Alfonso Cardenas Cua Intal Madelar Lubaton Veracruz Alfonso Cardenas Cua Intal Madelar Lubaton Veracruz

Transcription

1 Alfonso Cardenas Cua Intal Madelar Lubaton Veracruz Alfonso Cardenas Cua Intal Madelar Lubaton Veracruz

2 3 Vision-Mission Vision : To become the leading provider and facilitator of value-based luxury, leisure and business experiences across the globe Mission : To create an environment conducive and helpful to both our employees and customers, thereby encouraging our employees to work at their maximum capacity in being of service to our customers whilst providing our customers with

3 To provide Good Food & Good Service at a Fair Price 4 To provide Good Food & Good Service at a Fair Price 4

4 Marriot International North American full-service lodging North American limited-service 5 lodging International lodging Luxury Timeshare Synthetic Fuel

5 6 Marriott Facts 2,832 Lodging Properties 2,046 furnished corporate housing rental units 75% of Marriott s 1,048 company-operated properties and 93 % of the 1,784 franchised properties are in the United States. Marriott has strong international presence in countries like Canada, Mexico, China, UK and Germany Cruise Lines, Food Service companies, restaurants, turnpike units, and retirement communities.

6 SWOT - Analysis 7SWOT - Analysis 7

7 88 Strengths Large Expanse of Brands Geographic Presence Global leader in hotels market More franchise means bigger OI -- they have more control that it seem Website and Social Network Focused divestiture Efforts especially with in t companies Excellent Strategies to attract and retain employees Marriott culture retention balancing against the identities of the brands Eco-friendly Customer Hospitality / Centric Brand Equity

8 99 Weaknesses Focus on US instead of international establishments (over-reliance on US market) Over dependence on luxury brands lack of low-cost brands Marriott being targeted by fundamentalists or extremists

9 1010 Opportunities Emerging Asian Travel and Tourism Markets Trend fro low-cost goods Distinction amongst hotel service offered Environmentally and Family Oriented Decrease of cost of real estate in the US Eco-tourism Threats Timeshare not popular anymore Economic Recession = lower consumer spending Boom of Economy Hotel Brands Political instability Increase of Real Estate in Asia Terrorism Epidemics (H1N1) Tight US Borders

10 Strengths-Opportunities Acquire or establish hotels in Asia Initiate Budget and Economic Brands Divest in limited-service brands with the economy brands of other companies Differentiation of a particular brand in certain locations Apply eco-friendly efforts, and eco-tourism across the chain Acquire US properties to reduce debt/cost of new establishments Strategically Build hotels/resorts that would most preserve the environment 11Action Points Strengths-Opportunities Acquire or establish hotels in Asia Initiate Budget and Economic Brands Divest in limited-service brands with the economy brands of other companies Differentiation of a particular brand in certain locations Apply eco-friendly efforts, and eco-tourism across the chain Acquire US properties to reduce debt/cost of new establishments Strategically Build hotels/resorts that would most preserve the environment 11Action Points

11 Weakness-Opportunities Expand in Asia Build high-end inns Joint ventures in other high risk countries and use the local s name Build economy brands over cheap US land where the savings in the land are directly passed onto the consumers/ customers 12Action Points Weakness-Opportunities Expand in Asia Build high-end inns Joint ventures in other high risk countries and use the local s name Build economy brands over cheap US land where the savings in the land are directly passed onto the consumers/ customers 12Action Points

12 Strength-Threat Company wide restructuring to reduce cost and increase efficiency Expand today to maintain lead and reap the rewards later on especially in Asia Provide financial assistance to franchisees to start or expand operations (preferably international) Slowly depart from time-share hotels Hire local employees by collaborating with local government units Hire, train and support the localities where Marriott operates in to win the hearts and minds 13Action Points Strength-Threat Company wide restructuring to reduce cost and increase efficiency Expand today to maintain lead and reap the rewards later on especially in Asia Provide financial assistance to franchisees to start or expand operations (preferably international) Slowly depart from time-share hotels Hire local employees by collaborating with local government units Hire, train and support the localities where Marriott operates in to win the hearts and minds 13Action Points

13 Weaknesses-Threat Work towards expansions overseas due to economic meltdown Use relationship with employees to temporarily reduce salary to be more competitive Joint Ventures with other companies especially in new low cost businesses Build economy brands now 14Action Points Weaknesses-Threat Work towards expansions overseas due to economic meltdown Use relationship with employees to temporarily reduce salary to be more competitive Joint Ventures with other companies especially in new low cost businesses Build economy brands now 14Action Points

