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Marriott International Management

Student’s Name

Institutional Affiliation

Professor’s Name

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Date
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Abstract

Marriott Hotels, Suites, and Resorts are known globally for their superiority in the

hospitality industry. The company was started in 1927 by J. Willard and Alice S. Marriott. The

company, the contemporary, operates more than four thousand lodging properties across the

United States and more than seventy in other countries worldwide. This paper aims to deliberate

on the management of the company as one of the major contributors to the company's success.

The management topics that have been chosen in this paper include Organizational structure and

design, strategy, leadership, and human resource. Other researchers used the methods used to

collect the information, including journals, annual organizational reports, and scholarly

materials.

Keywords: Organizational structure and design, strategy, leadership, and human resource
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Marriott International Management

Introduction

Marriott International is a company that operates hotels ranging from budget level to a

luxurious segment. The company is known for its wide range of brands. The company today

owns more than 20 brands running more than 4000 hotels (Wei, 2018). After acquiring

Starwood Hotels & Resorts Worldwide, Marriot became the largest hotel chain in the World. The

success of Marriot has been achieved through the great management that the company has been

having from when it was founded in 1927 by J. Willard Marriott.

Organizational Structure & Design

Concept background

The foundation of any building determines the structure. The strength of a building is

defined by a basic design and a strong foundation. Foundation is the most important thing in a

system, as the weak base will make the structure unstable (Copin, 2017). From the viewpoint of

an organization, the foundation is the organizational structure. The organizational structure

plays different roles, such as the terms of the organization and the hierarchy levels, and the

conditions. Therefore the organizational structure is the particular system of an organization that

defines the different levels and positions based on the responsibilities, roles, and supervision in

these positions.

The system is concerned with employees' places regarding their roles, the description of

their jobs, the authorities mandated with making decisions, and allocating different tasks (Copin,

2017). Organizational structure is of two different types, including a centralized structure and a

decentralized organization structure. In centralized management, the decisions that govern the

organization's operation and the conduction of all the processes in the organization are defined
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by top management. The success of the ultimate management decisions depends on the

responsibility of the managers and the employees. They have the duty of following the

implemented decisions. The employees in the common space of the hierarchy have minimal

contribution in decision-making (Copin, 2017). In a decentralized structure, the decision-making

process involves the employees at the low levels as the top management delegates the decision-

making to the supervisors in the middle and lower classes.

Formal Structure of Marriott International

The structure of Marriott International is one of the contributors to the incremental

innovation and success of the company. The structure of Marriott International is the main

supporter of organizational innovation (Li & Signal, 2018). Marriott International has a

centralized organizational structure or a hierarchical organizational structure marked by a weak

functional matrix. The organization has maintained the culture of the organizational structure,

although there are slight changes of the structure as the leadership changes. The managers in

each department pass orders to the subordinates. The general manager gives orders to the

managers at department levels.

The centralized structure of Marriot international encourages strong control of the

management within the organization. The company's current CEO is Anthony Capuano, who

seems empowered by the hierarchy and controls everything. The product-based groups and the

business operations are handled through the decisions made by the CEO and the top executive of

the company (Li & Signal, 2018). Having a centralized structure is n advantage of Marriot

international as it leads to effective implementation of strategic management and enhances the

coherence across the organization's various departments.

Departmentalization
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Marriot international implements a territorial departmentalization. Departmentalization

is how an organization opts to group the products in terms of the product line. The

departmentalization by territories adopted by Marriot international ensures the responsibilities

are placed at a lower level (Carring & Snell, 2020). Departmentalization also focuses on the local

markets and the problems that face the company.

Intra organizational/inter-organizational processes are used.

For several years, Marriot international has been characterized by an organic

organization. The company inherited these processes from its centralization and other aspects

such as standardization that the company relies on—the term mechanistic and organic outline

both the organizational and the cultural structure of Marriott international. The organic structure

has been utilized where the employees' ideas are respected, and the employees are free to use

their ideas in the innovations within the organization. Creativity is highly encouraged in the

company, and it is characterized by developing the company's important products.

