...interviewed a hotel executive to determine the company’s (i.e. hotel’s) perspectives on sustainability. The business professional I interviewed was Mr. XYZ, the Executive Director of Ramada Inn - American City. Mr. XYZ has Post-Graduate Diploma in Business Management as well as degrees in Software Engineering and Systems Analysis. He has 10 years of work experience in Marketing Fast Moving Consumer Goods (FMCG) and 15 years of experience in Hotel Management. The interview occurred on the premises of Ramada Inn – American City on MM/DD/YYYY from 5:30 – 6:30 p.m. Ramada Inn is affiliated with the Wyndham Hotel Group, one of the largest hospitality groups in the world with businesses across six continents. As such, Ramada has been around for more than 50 years and has nearly 900 hotels in about 50 countries across the world. Although the owners and franchisees have lot of flexibility in the way they run their daily operations, they have to follow certain policies that distinguish the Ramada Brand (like free internet access) and also follow some basic rules and policies of the Wyndham group. I had reviewed the company website for information in this regards and found Wyndham’s take on Sustainability and the “Wyndham Green” program. No additional information as regards sustainability was found on the Ramada Worldwide website. With this background, I asked Mr. XYZ to define sustainability from his company’s perspective. According to Mr. XYZ, for his company, “sustainability” generally...
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...Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2012 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NO. 001-32876 WYNDHAM WORLDWIDE CORPORATION (Exact name of registrant as specified in its charter) 20-0052541 (I.R.S. Employer DELAWARE (State or other jurisdiction of incorporation or organization) Identification No.) 22 SYLVAN WAY 07054 PARSIPPANY, NEW JERSEY (Zip Code) (Address of principal executive offices) (973) 753-6000 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each Class on which registered Common Stock, Par Value $0.01 per share New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None (Title of Class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. No ¨ No Yes ¨ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by...
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...1 Marriott Corporation: Cost of Capital Analysis In this paper, I shall attempt to determine the optimal cost of capital for Marriott Corporation using the WACC method and compare it against the cost of capital of a division with the firm to determine the implications of using a “firm wide” cost of capital Cost of Capital for the firm Based on the data given in the case, the beta equity for Marriott Corporation is currently set at 1.11. However, given the changes in the debt component in Marriott’s capital structure over the years, it is essential that we re-calculate the actual value of βequity using the unlevered beta βasset. For this purpose, we first use the average Debt/Total capital ratio for Marriott over the past 5 years as 0.497. Since Debt/Capital for the past 5 years is 0.497, the average D/E for this period is 0.988 (=0.497/0.503). Using the formula for unlevered beta, the beta for the asset can be calculated as, ( ) = as, . Using the target debt to capital ratio for Marriott as 0.60, we can re-calculate the equity ( ) Since we have the βequity, we can calculate the cost of equity using the CAPM as, Requity = Rf + βequity*(Rm – Rf) From the data, we use Rf as 8.95% and the equity risk premium as 7.43% (average spread between S&P 500 and long term US bonds). Substituting these values, we get the equity cost of capital as, Requity = .0895 + 1.273*(0.0743) = 18.40% To calculate cost of debt, we consider the spread over the long term US government bond...
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...MarriotMarriott Corporation: The Cost of Capital T c=income taxes of 1987 / income before income taxes of 1987 = 175.9/398.9 = 44% Step 1:From the Exhibit 3 ß equity for each firm in this industry are below Marriot Corporation 1.11; Hilton Hotels Corporation .76 ; Holiday Corporation 1.35 La Quinta Motor Inns .89; Ramada Inns, Inc 1.36. Step 2: For each firm in the industry, to estimate unlevered using the equity estimate: equity = [1 + (1-TC)Debt/Equity]unlevered unlevered of Marriot= 1.11/[1+(1-.44)*.41]=.90 unlevered of Hilton= 0.76/[1+(1-.44)*.14]=.70 unlevered of Holiday= 1.35/[1+(1-.44)*.79]=.94 unlevered of La Quinta= 0.89/[1+(1-.44)*.69]=.64 unlevered of Ramada= 1.36/[1+(1-.44)*.65]=.997 Step 3: Take an industry average of the unlevered estimates as estimate of firms unlevered (.90 +.70+.94+.64+.997)/5 = .84 Step 4: Use firm’s target D/E ratio and unlevered estimate to calculate equity equity = [1 + (1-TC)Debt/Equity]unlevered equity = [1 + (1-.44)*.41]*.84= 1.03 Step 5: Calculate the R equity using CAPM The risk free rate was 4.58%, and the equity risk premium was 7.43% for average from 1926-87 R equity =r f + ß(r premium) = 4.58%+1.03*7.43%= 12.23% Step 6: Calculate [Debt/(Debt + Equity)] and [Equity/(Debt + Equity)] V=D+E D/V=.41 E/V=1-D/V=1-.41= .59 Step 7:Use formula above to calculate r WACC r debt= r f + r debt premium = 8.72%+1.10% = 9.82% WACC=rdebt*(1-Tc)(D/V)+requity*(E/V)=9.82%*(1-0.44)*.41+12.23%*0.59 =...
