Marriott International

The evaluation of both the internal and external environment are designed to help organizations
determine strategies to become more efficient and compete better. Previous analysis has shown
that Marriott International is responsive to both internal strategies and is able to compete well
with its two closest rivals who are Lowes and Disney. This paper therefore suggests three
strategies that the organization can use to become more profitable. Specifically, the report
considers the 4 alternative strategies, the cultural and organizational factors that should be
considered when analyzing and choosing among the alternative strategies, strategy prioritization,
a quantitative strategic planning matrix and procedures for strategy implementation. The report
also considers the modalities of implementing the strategy at the corporate, business and
functional levels, procedures for strategy review and evaluation and the ways in which the
organization can take corrective measures in case of challenges that cause deviations, and a
conclusion.

Alternative Strategy selection

The alternative strategies that have been considered for this assignment are market development,
horizontal integration and products development. These strategies have been considered for
several reasons. Each of the three alternative strategies is available to an organization that
operates in an industry with rapid market growth and strong competitive position as identified in
the grand strategy matrix. These strategies would help Marriott be more competitive and
strengthen its position as a global player. The organization’s culture and structure and resources
can support the implementation of these strategies. The organization’s strengths and
opportunities will be essential in the strategy selection. Their contribution is more visible when
the organization.
Market development
This strategy is aimed at offering the organization’s product to a new market. Marriott
International has structured its products to target the high-end and luxury customers in the
market. However, one of the areas that the organization needs to seriously consider is the market
offered by children. This strategy has been excellently carried out by one of its competitors
Disney, and has tremendously excelled. Marriott International does not currently have a strategy
that it uses to specifically target children.
Horizontal integration
Another strategy that is available for the organization is horizontal integration. This strategy is
concerned with acquisition of business interests in the same level of the value chain in the
industry. Besides reducing competition, this strategy can help the organization diversify its risk.
Currently, Marriott International has focused on partnerships with other firms in the same
business level. Horizontal integration would enable Marriott International to exercise control
over the market. It would give Marriott International access to new customers and access to a
diversified talent pool.

Product development
Another alternative strategy would be product development strategy. Marriott International has
grown as a brand due to its ability to embrace and use technology. One of the products that
Marriott International can offer its customers is the virtual and augmented reality. This is one of
the latest industry trends in the hotels and accommodation industry that Marriott is a heavy
participant in. This strategy would help the organization increase its product offerings that are
based on technology. Virtual and augmented reality can support other operational areas. The
technology has been used to support customer decision making. As such, Marriott International
should consider this strategy as together to remain relevant in an industry that is moving fast in
the world of technology.
Asset diversification and management strategy
This is another strategy that has emerged as a trend in the hotels industry. One of the reasons
why Disney has been a worthwhile competitor is through proper administration and management
of its assets. Through prudent management, Disney has been able to increase the value of its
assets and develop more assets. Mergent Online reports that the organization has a the most
highly valuable assets in the industry; this has a significant contribution to the way that Disney
generates revenues. Therefore, Marriott International needs to consider adopting this strategy as
an alternative strategy.
Cultural factors that should be considered when selecting a strategy
Marriott International has a set of cultural values that it considers essential to its success. These
factors are putting people first, the pursuit of excellence in customer service, embracing change
through innovation, acting with integrity, and, service to the world. The best strategy should be a
strategy that advances the organization’s pursuit for excellence in customer service. Market
penetration strategy is a customer centered strategy and aims to increase customer service. The
strategy is also aligned to the organizations objective to be a marketing innovator.
Organizational factors to consider when implementing the strategy
The organization needs to consider is mission and vision. Any strategy that the organization
considers needs to be aligned to the organization’s mission and vision.
Financial resources
The organization should consider the financial resources available at its disposal. Financial
resources are an important consideration because of the connection between finance and risk.
Any strategy that is selected by the organization should be successfully implemented without
putting the organization’s resources at a strain and without exposing the organization to
unnecessary risks.
Staff capabilities
Marriott International considers its staff an essential and critical part of its success. The new
strategies must consider what capabilities the staff have and how the new strategy will help to

develop such capabilities. Specifically, the Marriott International must consider the type and
quality of skill that its employees have and if the skill inventory will help the organization
achieve its goals. If not, the organization must consider whether to choose the strategies that are
best suited to employee’s skill set or whether their employees should be trained to achieve the
level of skill required to successfully implement the new strategy.
Quantitative strategic planning Matrix
A Quantitative strategic planning matrix (QSPM) incorporates information from the Internal
Factor Evaluation (IFE) and the External Factor Evaluation (EFE). However, the difference
between the internal and external factor evaluation and the QSPM is that the QSPM considers
the new strategies and compares them against each other in making a decision on which strategy
to select.