Strategy

Concept background

A company's strategy is whatever the company intends to do to achieve the

organizational goals and objectives. The company's strategy refers more to the company's long-

term goals than the long-term goals. Strategy means how the company will change its ways of

doing things to realize its mission (Braun et al., 2019). Therefore, the strategic plan is all the

company's plans that will help it achieve its goals. Developing the strategy for a company

requires the company to evaluate how it is currently and the goals that it wants to accomplish in

the future or where it wants to be in the future. After assessing the gap between where the
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company is and where it wants to be, its management then comes up with a plan to help close the

gap between its current position and its goals.

The most crucial part of an organizational strategy is the execution of the strategy.

Several studies have shown that most companies' strategies are unsuccessful (Braun et al., 2019).

The strategies fail to be successful not because they are not good, but the problem is the

execution of the strategy. The middle managers of the organization mandate the planning of the

strategy. However, the implementation of the strategy takes the responsibilities of all the

shareholders of the organization.

Marriot international porter analysis

Porter's analysis is an analysis that is dome by evaluating five basic aspects of a business

that defines the company's position. The five aspects include the rivalries of the business, the

threat of new entries into the market, the power of the suppliers, the customers, and the

substitutes. Marriot’s strategy that has been instrumental in the company's performance is partly

dependent on these five forces within the company's external environment (Spechler, 2017).

These forces can impact the company's performance by affecting the company's market share,

reducing the company's profit margin, and affecting the company's general performance.

Considering the five forces, Marriot's most strong forces that can affect its operations are

the buyers' bargaining power and the competitive rivalry. Analyzing the external forces enables

the company to focus on incremental innovation of the company.

I. Rivalries

Marriot international runs in a very competitive environment. The lodging industry is

growing to be highly competitive. One of the most strong forces that the company faces is

competition rivalry or simply competition from other bigger firms. This component of the
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analysis determines the influence that the firms in the same industry have. In Marriot's case, the

rivalry aspect is influenced by various factors such as the aggressiveness of the firms, low

differentiation of the products, and the low switching costs (Spechler, 2017). The strong force

impacts the company's development and its environment as it focuses on factors such as

aggressiveness in the advertisements. The competition is marked by other factors such as the

imitation of the products that the companies are producing and the rapid innovation coming with

the enhancements in the technology. The competitors in the industry also have a problem with

product differentiation as most of the products, such as apps, have similar features.

II. Bargaining power of Marriot’s customers

This is another strong force that affects the operations of Marriot operations. Buyers are

among the often demanding lot. The buyers always need the best offers that Marriott has at a

minimum price. This is one of the five Porter's forces that are very strong in affecting the

organization's environment. The component is concerned with how the customers make

decisions and the difference in taste and preferences (Spechler, 2017). The components also deal

with the perception of the customers towards the products of the company. Bargaining power is

one of the major forces that affect the operations of the business. The bargaining power of the

buyers is based on external factors such as the low switching costs, the small size of the

individual buyers, and the high buyer information. In businesses run by Marriot and its rivalries,

it is easy for them to change their brands. Therefore, the customers are very powerful in

compelling the companies to ensure customer satisfaction (San et al., 2019). However, individual

buyers' contribution is small compared to the total revenues that the company gets, which the

customer weak at the respective levels according to Porter's five forces framework. Marriot has
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built a large base of customers, which has helped the company streamline its production process

and reduce the bargaining power of the customers.

III. Bargaining power of Marriott’s Suppliers

This component of Porter's five forces is one of the weakest forces that affect the organization's

performance. The model shows the influence of the suppliers in imposing their demands on the

organization and its competitors. In the case of Marriot international, the suppliers have weak

bargaining power due to the various factors such as the numbers of the suppliers in the industry

ranging from moderate to high, there is also high overall supplies in the industry, and lastly, the

ratio of the firms to the suppliers in the industry is also increased which suggest that there are

many suppliers in the market that the firms that are available therefore making this one of the

weakest forces that affect the operation of the Marriot international (Spechler, 2017).

