodology.net/?p=75912 The current CEO of Marriott International is Anthony Capuano. He has been with the company for over 25 years and has held a variety of leadership positions, including Chief Development Officer and President of Global Development. Capuano is known for his strategic thinking and his ability to build and lead high-performing teams. Marriott International‘s leadership team is also notable for its diversity. The company’s executive team includes women, people of colour, and representatives from all over the world. This diversity of experience and perspectives helps Marriott International to better understand its customers and to develop innovative products and services.     In terms of leadership style, Marriott is known for its commitment to servant leadership. Servant leaders focus on serving their employees and customers, rather than the other way around. This approach has helped Marriott International to create a positive work culture and to build strong customer relationships. Marriott International has a leadership development program called Voyage. Voyage is a 12-18 month program that is available to recent university graduates and provides a combination of practical hands-on experience and leadership training. Participants in the Voyage program rotate through different departments within a Marriott hotel and receive training from experienced leaders. Upon successful completion of the program, participants are well-positioned for leadership roles within hotel chain. Furthermore, Marriott leadership practices integrate the following important elements: Focus on employee development. The largest hotel chain in the world invests heavily in employee development and training. The company believes that its employees are its most valuable asset, and it is committed to helping them succeed. Fostering the culture of innovation. Marriott encourages its employees to be innovative and to come up with new ideas. The company has a number of programs in place to support innovation, such as its “TakeCare” program, which allows employees to submit ideas for improving the company.…]]> https://research-methodology.net/marriott-stock-performance-analysis/ Sun, 22 Oct 2023 04:51:55 +0000 https://research-methodology.net/?p=75906 Fundamental Analysis of Marriott Stock Fundamental analysis refers to the practice of using financial activity to forecast stock prices.  The following table  illustrates main financial ratios for Marriott International:   Ratio Marriott International performance Price-to-Earnings (P/E) Marriott’s P/E ratio is currently 22.4, which is slightly above the average P/E ratio of the S&P 500 index (18.6). In other words, Marriott’s stock is currently trading at a premium to the broader market Price-to-book (P/B) Marriott’s P/B ratio is currently 3.2, which is above the average P/B ratio of the S&P 500 index (2.3). This can be interpreted as Marriott’s stock is currently trading at a premium to the broader market based on its book value. Enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) Marriott’s EV/EBITDA ratio is currently 11.5, which is in line with the average EV/EBITDA ratio of the hotel industry (11.0). This suggests that Marriott’s stock is currently trading at a fair valuation relative to its peers. Debt-to-Equity Ratio   Marriott’s debt-to-equity ratio is currently 1.2, which is considered to be a healthy level of debt. In other words Marriott is well-positioned to manage its debt obligations. Return on Equity (ROE) and Return on Assets (ROA)   Marriott’s ROE and ROA are both above the average ROE and ROA of the hotel industry. This suggests that Marriott is a profitable company that is generating good returns on its equity and assets. Marriott International main financial ratios Overall, Marriott’s financial ratios suggest that the company is well-managed and financially sound.   Technical Analysis of Marriott Stock Technical analysis is the reliance of historical stock price activity to predict future price activity.   Short-term trend The short-term trend for Marriott International is neutral. The stock is currently trading in a range between USD 198.23 and USD 206.55. A…]]> https://research-methodology.net/a-brief-overview-of-marriott-business-strategy/ Sun, 22 Oct 2023 04:37:57 +0000 https://research-methodology.net/?p=75901 Marriott business strategy consists of the following 3 elements: 1. Pursuing asset-light business model. Operating in light-asset manner is one of the cornerstones of Marriott business strategy. Under this model, Marriott focuses on managing and franchising hotels, rather than owning them. This allows the hotel chain to expand rapidly and efficiently, without having to invest heavily in real estate. Light-assed strategy provides the company with a range of substantial advantages such as reduced capital investment and as a result, increased flexibility to enter into new markets and experiment with new brands. Furthermore, this strategy reduces exposure to the risk of real estate market downturns.     2. Growth through acquisitions. Marriott International has been a major user of acquisitions to fuel its growth. In 2016, it acquired Starwood Hotels & Resorts Worldwide in an USD 13.6 billion deal, which made it the world’s largest hotel company. The acquisition added nearly 1,300 hotels to Marriott’s portfolio, including brands such as Sheraton, W, and Westin. Since the Starwood acquisition, Marriott has continued to make smaller acquisitions to expand its reach into new markets and segments. For example, in 2017, it acquired Delta Hotels and Resorts, which added 38 hotels in Canada to its portfolio. In 2022, it acquired Hoteles City Express, which added 152 hotels in Mexico, Costa Rica, Colombia, and Chile. 3. Focusing on bleisure travellers. Bleisure travelling, a portmanteau of “business” and “leisure”, refers to the trend of business travellers extending their trips to include leisure activities. Marriott International is increasing its focus on bleisure travellers as part of its long-term business strategy. Up to date, this new customer segment, the business traveller who wants more choices for accommodations, that new blended traveller, and younger travellers who want more space for their travels, have been mainly served by Airbnb and…]]> https://research-methodology.net/starbucks-ecosystem/ Sat, 08 Oct 2022 01:29:59 +0000 https://research-methodology.net/?p=69255 A company is not just a member of a single industry but it is a part of an ecosystem that crosses a wide range of industries. Despite the coffee chain being in the business for more than five decades, Starbucks ecosystem is still in the early stages of its development. When a company has an advanced ecosystem its products and services are highly compatible with each other and customers will miss out on a wide range of benefits and functionalities if they want to break out of the ecosystem. Think Apple or Microsoft.   