Preview

Marriott Company History

Good Essays
Open Document
Open Document
343 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Marriott Company History
M E M O R A N D U M

TO:

FROM:

DATE: October 23, 2010

SUBJECT: Marriott Company

The purpose of this report is to give a general overview of Marriott International Inc. as the place which offers great career opportunities and benefits. Marriott International Inc. is one of the most respectable corporations in the United States. In considering potential companies to work for, Marriott is a top choice for many reasons. My research involved all aspects, thus making the report objective and informational. Marriott provides the highest quality of service in the hotel industry, constantly improving and innovating products. Also, it is one of the best work places according to Fortune 500. Marriott is a global player and stands to benefit from the hospitality industry for some time to come.

Company History

J.W. Marriott began his business in Washington D.C. in 1927 with a small store appropriately named “The Hot Shoppe.” Shop sales grew and new ideas continued to rapidly expand existing business. Mexican food and soda were added as new products in the shop, thereafter increasing Marriott’s customer base. Later, Marriott again broadened its business line-up; this time with an airline catering business and cafeterias, which at the time radically transformed the way lodging companies fed their customers (Olivera Sijakovic, front desk representative 2011).

Some of the earliest challenges Marriott faced were in regards to product offerings. J.W Marriott decided rather quickly he needed to branch into all pertinent arenas within the restaurant and hospitality industry. This ideal would eventually propel his company to be a national leader in the airline catering business (Olivera Sijakovic, front desk representative 2011).

One of the factors which helped Marriott’s growth from the beginning was its knack of aggressively expanding into related business ventures, thus dominating markets and creating effective monopolies. One of the key events in

You May Also Find These Documents Helpful

  • Satisfactory Essays

    BYP11-4 Marriott Corporation split into two companies: Host Marriott Corporation and Marriott International. Host Marriott retained ownership of the corporation’s vast hotel and other properties, while Marriott International, rather than owning hotels, managed them. The purpose of this split was to free Marriott International from the “baggage” associated with Host Marriott, thus allowing it to be more aggressive in its pursuit of growth. The following information (in millions) is provided for each corporation for their first full year operating as independent…

    • 390 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Since the stakeholders revokes their contract with Regale Properties whose str market?” ategy is to host the city’s festival as marketing strategy to launch the hotel product offerings into the market and prefer moving into franchise with Marriott for best reasons known to them. The decision problem becomes “How do we better position and market the hotel product offerings into the mature competitive To better define the problem at hand, we need to identify key decision elements surrounding the problem such as:……………………………………………………............................................................…

    • 3594 Words
    • 15 Pages
    Better Essays
  • Powerful Essays

    Marriott Case |

    • 2517 Words
    • 11 Pages

    Dan Cohrs is preparing the annual hurdle rates for the three divisions of Marriot Corporation (Lodging, Contracts, and Restaurants) which will have a significant impact on the firm’s financial and operating strategies. Marriott’s has been truthful to its operating strategy to remain a premier growth company, Marriott’s sales and earnings per share have doubled over the last four years. In 1987 Marriot’s sales rose 24%, the return on equity was 22% and profits were $223 million. Lodging consisted of 51% of Marriott’s profits, while contracts services and restaurants amounted to 33% and 16% respectively. However, the sales mix is not proportionate to relative profits, where 41% of sales are generated from lodging, 46% from contract services and 13% from restaurants. One of the main factors in Marriot’s lodging success has been their strategy to syndicate hotels to limited partners with a three percent management fee and 20% of profits before depreciation and debt service. One of Marriot’s key strategic elements is to optimize the use of debt in the capital structure for which it uses an interest coverage target instead of debt to equity ratio to determine the ideal amount of debt to hold.…

    • 2517 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Marriot is an international brand however the purpose of this controlled assessment, they will be my local business known as London Heathrow Marriott-LHM. Marriott is currently a private limited company (PLC) and has two other private investors as owners of the company. The Marriott hotel was founded in 1993 and is located in Harlington, Hayes. Currently its labour turnover for the month of September (2010) is an increase of 10.1%. Marriott acquires approximately 133,000 employee’s world wide and between 8,000-9,000 employees in the UK.…

    • 733 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Marriott’s vision is to be the world’s leader in hospitality services and it achieves that through its spirit to serve culture. The Marriot has a corporate mission which entails being the world leader in hospitality services. This is translated into all departments which have their very own SMART objectives to help achieve this.…

    • 529 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Marriott Cost of Capital

    • 267 Words
    • 2 Pages

    Our analysis also led us to evaluate Marriott’s four financial growth objectives. First, we found that by managing instead of owning hotel assets, Marriott was able to hedge its risks in the currently volatile economy. Second, we were concerned that Marriott’s strategy of maximizing shareholder wealth by treating its projects like “similar little boxes” instead of using division-specific hurdle rates would decrease shareholder value. Third, we believe that Marriott’s practice of setting a high target interest coverage ratio instead of a D/E ratio might prevent…

    • 267 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    ii. Often companies such as Marriott pursue a strategy of concentric diversification to take advantage of their strengths in one business to gain…

