Business Plan 2018

Company Overview
As the world’s largest hotel company, Marriot owns, manages, franchises and
leases over 6,080 properties with 1,190,604 rooms worldwide. Its brands cover the
breadth from select service to premium to luxury, and residence an time share.
It’s recent acquisition of Sheraton has allowed the company an unprecedented
global reach and the world’s largest “Loyalty Programs” (Marriott Rewards and The
Ritz-Carlton Rewards, and SPG) have 30 participating brands and has contributed to
50% of occupancies in 2016.
 Domain

 Geographic Market Area – global, with 78% of revenues

from 64% of properties coming from North America.
 Segment of Business
 Lodging accommodations
 Food and Beverage
 Conventions and Meeting Space
 Time Share Rentals
 Retail
 Activities and entertainment
 Domain
 Primary Competition
 Hilton Hotels and Resorts
 Hyatt Hotels and Resorts
 Four Season’s Holdings
 Wyndham Worldwide Corporation
 Intercontinental Hotels
 Target Market
 Budget leisure travelers
 Mid Market leisure travelers
 Luxury leisure travelers
 Corporate business travelers
 Family travelers
 Convention and meeting attendees
 Timeshare members
 Vision

To use our strength of being the largest hospitality company in

the world and be more, mean more and to share more as we serve
the world.
 Mission

At Marriott, we will use our diverse team to inspire change in the

world. We will continue to put people first, ensuring that our
core values are cherished and imbued; cultivating a global
community that will embody excellence in service, integrity in
judgment, purposeful social involvement and respectful inclusion
as we continue to deliver remarkable experiences to everyone
who enters our doors.
 Values

 Merge the best of our past with the promise of the future.
 Operate to serve our guests, team and community
 Respectful of diversity: in race, religion, ideas and ideals.
 Engage our people to deliver excellence.
 Stakeholders

 Stakeholders
1. Employees
2. Guests
3. Shareholders
4. Community
5. Owners/Partners
6. Vendors/Distributors
7. Academic and Trade Institutions
8. Technology Partners
9. Country Tourism Agencies
10. Suppliers
 Stakeholders
Stakeholder Importance Performance Score
Employees 15% 4 0.6
Guests 15% 4 0.6
Shareholders 10% 2 0.2
Community 10% 3 0.3
Owners/Partners 10% 3 0.3
Vendors/Distributor 9% 3 0.27
Academic/Trade 9% 3 0.27
Technology Partners 8% 3 0.24
Tourism Agencies 8% 2 0.16
Suppliers 6% 3 0.15
100% 3.09
 External
Environmental
Category/trend Opportunity Threat Source
Political
Legalizing With the industry Grey lines with Boston Globe
Marijuana growing 30.8% controlling or
over the next 10 restricting this new IBISWorld
years, it will open law will impose Industry report
up new markets negative effects on on Medical &
with liberals and family vacations Recreational
millennials. and business Marijuana
Boutique brands travelers.
may excel with
this trend.
 External
Environmental
Category/trend Opportunity Threat Source
Political
Tax Reform More disposable Expected “trickle- Economist
income for the down” effect may
upper class not be realized and
travelers and capital may shift
business clients for outwards to
corporate developing
meetings. countries.
 External
Environmental
Category/trend Opportunity Threat Source
Economic
Income Inequality Align with Political unrest in Economist
governments for highly volatile
growth in areas.
developing
countries, ensuring
that our investment
yields more than
financial returns.
 External
Environmental
Category/trend Opportunity Threat Source
Economic
War War will give the War will initially NY Times
global economy a halt travel for the
boost with a general public due
demand for jobs to fear and
and government possible
spending. destruction of
popular tourist
destinations.
 External
Environmental
Category/trend Opportunity Threat Source
Sociocultural
Terrorism Hotels enhance Dramatic Global Terrorism
security protocol occupancy drops Index
and create following an act of
additional security terrorism.
measures to further Conference and
protect guests and event business is
employees. interrupted as
clients postpone or
cancel events.
 External
Environmental
Category/trend Opportunity Threat Source
Sociocultural
Climate Change Green policies and Shifts in climate in NASA climate
in popular tourist increase of destinations, rising change facts
areas sustainable sea levels would
practices and result in drop of
preventative action demand.
to adhere to CSR Potential for
initiatives. severe natural
disasters costing
millions in
damage.
 External
Environmental
Category/trend Opportunity Threat Source
Technological
Technology Expansion of Access to google- IT Tech
Driven Travelers digital concierge based applications Economist
services. in countries that
monitor web
traffic.
Effects of vetoed
net neutrality
policy.
 External
Environmental
Category/trend Opportunity Threat Source
Technological
Near Field Expansion into Increased Hotel Business
Communication personalized cybersecurity to Review
experiences on- deal with possible IT Tech
property. firewall
penetration issues
 Porter’s 5 Forces
Rivalry
1. Industry Growth is HIGH
Hotel chains are expensive to start up and have lots of barriers to new entry in
developed countries but may have lower barriers to entry in underdeveloped
countries.
2. Fixed costs are HIGH
Insurance rates, interest expenses, and salary expenses are very costly for the
hospitality industry
3. The ability to copy pricing strategies is HIGH
Use of third party distributors (GDS and OTAs) allow for transparency of rates
and strategy.
Rivalry is INTENSE
 Porter’s 5 Forces
New Entrants
1. Capital requirement is HIGH
Capital requirements for started relatively high with a slow ROI
2. Brand reputation of existing companies is HIGH
All top 5 companies are very reputable and have diversified portfolios.
3. Government regulations are HIGH
There are many legal restrictions for new entrants in different locations of the world.