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...calculate NPVs of the project. When the single corporation hurdle rate (13.2%) is applied to each of its lines of businesses, some projects that are supposed to have negative NPV will be invested while other projects that are supposed to have positive NPV will be neglected. For example, the lodging sector has a discount rate of 11.97%, and by applying the corporation hurdle rate of 13.2%, the company will mistakenly pass some lodging projects that can generate positive NPV. iv. What is the cost of capital for Marriott’s three divisions? ■Lodging -Hotel- | βE | D/D+E | E/D+E | βA | Hilton Hotels Corporation | 0.88 | 14% | 86% | 0.76 | Holiday Corporation | 1.46 | 79% | 21% | 0.31 | La Quinta Motor Inns | 0.38 | 69% | 31% | 0.12 | Ramada Inns | 0.95 | 65% | 35% | 0.33 | Value-weighted mean | | | | 0.41 | rAL=8.95+0.41*7.43=11.97% ■Restaurants | | | | | -Restaurant- | βE | D/D+E | E/D+E | βA | Church’s...
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...1. Ramada Demonstrates Its Personal Best In 1996 the latest D. K. Shifflet survey of customer satisfaction in the hospitality industry showed mid-tier hotels continuing their downward trend in perceived customer service, reflected by more and more respondents giving ratings on customer service in the 7 or lower range on Shifflet’s 10-point scale. While Ramada’s satisfaction rates held steady, “It was only a matter of time before we experienced the problem,” says Tim Pigsley, director of operations for Ramada Franchise Systems (RFS). Shifflet research highlighted three critical areas for study that could influence customer satisfaction: hiring (finding the best people to deliver Ramada’s brand of exceptional service), training (giving employees the tools to deliver exceptional service), and motivation (providing the impetus for Ramada employees to deliver exceptional service). Unlike some of its competitors, RFS is a totally franchised system. In such an environment, not only must headquarters contend with the variable human factor of all service operations, but additionally, RFS must contend with differing “exceptional service” standards among owners of the nearly 900 Ramada properties. “Due to the franchised system of property management, we needed for each management team and each employee to be committed to the change—to buy in to any new program—whatever shape it would take,” explains Pigsley. “We wanted to learn and borrow from the best so we started with Disney. In...
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...Name: Heimy M. Pasley Date: 17 Nov 2013 MARKETING -- TEST #1 Chapters 1-7 Total points – 100 Note: This exam consists of your response to a case analysis and discussion questions Case Analysis: Please respond to the questions at the end of the case titled, “Sweetest Dreams Inn”, page 655 of your text. You can provide any other remarks you wish since your points will be determined in large part by the comprehensiveness of your analysis (Breadth, Depth, and Application). Points = 15 Evaluate Mai Phan’s present strategy: Mai Phan is a current owner on Sweetest Dreams Inn which he bought two years ago, after leaving a successful career as a production manager for a large producer of industrial machinery. He is currently not making much profit to sustain this establishment. The Sweetest Dreams Inn is located at the edge of a rapidly growing small town that’s a resort area and about one-half mile off an interstate highway. Phan is trying to decide on making changes in the way he operates his Inn or if he should join either the Days Inn or Holiday Inn. Phan does not have any signs advertising Sweetest Dreams Inn except two (on his property). Since this is a tourist area there is obviously competition, there are national franchised full resort motels nearby like Best Western, Ramada Inn and Hilton Inn. Since his motel does not offer full service, Phan’s prices are at 40% below the full-service hotels. You cannot rely on people just “finding” your motel. Pham has to...
