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RISK REPORT
MARRIOTT HOTEL

MAN 702 RISK AND

Minh Thu Nguyen/ Jasmine 10/2021
LEGAL 0
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LIST OF TABLES/FIGURES
No. Type Description Page
1 Table 1 Marriott Hotel Stakeholder Evaluate
2 Table 2 Marriott Hotel Stakeholder Diagram
3 Figure 3.1 Marriott Hotel Business Organisational Chart
4 Figure 3.2 Marriott Hotel Senior Management Chart
5 Table 4 Marriott SWOT analysis
6 Table 5 Marriott top ten risks registered
7 Table 6.1 Marriott Hotel Risk Radar Table
8 Figure 6.2 Marriott Hotel Risk Radar Diagram

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EXECUTIVE SUMMARY

The Marriott Hotel’s strategic risk management plan was developed throughout this
report. An essential goal of the hotel’s strategic risk management plan is to minimise the impact
of an interruption of normal business operations on its employees and assets while maintaining
the continuity of mission-critical operations. The framework for business risk management is
used to develop a hotel’s risk and opportunity management strategy. This document demonstrates
Marriott’s business risk scale level, which is currently very high and almost certain likelihood.
On top of that, the risk policy and the risk registered are also mentioned in the report. The report
also indicates that Marriot has an 89 score in the business risk score category. To address the
current risk and issues, the author recommends Marriott develop complete customer service and
take steps to address the issues mentioned in the risk register regarding political, economic,
social, operational, environmental technology, and legal.

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TABLE OF CONTENTS
LIST OF TABLES/FIGURES.......................................................................................................1

EXECUTIVE SUMMARY............................................................................................................2

TABLE OF CONTENTS...............................................................................................................3

1. Introduction and Business Overview....................................................................................4

1.1. Purpose and objectives of the risk plan and its overall structure...............................4

1.2. Organisation introduction...............................................................................................4

2. Stakeholder analysis................................................................................................................4

2.1. Stakeholder discussion....................................................................................................4

2.2. Stakeholder list and diagram..........................................................................................5

3. Business philosophy overview................................................................................................6

3.1. Business name..................................................................................................................6

3.2. Business vision..................................................................................................................7

3.3. Business mission...............................................................................................................7

3.4. Business Organisational Chart.......................................................................................7

3.5. Business SWOT diagram..............................................................................................10

4. Top Ten Business Risk Registers.........................................................................................11

5. Business policy and procedure comments...........................................................................12

6. Risk Radar Diagram.............................................................................................................13

7. Report conclusion..................................................................................................................14

APPENDIX – RISK REGISTER (COMPLETED VERSIONS).............................................15

REFERENCES.............................................................................................................................16

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1. Introduction and Business Overview

1.1. Purpose and objectives of the risk plan and its overall structure
- Risk can be an event (such as force-majeure events, covid-19), or it can be a pre-
determined but not-yet-occurred condition (may or may not happen). If it happens, it can
positively or negatively impact one or more of the business’s goals. That is why implementing a
risk plan and managing it helps prevent many problems in the industry and makes it less likely or
reduces their impact on the company (Kit Sadgrove, 2011). At the same time, effective risk
planning enables us to increase its positive effects on the business. And when we eliminate
threats and increase chances, business expenditures can be reduced, reflecting the results of risk
management efforts.
- The overall structure of this report will go from defining the scope of the business to
stakeholder analysis, risks radar, risk identifying/ valuating, and finally, business policies and
procedures.
1.2. Organisation introduction
- For nearly three decades, Marriott hotels have been catering to travellers looking for the
opportunity to be fully present, enjoy the moment, and reconnect with what matters most.
- For the scale, Marriott is the world’s largest hotel chain in terms of available rooms. It
owns 30 brands and operates 7,642 properties in 131 countries and territories, totalling 1,423,044
rooms. Marriott administers 2,149 of the 7,642 buildings, while others work 5,493 under
franchise agreements (Marriott International, 2021).
- Through outstanding service and a commitment to restoring a deep sense of well-being,
each hotel delivers nurturing environments and experiences for guests.
2. Stakeholder analysis
Marriott International has diverse stakeholder groups as a worldwide travel firm with
managed and franchised hotel operations.
2.1. Stakeholder discussion
Being a global travel company and one of the best hotel chains in the world, Marriot has a
wide range of stakeholders, including shareholders, investors (the owners), franchisees such as
suppliers, associates, customers, community, non-governmental organisations (NGOs), and
government entities (Marriott International, 2015). Understanding each group or stakeholder
about the needs, their influences and key priorities will drive continuous improvement for the
hotel, especially on business strategy, products, and services (Marriott International, 2015).
Besides, engaging or collaborating with stakeholders with key influences will create an
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environment for the growth of the hotel and the travel industry in general. Marriott’s top three
stakeholders, especially took care of in their reports, which play a crucial role in driving this
business to success, are s, Customers, Owners and Franchisees and Associates. Customers have
footprints as they stay in franchised hotels, and their experiences evaluate the business’s success.
Marriott is a well-known franchiser in the hotel industry. Entering the franchise segment is a
profitable strategy decision (Franchise Direct, 2021). Marriott will need support and
collaborations from other associates to gain the milestones in the business’s success. For
example, they usually joined airlines and travel companies to discuss global travel issues and
trends (Marriott International, 2015).