Threat of New Entrants is LOW

 Porter’s 5 Forces
Suppliers
1. Number of suppliers is HIGH
There are a large number of distributors for hospitality products
2. Differentiation of suppliers’ products and services is LOW
Suppliers generally carry a lot of the same products with minimal variations
3. Switching costs of the buyer industry LOW
Switching costs could potentially be more expensive but is cheaper after the
development of relationships between managers and suppliers

Supplier power is LOW

 Porter’s 5 Forces
Customers
1. Volume of purchase is LOW
Most of customers do not make purchases in large quantities, with exception of
conventions and similar services.
2. Number of customer is HIGH
Current demand for travel (business and tourism) allows for worldwide occupancy of
around 62% worldwide in 2016.
3. Switching Costs are LOW
Matching status in reward program levels is a best practice.

Customer Power: HIGH

 
 Porter’s 5 Forces
Substitutes
1. Potential new substitutes are HIGH
Because of their lower prices and ‘home environment’, Airbnb has a high attraction
for longer stays.
2. Availability of alternatives is HIGH
Timeshares and condos give customers the ability to use their properties as vacation
home every year and still visit new destinations. New apps make substitutes very easy
to use.
3. Price Sensitivity is LOW
The sharing economy provides many alternatives, but is yet to be accepted by the
older generation of travelers due to the lack of amenities provided.
Threat of Substitutes is HIGH
 
 Porter’s 5 Forces
Analysis
 Largest threats are rivalry, customer power and substitutes.
 Marriott needs to capitalize on its global dominance, ensuring that the brand
portfolio is presented as a full palate of exceptional options.
 Strengthen communications with our Marriott/Starwood and Ritz Carlton rewards
members. Ensure maximum promotion in Visa and American Express database.
 Capitalize on timeshare capacity to block the growth of the sharing economy
substitutes. Emphasize amenities for generation diversity.
 SWOT Analysis
STRENGTH WEAKNESS
Market dominance Substantial debt
Brand recognition ($1.991M end of 2017)
Employee Retention Identity crisis
High accounts Receivable
($7.8 M end of 2017)

OPPORTUNITIES THREATS
Green Policies Terrorism
Near Field Communication Global Warming
Tax Bill Unequal Income distribution
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Opportunities S-O Strategy W-O Strategy

Green policies and 1. Create and launch a 1. Partner with supplier
increase of sustainable “MORE Green Future” for a world-wide
practices and campaign, both Marriot/Sheraton
preventative action to internally and externally, environmentally friendly
adhere to CSR measuring the global chemical brand for use
initiatives. CO2 emissions footprint. in all brands.
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Opportunities S-O Strategy W-O Strategy

