Team Executive Summary

Shelby Bastien, Sara Miller, Taylor Acquista, and Cody Briscoe
ONLBAM 479OC Strategic Management

Deborah Harvel-Jenkins, M.A., PMP, CIPP/US
Marriott International
Team Executive Summary
Case Statement
This strategic analysis set out to examine the Marriott, and what its current business
strengths and weaknesses are. Using this data, the Marriott can interpret market trends
in order to accept recommendations on marketing strategies to improve revenues. Upon
inspection, the Marriott has over extended itself financially, and needs to cut back on
spending funds on acquisitions. The Marriott’s current revenue is $20,758 million as of
December 2018, which decreased from $22,894 in December 2017 which is 9.06%
less. ("Marriott International Inc. (MAR) | Income Statement", 2019) Marriott
International is one of many names in the hotel industry. Whether it be state side, or
globally, they have a strong presence with consumers and a strong reputation. They
have many un-tapped markets and can become even stronger in the industry with a
little work done by the management team.
Mission and Vision Evaluation
The mission and vision statements for Marriott are short and sweet. They cover their
customers and experiences, which is what the hotel industry is all about. Although, they
could be stronger, they get to the point and do not have anything un-necessary. Marriot
does not have a traditional mission statement, instead they list 5 core values. The core
values for Marriott are “we put people first, we pursue excellence, we embrace change,
we act with integrity, we serve our world” (David, 2019).
Milestones
 1957 Marriott finally transitions into the hotel industry opening its first hotel opens
in Virginia.
 1969 Marriott was making its presence outside of the united states opening its
first Marriott hotel in Mexico
 1993 - Marriott International was born when splitting from Marriott Corporation
 1995 The popular hotel The Ritz Carleton pairs up with Marriott
 2002 - Restructuring to focus on hotel ownership
 2006 - Becoming non-smoking in all operations (US & Canada)
External Assessment
One important external factor for Marriott International is an opportunity to have a
stronger online presence. Technology is always advancing and with the rise of online
users, this is the way of the future. Another external opportunity for Marriott is the large
unexploited market. With tapping into these markets, it holds so many opportunities for
new customers and clients. A large threat for Marriott is the rising pay levels across the
world. As minimum wages rise, so does the cost of living. Online booking was another
key factor of the external assessment. Hotels are constantly in contact with the
companies that are selling their rooms online, working as a team to analyze patterns in
occupancy and adjusting rates accordingly.
Internal Assessment
Marriott is a customer dedicated company, and this is reflected in the core values of the
company. Customer service is an important aspect of staying at a hotel. Another
important internal factor for the Marriott is international presence. Having a strong
footprint across the globe helps to make you a house-hold name. Another strength
includes acquisitions and mergers for Marriott. Marriott has shown success in the past in
its mergers and acquisitions with other companies. This works well in the hotel industry
because it helps cut down on the number of competitors. An internal weakness is the
investment in new technology. With technology ever evolving, keeping up with this will
only help attract customers and keep them coming back.
Financial Analysis
Marriott International has a lot of total debt, coming in at $11.78 billion; this is the
highest in the hotel industry. The working capital is negative $1.85 billion, in which most
competitors have a positive working capital. On the plus side, Marriott has good
relationships with their investors and stockholders. They are kept up to date with current
numbers through a website built specifically for them. Marriott recorded a debt to equity
ratio of 9.65 at the end of 2018. In the year end of 2017 Marriott recorded a debt to
equity ratio of 5.48. In 2018 stockholders were paid a cash dividend of $1.56 per share,
this was a .27 increase from the year prior and a .92 increase over the past 5 years.
According to Marriott’s consolidated statements of shareholders equity, a total of 543
Million dollars was paid out in dividends in 2018.
Competitive Strategies
Increasing the number of rental style properties to Marriott’s portfolio would benefit
many of the key factors of Marriott. By diversifying Marriott’s properties, they are
increasing the number of listings on booking sites. With the growth of the hospitality
sector it is important for Marriott to expand on its services to include more rental
properties to diversify the portfolio. Three competitive strategies are to expand more
internationally, acquire competitors, and become a greener company. By expanding into
unexploited markets, Marriott can gain new customers and become even more globally
known. Also, by acquiring competitors in the hotel industry, it eliminates more options
for customers to select when planning a stay. The Marriott also needs to focus on
international market relations and improving advertisements to cultural demographics.
Updating décor, menus and advertising can help penetrate the international market
deeper.
Recommended Strategy
The strategy selected was to expand further internationally. By having Marriott tap these
markets before their competitors, they are likely to gain new customers and steal them
from the competition. The goal is to tap high traffic cities with a large business
presence. One major recommendation to combat loss in revenues for the Marriott, is to
employ other financial options to seek revenues. Public presence through the use of
Facebook, Twitter, and Instagram can improve the Marriott’s public image. Creating a
buzz on these networks can increase the likelihood that consumers will book at the
Marriott the next time they need a hotel room. Some major considerations would be for
the Marriott to hire a social media consultant company to handle all public relations, an
international delegate to handle foreign advertising and media affairs, and a local event
coordinator to facilitate more engagements.
Ethical and Social Responsibility Dimensions of the Recommended Strategy
Marriott’s dedication to its customers was expressed in its core values. The plan
recommended would increase services for customers and help connect their social and
ethical views into the Marriott’s core cultural strengths.

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Shelby Bastien, Sara Miller, Taylor Acquista, and Cody Briscoe

ONLBAM 479OC Strategic Management

Team Executive Summary

in order to accept recommendations on marketing strategies to improve revenues. Upon

spending funds on acquisitions. The Marriott’s current revenue is $20,758 million as of

less. ("Marriott International Inc. (MAR) | Income Statement", 2019) Marriott

little work done by the management team.

Mission and Vision Evaluation

we act with integrity, we serve our world” (David, 2019).

first Marriott hotel in Mexico

 2002 - Restructuring to focus on hotel ownership

 2006 - Becoming non-smoking in all operations (US & Canada)

One important external factor for Marriott International is an opportunity to have a

occupancy and adjusting rates accordingly.

company. Customer service is an important aspect of staying at a hotel. Another

only help attract customers and keep them coming back.

According to Marriott’s consolidated statements of shareholders equity, a total of 543

Million dollars was paid out in dividends in 2018.

internationally, acquire competitors, and become a greener company. By expanding into

international market relations and improving advertisements to cultural demographics.

coordinator to facilitate more engagements.

Ethical and Social Responsibility Dimensions of the Recommended Strategy

ethical views into the Marriott’s core cultural strengths.

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