...Christina Rodriguez Marriott versus Howard Johnson We know Marriott Corporation today as one of the leaders in hotels and hospitality. Having previously worked for the company, I have personal knowledge of and experience with the core values Marriott emphasizes. J. Willard Marriott Sr. founded his corporation on the idea that the service business is rewarding and makes a big contribution to society. Marriott initiated elaborate employee screening an indoctrination processes to reinforce the ideology of employees as number one and customers as guests and created management development programs to ensure the continued availability of “Marriott-type” management. He also passed these values down to a successor that continued to insist that the company’s motivating factor was not money, but rather the sense of pride and accomplishment that comes from doing work really well” (Morris, 1971). Having parents who are business owners, I am a complete believer in that by taking excellent care of employees and providing outstanding customer value, good shareholder returns will inevitably follow. Howard Johnson also had an ideology that emphasized consistency and quality; however, he had no successor that he passed this along to. Upon research for a previous job I had working for a big hotel chain, I could find no indication that there was any ideological coaching within the company to instill ideas and principles. In the 70’s, Howard Johnson Jr. was running the company with a strictly...
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...“J. Willard Marriott began his dream in 1927 with a nine stool root beer stand. His goal was to build a successful business and a brand that is guided by strong values.” Marriott International, Inc. (1996 – 2014). Now almost 90 years later, Marriott is a leading hotel chain operating in 70 countries, with over 4000 properties. Strategic planning, community involvement, responsible business principles, and environmental awareness are the characteristics that have made Marriott successful. Analyzing our personal and workplace values will help explain how these coincide with our actions and behaviors. This will also help to analyze the alignment between our values in comparison to the values and behaviors of Marriott. Last this process will help show if the values and behaviors of Marriott are expressed in the plans and actions of the organization. The values learned from my parents are solely responsible for my current personal values; but not completely. Values are absorbed by the core consciousness of a person, and are modified by the physical environment these influences include school, friends, society’s beliefs, but the core remains the same spiritual self. I have been provided with a Christian influence that I thank god for daily. Through sports I learned team work as well as individual responsibility, while my brother taught me the fun of competition. Over the last three decades I have not observed a difference between my personal and workplace values. I have listed...
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...Marriott Corporation: The Cost of Capital Executive Summary J. Willard Marriott started Marriott Corporation in 1927 with a root beer stand, expanding it into a leading lodging and food service company with sales of over $6 billion by 1987. At the time, Marriott had three main lines of business, lodging, contract services and restaurants, with lodging generating about 51% of company’s profits. The four key elements of Marriott’s financial strategy were managing hotel assets rather than owning, investing in projects with the goal of increasing shareholder value, optimizing the use of debt, and repurchasing their undervalued shares. Marriott Corporation relied on measuring the opportunity cost of capital for investments by utilizing the concept of Weighted Average Cost of Capital (WACC). In April 1988, VP of project finance, Dan Cohrs suggested that the divisional hurdle rates at the company would have a key impact on their future financial and operating strategies. Marriott intended to continue its growth at a fast pace by relying on the best opportunities arising from their lodging, contract services and restaurants lines of businesses. To make the company managers more involved in its financial strategies, Marriott also considered using the hurdle rates for determining the incentive compensations. What is the weighted average cost of capital (WACC) for Marriott Corporation? WACC = (1 - τ)rD(D/V) + rE(E/V) D = market value of debt E = market value of equity V...
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...Springfield Marriott there are 262 rooms with 9 floors and it is a full-service hotel. The property from the outside does not look very impressive, but once you get the grand tour you could say you just might change your mind. Bill Hess, the General Manager gave us a tour of the hotel after his interview, it was a spectacular experience.. Inside of the hotel, adjacent to the garden area there are several banquet halls named after local areas such as “Berkshire”. The full-service aspect is provided by the Champions Sports Bar, Currents Restaurant, and Currents Bar. These food establishments bring in large amounts of revenue and help serve guests the options of breakfast, lunch, and dinner as well as some entertainment. The Marriott has a wide selection of target guests for these dining establishments, including groups outside of travelers. The Champions Sports Bar helps the hotel pick up revenue from locations such as the Basketball Hall of Fame. The major hotel market segments primarily include transient travelers and group guests. Of the transient guests, the hotel’s specific target is a ‘business’ transient guest, many of which have open contracts with the hotel. One of the companies who provide frequent business travelers to the hotel includes Smith and Wesson Gun Company located in Springfield, MA. Usually happens with these company business travelers have multiple open contracts with hotels in the local area such as the Sheraton located next door to the Springfield Marriott. Once...
