Marriott hotel is a U.S. based company founded by J. William Marriott in 1927. The initials activities were to serve hot dogs along with root beer and this was done in the early 1929. However, the company grows steadily and incorporated Hot Shoppes in the later days and this led to involvement in the lodging and restaurant industry. The company created and started a number of airlines and cafeteria at the U.S. Treasury building and Highway division in the early 1980s. In 1982, the company acquired Host International which was among the leading hospitality service provider in the service industry and that made it to become the leaders in the airport operation services, food and beverages, and merchandise facilities providers in U.S. and this made the company to grow and acquired many companies (Marriott International, 2009).
The company has expanded its business with time and has over 3400 business, and approximately 145,000 employees in seventy countries (Starkov, 2009). Its portfolio constitutes the 18 famous brands like Marriott, JW Marriott, Ramada International, Renaissance, Courtyard Inn, and Ritz-Carlton among others. The company core principle that drives the company motto is convenience and customer satisfaction. The company has integrated electronic business as one of the key strategies to attract and retain their customers and in 1987; the company launched its worldwide reservation center (WRC) at Omaha, Nebraska and this was the largest centre in a one- point reservation operation in U.S. hotel industry (Starkov, 2009).
Analysis of Global Business Opportunities
The launched of worldwide reservation centre at Omaha, Nebraskain 1987 has facilitated better service to its customers, thereby attracting many customer globally. This centre enables customers to book their accommodations via the mails or online and centre will give immediate feedback concerning their hotels, driving directions, restaurants and any other facilities that the company offers. To further the ease of access to its information, the company launched its website in 1996 with search engines www.marriott.com.
The successful adoption and integration of electronic business has widened the market opportunities of the company. The major focus of the e-business is drive customer service and enhances the company profitability and growth. The company goal is to serve their customers consistently, regardless of the channel they use to reach the company (Desmond, 2010). The electronic business that is supported through web technologies has enabled the company to solve the financial crisis and also to retain its existing customers. Through the e-business, any customer can effectively with the company hoteliers and thus improves the customer relation and increases the company revenues. The increased use of internet services globally has facilitated the success and integration of this opportunity thereby offering good avenues for online investment and marketing.
The vast number of the outlets in various countries enables the company to increase its market share in the industry. The company has over three thousand four hundreds business and this make is easier to introduce new brands in different market. The numbers of business across the globe provides a better opportunity to segment the market and to produce different products to meet the different markets (Prashanth, 2009). Through segmentation of the market, the company stands a better chance to analyze and evaluate the performance of its products in different markets and this will enable the company to design or modify the products according to market demands.
The financial viability of the company has enabled active competition in the market and at same times given it a competitive advantage over other firms in the industry. The hotel industry requires huge capital outlays to start and run. Marriott hotel has adequate financial resources that enable to open many markets in different countries hence increasing its market share and thus making it easier to diffuse its products and services across the globe (Starkov, 2009). Larger market share enable the company to introduce different brands of products and services while at the same time retaining the sales of their existing brands in the market.
Analysis of the Ethical Issues and Approaches
A report by Ethisphere named Marriott Hotel & International among the World’s Most Ethical Companies (WME) in 2013. Marriott Hotel has featured in the list over the last six years following its commitment to ensuring superior and ethical business practices. The ranking of companies in the WME is based on code of ethics, sustainable business practices, investment innovation, and supplier and customer relationship. As Ed Ryan (the Marriott International Vice President) said “operating our business with integrity has been a pillar of our culture since Marriott’s founding more than 85 years ago.” (Marriott International, 2009). This is an indication that Marriott International is committed to conducting their business operations in a socially responsible and ethical manner. Marriott International has been recognized for its superior ethical business operations founded on the company’s core values and principles: pursue excellence, out people first, embracing change and integrity, and serving the world. For over 85 years of Marriott’s operations, the company has show highly level of commitment to human rights protection, responsible business practices, legal standards, and uncompromised ethical standards (Desmond, 2010). Marriott’s success is grounded on the company’s value, conduct, and purpose while serving the needs of its clients. Marriott International has also been recognized for its strong leadership in compliance and ethics, positive cooperate social responsibilities, and industrial discourse on ethical and social issues. Marriott’s commitment to good and acceptable practices is reinforced by the company’s Chief Audit Executive, Geller John in the statement that read “Our commitment to high ethical standards starts at the top and every day we challenge our associates to uphold that commitment to each other, our shareholders, our guests, our business partners and our surrounding communities.” (Marriott International, 2009).
