The term business is an economic system in which goods and services are transformed from one to another with an aim to earn money. Every business needs a certain amount of investment thus to deliver effective and qualitative products to its target audiences. Here, the role of all managers is to ensure that all working activities and practices are done in a systematic manner and will deliver high market growth to the company (Seubert and et. al., 2014). Hotel Marriott is the chosen organization for this study, it is a multinational diversified hospitality firm that owns has a broad portfolio of hotels and associated lodging facilities. The report is going to be described the SMART objectives of the company; internal and external influences will be carried out through SWOT and PESTLE analysis. Readers will also come to know about business plans. There will be an evaluation of the necessary skills of management and staff members and how they can improve.
1.1 Analyse smart objectives of the business
Marriott hotels are among the top hotels in the united kingdom. This hotel has approx 6500 properties in 127 countries. The hotel short term objective is to expand their footprints across world by increasing more number of properties and development in offered services. For maintaining their name among the top hotels in world, its long term objective is to satisfy their customer and maximising profit. Smart objective of the Marriott are as follows:
- To increase the sales of Hotel by 5 percent within 6 months.
- Increase 15 percent of the properties across the world within the 1 year.
- Increase profitability of the Hotel Marriott by 20 percent in 5 years.
- Decrease the liabilities of the hotel by 30 percent in 10 years.
The smart criterion objectives are evaluated as below:
Every organisation has specific business Objective as it helps the manager in analysing the actual outcome (Bloom and et. al., 2018). Manager of hotel Marriott have specified their objective of increasing more number of footprint across the world by 15 percent compared to previous year's properties.
When Business objectives are large enough to count, measure or they are quantifiable then its easier for the manager to check actual progress of the organisation. Marriott hotel's Business analyst measures the progress by checking the increased number of hotel worldwide. This hotel has added 766 properties in their portfolio.
The business objective is required to be made according to the available resources, systems and cost. If these mentioned resources are not available then objective is irrelevant and it wont be possible the employees to achieve the objective (Bocken and et. al., 2014). Hotel Marriott has set their objective of increasing properties which is realistic and can be achieve by the employees by making best strategies and following proper guidelines of their managers.
It's important for the business analyst to evaluate organisations progress with the relevant objective. In context to Marriott hotels, the objective of the is to increase their number of footprints worldwide so it is the responsibility of the manager to analyse the progress relevant to increase in properties only.
Every organisation have to achieve their objective in the particular time frame. Manager of the hotel Marriott fixes the time bound for the employees in which they have to achieve the objective. As per the current objective of this hotel, their objective is to expand 15 percent of properties in one year. It gives guidelines to whole development team in achieving their goal.
1.2 External and internal factors affecting business.
Each & every organisation is affected by external as well as internal factors of the business. Hotel Marriott is one among the worlds largest hotels across the world with approx 6500 properties in 127 countries (Boons and Lüdeke-Freund, 2013). PESTLE analysis, porter's five forces analysis and SWOT analysis helps the organisation in knowing positive & negative impact of all factors evaluated as below:
These factors include stability of government, changes in tax policy, trade tariffs etc. Terrorist usually targets the tourist places or sites due to overcrowded area. Tourist avoids travelling & visiting new places with the fear of attacks. This directly decreases the footfall of the hotel.
The higher exchange rate of US dollar has reduced the number of tourists which affected the Marriott customers list.
Hotel Marriott has its footprints across the world and can easily accessible to the customers . This has the positive impact on the business as tourist & travellers can easily reach it (Bryman and Bell, 2015).
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Impact on the Economy of the United Kingdom
As technology has developed its quiet complicated for the hotel to maintain its position. Many new hotels are using technology as the marketing tool to forward like this hotel.
There are many diverse impacts are ascertained by environment through the functions of Marriott hotel. In this regard, they are required to analyse the negative impact of their operations on environment and application proper system which minimise such effect. For ex., implementation of waste management system helps in their effective disbursement which aids in attaining support of society.
Hotel Marriott follows rules & regulation of the government that includes safety standards, consumers law, labour laws etc. to maintain their brand name.
Porter's five forces analysis
The threat of new entrants
In the hospitality industry, new entrants are entering in the market with highly innovative ideas, low pricing strategies. Hotel Marriott can tackle these problems by focusing more on R&D to make services as per customers requirements.
Bargaining power of suppliers
In context to hotel Marriott, bargaining power of the supplier is low as this hotel is the renown in hospitality industry and its suppliers can not go against it (Collis and Hussey, 2013). If the supplier will not agree as per the quotation of the hotel, Marriott will go for another one.
Bargaining power of buyers: Buyers bargaining power is always high as they are the only one who uses the services. Marriott should increase its number of buyer by providing discounts and offers to its customers.
