BACHELOR IN BUSINESS ADMINISTRATION

SEMESTER 3

BBA – Company Law

ASSIGNMENT 1

Prepared for:
Lecturer’s name:

Prepared by:
Student’s Name: – ID No:
Table of Contents
Marriott International......................................................................................................................3
Nature of Business................................................................................................................................4
Buyer Power......................................................................................................................................4
Supplier Power..................................................................................................................................4
Threat of New Entrants....................................................................................................................4
Threat of Substitutes.........................................................................................................................5
Degree of Rivalry..............................................................................................................................5
Promotions, Packages and Experiences............................................................................................5
Marriott Culinary Getaway..........................................................................................................5
Attractions and Adventures..............................................................................................................6
Vision and Mission................................................................................................................................6
Objectives and Goals............................................................................................................................9
Organization chart and employee job task.........................................................................................10
Current business Trend......................................................................................................................10
Target market.....................................................................................................................................12
Future planning...............................................................................................................................13
APPENDICES.....................................................................................................................................15
SWOT..............................................................................................................................................15
Mariot Kuwait.................................................................................................................................15
Overview
Background of the company
Marriott International
Marriott International began in 1927 as a Washington, DC, root beer stands operated by John and
Alice Marriott. Later they added hot food and named their business the Hot Shoppe. In 1929 the
couple incorporated and began building a regional chain.
Hot Shoppes opened its first hotel, the Twin Bridges Marriott Motor Hotel, in Arlington,
Virginia, in 1957. When the Marriotts’ son Bill became president in 1964 (CEO in 1972,
chairman in 1985), he focused on expanding the hotel business. The company changed its name
to Marriott Corp. in 1967.
Marriott split its operations into two companies in 1993: Host Marriott to own hotels, and
Marriott International primarily to manage them. However, Marriott International still owned
some of the properties, and in 1995 it bought 49% of the Ritz-Carlton luxury hotel group.
In 1998, after the division of its lodging and food distribution services, the new Marriott
International then began trading as a separate company. That year Marriott also acquired the rest
of Ritz-Carlton.
Nature of business
Marriott International, Inc. engages in the operation and franchise of hotel, residential, and
timeshare properties. It operates through the following business segments: North American Full-
Service, North American Limited-Service, Asia Pacific, and Other International. The North
American Full-Service segment includes luxury and premium brands located in the U.S. and
Canada. The North American Limited-Service segment comprises select properties located in the
U.S. and Canada. The Asia Pacific segment focuses in all brand tiers in Asia Pacific region. The
Other International segment represents its Caribbean and Latin America, Europe, and Middle
East and Africa properties. The company was founded by J. Wiliard Marriot and Alice Sheets
Marriott in 1927 and is headquartered in Bethesda, MD.
Marriott International, Inc. is a global hospitality leader that has shown continuing signs of
prosperity and dominance in its industry. This company, based out of Bethesda, Maryland, has
made its mark globally through the operation and franchising of hotel and lodging facilities
scattered throughout the Americas, Africa, Europe and Asia-Pacific. According to the IbisWorld
database, Marriott International Inc is the leading player in the global hotels and motels industry;
employing about 137,000 people in about 69 countries. In order to further understand the nature
of competition in this industry one should first examine its external environment; more
specifically the forces that drive it. The five forces model that shall be analyzed is comprised of
buyer power, supplier power, threat of new entrants, threat of substitutes, and degree of rivalry.
Nature of Business
Marriott International Poses with Five Forces Model
Buyer Power
The buyer power in this industry can be qualified as moderate, as its players are constantly
offering ways to reduce it. In the global hotel and motel industry a primary strength a player has
to have in order to flourish is strong brand recognition. A strong brand recognition not only aids
in attracting first time customers, but it also entails repeat business since switching costs can be
trifling in this industry. Price competition alone is not a good stimulator of this force, yet
innovation undeniably is. Companies are always trying new ideas to capture a diversified set of
consumers, ranging from the middle class to the premium segment. By utilizing new styles of
design to superior facilities, such as gyms, spas, even integrated golf complexes, a vast
fragmented group of consumers can be captured through an increase in the value they receive.
For primary players in the industry the impact of losing a customer is not such a considerable
threat to business; they will retain the one’s they have and strive for new ones through a variety
of strategies.
Supplier Power
The supplier power in this industry can be qualified as moderate, mainly due to the
circumstances that create advantages to suppliers. First of all, suppliers in this industry are
comprised of a variety of positions; from property owners, developers, real estate companies,
architects, to marketing companies, suppliers can take on many shapes. Due to the fact that this
industry is very labor intensive, the players within it have to take on effective strategies to
bargain. The degree of quality and accessibility of the supplier’s equipment and services are a
primordial part for the success of a company. Hotel managers usually have to rely on technology
and advanced systems to manage, analyze, and locate good prospective properties that will
complement the hotel’s profitability. Since most of this technology is acquired through separate
suppliers, their bargaining power is considerably strengthened. Furthermore, as the quality of
training employees are provided with is congruent with the quality of service they provide, the
suppliers of high quality guidance may have a source of power over the firm.

