In enterprises, appropriate innovative strategy is essential for the management as it assist the company to grow and aids in attaining competitive advantages. With the help of innovative strategy, management discover various new ways which enables to run their operations in more efficient way (Innovation and enterprise, 2011). Strategies, enterprise and innovation, these three terms provide better knowledge about IT which play role as a guideline to achieve business goals for any company. Present report is based on Marriott hotel which provides their services worldwide. For this, management must adopt new and innovative things which assist to manage their work within more than 500 hotels all over the globe. This report has been divided into two parts in which first part is about internal and external analysis of Marriott and second part is covered with SAFe which stands for suitability, acceptability and feasibility (Senge, 2014).
a) Critically analyse the company’s internal resources and core competences that are sources of competitive advantage
Befog adapting any new thing, management of Marriott must analyse all such resource which is currently used by the Marriott so that it becomes easy for the management to evaluate the impacts of innovation at Marriott (Ragin, 2014).
- Human resource: For hiring appropriate and capable candidates in 500 hotels, HR manager of the company can adopt a systematic process which assists for better management in workforce. HR manager conducts training and development sections to retain their employee for long time (Cohen and Lotan, 2011).
- Machineries: Manager of Marriott is always concern with their equipments which is used by their employees. Management always maintain and update all equipments in a proper time so that it assists in reducing the chance of accidental issues in the working place.
- Management: To manage their 500 hotel staff and their customers Marriott adopts a strong strategy towards their management. Their work is divided in sub departments which assist in maintaining accuracy in their work. Management has strong employment team which is one of the core competencies for Marriott-international (DuPaul and Stoner, 2014).
- Materials: Marriott have global presence and it also has strong brand image in the market place because of their qualitative services. For this, it is must for hotel management to use good quality material so that they can maintain their quality for long time (Peterfreund, 2016).
- Market: Marriott cover large number of area in their market that shows their strong marketing strategies. Without essential marketing, it is not possible for hospitality industry to stand in the market place for the long time (Schmeck, 2013).
SWOT analysis of Marriott hotel (Source of competitive advantages)
With the help of this SWOT analysis management can analysis the actual situartion of their internal business. They can use their strength in which they can utlize their strength in more effective way. With the help of identification of their weaknesses, they can concern with such points which assist to over come with their drawbacks. Opportunities and threats are also play role for improvement in organisations (Aghion, Van Reenen and Zingales, 2013).
b) Evaluate the impact of key drivers of change in the external environment and competitive forces
PESTLE analysis of Marriott Hotel
To stand in the market place, it is important for management of Marriott to ignore all such threats to create barrier for entity to grab opportunities. For this, Marriott must maintain their level of potentiality to enhance their level of competition and attract their customers towards hotel products. PESTLE analysis of Marriott hotel is discussed below which helps to analyse its market situation more effectively (O'Neil, 2014).
Political factor: For Marriott, some political factors create danger and these are terrorism, international relationship and political climate. All three political aspects negatively impact the business of hospitality industry. Various attacks from terrorist develop fear for visitors which affect their business in a negative way (Villanueva, Graupera and Guarner-Argente, 2013.).
Economical factor: One of the biggest threats for Marriott is economic condition for country which impacts on individual income factor. When the economic condition is changes then it also impacts on the middle class wage rate become reduce then they lost their level of potentiality towards (Song and Li, 2015).
Social and culture factor: As per 2014 data, 14% people enhance their interest towards the travelling and used to go for international tour. This is positively impacts on the future business of Marriott because people are more interested in spending their money which is good for company growth (Marriott International’s exeternal environment analysis, 2016).
Technological factor: This is the biggest factor which affects the hotel industry because today's era all work is done with the help of online services. Marriott hotel is also concern with their way of working which assist in reducing the extra expenses of customers. On the other hand, their tax and vat charge included in online charges negatively affects their customers.
Legal factor: Marriott having a global presence in the market and for this, it is essential for hotel management to focus on each and every country’s rules and regulations effectively. If hotel industry does not follow the same then it may lead to develop negative impacts on market as well as their goodwill (West and Bogers, 2014).
Environmental factor: Recently, demand of hotel is reduced due to weak environment factor. Fuel price are increased which affects the transportations and tourism sector. Cordially, this also impacts on guest behaviour towards the travelling that obviously impacts on their business potentiality. Global Warming is also an environment factor which affects Marriott business in negative way (Anderson, Potočnik and Zhou, 2014).
All above study is helpful for management of hotel to evaluate the actual situation and grab all that factors which impacts the business in a negative way. This evaluation is not controllable because of their external presence but hotel management can control this with the help of their strength.
Critical evaluation of two Strategies options that can pursued by Marriott hotel in order to increase its entrepreneurial opportunities in the industry.