Expansion into 1. Expand digital 1. Expand near field
personalized experiences concierge services to communication platform
on-property through include NFC and roll- beyond the digital key to
out by region for maximize immediate
auto-pay on a Marriott property payment of current AR.
platform implementation.
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Opportunities S-O Strategy W-O Strategy

More disposable income 1. Create a salary scale 1. Launch a massive
for the upper class system that will utilize a promotion campaign
travelers and business portion of the tax break targeting luxury
savings and ensure that travelers for the Marriott
clients for corporate Marriott employees are and Sheraton
meetings. the best paid in the collections.
industry.
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Threats S-T Strategy W-T Strategy

Dramatic occupancy 1. Create an “I’m Safe” 1. Re-evaluate security
drops following an act App for all employees systems in all brands,
of terrorism for hotels which allows them to ensuring a “MORE
link with their preferred Safe” system and
nearby. Conference and social media to sharing the endeavor
event business is announce their safety in with all brand reward
interrupted as clients cases of a terrorist attack members.
postpone or cancel or threat.
events.
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Threats S-T Strategy W-T Strategy

Shifts in climate in 1. Identify major areas 1. Focus holiday
destinations, rising sea of threat – based on destination advertising
levels would result in current scientific data – to incorporate the
and strengthen crisis “staycation” concept for
drop of demand. policies to encompass major suburban areas.
Potential for severe community assistance in
natural disasters costing cases of natural
millions in damage. disasters.
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Threats S-T Strategy W-T Strategy

Political unrest in highly 1. Strengthen Sarbanes 1. Strengthen financial
volatile areas due to Oxley implementation due diligence policy on
income inequality. for due diligence in all partners
expansion and/or (owners/suppliers and
management vendors) in all new
contract/franchise contractual partnerships.
partnerships.
 Brand Diversity

Brand Business Level Key Characteristics

Strategy
Moxy Focused  Market leader in “tiny hotel concept
differentiation (183 square feet of coziness) and
located in key secondary cites.
 Targets a leisure market
Fairfield Inn Low Cost  The brand appeals to owners and
Leadership franchisees who recognize a strong
economic model and investment that
works.
 Closer to economy and is patronized
by both leisure and business.
 Portfolio of Brands
Luxury

Leisure Business

Economy
 Brand BCG Analysis
5.3
High

?
2.65
Growth
Market

Low
Lo 0w 0.5 1.0
High
Relative Market Share
 Industry Top Marriott Competitor Market
Marriott Brand
Segment Competitor Rooms Rooms Size
Moxy 906
Fairfield Inn 78,252
Upper
Hampton 208,394 946,088*
Midscale Protea 9,612
Towneplace
31,775
Suites
Segment
Competitor
Industry Marriott Marriott Relative Market Growth
Market
Segment Brand Market Share Share Rate-
Share
Demand
906/946,088= 0.1%/22.03%
Moxy
0.10% = .004
78,252/946,088= 208,394/ 8.27%/22.03%
Fairfield Inn
Upper 8.27% = .376
9,000/946,088=
946,088= 1.02%/22.03%
3.1%
Midscale Protea
1.02% 22.03% = .046
Towneplace 31,775/946,088= 3.36%/22.03%
Suites 3.36% = .152

*Plus 9,612 rooms

 Corporate Level
Strategy
Vertical Integration – As the leader of the industry,
Marriott needs to ensure that it’s distribution channel is
strengthened. With 30 brand and 1.9 M hotel rooms,
Marriott looks to purchase Carlson Wagonlit Travel. This
company, which used to be part of the Carlson Group before
the sale to HNA, is currently available for negotiation. As
this company was part of a larger hospitality group, there
will not be any concern for anti-trust laws.
Re-structure - To finance this acquisition, the lowest
performing 5% of brands will be divested.
 SWOT Analysis
STRENGTH WEAKNESS
Market dominance Substantial debt
Brand recognition ($1.991M end of 2017)
Employee Retention Identity crisis
High accounts Receivable
($7.8 M end of 2017)

OPPORTUNITIES THREATS
Green Policies Terrorism
Near Field Communication Global Warming
Tax Bill Unequal Income distribution
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Opportunities S-O Strategy W-O Strategy

