Marriott International Inc SWOT Analysis
The leadership and management of Marriot International Inc are well explained on an annual basis in the company’s annual reports. The company has spelt out core values reaffirming its culture, but has not given a provision for a mission statement as it is traditionally expected. The company’s vision statement is “To be the number one Hospitality Company in the world. The report further puts the company’s five values as “To put people first, pursuance of excellence, embrace change, work with Integrity and to serve the world. In the report still, Marriot Company lays out its purpose for being in operation, its strategy and its success measures highlighting the company’s leadership and management (Marriot Inc, 2013). Marriot Inc. further outlines that its core values are the basis of its strengths and are the company’s lgacy and depicts its future through them. Though the company’s business is always evolving, the company reaffirms that it will always stay true to these values in its pursuance for quality service.
The strengths of Marriot Company are seen in its development agenda, whereby, the Company, in 2011, was successfully able to initiate significant transitions including the spin-off of the timeshare business as well as having its third CEO in the company’s illustrious history. With the spin-off of the timeshare business, Marriot Company projects that the strengths of the foundational lodging management and its franchised business are poised to become more focused (Marriot Inc, 2012). The company’s pretax margin is also expected to increase and consequently drastic improvement of returns on invested capital.
Marriot’s Inc also highlights its sustainability objectives in a bid to demonstrate the company’s impact, influence and its approach within the sustainability context. The report organizes these objectives into three sections as a response to the stakeholders growing desire for transparency and disclosure. The three sustainability objective sections are the; Marriot and the environment, Marriot business values and Marriot and the society (Marriot Inc, 2013). Weaknesses are, however, present in the form of lack of a precise mission statement which makes it lacks a clear sense of direction in its leadership.
Marriott’s corporate culture is rich in depth making it possible for the company to achieve its objectives. The company boasts of a valuable commitment towards transparency and integrity in all its corporate governance practices. According to the report, the company’s shareholders elect the board of directors mandated to oversee management practices together with enhancing the company’s long term value for its shareholders (Marriot Inc, 2012).Both the board and its independent committees evaluate and also challenge the company’s strategic plan and approve the appointment of corporate officers.
During the release of the 2011 annual report, the Executive chairman. J.W. Bill Marriot, Jr, together with Arne Sorenson, the CEO and the President of Marriot company did remind the viewers of the company’s strong corporate culture, business model, high performing workers and operational excellence are the key pillar that have continued to maintain Marriot’s excellence as a great company (Overby, 2013). According to Stephen Overby’s article, another key to Marriot’s continued success has been the publishing of the spirit to serve management book, a requirement that all recruits read to understand Marriott’s culture. The book describes the humble beginnings of the company with the urge to adherence of corporate culture. Wilson says that Resourcefulness has all to do with a mindset and a culture defining that the company’s fundamental operating values do define its culture (Overby, 2013).
Marriot’s corporate responsibility to the society has the company’s commitment in efforts to the provision of food, shelter, clothing, and children’s health together with creating career opportunities for its associates in the workplace (Overby, 2013). The downside of Marriot’s board of directors is that out of the ten directors, eight are men while only two are women representing a lack of gender equivalence in its corporate governance structure which is essential for an all inclusive outlook.
Marriot Company has been able to continue being ethical amid a competitive modern business environment. In his article on Staying ethical in a competitive world, Aarti Maharaji notes that Marriot international is among the few companies who have managed to secure a well deserved spot on the global ethical companies list (Maharaj, 2012). According to Maharaji, ethics is interrelated with leadership starting from the top. Marriot’s executive leadership in Bethesda headquarters, ( United States) together with leadership in the rest of the regional offices around the globe has successfully set an example that has continue to be appreciated all over in the hotel industry. Marriot’s general counsel and executive vice president Ed Ryan notes that though they frequently come across ethical and compliance issues and questions, the leadership tone has been set in that there is an expectation that all personnel in the company including its leaders will act appropriately (Maharaj, 2012).
Ryan, who oversees an estimate of 65 lawyers in the company’s legal counsel notes that the five characteristics of an ethical leader that have continued to govern Marriot are; being knowledgeable, open minded, able to deliberate on issues, instructive and forward thinking. Such ethical principles in the company have enabled it to overcome tough ethical considerations and emerge as a trusted global brand (Maharaj, 2012). The company is, however, ethically challenged by its overreliance on the expectation that excellent top leadership will necessarily lead to its replication in all other segments. This is because though the top leadership may foster and instill ethics in their junior leaders, following up of adherence to the ethics in all operations are necessary.
