2. The Motto
J.W. Marriott Jr., J.W. Marriot's son and recently
resigned CEO as of March 2012, gave a speech in
2001 entitled 'Our Competitive Strength' where he
indicates that Marriott Competitive advantage is that
of their employees. An idea that originated by his
father and the running boys, J.W. Marriott Jr. firmly
believes that customer service begins with the
associates and taking care of them. "For more than
70 years, we've lived by a simple motto. If we take
care of our associates, they'll take care of the guest."
4. Origin of Idea
People need something cold to drink on a hot day. A newly wed
couple opened an A&W root beer stand in 1927 to do just that, serve
cold root beer on a hot day. The idea of serving the costumer with
and icy beverage on a hot day ultimately would end once the
summer drew to winter and the Marriott's then went out to serve
the costumers better with adding food to the menu. In the 1930's
'Hot Shoppes' were bustling with people of all ages and all
backgrounds, and they were known for there 'running boys' who ran
to the cars of the costumers to serve them burgers, milkshakes, and
barbeque. As the franchise grew considerably through the forties it
was on to the next endeavor for J.W. Marriott. The owner and his
wife were expanding upon their already bustling "hot Shoppes" that
spanned over 10 states with more then 65 locations. Because of
there success in the food industry they saw an opening in expanding
to hotels.
5. Capitalization
Marriot international Inc was separated in to two
groups Marriot service group and Marriot
management service . In 1968, Marriot corporation
became one of the first company stock in New York
stock exchange . Marriot corporation is very
diversity about investments which are divided into
three major groups: " food ,in-flight services, and
hotels and restaurant ." Marriott vacation
corporation was very concentrate on development
luxury hotel investment. in 1988, Marriot had 570
hotels which was increase 12 percent per year.
6. Capitalization
Marriot international Inc was separated in to two
groups Marriot service group and Marriot
management service . In 1968, Marriot corporation
became one of the first company stock in New York
stock exchange . Marriot corporation is very
diversity about investments which are divided into
three major groups: " food ,in-flight services, and
hotels and restaurant ." Marriott vacation
corporation was very concentrate on development
luxury hotel investment. in 1988, Marriot had 570
hotels which was increase 12 percent per year.
7. Capitalization
overview business of Marriot, it has 3500 hotels
over 70 countries. 90% revenue of Marriot came
from the hotels operations . in 2009 , the Marriot
earned 10.91 million and 11.60 in 2010.
8. Implementation-social responsibility
Creating places of refuge, providing housing and feeding the
hungry, particularly during times of disaster, is a natural extension
of this role. We also recognize our opportunity to help meet the
needs of sick and impoverished children in and beyond the
communities where we operate.
Managed and franchised properties are also encouraged to seek out
partnerships and initiatives that will contribute to strengthening
the communities in which they operate.
Environment
Climate Counts a nonprofit organization that rates corporations on
their sustainability and climate strategies, creates an annual
“Climate Counts Company Scorecard.” Marriott received the
highest ranking within the hotel sector from 2008-2012.
9. Implementation
Readiness for Hotel Careers
Marriott supports a number of programs offering educational experiences and life skills
training for youth, including those who are interested in careers in hospitality.
In Europe Marriott hotels in 24 countries are helping young people by providing
employment skills training and vocational opportunities
Internships
Scholar programs
Vitality of Children
Aiding the sick and impoverished children
Helping children and their families who are facing medical challenges.
Embracing Global Diversity and Inclusion
A multicultural marketing strategy to enhance brand preference and loyalty with diverse
customer segments
Successful advocacy for visa reform to expand the ability of diverse customers to more
easily visit the United States
Continued expansion of our level of supplier diversity influence worldwide
Understanding the cultural differences of our customers to help Marriott managers
increase their cross-cultural competence.
10. Implementation- Employees
Incentives
Awarding Well-Deserved vacations
Let them create their own holiday
Award them for any occasion
Sales performance
Customer appreciation, retention
Employee engagement and recognition
Virtual training for employees
Hiring the right person – “Spirit to serve” model
11. Implementation- Product
Hot Shoppes
May 20, 1927
J. Willard and Alice Marriott
A restaurant started with A&W root beer, tamales and chili
con carne.
Expanded quickly, not just serving food to local but became
one of the largest airline catering operation in the world
Most popular gathering spot. Teenagers met, couples courted,
businessmen lunched, and whole families dined together.
Hotel - 1957
Marriott opened a new motor hotel, considered a new kind of
expansion, compare to the Hot Shoppes.
13. Obstacles
As you grew your business, what obstacles did you encounter, how did you
overcome them and what were the major milestones?
One of the largest obstacles was when we had to deal with the aftermath of
September 11, 2001 and the unknown effects it would have on the travel
industry. Not to mention the changes it would impose on our global
expansion and the recovery of all the Marriott associates and guests
impacted that day.
More recently, the global economic downturn that began in 2008 and the
previous similar experience of the early 1990s were also significant
obstacles to overcome. We drew upon the previous 1990s layoffs to handle
the human side of the equation again in 2008. Some were inevitable, but
we were able to temper the pain by keeping many people on board at
reduced hours but with full health benefits.
http://www.forbes.com/sites/danschawbel/2013/02/04/j-w-marriott-jr-from-root-beer-
stand-to-global-hotel-company/
14. Obstacles-New Territory
Many countries around the world have limited capacity to regulate and
supervise their traditional financial institutions, and developing
countries in particular are often accused of poor regulation and
supervision of the formal financial system.
Given that microfinance is especially needed in developing countries,
many countries are ill equipped to provide the additionaloversight
needed to regulate and supervise microfinance institutions.
Lower capital requirements: Minimum capital requirements should be
low enough to attract new entrants into microfinance but high enough
to ensure the creation of a sound financial institution.
15. Obstacles- Competitors
One major trend in the industry is the increasing
competition in the area of increasing branded offerings.
Marriott was one of the pioneers in promoting the
concept of foreign brand awareness in the industry;
however, its competitors have begun doing so more pro-
actively.
Competition in the industry is generally based on the
quality of rooms, restaurants, meeting facilities and
services, attractiveness of locations, availability of a
global distribution system, price and other factors.
Although Marriott’s global presence across 70 countries
enables it to offer services to a large number of
customers, it lags behind its competitors who are present
in 80-100 countries.
16. Vision Realized
Marriott’s rich legacy of service, its “Spirit to Serve”, defines its success
The long term commitment to a sustainable business puts Marriott on the right
path to make a real difference in communities around the world
The business model of managing and franchising hotels rather than owning
positions Marriott for long-term success
Geographic expansion is a significant way to strengthen the brand
Marriott has a global world business presence - At the end of 2011, it’s lodging
portfolio included 18 brands in 73 countries and territories
17. Lesson Learned
The foundation of success for over 85 years has been the
enduring belief that Marriott’s associates are the greatest
asset, putting people first
Take care of associates, they’ll take care of guests
A diverse and inclusive work environment strengthens the
company’s culture and provides a competitive advantage
Customer feedback is critical to business success
A superior product, whether it’s good food or some of the best
lodging in the world, is a key to success
Commitment to service and business integrity helps to build a
reputation as a global hospitality leader
Adhering to the principles of social responsibility helps
maintain a competitive advantage and the respect and
confidence of associates, customers and clients