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...Executive Summary Marriott International envisions itself to be the world’s lodging leader. Its mission is to provide the best possible lodging services experience to customers who vary in backgrounds, language, tradition, religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement. We value our shareholder’s so we will only take steps that will ensure our growth. Most importantly, through our “spirit to serve”, we emphasize the importance of Marriott’s people and recognize the value they bring to the organization’s growth and success. It aims to increase revenues by 9% every year, to increase profits by 5% annually, to gain brand loyalty from their international customers, and lastly, to increase their market share in the lodging industry by 3% within 3 years. Marriott International is ranked as number one in market capitalization and revenues in the lodging industry. In fact, it has been ranked by Fortune as among the “100 Best Companies to Work For.” It has a total of six business segments in its portfolio, namely: the North American Full-Service Lodging Segment, North American Limited Service Lodging Segment, International Lodging Segment, Luxury Segment, Timeshare Segment, and the Synthetic Fuel Segment. It has a deep history, which started way back to 1927 when J. Willard Marriott and his bride opened a 9-seat root beer stand...
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...Organizations and Leadership Maria Trynkina Marriott International is an American hospitality company that manages and franchises a broad portfolio of hotels. J. Willard Marriott was a founder of the Marriott International; the company is now led by President and Chief Executive Officer Arne Sorenson. Today, Marriott International has a lot of properties in different countries and territories around the world. Marriott International is famous among people worldwide. During my working experience in Marriott International I noticed some pros and cons. One of the pros of working in Marriott International is that it is relatively easy to grow though career ladder. Secondly, Marriott International offers very flexible schedule for its employees. For example, they were wiling to work with my school schedule. Marriott International offers a huge discount for its employees if they would like to stay in Marriott branches both within the country and abroad. Marriott International provides its employees with heath insurance, free parking space and discount on food in different restaurants. And the last but not the least is that if you work during a holiday the company will pay you double. The cons of working in Marriott International is that your work schedule is varies from week to week and it’s hard to plane something in advance. Sometimes employees are force to work on holidays or weekends. Another disadvantage is that Marriott International rarely gives their employees raises and...
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...answer the questions revolving around the Project Chariot, the Spin-off that allowed Marriott to separate its business activities in its world famous hotel management business and a separate real estate business in 1994. This project involves the splitting up the company into two separate entities, Marriott International Incorporated (MI) and Host Marriott Corporation (HM) in order to minimize the debt burden and improve the financial health of the company after severe effects from real estate market crash and the slowdown in the business in early nineties. The description of Marriott Corporation, key issues faced by the corporation, details about the proposed Project Chariot and the alternatives and consequences of implementing Project Chariot is reported in the following sections. 1) The first analysis is the impact assessment for the parties and stakeholders of Marriott: According to the reorganization plan MI would operate hotels and include Marriott’s service businesses. It would also own Marriott’s trademarks, trade names, reservation and franchise systems. HM would own Marriott’s hotel properties and undeveloped real estate. It would also operate food, beverage, and merchandise concession in airports and toll-road rest areas. Impact Assessment for: a) Shareholders: the project would give each shareholder one share of the new Marriott International Inc. (MI) for each share of Marriott, so since no cash would be exchanged/transferred. It would have the beneficial effect...
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...HEC Lausanne Corporate Finance Case 3: Marriott Corporation (A) Spring Semester 1. Project Chariot is proposed by MC’s CFO, Stephen Bollenbach, to face the troubles that Marriott Corporation (MC) is currently facing. A glimpse of history is useful to understand the current situation. MC’s main business is to develop hotel properties, to sell them to outside investors and to conclude long-term contracts. In the 70’s MC began to finance its expansion by major borrowings under the impulsion of the new president J.W Marriott, Jr. that abandoned the conservative financing policy of its predecessor (and father). In 1981 the Economy Recovery Tax Act (ERTA) gave enormous incentives for companies to invest (tax write-offs were given for each $ invested in real estate). This pushed MC to develop even more its activities for instance in lodging services or in full service compact hotel. Even though ERTA was ended in 1986 MC continued its massive investments, which lead to a significant accumulation of debt. This was not an issue since the revenue growth was able to sustain the also growing interest payments. Until the drop of income in 1989, which froze capital expenditures. Unfortunately for MC, it was followed by the real estate collapse in 1990 that left MC with massive interest payments for properties that no one wanted to buy anymore given the current economic environment. This situation results in an extremely limited ability for MC to raise funds in the capital market...