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...Week-7 Decision Research Marketing Rui Su Marketing Research Methods (MKT632GH3-106292015) Dr. Jeff Ritter Introduction: Marriott International is a leading hotel management company with operations throughout the United States and other 67 countries and regions, managing more than 2,800 hotels, providing about 490,500 rooms. The company is headquartered in Washington, DC; it employs 128,000 people. Marriott's turnover in fiscal 2003 reached $ 9,000,000,000. Marriott also "Fortune" magazine as one of the hotel industry's most admired companies and the best hotel group work. Marriott hotels owned brands include: Marriott (472, full-service hotel, including 13 conference centers and 34 JW Marriott Hotel), The Ritz-Carlton (56, luxury-class hotel), Renaissance Hotels (126 home, the Quality Inn), Courtyard (616, high school price hotel), Residence Inn (449 home long rent hotel), Fairfield Inn (524 home budget hotel), SpringHill Suites (110 home price in high school Suites ), TownePlace Suites (111 home mid-priced long-term lease on site), Ramada International (outside of North America manages 192 budget hotel), through the Marriott Vacation Club, Horizons, Ritz-Carlton Club and Marriott Grand Residence Club brands run resort hotel (49 resort hotels) and Marriott Executive Apartments (13 senior apartments). Also, the Marriott ExecuStay in 37 major markets management has furnished apartment units. Marriott golf course management companies 26 golf courses in the world. Market...
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...1108/09590550510588361 Downloaded on: 15 September 2014, At: 19:08 (PT) References: this document contains references to 37 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 17452 times since 2006* Downloaded by UNIVERSITI MALAYSIA SABAH At 19:08 15 September 2014 (PT) Users who downloaded this article also downloaded: Jason J. Turner, Karen Wilson, (2006),"Grocery loyalty: Tesco Clubcard and its impact on loyalty", British Food Journal, Vol. 108 Iss 11 pp. 958-964 Mark D. Uncles, Grahame R. Dowling, Kathy Hammond, (2003),"Customer loyalty and customer loyalty programs", Journal of Consumer Marketing, Vol. 20 Iss 4 pp. 294-316 Jennifer Rowley, (2007),"Reconceptualising the strategic role of loyalty schemes", Journal of Consumer Marketing, Vol. 24 Iss 6 pp. 366-374 Access to this document was granted through an Emerald subscription provided by 313615 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes,...
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...CHAPTER 8 Market Segmentation, Targeting, and Positioning CHAPTER OVERVIEW Chapter 8 shows different approaches that companies can take to a market in order to best serve customer and company needs. It begins with a brief overview of three marketing approaches that companies can take: mass marketing, product-variety marketing, and target marketing. A fuller discussion details the three steps of target marketing, beginning with market segmentation: dividing a market into groups that is measurable, accessible, substantial, and actionable. This can be done in different ways by using geographic, demographic, psychographic, behavioral, or other variables. Next, the process of market targeting and the different approaches a company can take are discussed. These include undifferentiated, differentiated, and concentrated marketing. The chapter concludes by covering market positioning strategy and how companies can position their products for the best competitive advantage. CHAPTER OBJECTIVES Students should be able to: 1. Explain market segmentation, and identify several possible bases for segmenting consumer markets, business markets, and international markets. 2. List and distinguish among the requirements for effective segmentation: measurability, accessibility, substantiality, and actionability. 3. Outline the process of evaluating market segments, and suggests some methods for selecting market segments. 4. Illustrate the concept of...
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...CHAPTER 8 Market Segmentation, Targeting, and Positioning CHAPTER OVERVIEW Chapter 8 shows different approaches that companies can take to a market in order to best serve customer and company needs. It begins with a brief overview of three marketing approaches that companies can take: mass marketing, product-variety marketing, and target marketing. A fuller discussion details the three steps of target marketing, beginning with market segmentation: dividing a market into groups that is measurable, accessible, substantial, and actionable. This can be done in different ways by using geographic, demographic, psychographic, behavioral, or other variables. Next, the process of market targeting and the different approaches a company can take are discussed. These include undifferentiated, differentiated, and concentrated marketing. The chapter concludes by covering market positioning strategy and how companies can position their products for the best competitive advantage. CHAPTER OBJECTIVES Students should be able to: 1. Explain market segmentation, and identify several possible bases for segmenting consumer markets, business markets, and international markets. 2. List and distinguish among the requirements for effective segmentation: measurability, accessibility, substantiality, and actionability. 3. Outline the process of evaluating market segments, and suggests some methods for selecting market segments. 4. Illustrate the concept of positioning...
