...HEC Lausanne Corporate Finance Case 3: Marriott Corporation (A) Spring Semester 1. Project Chariot is proposed by MC’s CFO, Stephen Bollenbach, to face the troubles that Marriott Corporation (MC) is currently facing. A glimpse of history is useful to understand the current situation. MC’s main business is to develop hotel properties, to sell them to outside investors and to conclude long-term contracts. In the 70’s MC began to finance its expansion by major borrowings under the impulsion of the new president J.W Marriott, Jr. that abandoned the conservative financing policy of its predecessor (and father). In 1981 the Economy Recovery Tax Act (ERTA) gave enormous incentives for companies to invest (tax write-offs were given for each $ invested in real estate). This pushed MC to develop even more its activities for instance in lodging services or in full service compact hotel. Even though ERTA was ended in 1986 MC continued its massive investments, which lead to a significant accumulation of debt. This was not an issue since the revenue growth was able to sustain the also growing interest payments. Until the drop of income in 1989, which froze capital expenditures. Unfortunately for MC, it was followed by the real estate collapse in 1990 that left MC with massive interest payments for properties that no one wanted to buy anymore given the current economic environment. This situation results in an extremely limited ability for MC to raise funds in the capital market...
Words: 2709 - Pages: 11
...2011 Project Management Term Paper Jenna Volk Production Operations Management 2011 Project Management Term Paper Jenna Volk Production Operations Management Project Management “Trying to manage a project without project management is like trying to play a football game without a game plan.” * K. Tate Project management, in the modern sense, began in the early 1950s, although it has its roots much further back in the latter years of the 19th century. The need for project management was driven by businesses that realized the benefits of organizing work around projects and the critical need to communicate and coordinate work across departments and professions. The government, military and corporate world have now adopted this practice. History In the 19th century, the rising complexities of the business world showed how project management evolved from management principles. In this country, the first large organization was the transcontinental railroad, which began construction in the early 1870s. Suddenly, business leaders found themselves faced with the intimidating task of organizing the manual labor of thousands of workers and the manufacturing and assembly of unprecedented quantities of raw material. Near the turn of the century, Frederick Taylor (1856–1915) began his detailed studies of work. He applied scientific reasoning to work by showing that labor can be analyzed and improved by focusing on its elementary parts. He applied his thinking...
Words: 2450 - Pages: 10
...Download PDF File Teletech Corporation Case Study Solution PDF Ebook Library TELETECH CORPORATION CASE STUDY SOLUTION Download: TELETECH CORPORATION CASE STUDY SOLUTION / PDF Teletech Corporation Case Study Solution in addition to the lessons as well as textbooks are basically 2 sides of the very same coin. The classes as well as textbook assist you construct a strong structure on which to be analyzed on. Teletech Corporation Case Study Solution on the other hand, allow you to place this expertise to practical usage. Teletech Corporation Case Study Solution allows you to create in all the relevant locations. The wonderful aspect of Teletech Corporation Case Study Solution are their cost. They are not horribly expensive and evaluating that against their worth, you could not actually pay for to be without them. They are excellent for bringing a context to the course and also aiding you establish your understanding of the training course as a whole. The other alternative which is much less preferable is to examine the program in a bit-by-bit way which is a danger when it pertains to evaluation day. Doing this is likely to leave gaps in your understanding of the program. Utilizing the Teletech Corporation Case Study Solution assists draw all this know-how together into a relevant context and also it is fundamental in developing a further understanding of the topic. One more fantastic aspect of Teletech Corporation Case Study Solution are that taking a particular course might...
Words: 1706 - Pages: 7
...Introduction to Hospitality – Tourism is not just about the facilities and attractions provided for visitors. It is about people and especially about the relationship between the customer and the individual providing service. Everybody employed in tourism needs to have the knowledge, skills and attitudes to provide the standard of product and service that customers expect. Knowing about the tourism industry, its component parts and especially where you fit in is an important starting point to a successful career in tourism. Tourism may be described as the activities of tourists and those who cater for them. It is a highly diversified business with many component parts ranging from airlines to hotels. Hospitality is the act of kindness in welcoming and looking after the basic needs of guests or strangers, mainly in relation to food, drink and accommodation. A contemporary explanation of Hospitality refers to the relationship process between a guest and a host. When we talk about the “Hospitality Industry”, we are referring to the companies or organisations which provide food and/or drink and/or accommodation to people who are away from home. However, this definition of the “Hospitality Industry” only satisfies most situations. Online Hospitality – Information systems form a fascinating and rapidly expanding field of study. Hospitality traditionally lags other sectors in adopting information technology but this has changed in recent years and research into its application...