One of the factors that make the bargaining power of the suppliers a weaker force

affecting Marriot is the size of the organization's supply chain around the globe that makes it

easy for the company to have a large number of suppliers. Based on Porter's five force

frameworks, this is one of the weakest forces that impact the operations of t the organization as it

presents moderate to weak force from external.

IV. Threat of substitutes

This component of Porter's five forces determines the effect of the sub situates in

attracting the customers. In Marriott’s case, the piece is a weak force due to the various external

factors such as moderate to high substitutes, the low performance of the substitutes, and the low

buyer’s propensity to substitute (Spechler, 2017). Marriott international reduces the threats of

substitutes by ensuring the company is more service-oriented instead of being product-oriented

only. The company uses the tactic of understanding the customer's need instead of concentrating
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on what the customer is buying. Marriott has also increased the switching costs for the

customers.

V. The threat of New Entries

This component of Porter's five forces has a low impact on the company's performance

as the company experiences a moderate force from the entry of new firms in the industry. Some

of the factors that contribute to the low force from the entrance of new firms in Marriott

international include the high capital required to enter the industry, the high cost of developing

the brand, and the capacity of the new entrants into the industry.

There is a low entry of the firms in the industry since establishing a firm that will

compete with companies such as Marriott international requires high capital (Spechler, 2017).

Therefore, based on Porter's five forces framework, the new entries in the industry are not a huge

threat to the company. Marriott encourages innovation and therefore continues to innovate new

products and services that bring new customers to the company and serve as a customer retention

tactic.

The Vision and the mission of Marriott international

Following the Vision of the company's founders, Marriott international has been

experiencing continuous success for over a century. Marriott international vision statement reads,

"To be the world's favorite Travel Company." (Spechler, 2017). The company has experienced

success on the global stage for many years due to all the stakeholders in the company realizing

the company's Vision. The organization's founders ensured they put forth a simple vision

statement that would be easy to implement and easy for the company to follow all through. The

simple Vision of the company outlines the clear goal of Marriott International, which is to leave

a legacy marked by excellence across the global service industry. Marriott international aims at
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being the best travel company around the globe. The Vision that the founders set in conjunction

with the culture of the organization and work ethic have been instrumental in achieving the

success that the organization enjoys.

The mission of Marriott international states that “To enhance the lives of our customers

by creating and enabling unsurpassed vacation and leisure experience.” (Spechler, 2017). The

success of all the companies that provide services is marked by providing services that satisfy the

customers fully and leave them with no other option apart from choosing that company's brand.

Marriott international can only establish itself as a profitable organization in the long run if only

it can provide the customers with premium services. Marriott international ensures it has

increased customer retention by going the extra mile of providing its customers with an

experience vacation worth their money. The company ensures that it has created a hotel

experience that is signified by enjoyment and comfort.

Stakeholders

The most important stakeholders of Marriot international are the consumers. The

company aims to keep the needs of its consumers satisfied, and the consumers constantly keep

looking at what the company has up its sleeve.

The company has internal stakeholders who include employees and the owner. An

autonomous owner manages Marriot. The management by the owner is based on the strategy of

franchise expansion adopted by the company that makes the merger process concerned with any

transformations that can boost the company's performance (Nyangwe & Buhalis, 2018).

Employees are in second place among the most important stakeholders of the company. The

company, therefore, strives to increase employee retention through the provision of career

development and other benefits such as the competitive along with other opportunities.
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Other important stakeholders of the company are the external stakeholders. External

stakeholders include investors, banks, government, travel agents, competitors, the community,

and the media. Investors are important shareholders for any corporation. Investors are important

in investing in high-profit margins and ensuring there is the company's financial security.