Threats of substitute
When new services are offered to satisfy customers requirement in different manner it is termed as its substitute. Marriott can avoid this situation by being service oriented hotel which focuses on customers need only. For example: Airbnb is the fastest growing company in hospitality industry as it provides the property to its customer at reasonable prices with better facilities.
Rivalry among existing competitors
Competition among the similar kind of industry is decreasing the overall profit of the service industry. It better for the hotel Marriott to collaborate with competitors in order to cover whole world together (F. Hair Jr., 2014).
1.3 Potential improvements to the business organisation and/or operation
Ansoff matrix is the strategic planning used by the superiors, manager to analyse the market growth of the organisation. In context to Hotel Marriott, Ansoff growth matrix is designed for analysing the growth options and improvement area which helps the organisation in its expansion. Ansoff matrix of hotel Marriott is evaluated below:
This strategy is used to improve the existing services of the hotel in the already existing market. As it is the familiar market, its easier to increase the market share of the organisation. Hotel Marriott can improve its market share and brand loyalty by sponsoring the major events to get always recognise by the customers. This hotel could also focus on middle class people to grab maximum number of customers.
This strategy is used for launching new product in the existing market for business growth (Gilchrist and Zakrajšek, 2012). Hotel Marriott can go the transportation sector by receiving and dropping their special guest from the airport by helicopters. Marriott has started its own production of plates and dishes I order to decrease their expenses and costing of the hotel. Best assignment help in Canada with chat support.
In Market development, whole strategy is made to cover new market with the offering of existing products and services for the motive of growth. Hotel Marriott is opening its branches in the untouched region and countries to expand their business and also make their presence. This hotel can open their branches in mountain regions, and new market of Iran for their business growth (Louzis, Vouldis and Metaxas, ., 2012).
In this strategy, Hotel Marriott makes their strategic planning for launching new product and services in the fresh marketplace. This strategy can be termed as the most risky one, as both services and market are new and require best plan for development. Hotel Marriott can launch new sea tourism organisation with the name of hotel Marriott only in order to provide similar kind of services to the guest . This hotel could also go for opening its own coffee chain with name of Marriott coffee store in the new region with best class services to enhance its brand name and develop organisational growth.
2.1 Review effectiveness of business
Business effectiveness is defines level and extent of accomplishment of objectives and goals of organisation. Management capabilities and skills determine strategies formulated and design of system to conduct business operations effectively. Along this, problem solving also depend upon top personnel to execute right things and frame adequate solutions to overcome difficulties.
These are various areas which are considered by management to review effectiveness of business and functionality of system are described beneath:
This aspect specifies that companies deliver different variety and range of items in according to requirements and demands of people. It is management responsibility to implement appropriate technologies and tools in system to deliver adequate products and services to customers in respect to their demands and requirements (Marston., 2011). Marriott Hotel provides luxury rooms, restaurant and various other facilities such as swimming pool and so on to guests. This help hotel to maintain brand value and attract large number of tourists which enhance sales and profitability of firm. Thus, goals and objectives of hotel are achieved by management.
This tactic defines that executive construct finance department which conduct planning, auditing and accounting activities to manages capital properly. Along this, they even maintains financial statements to have accurate and complete information about income and expenses of company. Marriott Hotel has outlets worldwide, so it is essential that funds are allocated in different areas that is operation, marketing, sales, human resource department. Besides this, management even require to maintain infrastructure and provide appropriate facilities that is resort, restaurant, pool, luxury rooms to guests.
It is important function which defines that each and every organisation require to have adequate position and image in market, by providing information to public about products and services (Myers, 2013). Marketing team frame plan and design marketing mix in according to demands of people and market conditions. Marriott Hotel has good brand value as it provides luxury rooms, restaurant and various other facilities to customers. Along this, management uses effective promotional techniques that is online advertising, print media, publicity, etc to inform people about services and facilities to establish competitive advantage over rival firms. This helps hotel to target customers and generate good amount of profit from business.
It is essential activity which is executed by management to deliver products and services to public to fulfil their demands, thereby enhance sales and profitability. Marketing team helps salespeople to attract people easily as they have adequate information about items. Marriott Hotel has good brand value which helps salespeople to achieve their targets and grab large number of guests which require luxury rooms, resort, pool and various other facilities. This helps hotel to sustain its goodwill and image in market.
2.2 Develop plan to improve business
Business Planning: It is the written document which describes the future of the business, its goals, strategies, objectives. In addition to this, it also creates guidelines for the employee which helps them in knowing the organisational goals and objective and how they have to achieve them (Newbold, Carlson and Thorne., 2012). Business plan of Marriott hotel includes several marketing strategies to attract its customers and increase its sales for business growth. Marketing strategies of Marriott hotel emphasis on highlighting their best class services and accessibility.