Words: 3176 - Pages: 13
...Marriot – Group Pricing Optimizer Revenue management has been a system long used by the airline industry to optimize revenue on airline routes. Marriott implemented their own revenue management One Yield system twenty years ago to optimize individual guest room rates and allocation. One Yield is used in 97 percent of Marriott’s 3,300 hotels in 70 different countries to handle over 75 million individual guest room transactions per year. Recently, Marriott decided to move from One Yield to Total Yield so its revenue management system would include all revenue generation instead of just individual guest rooms. To develop this system, Marriott created a proprietary Group Pricing Optimizer (GPO) to help hotel managers decide on what rates to give to individual, group and outside catering events. Marriott International’s One Yield revenue management system has optimized profit by utilizing demand forecast, inventory allocation, and seamless interface to the reservation system. Prior to One Yield, Marriott relied on the manual approach through historical rates. The problem with this approach is that the complexity of daily updates and rapid changes in demand over a very long booking horizon creates static rates. These rates do not reflect individual customers’ willingness to pay, do not reflect the potential for displacement, or the trade-off between a booking that might have higher value. One Yield successfully linked requested bookings with forecasted...
Words: 1342 - Pages: 6
...‟ “CASE STUDY: MARRIOTT GROUP OF HOTEL‟S EFFORT TO ATTRACT MEDICAL TOURISTS” RAMAMOORTHY PANDIAN STUDENT ID: 09004669 DISSERTATION SUPERVISOR THOMAS REEVES SUBMITTED IN PART FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION UNIVERSITY OF WALES INSTITUTE, CARDIFF FEB 2010 1 ACKNOWLEDGEMENT First and foremost, I would like to thank my supervisor Thomas Reeves for his valuable professional advice and guidance as well as for rendering his kindness, endless patience and continuous encouragement towards my dissertation. I would like to thank interviewees in the Marriott Group of hotels and its branches, without which this study could not have been reached its conclusion. A handful of thanks to all the lecturers of my concern for their teaching, without them, I can‟t learn so much knowledge. This dissertation could not have been completed without continuous support, encouragement, and caring of all my friends and my family members. I would wish them many a thanks too. Finally, I would like to express my sincere appreciation to those who provided me with great support and encouragement during my studies in UK. Thanks again to all of them. 2 ABSTRACT The aim is to find out the most possible means that recession would affect the tourism industry globally and also to pay attention towards the various measures taken over by the UK hotels to overcome those tough times and to analyze the same through the case study...
Words: 19699 - Pages: 79
...Marriott Corporation 02/11/15 BUS 590: Innovative Business Models for the ‘Next’ Economy Team A: Congying Ling | Devon Nobles | Sai Prashant Boy Reddy | Snehal Ramtekkar Introduction J.W. Marriot founded the Marriot Corporation (MC) in the year 1927. The main business of this corporation was developing hotel properties around the world and selling them to outside investors while retaining lucrative long-term management contracts. By 1991, MC had around 202,000 employees ranking it as the 12th largest employer in the United States. The 1986 tax reform act ended most of the tax incentives for real estate investment. In order to maintain its reputation, MC continued to invest in Real Estate development activities till the market collapsed in 1990. MC started focusing on contract and management opportunities that required less capital. This along with a complete halt of real estate operations helped MC to improve from its position in 1990 but it was not still very far from its former glory. Bollenbach had served as treasurer of MC in the early 1980s and returned to MC as CFO in February 1992. His proposed solution to bring MC out of its troubles is “Project Chariot”. Under Project Chariot, MC would become two separate companies. One of the companies would be named Marriott International Incorporated (MII), which would comprise of MC’s lodging, food and...
Words: 2127 - Pages: 9
...Nov. 25th, 2014 Marriott Case 1) Marriott Corporation is trying to determine the proper WACC it which to value it’s projects in the near future. A problem exists because the market (especially the bond market) has been quite volatile, which affects the risk free rate. The risk free rate is the foundation of CAPM, which will be needed to determine the WACC. 2) The problems arise because the four key elements of Marriott’s financial strategy are 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. All of these elements need accurate numbers to be effective. 3) The management understands that the WACC can be inaccurate due to the recent volatile market and needs to reassess how they will determine the WACC. 4) Management is considering using a single WACC to determine if projects are a good idea or not, regardless of which division the project is in. Furthermore, they are looking to tie in the hurdle rate for incentive compensations for management. 5) This solution is not a good idea because each division is subject to different risks and costs of capital. Therefore, using a single WACC can incorrectly choose whether a project was a good idea or not. In addition, management can be over or underpaid based off how far the “Marriott WACC” is from the “Division WACC”. 6) I would determine the WACC for each individual division and...