Threat of New Entrants

As the hotel industry has experienced a substantial degree of growth over the past few years, it is
very likely that new entrants will be attracted. This industry is very influenced by tourism and
travel trends which create prime opportunities for competitors to enter the market. Even though
there has been an economic downturn globally, the expectations for the hotel industry continue
to be positive and growth is most likely going to continue throughout the year. The threat of new
entrants appears to be stronger in the Asia- Pacific region specially, as the number of tourists
continues to grow and new flight pathways are unveiled. In this industry new entrants may surge
as small, independent sole proprietors, yet the likelihood of their success is uncertain. In order to
sustain revenue growth in the premium market, where the highest profitability is usually found, a
large scale of initial capital is required; this can present itself as a strong deterrent to new
entrants. Moreover, new entrants may be constrained by foreign investment restrictions and
regulations, as well as restrictions in terms of purchasing real estate abroad.
Threat of Substitutes
The existence of substitutes outside the realm of the hotel industry’s boundaries may increase the
chances of customers switching to alternatives, yet the threat may be assessed as restrained.
Substitutes for this industry include alternative types of lodging, such as RV’s, camping, even
informal visits to friends and family. Even though these substitutes do exist, and switching costs
may be low, they usually do not provide the same utility as a hotel does. The basic function of a
place to stay may be fulfilled by substitutes, but the added benefits, such as restaurants and spas,
are better provided by hotels. The threat of substitutes may exist in this industry, yet it is no
match for an entity with a strong brand equity that provides customer satisfaction
Degree of Rivalry
The threat of rivalry for this industry can be considered moderate due to mostly financial and
logistical factors. Most of the hotel industry’s key players are large branded chains, yet there are
a large number of independent companies currently in the industry. The larger chains have a
powerful competitive advantage by being able to use their higher level of revenues to diversify
into other businesses. On the other hand, smaller companies have to struggle to devise strategies
of survival and innovation, which can be a complicated task. The capital availability key players
have allowed for a higher degree of global diversification; insulating them from volatile market
conditions. The pursuit of global expansion, through acquisitions and franchising, can be a strong
manifestation of the industry’s competitive nature. Furthermore, many large chains have started
to use an asset light business model to stimulate expansion; by divesting and raising capital,
competitors can invest in a broader set of operations and businesses. This therefore increases the
level of competitiveness between rivals.

Promotions, Packages and Experiences

Marriott Culinary Getaway

Create the Perfect Culinary Getaway

Get away from it all, and leave the cooking to us. From gourmet experiences at our hotel
restaurants to grab-and-go breakfasts, Marriott brand hotels offer a variety of dining packages
and special deals. Craving a culinary getaway? Search dates and rates in locations worldwide;
amenities vary by location.
Attractions and Adventures

Find your adventure

Discover the perks of traveling with Marriott. Get exclusive access or special deals on
experiences in great locations worldwide. Theme parks? Sporting events? Cultural attractions?
Search dates and rates—your adventure is waiting! Amenities vary by location.