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...Feldt v. Marriott Corporation 322 A.2d 913 (D.C. 1974) According to the case study titled “Feldt v. Marriott Corporation,” the appellant entered the appellee’s restaurant barefoot but was not asked to leave until after purchasing and receiving her food. The appellee asked the appellant to leave several times but she refused to leave the facility until she had finished her meal. After several refusals and one inappropriate comment made by the appellant, the appellee asked a police officer to escort the troubled woman off the premises. While guiding her towards the exit, the appellant struck the police officer, therefore, causing more ruckus. Upon being arrested and spending one night in the Women’s Detention Center, the appellant was released on her personal recognizance and ordered to court the following day, where she was free to leave after being dropped of any charges. The study provides a great expectation of what happens on a regular basis in the hospitality industry. Because customers are always “guests” and help make the industry thrive, they often feel as though they can do whatever they would like—simply because they paid for a facility’s services. Although we are taught by our employers, fellow employees, and professors that “the customer is always right,” that is not always the case. The appellate in “Feldt v. Marriott Corporation” may have been freed from any charges but she was certainly not innocent, nor was the appellee. While the appellant proved...
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...THE MARRIOTT MANAGEMENT PHILOSOPHY A living tradition of values and beliefs "A businessman once said, 'A business succeeds not because it is long established or because it is big, but because there are men and women in it who live it, sleep it, dream it, and build great future plans for it." "We have realized for a long time that you can't have a service business with a lot of employees without having people who know how to manage. So we have been teaching our management how to manage, as well as our employees how to take care of their jobs. Good management and trained personnel are the most important factors in our business." "Good personnel will work for a competent manager. Go to every length to find, hire, and train good employees and treat them like your family. This is the crux of your whole operation." "'When we had six or seven Hot Shoppes, I'd drive to every one of them every day, sometimes twice a day. Every time I visited, I'd find something was wrong: the root beer was flat or wasn't cold; the lights hadn't been turned on at night; or the barbeque machine wasn't clean. There were just a lot of things our management didn't do or didn't see. So I decided then that if we were going to have a lot of places, we had to hire supervisors to do what I was doing - going from one store to the next, training managers." "Some of my remarks may appear to be too detailed, but it's the little things that make the big things possible. The close attention to the fine details of any...
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...In January 1980, the management of the Marriott Corporation found itself in an interesting dilemma: not only did the corporation have considerable excess debt capacity, but projections of future operations and cash flows indicated that this capacity was on the rise. For Marriott, excess debt capacity was viewed as comparable to unused plant capacity because the existing equity base could support additional productive assets. Management was therefore faced with two problems. First, it needed to determine the amount of funds that would be available if Marriott's full debt capacity were utilized. Second, management needed to decide whether to invest excess funds in new or existing businesses, or to return them to the companies shareholders by paying higher cash dividends or repurchasing stock. To resolve the first issue, it is recommended that the Marriott corporation calculates several coverage ratios so that it can evaluate it's ability to cover the costs associated with varying levels of debt. There are three coverage ratios, corresponding to the costs associated with increased debt leverage, recommended by Higgins n his book. These ratios are times interest covered, times burden covered, and times common covered. To calculate these ratios EBIT is divided by a specific cost, or sum of costs, to determine how well profits are able to support them. Alternatively, “percentage EBIT can fall” could be calculated with regards to each type of cost, to determine the percentage amount...