Words: 966 - Pages: 4
...management is an employer’s behavior that creates internally and externally competitive practices to pay employees (Milkovich, Newman, & Gerhart, 2014). Marriott International Inc. is a well-known hospitality company with about 3,800 properties that serves customers around the world. The company has been on the 100 Best Companies to Work For list every year since its creation in 1998. According to CNN money website in 2013 it was ranked number 64. The company is headquartered in Bethesda Maryland. Their 2013 Annual Report has not been published yet, but based on the 2012 Annual Report, their revenue was over $12 billion (www.money.cnn.com, 2013). According to 2012 Annual Report their goal is to offer their associates fair treatment and opportunities for personal and professional growth. Keeping employees happy will ensure their reputation for excellent customer service and satisfaction therefore, the company is constantly seeking creative ways to reach its goals. The organization’s vision is to be the number one hospitability company in the world. Their core values include: putting people first, dedication for customer satisfaction, how to do business and serve the world (www.investor.com, 2014) For global organizations like Marriott, compensation can be challenging. In this paper, I will present whether Marriott has a centralized or decentralized approach for its global compensation. I will also describe the best practices for implementing a global compensation approach...
Words: 2385 - Pages: 10
...Sarmas www.csupomona.edu/~psarmas CATALOG DESCRIPTION: A seminar course in finance utilizing comprehensive cases to simulate the role of the financial manager. 3 seminar-discussion. Prerequisite: GBA 546, all required 500-level courses, and microcomputer proficiency. Concurrent enrollment in GBA 646. Unconditional standing requirement. EXPANDED DESCRIPTION OF THE COURSE AND INSTRUCTIONAL METHODS: A. Expanded Description of the Course: This course reinforces the basic concepts of financial management. The course provides an in-depth discussion of key topics that are critical to financial management: (1) the goals of the firms, (2) financial statement analysis, planning, and forecasting, (3) working capital policy and management, (4) capital budgeting techniques without and with risk, (5) capital structure theory and application, (5) the cost of capital estimation, and (6) long-term financing decisions. In addition, the course examines issues such as lease financing, merger and acquisition, and international financial management. B. Instructional Methods: The delivery system throughout this course will be a combination of class discussion and case analysis. The case analysis will be both in a written format and oral presentation. The amount of lecture will be limited to detailed coverage of concepts pertaining to each individual case. REQUIRED BACKGROUND OR EXPERIENCE: A. Prerequisites: Fundamental of Financial Management (GBA 546), all required...
Words: 3255 - Pages: 14
...UNIVERSITY COLLEGE OF NORTHERN DENMARK 1st year interdisciplinary exam 2015 TRENDS IN BOOKING THROUGH THE MOBILE DEVICES Klaudia Harvanova 22.5.2015 Number of characters: 19 123 UCN SERVICE AND HOSPITALITY MANAGEMENT KLAUDIAHARVANOVA CONTENTS 1.0 Introduction ....................................................................................................................................... 3 2.0 Delimitations ..................................................................................................................................... 4 3.0 Methodology ..................................................................................................................................... 4 3.1 THEORETICAL FRAMEWORKS ........................................................................................................ 4 4.0 Analysis .............................................................................................................................................. 6 4.1 Task 1: ............................................................................................................................................ 6 4.2 Task 2 ............................................................................................................................................. 8 4.3 Task 3 ............................................................................................................................................. 9 4.4 Task...
Words: 3794 - Pages: 16
...answer the questions revolving around the Project Chariot, the Spin-off that allowed Marriott to separate its business activities in its world famous hotel management business and a separate real estate business in 1994. This project involves the splitting up the company into two separate entities, Marriott International Incorporated (MI) and Host Marriott Corporation (HM) in order to minimize the debt burden and improve the financial health of the company after severe effects from real estate market crash and the slowdown in the business in early nineties. The description of Marriott Corporation, key issues faced by the corporation, details about the proposed Project Chariot and the alternatives and consequences of implementing Project Chariot is reported in the following sections. 1) The first analysis is the impact assessment for the parties and stakeholders of Marriott: According to the reorganization plan MI would operate hotels and include Marriott’s service businesses. It would also own Marriott’s trademarks, trade names, reservation and franchise systems. HM would own Marriott’s hotel properties and undeveloped real estate. It would also operate food, beverage, and merchandise concession in airports and toll-road rest areas. Impact Assessment for: a) Shareholders: the project would give each shareholder one share of the new Marriott International Inc. (MI) for each share of Marriott, so since no cash would be exchanged/transferred. It would have the beneficial effect...
