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Alfonso | Cardenas | Cua |

Intal | Madelar | Lubaton |


Veracruz

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Vision-Mission
Vision : To become the leading provider and
facilitator of value-based luxury, leisure and
business experiences across the globe
Mission : To create an environment
conducive and helpful to both our employees
and customers, thereby encouraging our
employees to work at their maximum
capacity in being of service to our customers
whilst providing our customers with

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To provide “ Good Food &
Good Service at a Fair
Price”

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Marriot International
North American full-service lodging
North American limited-service
lodging
International lodging
Luxury
Timeshare
Synthetic Fuel

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Marriott Facts
2,832 Lodging Properties
2,046 furnished corporate housing rental units
75% of Marriott’s 1,048 company-operated properties and 93
% of the 1,784 franchised properties are in the United States.
Marriott has strong international presence in countries like
Canada, Mexico, China, UK and Germany
Cruise Lines, Food Service companies, restaurants, turnpike
units, and retirement communities.

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SWOT - Analysis

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Strengths
Excellent Strategies to attract
Large Expanse of Brands and retain employees
Geographic Presence Marriott culture retention
Global leader in hotels market balancing against the identities
of the brands
More franchise means bigger OI
-- they have more control that it Eco-friendly
seem Customer Hospitality / Centric
Website and Social Network Brand Equity
Focused divestiture Efforts
especially with in’t companies

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Weaknesses
Focus on US instead of
international establishments
(over-reliance on US market)
Over dependence on luxury
brands
lack of low-cost brands
Marriott being targeted by
fundamentalists or extremists

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Opportunities Threats
Timeshare not popular anymore
Emerging Asian Travel and
Tourism Markets Economic Recession = lower
consumer spending
Trend fro low-cost goods
Boom of Economy Hotel Brands
Distinction amongst hotel
service offered Political instability

Environmentally and Family Increase of Real Estate in Asia


Oriented Terrorism
Decrease of cost of real estate in Epidemics (H1N1)
the US
Tight US Borders
Eco-tourism

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Strengths-Opportunities
Action Points
Acquire or establish hotels in Asia
Initiate Budget and Economic Brands
Divest in limited-service brands with the economy brands of
other companies
Differentiation of a particular brand in certain locations
Apply eco-friendly efforts, and eco-tourism across the chain
Acquire US properties to reduce debt/cost of new
establishments
Strategically Build hotels/resorts that would most preserve
the environment

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Weakness-Opportunities
Action Points

Expand in Asia
Build high-end inns
Joint ventures in other high risk countries and use the local’s
name
Build economy brands over cheap US land where the
savings in the land are directly passed onto the consumers/
customers

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Strength-Threat
Action Points
Company wide restructuring to reduce cost and increase
efficiency
Expand today to maintain lead and reap the rewards later
on especially in Asia
Provide financial assistance to franchisees to start or
expand operations (preferably international)
Slowly depart from time-share hotels
Hire local employees by collaborating with local government
units
Hire, train and support the localities where Marriott operates
in to win the hearts and minds

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Weaknesses-Threat
Action Points

Work towards expansions overseas due to economic


meltdown
Use relationship with employees to temporarily reduce
salary to be more competitive
Joint Ventures with other companies especially in new “low
cost” businesses
Build economy brands now

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Financial Analysis

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Their current ratio goes beyond the industry standard but


their quick ratio is less than industry standard

Liquidity
2008 2007 2006 2005
Ratios

Current
1.33 1.24 1.31 1.59
Ratio

Quick Ratio 0.55 0.7 0.84 1.04

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Show’s Marriott’s Acquisition culture, where they use the


shareholder’s investments when venturing to other
avenues.