Vision and Mission

Marriott’s Vision Statement
Marriott International Organization has ensured continued success for close to a hundred years
on a global stage by following the vision of the founders of the company.
Marriott’s vision statement put forth by the company is as follows:
“To be the World’s Favorite Travel Company.”
To achieve the monumental success in the service industry on a global stage, the founders of the
Marriott International thought it was best to put forth a vision so simple that it was not only easy
to implement but also follow throughout the organization.
The goal of the company is very simple – to leave a legacy of excellence in the service industry.
Marriott International aims to be the favorite travel company for the masses throughout the
world. It was this vision in addition to the work ethic and company culture that made it possible
to achieve the success the company has.
Marriott’s Mission Statement
The mission statement for the Marriott International is as follows:
“To enhance the lives of our customers by creating and enabling unsurpassed vacation and
leisure experience.”
An analysis of the mission statement has been done below
Enhance the lives of the customers
The key to long term success of any service providing company is to offer its customers services
of that quality that the customer is left with no other option other than choosing your brand.
Marriott International believes that by enhancing the lives of their customers and by providing
them with premium services, they can establish themselves as a profitable company in the long
term.
Creating and enabling unsurpassed vacation and leisure experience
To retain customers, Marriott International goes an extra mile to provide the customer with a
vacation experience that is their money’s worth. They do so by creating a vacation experience
and hotel experience full of comfort and enjoyment.

CLASSIC DISTINCTIVE

 Luxury  Luxury
i) The Ritz-Carlton i) Ritz-Carlton Reserve
ii) St. Regis ii) The Luxury Collection
iii) JW Marriott Upper iii) Bulgari
iv) W Hotels
v) Edition

 Upscale  Upper Upscale

i) Marriott Hotels i) Le MERIDIEN
ii) Sheraton ii) Autograph Collection Hotels
iii) Delta Hotels iii) Westin Hotels & Resorts
iv) Marriott Executive Apartments iv) Renaissance Hotels
v) Tribute Portfolio
vi) Gaylord Hotels

 Upscale (Longer stays)  Upscale

 i) Courtyard Hotels i) AC Hotels
ii) Four Points ii) Aloft Hotels
iii) SpringHill Suites iii) Element (Longer stays)
iv) Residence Inn (Longer stays) i)

 Upper Midscale  Upper Midscale

i) Protea Hotels ii) Moxy Hotels
ii) Fairfield Inn & Suites
iii) TownePlace Suites (Longer stays)

Right from the hotel room to the services provided by the Marriot International are of premium
quality. An example is the Ritz-Carlton Hotel, which is the go-to spot for all the high-profile
people and celebrities. This shows that the company has been successful in creating a credible
brand Name for itself.
Marriott’s Core Values
Marriott International takes, great pride in its employees and their behavior, which is the
reflection of the core values and the culture of the company. Following are the core values of the
company
 Putting people first
The main philosophy put forward by the founders of Marriott International was to create a
company culture as such that people are made a priority. People first culture has been a critical
factor in the success of the organization, and the company expects its employees to be well
equipped with this skillset.
 Pursuing excellence
The company takes great pride in providing services of par excellence, so all the employees are
expected to exhibit professional excellence. It is a critical skill for survival at Marriott
International as the company tries to hire the best talent there is.
 Embracing change
The modern hospitality industry has been shaped by the Marriott family; hence, the company is
not new at all to embracing change and adapting accordingly. Employees are expected to not
only welcome change but also adjust accordingly.
 Acting with Integrity
Amongst all fundamental core values, integrity is the most important one. For the company to
grow as a trustworthy brand name, all the employees are expected to execute their duties with the
utmost integrity.
  Serving the World
Marriott International expects all its employees to be committed to not only the company but
also towards the society and the planet. All employees are expected to give back to society and
help make the world more sustainable.
Marriott’s Pricing Strategy
Marriott International is an organization that offers services of all kinds to its customers. All of
its revenue depends upon the prices of those services provided. The company makes use of
Group Pricing Optimizer (GPO).
It is a decision support system, with user-friendly integrated software that helps the company
decide the prices of its various services such as hotel room pricing.
The GPO makes an analysis-based decision depending upon multiple factors such as price
elasticity, demand segmentation, and optimization techniques. The system has not only improved
sales and increased profitability but has also resulted in more satisfied customers.