Strengths Weight Market
developemt

Product
development

Horizontal
integration

Asset
Diversificatio
AS TAS AS TAS AS TAS AS TAS
Global presence 0.12 3 0.36 3 0.36 4 0.48 1 0.12
Financial reserves 0.14 3 0.42 4 0.56 4 0.56 2 0.28
Service variety 0.10 1 0.1 2 0.2 3 0.30 1 0.1
Large customer base 0.09 2 0.18 3 0.27 2 0.18 4 0.36
Brand equity &
reputation

0.12 3 0.36 2 0.24 3 0.36 3 0.36

Weaknesses
Data protection 0.1 1 0.1 2 0.2 2 0.2 3 0.3
Business structure 0.07 4 0.28 3 0.21 3 0.21 2 0.14
Brand dilution 0.06 1 0.06 3 0.18 1 0.06 1 0.06
Employee
dissatisfaction

0.09 2 0.18 1 0.09 3 0.27 4 0.36
Legal woes 0.11 3 0.33 2 0.22 1 0.11 2 0.22
Total 1
Opportunities
Emerging economies 0.12 3 0.36 4 0.48 3 0.36 3 0.36
Leveraging technology 0.07 2 0.14 2 0.14 2 0.14 2 0.14
Global operations 0.14 1 0.14 1 0.14 2 0.28 1 0.14

Increased global air
travel

0.10 2 0.20 3 0.30 1 0.10 2 0.2

Innovation and
creativity

0.09 2 0.18 2 0.18 2 0.18 3 0.27

Threats
Competition 0.12 3 0.36 4 0.48 3 0.36 3 0.36
Declining global
economy and
uncertainty

0.10 2 0.20 3 0.30 4 0.40 2 0.20

Cyber insecurity and
data breaches

0.09 1 0.09 2 0.18 2 0.18 1 0.09
Reduced revenues 0.10 3 0.30 3 0.30 1 0.10 2 0.20
Pricing strategy 0.07 3 0.21 4 0.28 3 0.21 3 0.21
QSPM Score 4.55 5.32 5.04 4.83

The table above is an evaluation of the Quantitative strategic planning matrix that is constructed
through evaluation of the organization’s strengths, weaknesses, opportunities and threats. The
attractiveness score includes value from 1-4 with 1 being least attractive and 4 being the most
attractive score. The total attractiveness score TAS is a product of the organization’s
attractiveness score and the weight. From the above analysis the organizations most attractive
alternative strategies are product development and horizontal integration.
Advantages of the QSPM model
The QSPM model can be used as a tool to prioritize strategies. From the above analysis Marriott
International should concentrate resources on horizontal integration and product development
strategies. The least attractive strategies are asset diversification and market development.
Another advantage of the QSPM model is that it allows organizations to consider the impact of
both internal and external factors in decision making. Through the QSPM model, organizations
can evaluate the practicability of corporate, business and functional level.
Strategy Recommendation
The two best strategies have been selected due to how effectively the enable the organization to
achieve its mission and vision. The mission and vision statements have been restated as below.
Marriott International mission: “to enhance the lives of our customers by creating and
enabling unsurpassed vacation and leisure experiences.”
Marriott International vision: “to become the premier provider and facilitator of leisure
vacation experiences in the world.”