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...QUARTERLY CLASSIC HOTEL RATE FENCES Discounting in the Hotel Industry A New Approach Here’s the case made ten years ago for an approach to discounting that provides a rational method of price segmentation. The hotel industry is just now getting it. BY RICHARD D. HANKS, ROBERT G. CROSS, AND R. PAUL NOLAND T hree busy executives approach a hotel’s front desk, check in, receive their room keys, and head for the elevator. On the way up to their rooms, the topic of room rates comes up. As it turns out, Roy is paying $20 more than Jeanne, while Jennifer is paying $18 more than Roy. Yet all three are staying in essentially the same type of room. Those of you familiar with yield management already have figured out that this hotel’s yield-management system is in top working order. These three guests—all staying on the same night in similar rooms—have received different rates. You might be thinking that those rates are based on their differing needs and willingness to pay. You might also conclude that some logical factor differentiates those guests, something like flexibility in arrival dates or differences in when they booked their reservations. 94 Cornell Hotel and Restaurant Administration Quarterly Your conclusions would be wrong. These three guests booked their reservations on the same day, through the same source. What differentiates these guests has nothing to do with supply and demand, their needs, or their willingness to pay. The difference...
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...CHAPTER 1 Marketing: Managing profitable customer relationships Marketing is managing profitable customer relationships. The goal of marketing is to attract new customers, to grow current customers by delivering satisfaction and to provide goods and services at profit. Marketing specialists must satisfy their customers’ need in a socially responsible and ethical manner The marketing process 1. Understand the marketplace and customer needs and wants Humans have 3 needs * Physical needs (food, clothing) * Social needs (the need to belong) * Individual needs (need for knowledge, self expression) Based on their needs, human have wants that are shaped by culture and individual personality. However, when backed by buying power, wants become demands Marketing offers: As a marketer, we offer the product (the physical need) and the service (that provides a benefit) A market is the set of actual and potential buyers of a product. These buyers share a particular need or want. Marketers are not the only doing marketing- even consumers do marketing when they search for the goods they need at a price they can afford. Elements of a modern marketing system: Suppliers [ Company Competitors Marketing Intermediaries End User ] 2. Designing a customer-driven marketing strategy Marketing management is the art and science of choosing target markets and building profitable relationships with them To have a good marketing strategy we...
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...Marketing Management, Millenium Edition Philip Kotler Custom Edition for University of Phoenix Excerpts taken from: A Framework for Marketing Management, by Philip Kotler Copyright © 2001by Prentice-Hall, Inc. A Pearson Education Company Upper Saddle River, New Jersey 07458 Marketing Management Millenium Edition, Tenth Edition, by Philip Kotler Copyright © 2000 by Prentice-Hall, Inc. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Compilation Copyright © 2002 by Pearson Custom Publishing. This copyright covers material written expressly for this volume by the editor/s as well as the compilation itself. It does not cover the individual selections herein that first appeared elsewhere. Permission to reprint these has been obtained by Pearson Custom Publishing for this edition only. Further reproduction by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system, must be arranged with the individual copyright holders noted. This special edition published in cooperation with Pearson Custom Publishing Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Please visit our web site at www.pearsoncustom.com ISBN 0–536–63099-2 BA 993095 PEARSON CUSTOM PUBLISHING 75 Arlington Street, Suite 300, Boston, MA 02116 A Pearson Education Company SECTION ONE Understanding Marketing Management Marketing in...
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...Introductory Marketing Place Chapter 11 Armstrong/ Kotler Marketing: An Introduction Marketing Channels and Supply Chain Management I. The Nature of Distribution Channels Channels of Distribution is known as "Place" in the "4 P's" model of Marketing. Distribution Channels provide the utility of place, of having products where the customer wants when the customer wants them. In these days of customer focus and emphasis on competition, the 4 P's model is considered very simplistic, and I've always thought that was probably why Marketers began referring to Place as Channels, to move us away from "The "4 P's" as a description of all of what Marketing is about; nevertheless, "place" is a convenient way to think of the term Channels of Distribution. |Distribution is particularly important in a country |[pic] | |like Canada with our huge size and our northern | | |climate. Every spring, trucks go down through the ice | | |in places where frozen water is used as a seasonal | | |road; this truck is sinking in Lake Winnipeg. | | |[pic] ...
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