Objectives and Goals

HR planning
The vision of Marriott Independent is become the premiere supplier and leisure of facilitator and
the vacation experiences in the society. The mission is improving the lives of our guest by
establish and enable outstanding vacation and the leisure experiences. The goal and strategic of
Marriott Independent are this hotel will always find around the world to choose that the guest
name to their hotel. The staff education will have the important thing to satisfy the guest need
and want. The SWOT analysis means strengths, weaknesses, opportunities and treats. Strengths
have high brand acknowledgement, the business processes will common upgrade and use the
technology to improve the experiences of guest, keeping the good staff and have…show more
content…
Profitability strategies have good property management, increasing the value of the stakeholders
and not only the properties leasing is more propose. Human capital strategies have to arranging
the staff in the right job, the working environment should be take care for the staff and the pay
check will just be going beyond. Customer strategies have according the sales to strategies and
try to contain the guest with step. Internet strategies must ensure the user for best available rates
in the website, have tightness and hassle free browsing and must transparent with no ambiguity
for the details of price.
Organization chart and employee job task

Current business Trend

Marriott International Announces Three-Year Growth Plan
Growth Model Shows $9.5 to $11 Billion Could Be Returned to Shareholders
Marriott International (NASDAQ: MAR) today will present the company’s three-year growth
plan, which includes opening more than 1,700 hotels around the world, at its meeting with
institutional investors and security analysts at the New York Marriott Marquis.
Marriott will outline its plan to add between 275,000 and 295,000 rooms by 2021, supported by
the strength of its record 478,000-room pipeline, including roughly 214,000 rooms already under
construction. Marriott will disclose that its new room openings during this period could
contribute $400 million in fee revenue in 2021 and $700 million annually when stabilized. The
company’s three-year growth plan assumes, but does not forecast, comparable hotel revenue per
available room (RevPAR) growth of 1 and 3 percent, compounded annually.
“Starwood has made us a more formidable competitor, providing a more valuable loyalty
program, brands with strong appeal to loyalty members and owners, talented associates, terrific
locations, particularly in the fast-growing Asia Pacific region, significant cost synergies and
meaningful scale,” said Arne Sorenson, Marriott International president and chief executive
officer. “We launched our newly branded loyalty program, Marriott Bonvoy, just last month. The
program reached 125 million members as of year-end 2018 adding roughly 50,000 members per
day.”
Given the assumptions for its three-year plan, the company could produce the following results:
1. Diluted earnings per share of $7.65 to $8.50 by 2021, a compound growth rate of 11 to 15
percent over 2018 adjusted results;
2. Adjusted earnings before interest, taxes, depreciation and amortization (adjusted
EBITDA) increasing by 6 to 9 percent compounded, with net income increasing by 5 to 8
percent compounded, each compared to adjusted results in 2018;
3. Cash available for shareholders could total $9.5 to $11 billion for the three years (2019
through 2021);
4. Shareholders could see $1.9 to $2 billion in dividends, assuming a continued 30 percent
payout ratio, and $7.6 to $9 billion in share repurchases over the three-year period.
Marriott’s growing pipeline of new hotels is fueled by the strong profitability of its hotels, the
broad selection of powerful brands available for development, its rich loyalty program, lower
costs from the company’s meaningful scale, and the strong confidence of its owners and
franchisees. The company will disclose that 70 percent of its portfolio of open and signed
pipeline projects is held by owners with multiple Marriott properties, and roughly one-third is
held by owners with ten or more Marriott branded hotels. Marriott’s development pipeline
reflects an increasing number of Legacy-Starwood branded hotels. Since the merger date, the
pipeline of Legacy-Starwood brands has increased nearly 25 percent to represent nearly one-third
of the Legacy-Starwood portfolio’s system size.
The company will also discuss its success improving the Sheraton brand. With more than
155,000 rooms, Sheraton is the company’s most geographically diverse brand and the company’s
third largest brand globally measured in both rooms and fees. The brand contributes significantly
to Marriott’s overall scale and effectively reduces costs for all the hotels in Marriott’s worldwide
system. More than one-quarter of Sheratons are already under renovation or committed to a
renovation. In 2018, Marriott launched a new Sheraton brand strategy, guest room prototype and
design approach, and just a week ago, unveiled the new Sheraton logo, signaling change to
owners, operators, guests and Sheraton associates. Since the acquisition, Sheraton’s RevPAR
index has improved to over 100.
“Our new three-year plan, with Starwood fully integrated, demonstrates how our fee-based,
asset-light business model generates even stronger and more sustainable cash flows. This allows
us to invest profitably in our core business at high rates of return and also return significant
amounts of capital to shareholders,” said Leeny Oberg, Marriott International’s executive vice
president and chief financial officer. “Our proven business model combined with opportunities to
leverage our significant scale from the Starwood acquisition uniquely position us for additional
shareholder value creation.”
Marriott will provide a live webcast of today’s investor and security analyst conference. The live
webcast will be available for investors on March 18, 2019 from approximately 9:30 AM to 3:00
PM Eastern Daylight Time in the U.S. Slides and video from the meeting will be provided
through a live webcast via Marriott’s investor relations web site. The slides contain financial
models for the three-year period, including estimates of net income, adjusted earnings before
interest, taxes, depreciation and amortization (adjusted EBITDA) and cash from operations, as
well as non-GAAP financial measure reconciliations for those estimates as appropriate. Copies
of slides will be available for download at approximately 8:00 AM Eastern Daylight Time.
Those wishing to access the webcast should log into http://www.marriott.com/investor, and click
on the Security Analyst Meeting link under the “Recent & Upcoming Events” tab. Presentation
materials from the meeting and the webcast replay will be available online after the meeting as
well.

