Marriot Corporation

4 (b) Evaluate the argument that managers controlling large companies might follow policies which do not necessarily maximise the profits of the owners.

The present compensation plan of Marriott, Inc. aims at drawing and maintaining the best human resources possible. The plan serves numerous reasons for Marriott, Inc. Compensation plan for executives is a result through a committee and mainly depend on an extended term in fair compensation. Ensuring that the executives makes the decision that correlates with the objectives of the company.

There are a several items MC must consider prior to making the ultimate decision of whether or not to accept Project Chariot. The first of which is the potential advantages and disadvantages of the company undergoing a spinoff. While the concept of getting smaller or breaking-up might seem counterintuitive for MC, the action has the potential to benefit the company and its shareholders. The idea of Project Chariot is to split the parent company, MC into two entities, HMC (existing company) and MII. The potential benefits of the de-merger are the following: (http://www.investopedia.com/university/mergers/mergers4.asp):

4. Who are the stakeholders in this situation and what, if any, obligations do they have?

replacing some of the existing equity by issuing more debt will increase the value of the firm. If

Your honors, this case is about the fundamental right of shareholder protection. The right of a small businesswoman to pursue her goals and not be punished for her initiative and contribution that is so essential to American business. That is the right

1. Consider Dunlap’s statement on page 3 of the case: “Stakeholders! Every time I hear the word, I ask how much did they pay for their stake? There is only one constituency I am concerned about and that is the shareholder primacy? Do you agree or disagree with Dunlap’s view of shareholder primacy? Explain

Again he is looking for a crystal clear rule that specifically stated the “responsible corporate officer” jury instruction in the district court. The appellant court following the Principle of Rights “which asserts that whether a business decision is ethical depends on how the decision affect the rights of all involved.” This nonconsequential thinking supports this principle as foundational to Western culture.”

Over 30 divestitures in under 20 years in efforts to only keep business that would continue to add value

Besides, regarding to the clients, the JVI had never build up a connection with the client until the surprisingly got the contract, the existence of hierarchy and non-trust between client and project team lead to the inefficiency of obtaining client information, later resulted in Jack’s misleading proposal for market research. Also, because in the concept of high power distance, decision making process is limited one-way participation and communication (In the Eye of the Beholder, cross cultural lessons in leadership from project GLOBE, Mansour Javidan, Peter W. Dorfma, etc), Jack’s own lack of experience on project management made it is possible for the project to diverge from previous direction under one person’s leadership.

1) What is your assessment of the new process for managing priorities at Volkswagen of America? Are the criticisms justified? Is it an improvement over the old process?

The four components of Marriott's financial strategy are consistent with its growth objective. Managing hotel assets multiplied the total worth of hotels than otherwise owned by it, thus increased EPS. Optimizing the use of debt in the capital structure, based on a

The Marriott Corporation implemented for key elements into their financial strategy: manage rather than own hotel assets invest in projects that increase shareholder value, optimize the use of debt in the capital structure, and repurchase undervalued shares

1) Evaluate the strategic merits of combination between Jaguar and either Ford or General Motors. What are the sources of value created, if any, by such a combination? How should it be structured? (e.g., as a merger, as a joint venture, a minority interest, etc.) to capture the value you identified?

2) Discuss the prospects of the company in terms of options thinking? What is the company’s dilemma now, and how can it be structured in terms of options?