Leverage Ratios 2008 2007 2006 2005

Debt to Total Asset


0.84 0.84 0.7 0.62
Ratio
Debt to Equity
5.45 5.25 2.28 1.62
Ratio
Long Term Debt to
2.16 1.95 0.69 0.52
Equity Ratio
Times Interest
5.37 7.17 12.15 3.69
Earned

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Marriott is the leader in total revenue in the lodging


industry but has low Net Profit Margin and Profitability
Ratios due to high costs (labor) and acquisitions

Profitability Ratios 2008 2007 2006 2005

Operating Profit Margin 0.07 0.1 0.08 0.5

Net Profit Margin 0.03 0.05 0.05 0.06

Return on Total Assets 0.04 0.08 0.07 0.08

Return on Stockholder’s Equity 0.26 0.49 0.23 0.21

Earnings per Share $0.99 $1.75 $1.41 $1.45

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Due to the economic recession that hit the United States


during the mid to late 2008 and with Marriott’s strong
presence in the US, sales and profit declined significantly

Growth Ratios 2008 2007 2006 2005

Sales -0.85% 8.30% 5.28% 14.37%

Net Income -47.99% 14.47% 9.12% 12.25%

Earnings Per Share -43.43% 24.11% -2.76% 16.94%

Dividends per Share 17.39% 19.79% 20.00% 21.21%

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Strategies and Objectives

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Profitability Strategies
Managing Properties
opposed to owning
properties

Invest in projects that


increase shareholder value

Optimize the use of debt in


the corporation’s capital
structure

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Human Capital Strategies
The right person for the right job

Staying just beyond the paycheck

A great and caring work


environment

Promoting associates from within

Building Brand Equity

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Customer Strategies
Sales for strategy (Sales
force One)

accommodating all
customer needs in a
one-stop-fashion

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Internet Strategies
“Look no Further Best Rate
Guaranteed”
Hassle Free Navigation,
and access

And transparency in prices

Partnerships with 3rd party


websites

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Marriott International
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Space Matrix

Internal Strategic Position Average Points

Financial Strength (FS) 4.28

Competitive Advantage (CA) -1.5

External Strategic Position Average Points

Environmental Stability (ES) -4.1667 (y axis - .12)

Industry Strength (IS) 4 (x axis - 2.5)

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Marriott International
Position
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Local Settings
Shangri-la Hotel & Resorts
dominates
Ayala Land Groups is the
franchisee of Marriott in the
Philippines
Megaworld is developing new
hotels and resorts to be opened
in late 2010
There are 4,800 accommodation
establishments in the Philippines
mostly small to medium
enterprises

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Primary Competitors
Shangri-la Hotels and Resorts
Manila Mandarin
Waterfront Philippines Inc.
Global Hyatt Corp.
SM Investment Corp. (Paramount Hotels/
Hamilo Resrt/ Regent Hotels/Micro Inn)
Ayala Land Group (Marriott/Intercontinental)

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Philippines’ Top Hotels
Hotel/Resort Revenues

Makati Shangri-la P 3,383,500,000

Shangri-la Mactan Island P 2,141,170,000

Peninsula Manila P 1,530,700,00

Hyatt Hotel P 1,450,000,000

EDSA Shangri-la Manila P 1,424,800,000

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Answers to Questions

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Is Marrio) relying too heavily upon the domes6c market 
for  expansion  instead  on  the  faster  growing  economies 
overseas?

Currently, More than 75% of the proper6es and income of 
Marrio) comes from the United States market.
Also, even though the numbers of rooms overseas is 
considerably higher compared to the United States, the North 
American Lodging revenues pushes Marrio) to expand in the 
United States. 

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Proposed Acquisi.ons

Acquisi6on  of  Beijing  Bed  ‘n  Breakfast  Inn  Chain  and 


establish a chain of Inns along the Yantze River from the 
Tibet Foot‐lands to Shanghai as High‐end Inn Ports
Partner  with  the  Mactan  Interna6onal  Airport  and 
create a super conven6on center right beside the Airport 
to cater to the businessmen in Greater Asia. 
Underwater HOTEL !!!!!

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Proposed Org‐Chart 

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