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STRATEGIG MANAGEMENT

ASSIGNMENT

INTERNAL FACTORS ANALYSIS SUMMARY

BY:
AAKANSHYA CHHETRI
DEEPIKA GAUTAM
PRITHVIRAJ SINGH BOGATI
SAMRINA KARKI
UPASANA AMATYA

BBA-A
INTRODUCTION
Marriott Hotel started as an A&W root beer stand by the Founder J. Willard Marriott and his
wife, Alice in 1927. The business grew as a hotel in 1957 in Arlington, Virginia, under the
management of J. Willard Marriott’s son, Bill. Over the next 25 years, Marriott became a diverse
global enterprise. One company, many brands-that's the innovative model that Marriott began
building in the late 1980s. From pioneering the extended-stay business to launching distinctive
brands geared toward the business traveler to increasing its presence overseas, Marriott
International broke new ground in its quest to become the #1 hospitality company in the world.

Marriott in Kathmandu was first introduced in 2017 from the elevated comfort of Fairfield by
Marriott Kathmandu. The hotel is owned by MS Group, which has invested over Rs 1 billion in
the property. The owners of the hotel have signed a 30-year management contract with Marriott.
Fairfield by Marriott is also the first international hotel chain to come to Nepal in a decade. The
hotel has 115 rooms (71 deluxe king bedrooms and 43 deluxe bedrooms). It is a 3-star hotel lying
in the heart of Kathmandu with easy to tour noteworthy attractions such as the Pashupatinath Temple,
Boudha Stupa, Swayambhunath Stupa and Garden of Dreams, all near the hotel.

In 2019, Marriott opened another one of their hotels in Naxal, Kathmandu. The hotel is the first
five-star deluxe hotel in Nepal. It spreads over 13 ropanis and has a vertical multi-storey parking
of up to 10-storeys. It is a 214-room contemporary hotel in the capital city of Kathmandu, Nepal.
Set in the vibrant city center near shopping, dining and attractions the hotel offers modern
design, 5-star service and deluxe amenities. Settle into spacious, well-appointed rooms and suites
with complimentary Wi-Fi - many with views of the Himalayan Mountain range. Travellers can
take in the historic and cultural treasures within walking distance from the hotel, including the
nearby former royal residence Narayanhiti Palace Museum; visit the cafes, galleries and shops
along Durbarmarg Street; or escape to the scenic Garden of Dreams, a tranquil green spot in the
buzzing capital. Meanwhile, Tribhuvan International Airport is a short 20-minute drive away.

The company also has plans for the construction of another hotel in Janakpur, Butwal or
Pokhara.

Marriott attracts customers who are loyal to the brand as well as a full-fledged view from the
heart of the city and provides all the basic and other fun amenities. Marriott is also one of the few
flagships brands in Nepal and also a high 3 and 5 star rated hotel. Travelers and foreigners who
are already well known with the brand can also be easily attracted.

S.N STRENGTH WEIGHTAGE (%) RATING WEIGHTED REMAR


SCORE
1. Loyal Customers 10% 4 0.4 One of the
strength of Marr
loyal customers
matter the cou
choose the s
Marriott over
hotel due to the
the organizati
company also
various loyalty
to facilitate its
Marriott has
successful in gar
of the best loyal

2. Rules and 11% 5 0.55 Marriott doesn’


Regulations business light
company makes
provides the
professional serv
customers.
provides good
cleanliness, w
staff, and qualit
All of these thin
regulations of
The company m
that the employ
its regulations a
the optimum q
service.
3. Global Brand 15% 2 0.3 Marriott is ope
hotel and resort b
more than 131
across the wo
worldwide prese
the hotel brand t
its asset and mi
potential risk
company can m
revenue balance
working in one c
4. Highly Innovative 8% 8 0.8 Marriott delivers
exploiting innov
technology e
From Villas an
venture to
experience,
operations are a
of Marriott’s suc
5. Personalized 11% 5 0.55 Marriott is evol
customer service service to be in
personalised by
more informat
strategy. The
expect that i
with the hotel w
convenient and
the
Contextualised i
in which
immediately kn
understood cr
unique
experience and
customer experie
S.N WEAKNESS WEIGHTAGE (%) RATING WEIGHTED REMARKS
SCORE

1 Ineffective Data 11% 4 0.44 Consumers distrust and


Protection avoid companies that fail
to protect their data. In
2018, the guest
reservation database of
Marriott’s Starwood was
hacked and personal
information of up to 50
million users was
exposed, including
names, addresses, phone
numbers, passport
numbers, and so on.

2. Strictness 10% 4 0.4 Etiquettes and strictness


are necessary for success,
but breathing down the
employees can destroy
the company’s
productivity and
efficiency. Marriott’s
regulations are so strict
that they’re suffocating
its employees. As a
result, their performance,
productivity, and job
satisfaction level are
declining.
3. Weak management 8% 5 0.4 Global expansion may
lead to brand dissolution
as expansion creates
weak management
systems throughout the
operation. Due to the
huge extended business
the company is becoming
weak in their
management system.

4. Poor positioning 8% 3 0.24 Marriott is marketed and


structured as a family-
focused business from
market position to
management. The future
of the hospitality industry
lies in young single
millennial, which makes
Marriott’s family-focused
positioning a major
weakness.
5. Luxury Brands 8% 3 0.24 Mid-scale and upscale
hotel brands leave
Marriott International
vulnerable to any
potential global economic
downturns, particularly
given that economy travel
accommodation is
gaining increased
penetration in major
destination markets.

TOTA 100% 4.32


L
CONCLUSION:
According to the IFAS conducted for the Marriott we identified an overall rating of 4.32 which
falls in between the Good and Very Good attributes based on the strength and weakness
influential on the overall business performance for the company. The individual element of the
strength and are rated using a five-point scale with 1 being poor and 5 being excellent.

The successful understanding of the strength and weakness of Marriot helps to understand the
financial ability, operational capability and human resource capability, so that the company is
able to improve efficiency, product quality, service quality, collaboration and communication as
a form of competitive advantage and company performance. Furthermore the factors stated in the
IFAS table should be properly analyzed and strategized with the threats and opportunities from
the EFAS tables to create a tactical implementation of to avoid drawbacks from such threats and
weakness and successfully capture the opportunities and strength.

In conclusion, based on the analysis done, the overall final internal factor analysis summary
(IFAS) found to be 4.32 which lies in between Very Good and Excellent. So, we could say that
the company could benefit by capitalizing the strength and minimizing the weakness through
strategic management approaches/ techniques.

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