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...J.Willard Marriott, who had moved away with his business partner Hugh Colton and his wife Alice from Utah to Washington, D.C., started the brand new startup company in 1927, when he operated a curbside food stands selling A&W Root Beer in the Columbia Heights neighborhood of Washington at 14th Street and Park Road NW. He would later rename the food stand The Hot Shoppe, adding Mexican food items to the menu.[2][3] Marriott's business expanded to Baltimore, Maryland, in 1934, shortly after which the company started its food services division. During Second World War, the business expanded to include the management of food services in defense plants and government buildings, such as the U.S. Treasury. Then in the 1950s, Hot Shoppes, Inc. started providing food services to public schools and to Children's Hospital in 1955, a contract which they held for 35 years. Marriott's restaurant chain grew, and the company went public in 1953. In 1957, he expanded his business to hotels, opening the first Marriott hotel—actually a motel, the Twin Bridges Motor Hotel—in Arlington County, Virginia. The company became Marriott, Inc., in 1967. Two large chains were added to the group, the Big Boy family restaurants in 1967 and Roy Rogers Family Restaurants in 1968. Over the years, Marriott's company interests expanded. Continuing with food services, Marriott eventually invented airline in-flight food service. This segment of their enterprise continues to be a large part of their business, providing...
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...------------------------------------------------- Abstract: The case examines Marriott International's (Marriott) various innovative HR practices, which earned it the reputation of being 'the best place to work' in the hospitality industry. It describes Marriott's 'Spirit to Serve' culture and the company's HR philosophy which guided its various HR initiatives. The case gives an overview of the best practices employed by the company in the recruitment, selection, training and development of employees. It also details the employee retention strategies and grievance redressal system at Marriott. Finally, the case reviews the benefits reaped by the company because of its employee friendly HR practices. | | ------------------------------------------------- Issues: » Understand the role of an organizational philosophy and culture in the development of human resource policies in a multinational organization » Get insights into the HR best practices of a large global service organization » Understand the role of employee development programs for retaining employees and improving organizational productivity » Appreciate the benefits that accrue to an organization through the use of employee-friendly policies ------------------------------------------------- The Spirit to Serve Once, when a customer checked in at an Anaheim Marriott hotel, she was in a very disturbed state of mind. It was on her way to the hotel that she learnt of her sister's death. The worst part...
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...The Early Years 1927-1956: Marriott Takes Flight It all began with an A&W root beer stand. Founder J. Willard Marriott and his wife, Alice, got their young business off the ground by quenching people’s thirst during Washington D.C.’s hot, muggy summers. Good food and good service at a fair price became a guiding principle for Hot Shoppes restaurants--and for Marriott International as it grew. The Growth Years 1957-1985: A World of Hospitality Marriott made a historic shift into the hotel business in 1957. The world’s first motor hotel opened in Arlington, Virginia, under the management of J. Willard Marriott’s son, Bill. Over the next 25 years, Marriott became a diverse global enterprise, and Bill Marriott became a visionary CEO whose leadership transformed the hospitality industry. The Modern Years 1986-2011: A Bed for Every Traveler 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. Looking Ahead 2012: Success Is Never Final Today we’re on a mission to shape the future of travel through technology and innovation. From mobile check-in and lobby Greatrooms to transforming the meeting experience with our Red Coat Direct app, we’re making travel more brilliant for our guests...
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...Marriott International is a global company based in Bethesda, Maryland, USA, with more than 4,000 properties, and more than 690,000 rooms in 78 countries, and also have 15 brands Marriott International reported revenues of nearly $13 billion in fiscal year 2013. Marriott have 45 million members in the whole world. There are approximately 300,000 employees at this company. The company is dedicated to providing good service to customers, growth opportunities for associates, and attractive returns to shareholders and owners. Marriott offers owner across the globe: regions include the U.S. and Canada, Europe, the Caribbean & Latin America, the Middle East & Africa and Asia Pacific. Marriott was founded by John Willard Marriott in 1927 with his wife, Alice Marriott, opened a root beer stand in Washington, D.C. As a Mormon missionary in Washington D.C, Marriott was convinced that the residents of the city needed a place to get a cool drink. The Marriott later expanded their enterprise into a chain of restaurants and hotels. They opened their first hotel, the Twin Bridges Marriott Motor Hotel, in Arlington, Virginia, in 1957. Their second hotel, the Key Bridge Marriott in Arlington, Virginia , It is Marriott International's longest operating hotel, and celebrated its 50th anniversary in 2009. Their son, JW (Bill) Marriott, Jr., led the company to spectacular worldwide growth during his more than 50-year career. In 1995, Marriott was the first hotel company worldwide to offer...
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