Marriott is one of the best companies in the World and therefore stands to attract investors

(Nyangwe & Buhalis, 2018). It is very appealing for any investor to invest in a company labeled

one of the most lucrative companies in the World. Another section of indispensable shareholders

is the employees of Marriot’s distributors and suppliers. These are the indirect shareholders of

the company, and they are treated as the employees of the company, and they, therefore, receive

endless benefits, including competitive wages. The company ensures the employees and all the

stakeholders in the company are taken care of. The company has a code of ethics that provides its

shareholders down the supply chain have been taken care of.

Marriot’s industry strategy

The strategy that makes the company stand out over all other competitors in the industry

is differentiation in different aspects. The company strives to develop a new product marked by

high quality and travel services that will always stand out in the customers' faces. The advanced

technology through which the company's services are based ensures the customers are satisfied.

The company's strategy has also played a part in the expansion of the market.

Leadership

Concept background

There is a wide range of definitions for the term leadership, as many individuals have

attempted to define the term. Most of the definitions rotate about the assumptions whereby there

is intention influence exerted on people to structure and facilitate and guide relationships and
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activities within an organization or in a group. In today's World, there is the importance of

having a leader in the organization that understands the World and can handle its complexity.

The leaders in an organization should always improve on the quality of leadership and the

knowledge related to leadership and applies it to the fields they are performing. An

organization's effectiveness is measured by the organization balancing the community's

demands, owners, employees, and customers. The leadership of an organization is crucial in

ensuring the balance, and therefore the leadership is the most important part in steering the

organization toward effectiveness and success. The main role of the leadership in the

organization is to influence the employees and the shareholders of the organization to direct their

efforts towards achieving the organizational goals. The leadership of an organization is effective

when the leader has clearly stated objectives and the organization have the needed resources to

accomplish the goals.

Marriott’s leadership

The company is a franchising organization that operates in several countries around the

World, an aspect that influences the leadership style within Marriot international. The leaders at

the top of management exercise transformational leadership (Setiawan et al., 2020). The

leadership of the company started with Mr. Marriott. The founders exercised transformational

leadership, and he is best known for that. Another well-known leader is Arne M. Sorenson, the

international president of the organization and the chief executive officer (Spechler, 2017).

Marriott’s managers motivating workers

Marriott's management aims to have a working environment that encourages the

employees to be more creative and productive in the workplace. The managers at the

organization use two types of motivation on their employees where the employees can be
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motivated intrinsically or extrinsically. Extrinsic and intrinsic motivation ensures the workers

have been empowered, which increases their output in the organization. During the pandemic,

the CEO Sorenson forfeited his yearly salary too cut the financial burdens of the employees.

Other executive pledged to reduce their pay by half for the same purpose.

Another motivation that the employees at Marriott international receive in incentives is

the discounts on the products they receive from the company. Employees sporadically receive

free expeditions and vacations. The managers see giving the employees products as motivation

factors instead of money as the best motivation (Setiawan et al., 2020). The employees are happy

to see the final products of their efforts, which will lead to more innovation. Marriott

International also uses extrinsic motivation for its employees. The extrinsic motivation example

of Marriott international stems from the culture of the organization. The employees are

committed to the work they do in the organization, and therefore, they enjoy the monotonous

encoding.

Leadership and motivation theories

One of the theories evident in Marriott's management is transformational leadership

founded in the organization by Mr. Marriott. It is a leadership theory that is proactive (Setiawan

et al., 2020). The leaders in the organization ensure there are new ideas that are being

incorporated and implemented. Employers are encouraged to work in teamwork where they are

free to share their interests. Transformational leadership in the organization encourages

innovation as employees come together and combine ideas. The motivation of the employees

also characterizes transformational leadership.

Marriott uses Maslow's hierarchy of needs to motivate the employees. The company has

ensured that it has set an average salary for their employee, which is very high compared to other
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organizations. The average wage is capable of ensuring the survival of the employees. On top of

the employees' bonuses, the company also provides a significant deal of positive feedback.

