Report: Business Organisation and Environments in a global context
The biggest and successful companies, usually consider expanding internationally. The reason of such expansion is gaining more profits , and that in its turn the growth of the business. By entering new marjets minimize any financial risks that can occur as a result of their dependency on a single domestic market, and they expand globally to improve their marketing competitive with major competitors in foreign markets. ( Hitt el al.,2009).
Marriott International recordered very successful results in Europe and outside , like USA for years, the purpose behind writing this report is collecting the needed data and informations that can convince the company owners to expand its activities in France. To make the process of entering the new marjet and the investment opportunities in France will be examinated by using the appropriate analytical approaches and marketing strategies. (Dlabay et al.2012).
Background information on Marriott International
Marriott International is an American multinational diversified hospitality company that manages and franchises a broad portfolio of hotels and related lodging facilities. Founded by J.Willard Marriott, the company is now led by his son, Executive Chairman Bill Marriott, and President and Chief Executive Officer Arne Sornesons.
Headquartered in Bethesda,Maryland, in the Washington D.C metropolitan area , Marriott International is the largest hotel chain in the world. It has more than 6,500 properties in 127 countries and territories around the world, over 1.2 million rooms (as of September 2017), and an additional 195,000 rooms in the development pipeline. In 2017, Marriott was ranked #33 on Fortune's "100 Best Companies to Work For" list, its twentieth appearance on the list.
In line with its brilliant success, most of the rooms and the branches of Marriott International Hotels are in good and more locations in comparison with other hotels. Marriott Hotels bedrooms have free view TV, ensuite bathroom, internet access and Wi-Fi free service, great locations to choose from and some of them great breakfast you can enjoy with.
Power of brands
The opening of the London Marriott Kensington in July 2003 represented the culmination of a three-year programme to convert 25 former Swallow hotels to the Marriott brand. The redevelopment of the 216-bedroom property on Kensington's Cromwell Road, with its impressive eight-storey glass atrium, was the most ambitious of all the conversions. The return on Whitbread's investment comes from the higher room rates and improved occupancies that the hotel is now capable of achieving. (Whitbread-summary.2003).
Strength of management
Focus on operational excellence Since Whitbread acquired the Marriott franchise in 1995 it has moved the brand from cameo status to the second largest fourstar hotel business in the UK, with almost 10,000 bedrooms. Marriott's emergence in this sector is no longer driven exclusively by major capital investment, as we seek more imaginative routes to market.
In February 2004 the business secured agreement to operate Manchester's Victoria & Albert Hotel under the Marriott brand from the hotel's owners, Royal Bank of Scotland. It is part of an approach that focuses on operational excellence and brand management to drive improving returns from our shareholders' capital.
Insight on leisure
Consistent excellence in customer service is the key to brand preference in four-star hotels. Marriott's ‘Spirit to Serve' programme focuses every associate on a common goal – exceeding guest expectations. Over the last year it has helped the brand to set new benchmarks for guest satisfaction
Page 16 Whitbread PLC Summary report 2003/4
The key of success
Marriott International, Inc. (NASDAQ: MAR) announced that 2017 represented its most successful year for signing development contracts outside North America, fueled by record signings in Asia and Europe.
Globally, at year end 2017, the company operated or franchised more than 6,500 hotels and over 1.25 million rooms, with a third of the rooms located outside North America. Marriott International and its franchisees opened more than 470 hotels with over 76,000 rooms around the world during the year, amplifying the company's brand recognition among guests, owners and franchisees.
Outside of North America, Marriott opened over 140 hotels and approximately 30,000 rooms in 2017. In the Asia Pacific market alone, the company opened 18,000 rooms and signed 31,000 rooms in 2017. Today, the Asia Pacific market represents 15 percent of our global rooms but nearly a third of the company's pipe-line. Greater China alone represents 8 percent of the company's global rooms and 19 percent of the year-end pipeline. In Europe, Marriott opened 5,800 rooms and signed 12,000 rooms in 2017. Hotels in Europe represent 9 percent of Marriott's global room distribution.
In North America, there were 329 hotel openings in 2017 and 482 contracts signed. Interest also grew in the Caribbean and Latin American region with 19 hotel open-ings with a record 37 signed deals in 2017. In the Middle East and Africa region, Marriott opened 12 hotels and ended the year with 30 signed contracts.
In 2017, Marriott seized on the growing demand for select service hotels worldwide, signing a record 578 contracts for its 11 brands such as Courtyard, Moxy, and AC. Outside of North America, select service signings totaled 158 contracts with particu-lar strength in the Asia Pacific region. In North America alone, the company opened 270 select service hotels and signed 420 select service agreements.
Number of Marriott International Hotels worlwide from 2009-2017
Marriott International will open 40 Luxury Hotels in 2018
Marriott International it plans to open 40 luxury hotels in 2018, a figure that will give it 422 luxury proprieties by the end of the year with some 200 more in the pipeline. The openings will include all of its luxury flags: The Ritz-Carlton, Ritz-Carlton Reserve, St. Regis, W Hotels, The Luxury Collection , EDITION , Bulgari and JW Marriott.
Despite Marriott's big expansion , it is an industry dominated by the likes of independently owned and operated single proprieties and small groups like those represented by The Leading Hotels of the World, Preferred Hotels and Resorts, Small Luxury Hotels and Relais& Chateaux that together have over 1500 member proprieties.
Background Information on the Business Enviorment in France
With the aim of identifying the main macroeconomic factors that may have Marriott International Hotels when move to France as this report suggest. Such identification will enable owners to accept the proposal of expanding business to France. For this purpose , on the following paragraphs that country PESTLE will be examinated.
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