Organisations financial management system
Financial management system refers to the method used by the finance department to observe usage of the income, assets and controlling expenses in order to achieve the objective & maximising profit of hotel Marriott.
Role and responsibilities of staff and management
Each employee of the organisation is required to follow the instructions given by the manager of hotel Marriott. As it is the hospitality industry so the major focus of the employee is on the satisfying the customers needs & requirements (Rosemann and vom Brocke, 2015). On other hand, Manager of the hotel is responsible for performance of the employees. He monitors the performance of his employees on every task. Its the responsibility of the manager only, to motivate & appreciate his team mates for their performance.
Performance of the employees are monitored by the manager. It includes motivation, appreciation, rewards and punishment. Performance monitoring of the hotel Marriott is done on monthly basis to evaluate the accuracy of the performance. It also supports the employees in knowing their own mistakes and how they can overcome it.
3.1 Evaluate the current skills of management and staff
In this over dynamic environment, managers and employees are required certain necessary skills which enables to accomplish all tasks and activities in the best possible manner. If employees have enough skills or competencies then they will apply them in job processes whereas effective skills of managers improving decision making process of the company (Myers, 2013).
Following is defined current skills of management and staff members, such are -
These kind of skills seemed obvious in this technological driven world so as to fulfil operations in innovative manner by using digital tools. Managers and employees of Hotel Hilton must have basic proficiency with office software, i.e. Google Docs, Microsoft office, Adobe and further as per the industry relevancy. In order to communicate their strategic goals to employees as well as gives instruction to them, producing goods and services, create training programmes and other activities; all this requires clear and concise technical writing skills. Apart from this, managers and employees are needed to gather information and data to continue operations and assess current market trends, potential market issues. Therefore, does not having strong technical skills communication with digital tools i.e. emails, social media sites and video conferencing will not be possible.
Having great and effective operational skills directly contributes in firm's growth and success. In Hotel Hilton, operation managers and their employees have a deep knowledge of customers' needs and wants; these persons are ensure about quality and availability of raw materials thus to generate products as per market trends (Marston and et. al., 2011). In addition to this, operational managers and executives have ability to implement safe working environment and manage fair price assurance.
These persons are liable for highly contributing in financial performance of corporate associations as they have ability to prepare sales projections, budgets and measure profit & loss statements of the company. Another skill of operational management department head is to motivate and inspire a strong team and build positive relations between team members. It can be achieved by addressing workers' needs and concerns.
- The foremost managerial skills of managers is to take imperative business decisions and grab better future opportunities. Although managers of Hotel Hilton are able to determine which factors can influence firm's working activities then take initiative to manage such influences as soon as possible (Scherer and Palazzo, 2011).
- Another managerial skill is interpersonal managerial skills which supports managers to put a control on their employees. It implies to make a transparent communication with staff members and make them able to do all things in an effective manner. Beside this, managerial skills are also related with implementing flexibility at workplace which means to allow employees to handle problems individually by using their own tactics or applications.
3.2 Devise and justify plans for development of skills
After analysis current skills of employees and managers, Hotel Hilton has developed a plan in order to improve future skill; it results accomplishment of business goals in more effective manner. There is given a future skill development plan, i.e.
Assess performance of each individual
The initial stage of skill development plan is to evaluate performance level of all employees by setting up a specific quantitative metrics; it supports them to recognise those area where they need to improve and what they have realistically achieved.
After assessing performance level, managers of Hotel Hilton needs to give feedback thus to make further improvements and development. Managers' feedbacks or suggestions supports individuals to get perfection in their areas.
Sometimes, there are certain barriers which occurred while performing any specific job; these barriers can hinder workers' performance. So that management should identify all those barriers and remove them as soon as possible.
Link a professional network
Access towards additional contacts helps employees to grow in their field. Thus organisations can introduce them with professionals, i.e. mentors or coaches, send them for training and organise various events (Ward, 2016).
Employees are valuable resources for business organisations, thus it needs to invest among them through providing training, coaching and online lectures then aligned all working activities with strategic goals and of the company.
Measure performance after training
At last, after rendering proper training to staff members, managers have to evaluate their performance again and see the differences. If employees are performed well then previously then it is good for company otherwise it again have to organise further learning activities which improve their skills and knowledge level.
From the above mentioned report, it get concluded that execution of business organisations helps individuals to improve their financial stability or economic condition. The present report is based upon Hotel Hilton, thus while implementation of any business managers are required to allocate certain necessary resources, such as – human, physical, technical and so on. Firstly, managers need to execute aims and objectives of the company and then assess all those internal and external influences which can affect working activities in direct and indirect manner. They are also required to develop certain plans, i.e. marketing, operations and production thus review the effectiveness of business organisations and its performance as well.