Marriott’s commitment to Human rights protection is manifested in the company’s respect for human rights and support both within the Marriott’s sphere and beyond. This strong company’s stand on protection of human rights has openly been evidenced by the Marriott’s stand against children exploitation and human trafficking. In attempting to protect vulnerable children from sexual exploitation and violence, Marriott International Inc. has for a long time partnered and supported programs aimed at helping vulnerable children and youths from poverty stricken communities, a program that supports over 1.2 million children globally (Marriott International, 2009). Marriott International Inc. also extends financial support to families of children vulnerable to human trafficking by finding for them meaningful employment opportunities. In showing its commitment to corporate social responsibilities and encompass Marriott’s commitment to protecting human rights, the company made amendments to its Human Rights Policy Statement in 2006 to advocate for more financial incentives and support (Desmond, 2010).
Strategies of Reducing Corruption
As the company grows, ethical issues should be addressed conclusively and decisively to prevent instances of unethical issues like corruption. The best strategies to be adopted by the company are accountability and transparency in all its divisions of operations. The company should have a well-structured policy on accountability and transparency where employees are accountable for their work. Better payment or remuneration of employees would reduce instances of fraud and theft of the company assets. The company should have a pay structure that is based on responsibility and duty oriented to facilitate fairness and reduce high salary disparities among the employees. Finally, a proper internal control system should be installed and implemented within the company hierarchy to prevent fraud and embezzlement of capital and both internal and external auditing to be carried at intervals to a ascertain their adherence. Strong internal control system will protect the assets of the company and also deters instances of corruption within the company.
For Marriott International, Inc. to continue to grow and prosper to higher levels, it should incorporate the and fully integrate the information system as this will facilitate faster diffusion of its services and also widen its market. Frequent and proper auditing should be carried at intervals in all the outlets to prevent fraud and errors that might arise due to employees’ negligence and this should be coupled with installation and implementation of internal control systems within the nosiness. Since ethical issues are part and parcel of the current business duties, the company should adhered to the ethical and emerging issues in the environment so facilitated cordial relation with its environment as this will offer favorable opportunities for growth. Since employees are the greatest assets the company has, their retention and attraction should key in the company be agenda, they should be fairly compensated and their rights protected at all levels within the company.
“Marriott International, Inc. 2009 Annual Report.” www.marriott.com. Marriott International, 2009. Available from <http://investor.shareholder.com/mar/Marriott_09AR/pdf/marriott09ar.pdf>.
“Technology Services.” www.marriott.com. Marriott International, Inc., 2010. Web. 17 Apr. 2010. Accessed from: com/conference-centers/services.mi.”>http://www.marriott.com/conference-centers/services.mi.
Desmond, J. (2010). “Marriott’s e-security strategy: A business-IT collaboration.” www.esecurityplanet.com. Accessed from: php/688803/Marriotts-e-security-strategyA-business-IT-collaboration.htm.”>http://www.esecurityplanet.com/trends/article.php/688803/Marriotts-e-security-strategyA-business-IT-collaboration.htm.
Prashanth, K. (2009). Marriott’s Customer-Focused E-Business Strategy. McGraw.
Starkov, M. (2010). “The Essence of e-CRM.” Hotels. Vol. 38 Issue 10 ed. 2004. Business Source Premier.
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