Words: 1098 - Pages: 5
...[pic] Team July 2, 2012 Team012 httwww.marriott.com/Marriott-hotels-resorts/ July 2, 2012 TEAM -BEARS Table of Contents 1. Executive Summary 1 1.1. Introduction 1 2. Environment Analysis 1 2.1. Competitive Forces 1 2.2. Economic Forces 2 2.3. Political Forces 2 2.4. Legal and Regulatory Forces 2 2.5. Technological Forces 2 2.6. Sociocultural Forces 3 3. Situational Analysis 3 3.1. SWOT Analysis 3 4. Strategic Plan and Focus 4 4.1. Mission Statement 4 4.2. Competitive Advantage 4 4.3. Marketing Goals and Objectives 5 5. Market-product Focus 7 5.1. Marketing and product objectives 7 5.2. Target Market 7 5.3. Product Line 7 5.4. Promotion 7 5.5. Place 8 5.6. Pricing 8 5.7. Positioning 8 6. Implementation Plan 9 6.1. Marketing Organization 9 6.2. Activities, Responsibility and Timeline for Completion 9 7. Evaluation and Control 11 7.1. Financial Analyis 11 7.2. Market Share Analysis 11 7.3. Evaluation Analysis 12 References 13 Strategic Plan and Focus Section References 13 Appendices 15 Executive Summary 1 Introduction Marriott International is a global hospitality company that operates and franchises hotels and lodging facilities. The company primarily operates in America, Europe, Africa and Asia-Pacific. It is one of the leading lodging companies with more than 3,700 properties in 73 countries and territories worldwide. The company with its global presence and strong brand...
Words: 3702 - Pages: 15
...Table of Contents: Introduction….………………………………………………………………………………..p. 3 Five Forces Model in Hospitality Industry…………………………………………………..p. 4 Top three companies in Hospitality Industry (Hotels)………..…………………………….p. 5 Marriott International, Inc. Comparative Strategy, Value Chains..……………………....p. 7 Differentiation Strategy of Marriott International, Inc……………………….…………...p. 7 Cost Leadership Strategy of Marriott International, Inc…………………………………..p. 8 Value Chains of Marriott International, Inc………………………………………………p. 8 Primary Activities…………………...……………………………………………….p. 8 Supporting Activities………………………………………………………………...p. 9 Business processes………………………………………………………………….p. 10 Conclusion………………………………………………………………………………….…p. 11 References……………………………………..………………………………………………p.11 “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency”. (Bill Gates) Introduction. In the today’s world of competitive markets, information technology has a huge impact on the success of the companies. “The role of IT is constantly evolving and has changed significantly from the days when the IT organization was often referred to as “data processing.” Today, in many industries, IT enables some businesses to differentiate themselves from their competitors. Those companies...
Words: 4798 - Pages: 20
...4089 www.soeagra.com/ijert/ijert.htm © Society of Education, India IJERT Original Article Marriott India: Managing Its Hospitality through Gearing Service Quality Shikha Singh, Dinesh Kumar, Nilosha Sharma Bahadur Shastri Institute of Management, Delhi Nurture Education Solutions Private Limited, MBA College, Gujarat University, Ahmedabad Email: shikhabirsingh@gmail.com , dineshkumar.kumar02@gmail.com, niloshasharma05@gmail.com 3i1,2Lal ABSTRACT The Marriot group of Hotels launched back in 1983 are one of the largest brand and the world’s 12th largest lodging chain.1 The Marriott had around 8,000 hotels worldwide. The company operated and have franchisees under the brand names Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari. The Marriott group in India has being focusing on its quality of service delivered and the various other factors like customer satisfaction. The case highlights the journey of Marriott group and the various services provided by Mariott. The case also discusses the various challenges upcoming for Marriott group in India related to customer service and customer satisfaction. Pedagogical Objectives The case study helps to understand and analyse: 1. The dynamics of Indian service Industry/Hospitality Industry 2. Challenges and Opportunities for Marriott in India Mariott Group: An Overview "When you take good care of your people, they'll take pride...
Words: 5911 - Pages: 24