Starbucks has not been able to develop an effective business ecosystem until now partially due to the nature of products and services the company offers. In other words, the global coffeehouse chain offers limited range of products and services it has not been successful in creating compatibility and dependence between products and services.  Recognising the importance of having an ecosystem, Starbucks came up with the idea for digital ecosystem in 2020 as part of measures to deal with COVID-19 crisis. Specifically, Seattle-based international coffee chain is attempting to create digital third place, shifting its third place – a place away from home and work value offering to a digital environment.[1] Development of an effective ecosystem comprises the following four stages – pioneering, expansion, authority, renewal or death. [2] These stages relate to Starbucks ecosystem in the following manner: 1. Pioneering stage. The initial stage is associated with the formation of ecosystem. Starbucks ecosystem at this early stage involves initiating global digital community – a community defined by collaboration, experiences, and shared ownership – all centred around Starbucks coffee. 2. Expansion stage. At this stage ecosystem extends to achieve maximum market coverage and critical mass. The world’s largest coffeehouse chain can extend its relevance to integrate art,…]]> https://research-methodology.net/starbucks-csr-corporate-social-responsibility/ Sat, 08 Oct 2022 00:52:16 +0000 http://research-methodology.net/?p=7085 Starbucks CSR programs and initiatives are led by Michael Kobori, chief sustainability officer for the world’s largest coffeehouse chain. CSR initiatives for Starbucks cover wide range of business aspects and employee relationships such as supporting local communities, educating and empowering workers, gender equality and minorities, energy and water consumption, waste reduction etc.   CSR Programs and Initiatives Starbucks Supporting Local Communities Starbucks Community Store program aims to assist local non-profit organizations in their efforts to provide education and training to achieve poverty eradication for the young segment of population. The company plans to open 100 Community Stores by the end of 2025. Starbucks has cooperated with non-profit organizations, community leaders and organizational stakeholders to provide more than 520,000 hours of volunteering service around the globe.[1] The global coffeehouse chain runs FoodShare food donation program in all company operated stores in US and Canada. 10.4 million and 1.2 million meals were donated in US and Canada respectively in FY21.   Starbucks Educating and Empowering Workers Starbucks College Achievement Plan is an education program that allows employees to obtain online degrees from Arizona State University. Approximately 2500 employees earned their degrees via this program in FY21 alone It has been noted that “at the height of the global financial crisis, when other companies were cutting HR costs wherever they could, Starbucks invested in staff training, including coffee tastings and courses that ultimately qualified for credit at higher education institutions”[2] In FY21 the company oversaw more than 136000 course enrolments in Starbucks Coffee Academy and more than 55,000 course completions since launch.   Starbucks and Gender Equality and Minorities At present about 40% of Starbucks US employees are minorities and 65% are women. Among vice presidents, 48% are women and 15% are minorities. The global coffeehouse chain aims to achieve at least 30% BIPOC…]]> https://research-methodology.net/starbucks-mckinsey-7s-model-2/ Sat, 08 Oct 2022 00:34:07 +0000 http://research-methodology.net/?p=1495 Starbucks McKinsey 7S model is used to highlight the ways in which seven elements of businesses can be aligned to increase effectiveness.  According to this model, strategy, structure and systems represent hard elements. At the same time, shared values, skills, style and staff are soft elements. McKinsey 7S model stresses the presence of strong links between elements. Specifically, a change in one element causes changes in other elements. As it is illustrated in figure below, shared values are positioned at the core of Starbucks McKinsey 7S model, since shared values guide employee behaviour with implications in their performance. McKinsey 7S model   Hard Elements in McKinsey 7S Model   Strategy Starbucks business strategy is based on product differentiation with the focus on the quality of products and services. Moreover, the coffee chain giant effectively positions Starbucks stores as a ‘third place’ away from home and work, where customers can meet friends, relatives or spent time alone. Currently Seattle-based international coffee chain is positioning itself as a digital third place as well. Technological innovations and intensive integration of technology into various business processes in general and ordering process in particular represent another important aspect of Starbucks business strategy. The launch of Mobile Order & Pay feature, which allows customers to buy without getting in line, the launch of voice ordering app and “sending text message notifications to customers in the Seattle area when their mobile orders are ready”[1] can be mentioned to illustrate this point.   Structure Starbucks Corporation has a hybrid organizational structure which combines geographic, brand-based and functional hierarchy structures. Operations are divided into North America (USA and Canada) and International (China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America and Caribbean) divisions. Brand-based divisions, on the other hand, consist of Starbucks, Teavana®, La Boulange®,, Evolution Fresh™, Seattle’s…]]>