Butler Lumber Company 1. Why does Mr. Butler have to borrow so much money to support this profitable business? 2. Do you agree with his estimate of the company’s loan requirements? How much will he need to borrow to finance his expected expansion in sales (assume a 1991 sales volume of $3.6 million) 3. As Mr. Butler’s financial adviser‚ would you urge him to go ahead with‚ or to reconsider‚ his anticipated expansion and his plans for additional debt financing? As the banker‚ would you
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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
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Marriot Corporation: Cost of Capital By Xue Fan Background Marriott Corporation began in 1927 with J. Willard Marriott’s root beer stand. Over the next 60 years‚ the business grew into one of the leading companies in industry in United States. In 1987‚ Marriott’s sales grew by 24% and its return on equity stood at 22%. Sales and earnings per share had doubled over the previous 4 years‚ and the company strategy was aimed at continuing this trend. Marriot Corporation had three major lines
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Strategy and Communication Case company: Marriott International Theme: : Strategy and Communication Osiris code : EHM3.SC-02 Theme expert: : Dr. Community expert : Dr. Student name : Student id : Date : 12-12-2011 Abstract The aim of this academic report is to develop a critical view of strategy and organizational structures‚ understand how to conduct a situation analysis‚ understand how to develop a strategic direction‚ understand formulating a strategy‚ understand the
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Case questions • What is the cost of capital for Marriott’s as a whole at the prevailing capital structure vs. at the target capital structure. ➢ Be prepared to defend your specific assumptions about the various inputs adopted into equations. For example‚ the team is expected to suggest the proposed market risk premium. ➢ WACC should be estimated for the overall firm ▪ CAPM – equity beta vs. asset beta - see Section F • Compute a separate cost of capital
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MARKETING FOR MARRIOTT INTERNATIONAL Introduction: Marriott is a multi brand company with a Global Portfolio that providing lodging that fit within many market segments. This report will discuss briefly Marriott’s Portfolio of hotels‚ what they do‚ briefly examine a number of their key marketing strategies and examine how they are implemented‚ measured and ask the question does this make them market leaders? The final part of this report will try to identify if there are services or products
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Marriott International‚ Inc. (NYSE: MAR) is a global hotel chain dedicated to operating and franchising hotels and other lodging facilities. The Marriott family’s first endeavor was a small root beer stand on the streets of Washington‚ DC in 1927. Marriott’s first hotel was the Key Bridge Marriott close to the DC area which is constantly out of date due to its high demand for occupancy because of its still enviable location. From there Marriott has grown to become the leading hotelier that we know today
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Diversity matters to every one of us. The hospitality industry makes us unique in that we are able to appeal to each and every person in one way or another. In the lodging segment of the hospitality industry we come in contact with a wide variety of people every single day. Diversity is defined as "recognizing‚ appreciating‚ valuing‚ and utilizing the unique talents and contributions of all individuals” (Webster‚ 1999) regardless of age‚ career experience‚ color‚ communication style‚ culture
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“ You must be nuts if you want to work in this industry” Career Path In the Hospitality Industry SERVICE SPIRIT Which plays a crucial role in the success of our industry MARRIOTT’S The Spirit to Serve: Marriott’s Way Timeless core “ Take care of Marriott people and they will take care of guests”--People with service spirit are happy to do something extra to make guest experience memorable.. Hospitality Spirit Means That is our passion
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Marriott has acquired. New World exists in China and Hong Kong while Marriott holds the Ramada brand overseas and HFS owns the US rights. The CEO of Ramada would like Marriott to sell the rest of the rights to HFS (Diamond). I feel that it is in Marriott’s best interest to hold onto the Ramada name because it gives the company many international properties‚ but to consider changing the name altogether to associate it more closely with the Marriott name. This would separate the US operations from the
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