Marriott Case Analysis

Better Essays
Marriott Corporation: Case Introduction Marriott is renowned for its elegant and comfortable hotels and resorts. The company caters to a targeted customer base, ranging from the frequent corporate business traveler to the family enjoying their occasional weekend get-away. Marriott has continued its rise in the lodging, contract services, and restaurant industries. The company continuously strives to meet the needs and wants of its customers while strategically maneuvering the rigors of today’s competitive and ever-evolving market of glamorous destinations and convenient services. In order to remain relevant in a highly-competitive environment, Marriott must strike that successful balance of minimizing costs, and gaining and effectively…show more content…
Marriott’s original chain of Hot Shoppes continued to make strides along with the acquired chains of Bob’s Big Boy and Roy Rogers’s restaurants to provide 13% of 1987 sales and 16% of profits (HBR, 9-298-101). The restaurants segment held 12.4% of identifiable assets. Marriott continued to position itself to take advantage of various opportunities in the future by formalizing its diversity strategy and expanding its operations internationally. The company promotes the recruitment, retention, and advancement of women and minority employees, and initiated efforts to develop an increasingly diverse owner, guest, and supplier base. As Marriott aims to continue to grow and expand globally, it will be even more imperative that the company understand the climate in which it operates so that it can properly apply the proper financial structure to promote and sustain its long-term growth. Corporate Strategic Direction According to the article, “[i]n 1987, Marriott’s sales grew by 24% and its return on equity stood at 22%. Sales and earnings per share had doubled over the previous four years, and the operating strategy was aimed at continuing this trend” (HBR, 9-298-101, p.1). The article also noted that the company intends to “…aggressively develop opportunities within [their] chosen line of business” (HBR, 9-298-101, p.1). Currently, Marriott’s four components of their financial strategy are: * Managing rather
Get Access