Management of Marriott adopt two strategies to do some innovation which for their business. These two strategies have been identifies with the help of porter generic strategy and it will be implemented with the help of SAFe analysis (Russia, 2014).
Enhancing employees efficiency: For enhance their business efficiency, management of Marriott adopt various ways which assist for develop level of potential in their workers. When the level of efficiency increase in their work then they become efficient towards handle different types of customers in more significant way (Aghion, Van Reenen and Zingales, 2013). With the help of management tours, management provide practical knowledge to their employees' to groom them self.
When the employee join such tours then it becomes easy for workforce to apply such practises in their working style which helpful for entity to enhance their working methods. With the help of this method management can develop a team which assist for company's growth (Senge, 2014). Assignment Help Australia
Strategic choice through (SAFe) criteria.
For enhancing their employee skills, management adopt SAFe criteria which helpful for deciding its future effectiveness. Following three are listed below that shows the chances of success of this strategy:
Suitability: With the help of this point, Hotel management decide that this strategy is appropriate for the company and its work point of view. If Marriott adopt this strategy that suits on their employee to gain practical knowledge about their customers. This is positively impacts on the business because they gain appropriate knowledge from their external learners (Ragin, 2014).
Feasibility: In this point management evaluate its financial resource which is obtained by the entity or not (Peterfreund, 2016). If the Marriott spend their finance on train their employee then this will assist for their employee to handle their customers which leads to enhance their goodwill in the market trend.
Acceptability: Potential employee is assist to achieve the organisation expectation so they can grab the benefits for the entity. For example, when Marriott goodwill will increase then it positively impacts on their stakeholders. This assist for customers to expect to fulfil their desire from hotel.
Delivering products at low price: One more strategy, which is based on reduction price in their services. For this management of Marriott reduce the ratio of profit in their products and services. When the management adopt this strategies then this will assist for management to stand in the competition (Schmeck, 2013). When customer get same services with economical price then they will select the Marriott hotel first.
Customer also have perception that low price means less quality, to solve this problem, management can adopt discount policy so that customer not develop their negative perception with the same. They also tie-up with the marriage inventor and provide commissions. This is also one of the good way to grab more customers towards the Marriott hotel (Villanueva, Graupera and Guarner-Argente, 2013).
- Concept to Managing Innovation in Business
- Different Factors For Managing Innovation In An Organization
- Analysis of Adaptive International Marketing Strategies Formulation
- Things You Should Know About the New Innovation and Entrepreneurship
- Role of Strategic Management to Develop Business Activities
Strategic choice through (SAFe) criteria
With the help of SAFe analysis management can develop their working criteria because various discounts and price assist to attract their customers towards the hotel services.
Suitability: It suits on the hospitality business and its impacts in a positive way because less price enhance the number of customers towards the grab hotel services. This impacts in a positive way because shareholders more invest in this industry which is good for Marriott future (Song and Li, 2015).
Feasibility: Less price always attract customer who they are from middle class. It is also positively impacts on financial position of the company because less price leads to large number of customer who they visit and use hotel services (West and Bogers, 2014).
Acceptability: This strategy has big chance of success because if Marriott reduce its price then more marriage and commercial events are held in their hotels which assist to enhance their fame and finance both term (Aghion, Van Reenen and Zingales, 2013).
Both strategies are appropriate for Marriott to grab the opportunities and enhance their potentiality level for better and effective future. First strategy helpful for making their teams in more strong way and second strategy is good to cover large area of market stand to become the leading one in this sector (Buckley and Casson, 2016).
After summing up all above study, it is concluded that for enhance and adopt any business expansion a systematic step is must have taken by the management to enhance their way of working in more effective manner. In this report, SWOT analysis of Marriott is carried out which assist to utilize industry strength in more effective way and control over the threats towards the reduction. In this report PESTLE analysis is also described which assist to analysis the business options of the Marriott. For better and effective working, Marriott adopt two strategies which relates to the employee efficiency and affordable products and services which enhance the business of Marriott.
- Russia, U. I. E. E., 2014. Risk and Uncertainty Management in Technological Innovation. Technovation.
- Aghion, P., Van Reenen, J. and Zingales, L., 2013. Innovation and institutional ownership. The American Economic Review.
- Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of Management.
- Buckley, P. J. and Casson, M., 2016. The future of the multinational enterprise. Springer.
- Cohen, E. G. and Lotan, R. A., 2014. Designing Groupwork: Strategies for the Heterogeneous Classroom Third Edition. Teachers College Press.
- DuPaul, G. J. and Stoner, G., 2014. ADHD in the schools: Assessment and intervention strategies. Guilford Publications.