2.2. Stakeholder list and diagram

A stakeholder analysis diagram depicts the connections between future modifications
from their influences and stakeholder benefits (Ahmed et al., 2009). These resources are utilised
to determine how the interests of those stakeholders should be taken into account in a risk
management plan.

Stakeholder Stakeholder Internal/ Interest Influence

# External
1 Customers External 8 9
2 Franchisees Internal 9 7
3 Partners/associates External 7 7
4 Ownners/shareholders Internal 7 7
5 Government – L/S/F External 6 7
6 Local communities External 5 6
7 Suppliers External 3 4
8 Media External 5 4
9 Employees Internal 3 3
10 Compliance Agencies External 2 2
Table 1 - Marriott Hotel Stakeholder Evaluate

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Figure 2 – Marriott Hotel Stakeholder Diagram

3. Business philosophy overview

Philosophy in business refers to the ideas and principles that guide an organisation in
reaching its goals. It encapsulates its core beliefs and serves as a solid foundation for the
company while it experiences highs and lows. In other words, it should be in line with the
company’s personality, mission, and vision. It emphasises the company’s decisions, actions, and
culture.
Their core values make them differently. As they change and grow, the essential beliefs
still stay the same—putting people first, pursuing excellence, embracing change, acting with
integrity, and serving our world.

3.1. Business name

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The hotel JW Marriott, named in honour of founder J. Willard Marriott, operated since
1957.
3.2. Business vision
The founders of Marriott International maintained the company’s success on a worldwide
scale for nearly a century by pursuing their vision.
Marriott’s vision statement is: “To be the World’s Favourite Travel Company.”
The hotel believed that the most excellent way to attain worldwide success in the service
business was to present a vision that was simple to accomplish and easy to follow throughout the
organisation. Together with the company’s work ethic and culture, this vision contributed to the
company’s success.
3.3. Business mission
Marriott’s mission statement is “To enhance the lives of our customers by creating and
enabling unsurpassed vacation and leisure experience.”
The Marriot International offers top-notch services and amenities throughout the property,
the preferred choice of royalty and celebrities alike. Marriott International goes above and
beyond to keep customers’ interests to ensure they get their money’s worth from their vacation.
They do this by providing that guests have a memorable and enjoyable stay.
3.4. Business Organisational Chart
The organisational business chart is shown below (The Official Board, 2021):
Figure 3.1 – Marriott Hotel Business Organisational Chart

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Board of
Directors

Sales and Hotel room Human

Finance Culinary Technical
Marketing management resources
department Department department
department department department

Figure 3.2 – Marriott Hotel Senior Management Chart

3.5. Business SWOT diagram
Marriott’s SWOT analysis examines the internal and external issues affecting the world’s
largest chain of hotels and resorts.
Table 4 – Marriott SWOT analysis

Strengths Weakness

• Global presence: Marriott became • Dissatisfied employees: The success of

the world’s largest hotel chain after
acquiring Starwood Hotels & Resorts
Worldwide in 2016. Under the Marriott
name, it manages 30 hotel brands and owns
a slew of well-known brands.
• Loyal customers: With more than
110 million members, Marriott
International’s loyalty programs lead the
hospitality industry.
• Advanced technology and strict
regulations: The success of Marriott can
largely be attributed to its effective use of
any firm is dependent on adhering to
professional standards and regulations. As a
result of Marriott’s rigid rules, its employees
are suffering. Because of this, their output,
productivity, and work happiness are all
suffering.
• Negative image in publicity: Instead of
helping those in need, Marriott sent out a
cruise ship/yacht that only rescued some of its
guests, leaving the rest behind. Because of the
incident, the brand received a lot of bad
publicity. Even though the corporation

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cutting-edge technologies. Customers can employed half of the cruise ship crew, they did
use the brand’s services without having to not save everyone.
worry about spending money. Besides that,
the brand ensures that its staff adhere to
company policies and provide the highest
level of customer service.