Green policies and 1. Create and launch a 1. Partner with supplier
increase of sustainable “MORE Green Future” for a world-wide
practices and campaign, both Marriot/Sheraton
preventative action to internally and externally, environmentally friendly
adhere to CSR measuring the global chemical brand for use
initiatives. CO2 emissions footprint. in all brands.
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Opportunities S-O Strategy W-O Strategy

Expansion into 1. Expand digital 1. Expand near field
personalized experiences concierge services to communication platform
on-property through include NFC and roll- beyond the digital key to
out by region for maximize immediate
auto-pay on a Marriott property payment of current AR.
platform implementation.
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Opportunities S-O Strategy W-O Strategy

More disposable income 1. Create a salary scale 1. Launch a massive
for the upper class system that will utilize a promotion campaign
travelers and business portion of the tax break targeting luxury
savings and ensure that travelers for the Marriott
clients for corporate Marriott employees are and Sheraton
meetings. the best paid in the collections.
industry.
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Threats S-T Strategy W-T Strategy

Dramatic occupancy 1. Create an “I’m Safe” 1. Re-evaluate security
drops following an act App for all employees systems in all brands,
of terrorism for hotels which allows them to ensuring a “MORE
link with their preferred Safe” system and
nearby. Conference and social media to sharing the endeavor
event business is announce their safety in with all brand reward
interrupted as clients cases of a terrorist attack members.
postpone or cancel or threat.
events.
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Threats S-T Strategy W-T Strategy

Shifts in climate in 1. Identify major areas 1. Focus holiday
destinations, rising sea of threat – based on destination advertising
levels would result in current scientific data – to incorporate the
and strengthen crisis “staycation” concept for
drop of demand. policies to encompass major suburban areas.
Potential for severe community assistance in
natural disasters costing cases of natural
millions in damage. disasters.
 SWOT Analysis
Strengths Weaknesses
Market dominance Substantial debt
Brand recognition Identity crisis
Employee Retention High AR

Threats S-T Strategy W-T Strategy

Political unrest in highly 1. Strengthen Sarbanes 1. Strengthen financial
volatile areas due to Oxley implementation due diligence policy on
income inequality. for due diligence in all partners
expansion and/or (owners/suppliers and
management vendors) in all new
contract/franchise contractual partnerships.
partnerships.
 Business Level
Strategies
1. Partner with supplier for a world-wide Marriot/Sheraton
environmentally friendly chemical brand for use in all
brands.
2. Expand near field communication platform beyond the
digital key to maximize immediate payment of current
AR.
3. Strengthen Sarbanes Oxley implementation for due
diligence in expansion and/or management
contract/franchise partnerships.
4. Create a salary scale system that will utilize a portion of
the tax break savings and ensure that Marriott employees
are the best paid in the industry.
 Corporate Level
Strategies
1. Divest 5 % of the brands – based on dogs
2. Increase related diversification among properties for
conferences, and weddings in each major geographic
location, ensuring that maximum shared benefits and
economies of scale is done.
3. Acquire Carlson Wagonlit Travel Company to expand into
vertical integration of distribution systems.
4. Merge similar concept hotel brands to concentrate and
solidify position in the midscale market. Grow through
franchise acquisition and focus on surpassing the Holiday
Inn by the end of 2018 and the Hampton by the end of 2022.
 Progress Report # 5
Interorganizational Relationships
3 Interorganizational relationships (different stakeholders)
tied to corporate/business strategies = 3
Functional Audit Strategy
Business Level Functional Audit – 1/FSA = 6
Corporate Level Functional Audit – 1/FSA = 6

Organizational Structure (and explain WHY)

Implementation Plan
Total of 8 SMART measurements
 Progress Report # 5
Interorganizational Relationships
3 Interorganizational relationships (different stakeholders)
tied to corporate/business strategies = 3
Functional Audit Strategy
Business Level Functional Audit – 1/FSA = 6
Corporate Level Functional Audit – 1/FSA = 6

Organizational Structure (and explain WHY)

