Michigan State University

2011 Fall Organizational BehaviorTeam C

Ashley Groggins, Rona Smart, Cristi Lingris,Hyungil Kim, Ryan Starkweather, Nicole Berz

What comes to mind when you hear or see Marriott?

Question

I am Marriott

MarriottNews. (Producer). (2009, May 26). I am Marriott. Video retrieved on October 9, 2011 from http://www.youtube.com/watch?v=YUxIxjPPfIc

Marriott International

is a great place to work, as evidenced by

Agenda

3. Culture & Corporate Social Responsibility

2. Competitors & Competitive Advantage

1. Business & Performance

1. Business & Performance

Key Facts

Founded: Washington D.C. 1926

Employees: 129,000

World Wide Operator & Franchiser- U.S. and 70 other countries and territories

- 3,545 lodging properties worldwide, with 618,104 rooms- 2,043 furnished corporate housing rental units

Total Revenue: US $11.69 Billion

1. Business & Performance

Datamonitor 360. (n.d.) Marriott Company Overview. Retrieved on September 30, 2011 from http://360.datamonitor.com.proxy2.cl.msu.edu/Product?pid=A60E65CA-A952-42A7-A580-B3C707CEF91F

Major Brands 1. Business & Performance

Our brands. (2011). Marriott Corporate Website. Retrieved on September 22, 2011 from http://www.marriott.com/corporateinfo/glance.mi

Business Performance

2008 2009 2010

Revenue

12,879

10,908

11,691

2008 2009 2010

Net Income

362

-346

458

(Millions, U.S. Dol-lar)

1. Business & Performance

Mergent Online. (n.d.) Marriott Company Details. Retrieved on September 22, 2011 from

http://www.mergentonline.com.proxy1.cl.msu.edu/companydetail.php?compnumber=94547&pagetype=synopsis

Revenue by Business Segment

2010(US$

Million)

Change from 2009

Total Revenue 11,691 7.2% increase

North America Full 5,108 5.4% increase

North America Limited 2,149 8.2% increase

International 1,245 8.7% increase

Luxury 1,563 10.6% increase

Timeshare 1,546 7.4% increase

Revenue by Business Segment (Reported 12/31/2010)

1. Business & Performance

Mergent Online. (n.d.) Marriott Company Financials. Retrieved on September 22, 2011 from http://www.mergentonline.com.proxy1.cl.msu.edu/companyfinancials.php?compnumber=94547

Key Financials (SEC Filings)

2008 2009 2010

Total Assets 8,903 7,933 8,983

Total Liabilities 7,523 6,791 7,398

Debt/Asset Ratio 84.50% 85.60% 82.40%

Revenue per Employee $88,821 $79,620 $90,628

(Millions, U.S. Dol-lar)

1. Business & Performance

Datamonitor 360. (n.d.) Marriott Business Description. Retrieved on September 30, 2011 from http://360.datamonitor.com.proxy2.cl.msu.edu/Product?pid=A60E65CA-A952-42A7-A580-B3C707CEF91F

2. Competitors & Competitive Advantage

Ranked Competitors by Industry

Lodgings Hotels, Resorts, Cruise Lines

Hotels, Restau-rants,

Casinos

Mergent Public Rank

1Marriott Interna-tional

Marriott International

McDonald’s Corp Walt Disney

2 African Sun Limited

African Sun Limited

Marriott International

Loews Corp

3 Accor SA Accor SA StarbucksMarriott International

4 Las Vegas Sands Corp

Las Vegas Sands Corp

Intercontinental Hotels

Starwood Hotels & Resorts

5 MGM Resorts International

Royal Caribbean Cruises Hilton Worldwide Host Hotels &

Resorts

2. Competitors & Competitive Advantage

Mergent Online. (n.d.) Marriott Competitors. Retrieved on September 26, 2011 from http://www.mergentonline.com.proxy1.cl.msu.edu/competitors.php?compnumber=94547Factiva. (n.d.) Marriott International Competitors. Retrieved on October 3, 2011 from http://global.factiva.com.proxy2.cl.msu.edu/pcs/default.aspx