Target market
The Marriott International has successfully built up different target market within its industry by
specifically targeting the needs for their customers.  The JW Marriott, created by the Marriott
international as a luxury brand, is designed to target mainly on customers who are seeking for a
quiet and luxurious atmosphere during their accommodation.  These customers are mostly
around the age of 30ths, who earns an average high income and usually travels for business
purposes.  Therefore, their customers are mostly the individualistic, sophisticated, and self-
defined travelers who are willing to spend more money on their accommodations while traveling
on a business trip.  The purpose for the JW Marriott is to provide their guests with a simple
elegant atmosphere that allow the customers to feel as leisured and comfortable as possible
without any distraction or disruption.
The JW Marriott Kuwait which recently awarded Best Business Hotel indicates that they
provided “simple elegance” and outstanding “intuitive service” ideally designed for business
travelers who look for a quiet and undistracted accommodation.  According to the JW Marriott
Kuwait City – Experience our hotel commercial, the hotel states that they provide large deluxe
guest rooms and suites featuring luxury bedding, spacious work areas, high-speed internet,
beautiful executive lounge, and outstanding spa and massage service.  Meanwhile, the hotel is
located in the heart of the Kuwait City so it is also very convenient for them to travel around the
city.  Opposite to the W hotels – known for their unique atmosphere, funky style and vibrant
music, JW Marriott hotels strive for an inviting atmosphere and simple elegance.  According to
the JW Marriott Kuwait City News, it clearly states that the brand is trying to provide their
guests with a “quiet” and “luxurious” experience in the hotel because they believe being a luxury
hotel does not need to consist with excess formality.  Instead, there will be no loud music, no
exaggerated environment, and fancy decoration.  What is left will be a simple, elegance sense of
sight so that their guests can enjoy staying in the beautiful hotel without distraction or disruption.
The hotel also promises to handle their guest’s request and needs in a very careful and precise
manner, which means that guest can expect their needs and experiences to be highly satisfied.
For example, a guest arrived at the Kuwait airport who is looking for a taxi to the JW Marriott
Kuwait surprisingly found out that the hotel has actually already reserved a Mercedes to pick
him up from the airport to the hotel (tripadvisor).  By doing this, the JW Marriott Kuwait will be
able to attract and to maintain valuable customers who are more preferred to stay in a simple,
quite, and luxurious place.