Implementation Plan
Total of 8 SMART measurements
 Interorganizational
Relationships
Strategy Interorganizational Relationship
Develop near field communication (Suppliers) Partner with Google Pay for
platform for immediate payment of AR near field communication payment to
and promotions on property. allow for access to technology/banks.
Strengthen the relationship with (Employees) Engage employees
hospitality unions to ensure that Marriot through their unions to research and
will lead the industry in employee create 5-year salary alignment project.
compensation.
Emphasize the sustainability focus of (Community) Strengthen the “Serve
Marriott and establish baseline metrics 360: Doing Good in Every Direction”
for its implementation. with the local communities through
creation of personalized goals in each
location.
 Progress Report # 5
Interorganizational Relationships
3 Interorganizational relationships (different stakeholders)
tied to corporate/business strategies = 3
Functional Audit Strategy
Business Level Functional Audit – 1/FSA = 6
Corporate Level Functional Audit – 1/FSA = 6

Organizational Structure (and explain WHY)

Implementation Plan
Total of 8 SMART measurements

Marketing Strategy
Product Line Breadth: Review
coverage of the mid-level market
and focus in line with corporate
strategies.
Product positioning: Provide
different levels of products for our
diverse community of guest
expectations.
Business Functional
Strategy Audit
Innovation Strategy
Innovation focus: Expansion of Near
Field Communication technology.
Incentives for innovation by
employees and management: Ensure
that expertise is created within the
organization for near field
communication initiatives.
 Business Functional
Strategy Audit
Operations Strategy Human Resources Strategy
Sourcing Arrangements: Synergize Selection: Streamline the selection
within the brand for centralized process across brands to ensure that
purchasing of all shareable products. key core competencies are made
inherent to ensure easy
Workforce Policies: Create cross- transferability or employees.
training possibilities with the brands,
ensuring that competencies are Management Compensation:
developed for unique skills and Review possibilities of stock options
capabilities. for all managers at level Y and
above.

Information Systems Strategy
Internet: Strengthen bandwidth
capacity through centralized
purchasing and economies of scale,
having available for all properties
the top 3 broadband companies with
pre-negotiated rates.
Business intelligence: Establish big
data analytics for all Marriot clients
to be able to maximize information
and provide specialty products and
services.
Business Functional
Strategy Audit
Financial Strategy
Financial control: Establish controls
in line with Sarbanes Oxley,
especially targeting high risk areas.
Returns to shareholders: Streamline
expenditures to ensure a consistent
ROI dividend to shareholders.

Information Systems Strategy
Internet: Strengthen bandwidth
capacity through centralized
purchasing and economies of scale,
having available for all properties
the top 3 broadband companies with
pre-negotiated rates.
Business intelligence: Establish big
data analytics for all Marriot clients
to be able to maximize information
and provide specialty products and
services.
Business Functional
Strategy Audit
Financial Strategy
Financial control: Establish controls
in line with Sarbanes Oxley,
especially targeting high risk areas.
Returns to shareholders: Streamline
expenditures to ensure a consistent
ROI dividend to shareholders.
 Progress Report # 5
Interorganizational Relationships
3 Interorganizational relationships (different stakeholders)
tied to corporate/business strategies = 3
Functional Audit Strategy
Business Level Functional Audit – 1/FSA = 6
Corporate Level Functional Audit – 1/FSA = 6

Organizational Structure (and explain WHY)

Implementation Plan
Total of 8 SMART measurements
 Corporate Level
Organizational Chart
CEO
BOD
Operations
President
Ritz Carlton Brand
President VP Ops - EMEA VP Ops – APAC
Courtyard Brand
President
 Progress Report # 5
Interorganizational Relationships
3 Interorganizational relationships (different stakeholders)
tied to corporate/business strategies = 3
Functional Audit Strategy
Business Level Functional Audit – 1/FSA = 6
Corporate Level Functional Audit – 1/FSA = 6

Organizational Structure (and explain WHY)

Implementation Plan
Total of 8 SMART measurements
 Implementation Plan
Major Tasks Timeline Responsibilities Resources

Goal 1: Establish a Marriott Pay near field communication system platform for
payment.
- Partner with Google Q2 2018- Feasibility study R&D - Financing
Pay and negotiations Information - Supplier
- Ensure Firewall Q3 2018 – Systems Systems - Information
strength and stability protection HR Technology
- Link with primary Q4 2018- Installation and Marketing
POS and PMS training employees to
systems operate.
Q1 2019- Launch program

SMART: Improve AR payments by 15% against current rate of 62% by Q4 2019.