Marriott’s Human Resources

Concept background

Human resources in an organization refer to all the decisions made within the company

related to the people. The human resource department in the organization focuses on making all

the human resources within the organization. It also ensures that the performance of the

employees is enhanced to provide the organizational goals have been achieved. HRM in the

organization ensures the seamless application of the policies set in the organization and

operations that lead to the business's success (Sun et al., 2019). HRM department ensures there

is optimum use of human resources in the organization. The department ensures that the

optimum use of the human resources available is achieved by providing compatibility between

the employee's goals and the organizational goals.

Marriott’s human resource department

The hospitality industry is marked by the need for intensive labor. Therefore, for a

business to be successful in this industry should have efficient human resource management.

Marriott has a great human resource department marked by a huge success and uses exclusive

techniques that remain concealed within the organization (Spechler, 2017). The HR

representatives have been equipped with skills that they incorporate in recruiting new workers.

The representatives take a considerable amount of time recruiting new workers who are

specifically superior employees who are absorbed from the other major competitors of Marriot

international. Recruiting employees from its competitors encourages immense innovation in the
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company. The opportunities in the company are displayed to the public on the company's

website, which promotes competitive entry.

The organization provides training in different styles compared to its competitors.

Marriot has the human resource principle "the spirit to serve," which it instills in its human

resource team (Spechler, 2017). The human resource in the organization is well-managed, and it

aims at building a orchestrate team. The team understands that the service by the human resource

is the most crucial in the hospitality industry. The human resource is responsible for the

recruitment, training, and dismissal of employees.

Regarding performance appraisal, the process occurs in the organization where the

potential occupants of specific positions are engaged in an interview and the skills of different

candidates evaluated to decide on the best fit. However, the candidates are involved in practical

exams before engaging in face-to-face interviews (Spechler, 2017). After selecting the

employees for the specific position, the prospects then describe the job they are about to partake

in and the benefits associated with the position.

My perspective

I would be interested in joining the company. Based on the above aspects of the

company it is unquestionably the best company in the World. The company has one of the best

management. The leadership theories involved are among the best styles that ensure a great

relationship between the employers and the employees. I believe working in the company could

help the company's success and my career development. One of the best aspects of the company

is the human resource. The human resource of the company is marked by its determination to

improve the employees. The employees are also motivated, which ensures there is optimum
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delivery by the employees. The fact that the employees in the organization receive recognition

and benefits due to their hard work is adorable. The aspect of the company that was not very

appealing is that the company's hiring process takes longer, and it is also complicated with high

demands.

Conclusion

The great leaders in the company have contributed to the success of Marriott

international. The company is among the best-performing companies in the hospitality industry.

A hierarchical administration marks the structure of the company. The centralized structure of

the company ensures the decisions made in the company by the company with the contribution

of the rest of the employees have been incorporated in the operations of the company, ensuring

there is seamless running of processes. The management of the organization is organized with

distinct departments managed by different managers. The managers in these departments pass

orders to the subordinates, and the general manager gives the managers at department levels

orders.

Most of the companies in the hospitality industry are highly affected by external forces such as

competition, buyers' and suppliers' bargaining power, substitutes, and threats from new entries.

The Porter five forces framework results indicate that Marriot faces pressure from some of the

external forces, with the most strong force being the competitors. However, due to the proper

management in the organization, the company has been able to develop new ways of handling

the threat.

The company has maintained a culture of transformational leadership from the founder Marriott.

The leaders in the organization ensure there is a proper relationship between the management

and the employees, which ensures the company's high performance.

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The expertise and the quality of Marriot's human resources management have been attributed to

the success that the company has experienced. The department ensures there are adequate

employees and ensures there is effective management of human capital within the organization.

The overall management of Marriott international has played a major role in the success of the

company in the hospitality industry.

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