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Universidad de Chile.
Facultad de Ciencias Económicas y Administrativas.
Finanzas III
Caso No1
Marriott Corporation: The Cost of Capital.
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Integrantes: Rodrigo Olivares Sebastián Bastierre 26 de Abril, 2005. Jorge Toro El problema al que se ve enfrentado Marriott como empresa, si bien puede verse desde variados puntos de vista, se puede resumir en un aspecto principal y relevante. Y esto es calcular cual es el costo de capital de la empresa como un todo; además de calcularlo de manera individual para cada una de sus divisiones, ya que la Marriott las trata en sus análisis como si fuesen empresas independientes.
Para esto se debe hacer unos
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|1.36 |44.1% |65% |185.7% |0.67 |22.39% |
| | | | | | |100% |
|βs/dPromedio |0.55 | | | | | |
Ahora; con esta información más la que ya está disponible, se puede calcular el costo de la deuda, el β del patrimonio con deuda, el costo de patrimonio, y finalmente el costo de capital de la división Lodging.
Kd = rf + βd x PRM
1,1% = 8,95% + βd x 6,77% →
The different character of the divisions puts a strain on the data gathering process and choosing what data ought to be gathered. The resort division bargains generally with visits and gatherings while the hotels have direct contact with clients when reserving a spot. The varying viewpoints prompts every part of the data administration framework being pored over to verify the LOBs adjust. The data gathered had the same issue as the financials distinctive frameworks and arrangements for the information. There was little to none in the method for gauges between the individual hotels and resorts.
You could also watch sports while waiting for your dinner or go to the other side of the restaurant and go to the bar and have conversations with your friends while watching the game or
As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business
“Chile is a place where God put a little piece of all the rest of the world.” (Traditions). A Chilean native said this when talking of all the culture that has concreted together from different ethnicities coming together in their native country. Chile has a fascinating culture and way of life, and the more you learn of it through studying their heritage, life in cities and rural areas, and domestic life, the more captivating it becomes.
With this information a key question to ask when conducting a strategic analysis of Maverick Lodging can be formulated. Does the current balanced scorecard completely parallel the overall objectives and strategic goals of the organization? The answer is no. Maximum differentiation will not be produced. As a result, growth will not be maximized. This represents the main issue with the case discovered by this strategic analysis. The following issues are all responsible for the failure of the balanced scorecard to reach the company’s strategic targets.
J. Willard Marriott started Marriott Corporation in 1927 with a root beer stand, expanding it into a leading lodging and food service company with sales of over $6 billion by 1987. At the time, Marriott had three main lines of business, lodging, contract services and restaurants, with lodging generating about 51% of company’s profits. The four key elements of Marriott’s financial strategy were managing hotel assets rather than owning, investing in projects with the goal of increasing shareholder value, optimizing the use of debt, and repurchasing their undervalued shares. Marriott Corporation relied on measuring the opportunity cost of capital for investments by utilizing the
This proposal is about the Roaring Dragon Hotel (RDH). It has a detailed description about the problem and the causes faced by RDH during the change it needed to undergo which was imposed by the government in 2001. The responsibility to change RDH economic environment to market economy was given to HI management. However, the change process introduced by HI led to the further degradation of the establishment process. So, this proposal discuss the points which were misleaded by the management and which completely converted the profit making company to a loss making company.
This proposal aids to contribute a path to a business and assists the business to remain intact in the market place through giving a paint of a business which despite its popularity faced a downfall after the new weaker management could not improve the profit as well as the quality standards of the hotel. Additionally, it concentrates that business should be built with smart and good work of management instead of influential connections and relations. Recommendations have been provided in the proposals that can assist in saving the reputation of the business and various factors like improving the performance of employees, relationship with employees, training required, etc. have also been included.
3.2. Advantages and disadvantages for this particular hotel from affiliating to the Hilton hotel chain
This report talks about the future methodologies for Marriott to go up against its opponents particularly Airbnb. It highlights different techniques which Marriott ought to embrace to endeavor in future with reference to future procedures so as to contend up with Airbnb.
The success of any organization can typically assessed by the financial figures that estimate the expense and income generated yearly. Most analysts place a tremendous importance on Earnings generated by a business. It is usually the earnings that motivate the value of stocks. Managers are therefore constantly under relentless demand to keep the profits rising to keep stockholders content and avoid takeover attempts. Cost is, therefore, a significant interest as top-level directors, who are regularly refining plans to stay profitable. When the marketplace is booming, companies customarily focus on sourcing shoppers and tapping brand-new businesses. When a crisis occurs, the directors will turn their attention to price reduction to
The organization has explicitly kept this advantageous environment over other organizations by improving its service capacity. Additionally, the organization ensures that it stays ahead of its rivals by engaging in research and development that focuses on luxury products and markets analysis. The Ritz-Carlton hotel uses data from its research to predict the future of the industry; therefore able to dictate what and how the market will trend in the foreseeable future. Another factor that keeps the organization’s advantage over its rivals is that while rivals tend to become a hotel brand in the industry, Ritz-Carlton has rather position itself to be a leader and lifestyle brand that constantly develop new properties and ensure that customers live the culture of the hotel. The final factor that has kept the advantage of the organization intact is the culture of trust that exists between the management and employees. The leadership of the hotel lives and communicates the organization’s value to its employees who in turn satisfy customers in a way that they often anticipate a return visit. These are some of the reasons that the Ritz-Carlton hotel continued advantageous environment over its rivals has persisted in the hotel and resort industry (Reiss,
Dado el nivel objetivo de deuda definido por la estrategia de Marriott corporation, se fijaron los valores de deuda sobre capital total como el objetivo que pretende alcanzar Marriott, estos se muestran en la tabla siguiente:
En el 2004 Tellez nos indica que “la contabilidad de costos es una especialidad de la contabilidad general que registra, resume, analiza e interpreta los detalles de los costos de materiales, mano de obra y costos indirectos de fabricación incurridos para producir un artículo o servicio de una empresa con el fin de poder medir, controlar y analizar los resultados del proceso de producción a través de la obtención de costos unitarios y totales”. En otras palabras podemos decir que la contabilidad de costos es una rama de la contabilidad la cual analiza la distribución de los costos y los ingresos que genera una empresa entre los diferentes productos que fabrica, entre sus departamentos y entre sus clientes. Además la contabilidad de costos incluye el análisis del costo total de producción, en función de los costos por órdenes de trabajo. Es por esta razón que podemos hablar sobre el sistema de los costos por órdenes de trabajo como el sistema que se utiliza para la asignación de los costos de fabricación a un producto individual o lotes de producto.
In this project I intend to analyze the complex case of Shangri-La hotel chain a company mainly situated in the Asia pacific but also in some regions of Europe, North America and Australia. I will explain its business strategy making an external analysis about the macro environment, the industry environment and the competitors. I will then try to find some ways to improve the company’s financial and strategic performance and its contribution to a sustainable competitive environment. To continue I will perform an internal environmental analysis finding the strengths and weaknesses of this organization, prepare and evaluate alternative strategies and decide on the best strategies for achievement. I will generate action plans