RISK IDENTIFICATION CASE STUDY

Marriot International, Inc.

 Products/
Services

Worldwide operator, franchisor, and

licensor of hotels, residentials, and

timeshare properties
 Marriott
Distribution Channels

• Direct Sale (Website, Reservation line, App)

• Online Travel Agents (OTAs)

• Global Distribution Systems (GDS)

 • Target at all types of visitors from upper-class to middle-class

Target Markets • Two Categories of 30 hotel brands

• Four tiers of hotels
 •Accessibility
•Customization
Value Proposition •Cost reduction
•Innovation of lifestyle branding
   Category Sub-category Specific Risk Definition
Financial Market Exchange rate risk Fluctuations in currency exchange rates will have a negative effect on
1 financial results.

Financial Economic The global economic Easily affected by the global economic environment.
2 environment risk

Top 10 Key 3
Strategic

 
Strategic
Relationships
Unexpected actions by
franchisees and licensees
Actions that are inconsistent with brand standards such as projecting a
different brand image.

Risks Strategic Strategy The third-party distribution An increase in the use of third-party Internet services such as
4 channels take over market Expedia.com to make online reservations could adversely impact the
    share from Marriott business.

Strategic International The changes in the business International business environment changes such as foreign ownership
5 environment outside the U.S. restrictions, import and export controls, trade restrictions, policy
    changes, government instability, and terrorism

Strategic Legislative/ Changes in privacy and data Changes in privacy and data security laws could increase company’s
6 security laws operating costs, exposure to fines and litigation
Regulatory
 Category Sub-category Specific Risk Definition
Operational Human Labor strikes risk If relationships with organized associates or unions become adverse, the
7 Resources properties operate could experience labor disruptions such as strikes.

Top 10 Key 8
Operational Disasters Unexpected natural Risks relating to natural or man-made disasters, contagious disease,
or man-made terrorist activity, and war could reduce the demand for lodging, which may

Risks (Cont.     disasters adversely affect our revenues.

…) Operational Litigation  Class action Failure to resolve the disagreements with customers may cause litigation
9 lawsuits against the against the company. If any such litigation results in an adverse judgment,
company settlement, or court order, Marriott could suffer significant losses on
profits, and the future ability to operate the business could be constrained.

Operational Technology Technology failure The technology and system failures could impact Marriott's daily operation
10 that results in bad or competitive position, such as customers couldn't book a reservation
    user experience through Marriott.com or Mobile app, missing elite night and reward points
after the stay.
Thank You!