Opportunities Threats

• Market revolution: Approaching the • Travel industry and economic

food industry should be put into recession: Global lockdowns had a significant
consideration by Marriott. For a long time, negative impact on Marriott in 2020 (Marriott
the restaurants in this famous hotel chain International, 2021). During the year, it
have been their associates/ partners. reported a $267 million loss (Sebastian, 2021).
Marriott will have an excellent opportunity The hotel is worried because demand hasn’t
to plant its seeds in those fields. picked up yet if the disease is not over.

• Increase the global travel after • Competitors: The increase in the

pandemic: While times may be challenging, market share and profitability in the hospitality
demand for hotel rooms is constantly industry brings a lower percentage of income
changing. China’s resiliency was to the hotel. Strong competitors such as Hilton,
impressive (Sebastian, 2021). With Novotel, Accor, Hyatt, and other leading hotel
Marriott’s existing properties and strategic chains offer the same luxury to a broader range
partnerships with other hotel and airline of customers with a lower price after the
chains, it can tailor travel desires for its pandemic. As a result, Marriott must
customers and get the industry back on constantly upgrade to remain competitive.
track.

4. Top Ten Business Risk Registers

Since they operate globally, their activities are impacted by changes in geopolitical and
social conditions, economies (including trade, travel, immigration, healthcare, and related issues),
and government policies.

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Table 5 – Marriott top ten risks registered

The top ten risks registered included: Data protection failure; Terrorism; Unemployment
level; Consumer preference changes rapidly; Human resources development; Employment social
risks; Recovery strategies for the business after Covid-19; Long hold times; Environmental
regulatory compliance such as sustainable development plan and implementation; Political
climate in popular tourist destinations.

5. Business policy and procedure comments

While policies and procedures complement one another, they are not interchangeable. A
policy is a set of broad guidelines that describe how an organisation intends to address a
particular issue. Policies establish a link between an organisation’s vision and values and its daily
operations. A procedure details the steps necessary to carry out a policy. Procedures dictate how
and when employees should respond to a situation.
By combining policies and procedures, employers can provide employees or their
partners/associates/customers or other stakeholders with a comprehensive view of their

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workplace. They understand the organisation’s desired culture, the expected behaviours, and how
to achieve both.

It will be crucial to support the tourism industry and Marriott business as it moves through
the stages of recovery to take into account and implement various policies. International
coordination of border openings, the definition of common standards, and support for workers
will be critical in the early stages and significant expansion of testing availability. As the industry
adjusts to the new normal, the hotel should think about policies that encourage travel, make
coordination more manageable, and help workers upskill while rethinking the workplace, among
other things. Governments can strengthen environmental protections, engage more closely with
local communities, and create and implement a new workforce vision in tandem with the private
sector as the sector improves its resilience through growth. When it comes to economic recovery,
better coordination among government agencies and between the public and private sectors will
be the crucial ones.

6. Risk Radar Diagram

#Rank Risk R

1 Products and services

2 Location

3 Competitive Landscape

4 Business Culture Environment

5 Financial Performance

6 Social Media Present

7 Environmental Footprint

8 R&D

9 Training

10 Governance

Total Risk Score

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Table 6.1 – Marriott Hotel Risk Radar Table

Figure 6.2 – Marriott Hotel Risk Radar Diagram, total score 89%

7. Report conclusion
In conclusion, Marriott Hotel is a successful enterprise with a strong sense of culture and
philosophy. When it comes to events that have had a lasting impact on Marriott’s business,
COVID-19 has surpassed both the aftermath of September 11th and the financial crisis of 2009. It
will profoundly affect its operations, resulting in a complete reversal of the situation before 2020.
The impact on Marriott’s business will be felt for some time as COVID-19 spreads across
different regions. Besides the risk from force majeure like Covid-19, the risks from other legal,
economic and technological factors need to concern as well. Implementing a risk plan will help
this business improve and enhance the situation, adjust the currently high-risk score and
problematic issues.

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APPENDIX – RISK REGISTER (COMPLETED VERSIONS)

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