The Warsaw Marriott Case Analysis

3681 Words Dec 10th, 2014 15 Pages
Executive Summary
The Warsaw Marriott case that’s assessed in this paper is a decision case where Stan Bruns (at the time general manager of the Warsaw Marriott) had to make important decisions regarding its pricing strategy and think of ways to protect Marriott’s work force from its comp set.
Since its grand opening in September 1989 and prior to the debut of the Sobieski and the Bristol in Warsaw’s market, the Marriott was the only hotel in Poland operated by a Western management team and successfully captured the high-end hotel demand (mostly due to business travelers) generated by the Balcerowicz Plan which “sought to end hyperinflation and balance the national budget” by freeing the prices of most consumer goods, establishing caps for annual increases in state-sector employees’ wages, and by making the local currency (Zloty) convertible within Poland’s borders. Due to such an influx of tourists and Marriott’s monopoly position attained at the time, the company was able to charge prices comparable to Western standards for deluxe hotels and still maintain occupancy rates of close to 70%. Marriott’s competition at this point in time was basically Orbis, the country’s antiquated hotel and travel monopoly that ran most of Poland’s tourist hotels. Notwithstanding this, “most Orbis facilities were sparsely decorated and in poor repair”, and Orbis’ employees, “whose jobs and salaries were guaranteed by the Polish government, were renowned for providing substantial service and…

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