Besides rooms and services, the JW Marriott also desired to target customers who are looking for
high standard catering and cuisine in the hotel.  According to the official JW Marriott website,
each hotel under this luxury brand offers authentic cuisine with fresh picked local ingredients
and traditional local culinary skills.  Each fine dining restaurants in the hotel hired expert chefs
and professional servers in order to provide the best dining experience for their customers.  The
atmosphere, architecture, and the serving culture are also very genuine and varied as each city
the JW Marriott hotel is locating.  And no doubt, the prices are expected to be high in value.  
Future planning
Marriott is planning to open 1,700 hotels within the next three years, the company announced
Monday prior to its investor day conference in New York City.
The hotel retailer said it expects to have between 275,000 and 295,000 new rooms by 2021,
which includes roughly 214,000 rooms that are already under construction. Marriott International
President and CEO Arne Sorenson touched upon the impact he thinks the company’s purchase of
Starwood Hotels & Resorts in 2016 has had.
“Starwood has made us a more formidable competitor, providing a more valuable loyalty
program, brands with strong appeal to loyalty members and owners, talented associates, terrific
locations, particularly in the fast-growing Asia Pacific region, significant cost synergies and
meaningful scale,” Sorenson said in a statement.
Sorenson added that with the recent launch of its branded loyalty program, Marriott Bonvoy, it
has “reached 125 million members as of year-end 2018 adding roughly 50,000 members per
day.”
Marriott sees its new rooms adding $400 million in fee revenue in 2021 and about $700 million
annually once all of the rooms are operational.
With that growth Marriott also expects investors to see a boost. The company says it could
produce diluted earnings per share to $7.65 to $8.50 by 2021, and cash available for shareholders
could total between $9.5 to $11 billion over the next three years.
“Our new three-year plan, with Starwood fully integrated, demonstrates how our fee-based,
asset-light business model generates even stronger and more sustainable cash flows. This allows
us to invest profitably in our core business at high rates of return and also return significant
amounts of capital to shareholders,” said Leeny Oberg, Marriott’s executive vice president and
chief financial officer.
“Our proven business model combined with opportunities to leverage our significant scale from
the Starwood acquisition uniquely position us for additional shareholder value creation,” Oberg
added.

Conclusion
Marriot International, as a company, started the venture with a vision to be the best in the world
when it comes to hotels or resort chains. They proved their vision right by setting out a mission
that made the customers a priority.
One of the factors that helped the company pave the way for success was providing services of
premium quality. Moreover, the culture established in the company in addition to its
professional, excellent employees is also the reason behind the global success of Marriott
International.
 APPENDICES
SWOT

Mariot Kuwait
Relationship between hotel and tourism
The relationship between Hospitality and Tourism: Tourism and hospitality go hand in hand, the
hospitality industry offers services like accommodation, transportation, food and beverage,
recreation and leisure. Tourism is the activity by the tourists where they engage in travelling to
destinations where they want to experience recreational and leisure activities and most of the time
avails of accommodation, food and beverage. The hospitality industry is the supplier of the
services for tourism. The meaning of hospitality is providing a safe and enjoyable environment for
patrons. It also means responsibly serving liquor, to ensure that patrons do not become unduly
intoxicated and subsequently a problem for management, staff and the…show more content…
The Food Hygiene, Health and Safety Act provides food hygiene regulations for people who work
in the hospitality industry it reviews the legislation which regulate hygiene, health & safety
practices. The Chefs role in the safe preparation and service of food is critical and the law states
that a food handler has a legal responsibility to ensure that food is maintained in a hygienic &
safe manner. The Gambling Act: Tourism is one of Australia's most important industries and
together with the hospitality and gaming sectors makes up a significant part of our economy. The
industry is facing a raft of challenges from decreased global travel to increased regulation and
workplace reform, the objective of this Act is to ensure the State and community as a whole benefit
from interactive gambling. This regulation is designed to protect players and the community,
ensuring games are fair, people and organizations offering interactive gambling act honestly and
harm to individuals is minimized.
Without the tourism industry there would be no hospitality industry (mostly) and without the
hospitality industry the tourism industry would have a large gap.
The large gap is because there would be no mainstream place for tourists to stay, therefore
decreasing travel to that area. This causes tourism activities such as tours, excursions and tourist
attractions to decline in users
and therefore decreasing revenue for the local area and its people.
I say mainstream because there could still be homesteads, vacation rentals and house rentals,
though depending on if you label these as businesses or not, they may be part of the hospitality
industry.
The hospitality industry on the other hand, is built upon the fact that as a visitor to a different
destination you need a place to sleep. If people don’t travel, then people don’t need places to
sleep besides their homes. There may be a hospitality industry still, but it would be tiny
compared to the monstrous multi-billion-dollar industry we have today.
To summarize my answer, they need one another to function, that’s why we have tourism
bureaus. These organizations help strengthen the tourism and hospitality industries in the local
areas and provide additional tourism events for the local hotels and tourism business so they
have business in low tourism seasons.