    • 7952 Words
    • 32 Pages
    Powerful Essays
  • Best Essays

    The major conclusion after analyzing all the facts which are relevant for this report is that the Marriott is a wonderful company whereby the employees are the basis of their success. The current differentiation strategy of Marriott fits with their mission and vision and is implemented successfully throughout the organization. After conducting research via various models it can be concluded that there is no need to develop a new strategy, since they do reach all their goals with the current strategy.…

    • 4812 Words
    • 20 Pages
    Best Essays
  • Powerful Essays

    Executive Letter About This Report Determining Materiality Stakeholders Areas of Stakeholder Collaboration The Way We Do Business Our Company Our Business Model Global Growth Governance Ethics MARPAC Disbursements 1 2 2 2 3 6 7 7 8 10 10 11 Marriott Business Values Workforce Global Diversity and Inclusion Human Rights Guest Satisfaction Marriott Economic Hotel Development Marriott and Society…

    • 4393 Words
    • 18 Pages
    Powerful Essays
  • Better Essays

    Marriott Hotels, Resorts, and Suites are known world wide for their superior hospitality company. They were founded in 1927 by J. Willard and Alice S. Marriott and currently operate around 3,000 lodging properties in the United States as well as 67 in other countries (Malhotra, 2010, p. 517). Marriott is a name that is known by most people and continues to grow and improve its services throughout time. The hospitality industry has a tough job at times because they are responsible for making people feel as if they never left home. Whether this is by providing something as simple as a bed and a shower or by having extremely luxurious rooms with lavish pools, gyms, and excellent service. Either way, Marriott has to provide a room and services that make people want to stay at their location when they are away from home and come back each and every time. This job is difficult, but to their advantage, they are able to use marketing research as a means to get quality information on problems or issues that are of importance.…

    • 1318 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    On October 5, 1992, Marriott Corporation announced their plan to restructure the company by splitting itself into two separate companies. The first of the two companies, Marriott International (MI), would manage and franchise over 700 hotels and motels. In addition, it would manage food and facilities for several thousand businesses, schools, retirement homes and health-care providers. On the other hand, Host Marriott (HM), which was the second of the two companies, was to own most of the hard assets. It would own 139 hotels or motels, 14 retirement communities, and nearly 100 restaurants/shops at airports and along toll roads.…

    • 1704 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Profit

    • 707 Words
    • 3 Pages

    a. The type of agency problem that is involved here is principal-agent problem. Marriott wants to maintain a certain level of quality at all of its hotels, but in order to do that it would require capital investment by franchisees. By investing in the hotels, the franchisees are losing profits.…

    • 707 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    John Willard Marriott

    • 2748 Words
    • 11 Pages

    JOHN W. MILLARD was an American entrepreneur and businessman. Hot Shoppes Inc. , JOHN Willard Marriott, was the founder of it all. He was the founder of the Marriott Corporation (which became Marriott International in 1993), the parent company of one of the world's largest hospitality, hotel chains, and food services companies. The Marriott company rose from a small root beer stand in Washington D.C. in 1927 to a chain of family restaurants by 1932, to his first motel in 1957. By the time he died, the Marriott company operated 1,400 restaurants and 143 hotels and resorts worldwide, including two theme parks, earned USD $4.5 billion in revenue annually with 154,600 employees. The company's interests even extended to a line of cruise ships and theme parks.…

    • 2748 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    “Marriott International, Inc. is a worldwide operator and franchisor of hotels and related lodging facilities. The Company operations are grouped into five business segments, the North American Full-Service Lodging, North American Limited-Service Lodging, International Lodging, Luxury Lodging and Timeshare. Marriott develops, operates and franchises hotels and corporate housing properties under separate brand names, and it develops, operates and markets timeshare, fractional ownership and residential properties under four separate brand names. Marriott International also provides services to home/condominium owner associations for projects associated with one of its brands” (MSN Money Report, 2010). Marriott International has carried out certain strategy resulted into effective market share and good profitability. Has left other businesses and…

    • 3839 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Budapest is the capital city of Hungary and along the shore of the Duna River downtown, the infamous Marriott Hotel is situated. Until Marriott showed an interest in this establishment, it was a franchise of another major hotel chain called Inter-Continental and the hotel was named Budapest Duna Hotel. It was in 1992 when the government decided to privatize the Duna hotel and this posed as an imminent threat to the Inter-Continental franchise since owning the Duna Hotel would mean controlling the majority in market share of the Hungarian hotel industry therefore could lead to bidding wars. Once the tender was made by the Hungarian Privatization Company, two of the biggest bidders in the hotel industry emerged to claim this valuable asset, Inter-Continental and Marriott International. Marriott International emerged victorious and took over the previously government owned Duna Hotel. Marriott hotel faced many problems in setting down rules and guidelines since the “iron clad” rules set down by the government were hard to change. Previously, Managers working at Duna hotel needed to have a constant relationship with government officials and had to follow their rules or be replaced. Due to this concept of command economy, employees regarded their managers as their “master” and had no right to intervene with their decisions which were based on a certain “plan” given down to the hotel by the government and everyone in the organization had to follow it.…

    • 2464 Words
    • 10 Pages
    Powerful Essays

Related Topics