14 Financial Analysis

15 16 Their current ratio goes beyond the industry standard but their quick ratio is less than industry standard Liquidity Ratios Current Ratio Quick Ratio

16 1717 Show s Marriott s Acquisition culture, where they use the shareholder s investments when venturing to other avenues. Leverage Ratios Debt to Total Asset Ratio Debt to Equity Ratio Long Term Debt to Equity Ratio Times Interest Earned

17 1818 Marriott is the leader in total revenue in the lodging industry but has low Net Profit Margin and Profitability Ratios due to high costs (labor) and acquisitions Profitability Ratios Operating Profit Margin Net Profit Margin Return on Total Assets Return on Stockholder s Equity Earnings per Share $0.99 $1.75 $1.41 $1.45

18 1919 Due to the economic recession that hit the United States during the mid to late 2008 and with Marriott s strong presence in the US, sales and profit declined significantly Growth Ratios Sales -0.85% 8.30% 5.28% 14.37% Net Income % 14.47% 9.12% 12.25% Earnings Per Share % 24.11% -2.76% 16.94% Dividends per Share 17.39% 19.79% 20.00% 21.21%

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20 Strategies and Objectives

21 Managing Properties opposed to owning properties Invest in projects that increase shareholder value Optimize the use of debt in the corporation s capital structure Profitability Strategies Managing Properties opposed to owning properties Invest in projects that increase shareholder value Optimize the use of debt in the corporation s capital structure Profitability Strategies

22 The right person for the right job Staying just beyond the paycheck A great and caring work environment Promoting associates from within Building Brand Equity Human Capital Strategies The right person for the right job Staying just beyond the paycheck A great and caring work environment Promoting associates from within Building Brand Equity Human Capital Strategies

23 Sales for strategy (Sales force One) accommodating all customer needs in a one-stop-fashion Customer Strategies Sales for strategy (Sales force One) accommodating all customer needs in a one-stop-fashion Customer Strategies

24 Look no Further Best Rate Guaranteed Hassle Free Navigation, and access And transparency in prices Partnerships with 3rd party websites Internet Strategies Look no Further Best Rate Guaranteed Hassle Free Navigation, and access And transparency in prices Partnerships with 3rd party websites Internet Strategies

25 Marriott International Space Matrix 26 Internal Strategic Position Average Points Financial Strength (FS) 4.28 Competitive Advantage (CA) -1.5 External Strategic Position Average Points Environmental Stability (ES) (y axis -.12) Industry Strength (IS) 4 (x axis - 2.5)

26 Marriott International Marriott International Position

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28 Local Settings Shangri-la Hotel & Resorts dominates Ayala Land Groups is the franchisee of Marriott in the Philippines Megaworld is developing new hotels and resorts to be opened in late 2010 There are 4,800 accommodation establishments in the Philippines mostly small to medium enterprises

29 Primary Competitors Shangri-la Hotels and Resorts Manila Mandarin Waterfront Philippines Inc. Global Hyatt Corp. SM Investment Corp. (Paramount Hotels/ Hamilo Resrt/ Regent Hotels/Micro Inn) Ayala Land Group (Marriott/Intercontinental)

30 Philippines Top Hotels Hotel/Resort Revenues Makati Shangri-la P 3,383,500,000 Shangri-la Mactan Island P 2,141,170,000 Peninsula Manila P 1,530,700,00 Hyatt Hotel P 1,450,000,000 EDSA Shangri-la Manila P 1,424,800,000

31 32Answers to Questions Answers to Questions

32 Is MarrioF relying too heavily upon the domes6c market for expansion instead on the faster growing economies overseas? Currently, More than 75% of the proper6es and income of Marrio) comes from the United States market. Also, even though the numbers of rooms overseas is considerably higher compared to the United States, the North American Lodging revenues pushes Marrio) to expand in the United States.

33 Proposed Acquisi.ons Acquisi6on of Beijing Bed n Breakfast Inn Chain and establish a chain of Inns along the Yantze River from the Tibet Foot-lands to Shanghai as High-end Inn Ports Partner with the Mactan Interna6onal Airport and create a super conven6on center right beside the Airport to cater to the businessmen in Greater Asia. Underwater HOTEL!!!!!

34 Proposed Org-Chart

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