Financial Decision Analysis~Marriott Corporation Case Study Executive Summary – Q5 – Hurdle Rate Analysis Hurdle rates‚ the weighted cost of capital that projected cash flows must exceed for initiatives to be considered‚ vary within Marriott Corporations due to their unique industry risk levels and capital structures. They use this number to determine which projects to accept‚ to adjust the rate at which the firm grows and as a measure for compensation within each business area‚ and as incentive
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Vision Making tomorrow better then today Vision of Marriott Marriott International have core values rather similar to a Mission Statement: "The core values established by the Marriott family over 80 years ago have served our company well and will continue to guide our growth into the future. Foremost of these core values is the enduring belief that our associates are our greatest assets. Core Values >> There is a "Marriott Way." It’s about serving the associates‚ the customer‚
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TOWS TOWS TABLE: E&O BERHAD | Internal FactorsExternal Factors | Strengths- SS1- Brand EquityS2- Sound Liquidity PositionS3- PESTS4- Strong Corporate StructureS5- Number of Service StationS6- Strong Corporate CultureS7- Employee Relationships | Weaknesses- WW1- Business Concentration: MalaysiaW2- Follow parent’s procedureW3- Risk AssessmentW4- Competitor. | Opportunities- OO1- Improvement in Malaysian Tourism SectorO2- Growing e- commerce activitiesO3- Asean Free Trade Area (AFTA)O4- Population
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Marriott Hotel (Heathrow) From 1927 Marriot Hotel is a leading brand in hospitality industry. Marriot Hotel has grown into a well established international group with more than 3000 hotels all around the world. Marriot Hotel holds several popular brands in hotel industry such as Renaissance Hotels‚ Ritz-Carlton‚ Courtyard and Residence Inn. The hotel provides additional benefits and points to frequent and business travelers making loyal customers. Marriot Hotel near Heathrow international airport
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AEREN FOUNDATION’S Maharashtra Govt. Reg. No.: F-11724 SUBJECT:-E-COMMERCE MANAGEMENT COURSE : Total Marks : 80 Attempt all the cases Case 01 GM’s E-Business Strategy INTRODUCTION US-based General Motors (GM)‚ the largest automobile company in the world‚ was in trouble in the late 1990s. The company’s market share in the US automobile market had been steadily declining from a high of 50% in the late 1960s to a low of 28% by 1999.Analysts pointed out that GM had been in the grip of a vicious
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Introduction In today’s economy where knowledge and skills demand are rising‚ it is also the responsibility of an organization’s human resource team to analyze and ensure they recruit the most appropriate candidate for the job. Organisations have been seeking‚ attracting and retaining the best talents available in order to overcome the competitive challenges that they are facing today. Apart from achieving the strategic goals and objectives of an organization‚ human resource management (HRM)
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Within the Hilton organization‚ there are several awards and employee recognitions‚ and one of the most important rewards is “the CEO Light & Warmth Award‚” which is Hilton’s greatest level for team member recognition. It is prestigious award that recognizes employees‚ who consistently go above and beyond by exceeding expectations and who represent the shared Hilton values. Ten to twelve winners are chosen each year from all of the Hilton brands and corporate locations‚ and they receive several prizes
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Marriot Case Marriot use the Weighted Average Cost of Capital to estimate the cost of capital for the corporation as a whole and for each division‚ and the hurdle rate is updated annually.(WACC = (1-Tc) * (D/A) * R[D] + (E/A) * R[E]) Marriot’s Tax Bracket = 175.9/398.9 = 44% Division’s asset weight to the corporation: Lodging = 2777.4/4582.7 = 0.59 Contract = 1237.7/4582.7 = 0.28 Restaurant = 567.6/4582.7 = 0.13 Risk free rate is 30 years T-Bond = 8.95% (Lodging use long-term debt)
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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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Alice Marriott and guided by Marriott family leadership for more than 80 years‚ the company is headquartered in Bethesda‚ Maryland‚ USA‚ and reported revenues of nearly $13 billion in fiscal year 2013. Since 1927‚ Marriott has been known for a culture that puts people first. They are growing globally and opening up a world of experiences and opportunities for people from all walks of life. Marriot with Employees & Customers (what they did & how they did it) Started by J. W. Marriott‚ Sr.‚
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