Marriott’s human resources have a history of taking care of its employees dating back to the company’s early days whereby its founder, JW Marriot personally counseled his employees on their personal problems. In addition to a competitive pay package, Marriott strives to give its employees a comfortable work life (Overby, 2013). The guiding principles and culture that Marriot presents has a significant influence on the human resource practices of the company with reference to manpower planning, their recruitment, training and development, employee maintenance and their welfare initiatives and the redress of grievances.
Marriot Inc. employees together with their families enjoy the benefits of health services as the company strives towards having healthy personnel. Marriot believes that for a business to remain competitive, both employees and their parents must have access to quality healthcare (Marriott, 2009). Marriott also strives to capture top talent from university graduates in all the countries that the company is established as part of its continued culture of developing talents.
Such strengths of the company are seen by the level of importance attached to manpower planning starting from the entry level up to the higher positions. Once the right candidates are recruited, they are accustomed to Marriot’s unique work environment through training and development of personnel. Weaknesses in Marriot’s human resource had a non union stance. This has led to conflicts with other workers unions who believe that companies should enter into labor unions for enhanced labor relations (Overby, 2013).This is because Marion believes that the company’s welfare-to-work programs have created a work force that is reliable.
The Marriot’s news center gives a clear insight to the operations inside the company. Robert J. McCarthy the overall chief operations Officer is charged with the responsibility for the company’s global lodging services together with the Ritz Carlton brand. As the operations group president previously, McCarthy was in charge of the financial management and led more than 3000 hotels in the American brands with workforce of 120,000 associates (Marriot Inc, 2013)
Marriot Inc headquarters are based in Bethesda, Maryland in USA, with employees being estimated to be 137,000 by the end of year 2009. I the fiscal year 2011, the company reported sales with respect to continuing operations of up to $12 billion. Marriot currently has 3,700 properties located in 74 countries and territories (Marriot Inc, 2013).The fact that the company operates and franchises many hotels and licenses and vacation ownerships under 18 brands highlights its strength in the industry indicating its continued success.
The weaknesses in the company’s operations were prevalent in the year 2012 when it witnessed a weakness in international markets. This was after the company reported a high quarterly profit but still saw a weakness in some international markets (Ananthalakshmi, 2012). Countries in the Middle East and Asia had a softer demand growth especially in the luxury sector. The weakness though was being rectified through the return of 1 billion dollars to the shareholders in the same year through share repurchases and dividends.
The main international goal for Marriot according to its website on investor relations is the creation of significant value, through the insistent building of its brands together with its ever growing business. The company’s goals, therefore, are geared towards the provision of exceptional services to its customers, improve growth opportunities for its associates and in turn have attractive returns to both the shareholders and the owners (Marriot Inc, 2013). In addition, Marriot is focused on innovation and action in fuelling how business is conducted. The company, therefore, has the objectives of setting the bar for the hospitality industry since it prides itself in having the most powerful brand in the world.
David Rodriguez further explains that the company has objectives towards the enhancement of an all exclusive environment in which, talents and the unique ideas of 300,000 associates at the company are managed, and franchised properties globally can prosper (Marriot Inc, 2013).
Ananthalakshmi, A. (2012). Marriott sees weakness in international markets. Reuters. January 30, 2013. Retrieved From < http://www.reuters.com/article/2012/07/11/us-marriott-results-idUSBRE86A19G20120711 >
Maharaj, A. (2012). Corporate secretary: Staying ethical in a competitive world. January 30, 2013. Retrieved From < http://www.corporatesecretary.com/articles/compliance-and-ethics/12180/how-stay-ethical-competitive-world/ >
Marriot Inc. (2012). Marriot 2010 Annual Report. Marriot.com.
Marriot Inc. (2013). About Marriott International – A World of Opportunity. January 30, 2013. Retrieved From < http://www.marriott.com/marriott/aboutmarriott.mi >
Marriott, B. (2009). Marriott On The Move: Health Coverage For Our Marriott Associates. January 30, 2013. Retrieved From < http://www.blogs.marriott.com/marriot… >
Overby, S. (2013). CIO: The Keys to Marriott’s Success. January 30, 2013. Retrieved From < http://www.cio.com/article/29617/The_Keys_to_Marriott_s_Success >
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