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Study of Organizational Behaviour Change

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Submitted By mayukh19
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Chapter 1: INTRODUCTION

1.1 Introduction

Marriott International is a multinational hospitality company. It is a leading lodging company based in United States of America. The company was founded by J W Marriott in 1927, which is now headed by his son. Marriott International employs close to 200,000 employees. Marriott International boasts of 4087 properties spanning over 80 countries, with 697,000 rooms and another 197,000 in the making. The hotels or lodgings are either self operated or franchises. Throughout the 88 years of its operation, Marriott International has built a reputation of immeasurable quality, service excellence, integrity and being pioneers in innovation.

1.2 Objectives of the Study

The objective is to study the organizations structure, internal and external environment, carry out an analysis of the strengths and weaknesses, discovering new opportunities and finding out the threats faced by Marriott International. Furthermore, we would also be assessing whether the organizational structure implemented by the company is apt for today’s volatile, unpredictable and fast moving environment.

1.3 Scope of the study

In this report we intend to focus majorly on the organizational structure and the assessment of the internal and external environment. This report would not cover the competitor analsysis in depth and would be limited to the study on Marriott International as a whole. Moreover, we have not taken into account the different styles of operations carried out by the franchises at different parts of the world. Minor variations are seen in the working of the company at different geographical locations to suit the needs of those particular regions.

1.4 Limitation of the study

The data collected from the secondary sources for the making of this report is a year old. This limits the study in some ways since the changes in this present year could prove to be significant. Moreover, Marriott International’s presence throughout the globe, and their local operations aimed at suiting the people of that particular demography may give some inconsistent data at times.

Chapter 2: INDUSTRY AND COMPANY PROFILE

2.1 Industry Profile

Porters Analysis of the Hospitality Industry

Barriers to entry | Due to high infrastructure costs and the already established brands in the market, the barrier to entry is too high | Threats of Substitutes | The threats of substitutes can be considered to be low because the target segment of Marriot International is an elite and upper class segment. | Bargaining power of suppliers | The bargaining power of suppliers can be considered moderate because of the competitor present in the market and the chances of switching from the suppliers. But due to the years of servicing together, this cannot be considered to be too high a risk. | Bargaining power of customers | The bargaining power of the customers is moderate because of the few options available in the market. But because of the brand loyalty and the excellent services provided by Marriott Internationals, we cannot regard this threat as too high. | Competition | The competition present in segment is not in the extremes. There are a few players who cater to the elite class of travellers, and there are even fewer players who can actually cater to the needs of the customers in a way that Marriott achieves. |

2.2 Company Profile
MARRIOTT INTERNATIONAL, INC. (NYSE:MAR) is a leading hospitality and tourism oriented company. Marriott International operates and franchises hotels under the Marriott, JW Marriott, Renaissance, Bulgari, The Ritz-Carlton, Courtyard, Residence Inn, SpringHill Suites, Towne Place Suites, and Fairfield Inn brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club International, Horizons, The Ritz-Carlton Club and Marriott Grand Residence Club brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. The company is headquartered in Washington, D.C. It is ranked as the lodging industry’s most admired company and one of the best places to work for by Fortune® magazine. Marriott International | Parent Company | Marriott International Inc. | Category | Lodgings, Hotels and Resorts | Sector | Hospitality, Tourism | Tagline | Live Like a Local | Unique Selling Proposition | Global Presence and Brand Image | STP | Segment | Premium Travellers, Business Class and Leisure Travellers | Target Group | Upper Class, Honeymoon Couples, Corporate Groups, Families | Positioning | Luxury living at posh and elite locations | | Competition | Competitors | 1. Hilton Hotels
2. Starwood Hotels |

2.3 Departmental Profile There are various departments in Marriott International. For instance, there is departmentalisation on the basis of functionality: 1) Entertainment 2) Foods and Beverages 3) Finance 4) Human Resources 5) House Keeping 6) Front Desk 7) Security 8) Marketing 9) Operations 10) Supply Chain 11) IT

Functional departmentalization arguably allows for greater operational efficiency because employees with shared skills and knowledge are grouped together by function. A disadvantage of this type of structure is that the different functional groups may not communicate with one another, potentially decreasing flexibility and innovation.
Departmentalization in Marriott at a glance: * Functional departmentalization * Unity of Command * One person reports to only one manager

Chapter 3: REVIEW OF LITERATURE

Chapter 4: SWOT ANALYSIS
The Marriott International Strengths
• The company has very strong position in the market having the diversified and expanded business all over the world.
• The company is leading in the whole world market with the strong financial position because of the large number of debt.
• The Marriott International Company is providing the wide range of satisfied products and services to its customers.
• The company has developed strong position regarding the customers as with attaining the loyalty of those customers.
The Marriott International Weaknesses
• Due to the huge extended business the company is becoming weak in their management system as they are supposed to be pathetic in their performances.
• The company is facing the state of high debt as because if it’s stabling the position of the financial issues.
• The Marriott International Corporation is experiencing backwardness in the infrastructure in the field of information and technology (IT) management.
• The company is declining its position in the market as in case of the shares because of the high ratio of debt the company is facing the instability in the market issues.
The Marriott International Opportunities
• The company should try to merge the businesses and firms all over the world especially in the countries of Europe.
• The enhancement should be made by the company in order to grow its services in the market to grasp the customer’s loyalty.
• The various sorts of planning and strategies should be made by the supervisors of the company to acquire and purchase different assets that generate revenues.
• The company should take the steps in order to grow in the market as in the case by improving the direct marketing plans like in the case of advertisements.

The Marriott International Threats
• The risk in the political issues and the involvement of the government is the creating the risk for the company for the hotels that are operating in the foreign countries.
• As there are a lot of hotels in different areas of the world so there exists a high rate of substitution for the customers.
• The high rate of fluctuation is found in the prices in the market because of the high and intense competition because if the foreign operating hotels.
• Due to the unrestricted issuance and allowance of the various products the company suffers losses as compared to the competitors.
• The factors, crisis and issues of the housing sector is the threat for the company.

Chapter 5:
FINDING
Marriott International has been considered as one of the best employers in USA and features in the list of best organsiations when it comes to emploiyee compensation and engagement. This adds value to the company as Marriott makes a brand of itself, not only among its customers, but also as a good employer which would attract more talent and retain the right ones also.

SUGGESTIONS
Marriott International has huge opportunity to tap into the untargeted markets in the developing countries that could add to its reach. The penetration would allow Marriott to diversify further and create a broader base and customer reach. Given that the performance remains the same and the level of competence and quality offered doesn’t go down, Marriott has the chance of becoming one of the largest in the hospitaility segment.

CONCLUSION
Marriot International is a gigantic organisation which has maintained the sanctity of pure innovation and commitment to its stakeholders. Even thought the size of the organisation has grown manifolds, Marriott has succeded in maintaining the core values that it believes in. Through this, Marriott has build a brand which is much more than just the infrasterutcure. Marriott stands for quality, humanity and care, which is a tough combination to achieve in this competiteive 21st century.

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