The two best strategies from the QSPM are horizontal integration and product development.
Marriott International would consider this strategy a critical investment that would increase its
ability to serve customers and diversify risk. This strategy would require considerable financial
investments. The organization has been a consistent performer over the years. One of its greatest
strengths is financial reserves that it has at its disposal which can be essential for horizontal
integration. Horizontal integration would increase Marriott International’s hotels inventory and
in so-doing increase its ability to create unsurpassed vacation and leisure experiences in line with
the organization’s mission. Horizontal integration would provide Marriott International with new
facilities with which it can facilitate leisure vacation experiences in line with the vision.
The second alternative strategy that the organization should consider is product development. As
indicated in the first section, the organization can actualize this strategy by investing in
technology through virtual and augmented reality. This strategy would enable the organization to
be more competitive and technologically adaptive. This strategy would improve customer
experience and therefore contribute towards the organization’s achievement if its vision.
Strategy Implementation Process
The next step after strategy selection is the strategy implementation. Strategic implementation
process is a sequential process, every stage requires different participation from the employees
and has its own set of resources.
The first step in the process is to set goals. The strategy selected is horizontal integration. Setting
goals requires Marriott International to determine how exactly it would could apply the strategy
to become more profitable. The goals of the strategic plan would be increasing profitability,
increasing market share and the overall organization value. The goals set need to confirm the
organizations mission and vision. As indicated in the organizational factor that determine
strategy selection, Marriott International strategic implementation process needs to restate the
organization’s mission and vision.
Implement
The next stage is to develop plans that will be used in the implementation. This stage of the
process requires the organization to collect information about the strategic implementation,
determine roles and assumptions. At this stage, the organization determines the functional
contribution at the corporate, business and functional level. The key performance indicators
(KPI) for appraising and evaluating the strategic planning process are also evaluated in this
stage. This stage also assesses the organizations current strengths and how they contribute
towards successful strategy implementation.
Implementation at the corporate level
The corporate level of management at Marriott International would be the ultimate decision
makers on how the strategies would be implemented. At the corporate level the organization, and
their activities would include identifying the most strategic and profitable ventures for
acquisition. The corporate level of management would also be required to assess the

organization’s financial position to identify the risks and pitfalls that the organization could fall
into when implementing the strategy.
Business level
The horizontal integration would involve Marriott International acquiring new business ventures.
The business level activities would involve identifying the modalities of how the organization
would structure the acquired businesses to fit to Marriott International standards. The
organization is involved in hotel redevelopment and the plans for any redevelopment of the
acquired interests, resources and staffing would be decided at the business level.
Functional level
The functional level would require Marriott International staff to fulfill duties with through
offering services using the new acquired business interests. This includes assigning staff to the
new acquisitions, marketing the new acquisitions to the customers and assigning cost centers.
Procedures for review and evaluation
The strategy evaluation would have to be conducted using the Key performance Indicators (KPI).
One of the KPI that can be monitored to demonstrate the efficiency with which the organization
implements the strategy. Horizontal integration would allow the organization to increase the
revenues and the profits. Profits are essential in indicating the efficiency with which the
organization is creating shareholder value.
Set standards
The next stage would be to set standards. In the step above the organization uses revenues and
profits and a key performance indicator. Setting of standards would require Marriott
International to determine the level of revenues that are acceptable. For instance, Marriott
International can set the target that the new business interests acquired under the horizontal
integration strategy should lead to an annual increment in sales of 10%. The management can
accept 7% but below that is unacceptable.
After setting the standards, the next step would be measuring the performance to access whether
the implementation falls within the tolerable range. From the example above, the actual
increment in sales would be assessed. If it falls within the acceptable limits, then the strategy is
sustainable and there is no need to take corrective action. If it does not fall within the acceptable
limits then a strategy review would be necessary to identify the areas that the organization is
lacking or to recommend implementation of an alternative strategy.
The table below indicates the activities at each organizational level for monitoring the
implementation of the strategy.
Level Activities
Corporate level
Business level
Functional level

Corrective measures
The corrective measures would be taken when the organization’s strategic implementation fails
to meet the plan and purpose for which it was designed. Marriott International is a highly flexible
company going by the scope of operations and can be highly adaptive if the strategies fail to
meet the desired level. A strategic review would be essential in determining the best course of
action. One of the ways that Marriott International would actualize this is by evaluating one if
the alternative strategies identified in the implementation process.
Corrective action would also include Marriott International’s plan to review the process. The
strategy could be implemented successfully but inefficiencies within the process could result in
the organization not achieving its critical goals.