FORTUNE 500

Hotels, Resort & Casinos In-dustries

Rank Company Fortune 500 rank

1 Marriott 213

2 Hannah’s Enter-tainment 264

3 MGM Mirage 360

4 Starwood Hotels & Resorts 438

5 Las Vegas Sands 456

2. Competitors & Competitive Advantage

Fortune 500: Our annual ranking of America’s largest corporations. (2011). CNN Money. Retrieved on September 28, 2011 from http://money.cnn.com/magazines/fortune/fortune500/2011/index.html

Comparison Among Top Com-petitors

　 Marriott Accor Starwood Inter-continental

Total Revenue 11,691 5,948 5,071 1,538

NetIncome 458 3,600 477 280

Earningsper Share 1.26 15.94 2.61 0.97

Employees 129,000 145,000 145,000 7,556

2. Competitors & Competitive Advantage

Mergent Online. (n.d.) Marriott Competitors. Retrieved on September 26, 2011 from http://www.mergentonline.com.proxy1.cl.msu.edu/competitors.php?compnumber=94547

Strengths & Opportunities

• Technical innovations• Higher brand recognition• Global presence• Diversified brand

portfolio

Strengths

• Strong growth in emerging markets

• Hospitality market in U.S. improving

• Brand expansion

Opportunities

Competitive

Advantage

2. Competitors & Competitive Advantage

Datamonitor 360. (n.d.) Marriott SWOT Analysis. Retrieved on October 3, 2011 from http://360.datamonitor.com.proxy2.cl.msu.edu/Product?pid=A60E65CA-A952-42A7-A580-B3C707CEF91F&view=SWOTAnalysis

Global Growth as Competitive Advantage By 2015, 120 hotels (double its

presence)

By 2015, from 12 to 100 hotels

By 2015, 50 hotels (environmen-tally-friendly)

By 2015, 360 hotels (double its presence)

2. Competitors & Competitive Advantage

Find your world: Marriott’s signature. (2010). Marriott 2010 annual report. Retrieved on September 27, 2011 from http://investor.shareholder.com/MAR/marriottAR10/signature/index.html

Shareholder Value & Stock Price2008 2009 2010

Earnings per Share 1.02 (0.97) 1.26

Return on Investment 17% -4% 18%

Return on Equity 25% -28% 34%

2. Competitors & Competitive Advantage

Thomson One: Investext (n.d.) Marriott International Company Overview. Retrieved on September 30, 2011 from https://www.thomsonone.com/Workspace/Main.aspx?View=Action%3dOpen&BrandName=&IsSsoLogin=True

Shareholder Returns & Comparison2. Competitors & Competitive Advantage

Investor relations. (2011). Marriott Corporate Website. Retrieved on September 22, 2011 from http://investor.shareholder.com/mar/default.cfm

3. Culture & Corporate Social Responsibility

Core Values: "Spirit to Serve"

Spirit to

Serve

Our Asso-ciates

Our Commu-nitiesOur Guests

3. Culture & Corporate Social Responsibility

Core Values

“Take care of your employees and they’ll take care of your guests” J.W. Marriott - Founder

Staff Incentives• Reduced Rates• Educational Assistance• Formal Recognition Program

Our Asso-ciates

3. Culture & Corporate Social Responsibility

Why Marriott? (2011). Marriott Corporate Website. Retrieved on September 22, 2011 from http://www.marriott.com/careers/CareerPaths-hotel-employeee-benefits.mi

Core Values: "Spirit to Serve"

Our Com-munities

Actively involved with the communities in which they resideActivities

• Habitat for Humanity• Hurricane Katrina• Feeding America• Children's Miracle Network

3. Culture & Corporate Social Responsibility

Environment. (2011). Marriott Corporate Website. Retrieved on September 22, 2011 from http://www.marriott.com/corporate-social-responsibility/corporate-environmental-responsibility.mi

Core Values: "Spirit to Serve"

Our Guests

Utilizing technology to keep guests satisfied with their experienceTechnological Initiatives

• Marriott Automated Reservation System for Hotel accommodations (MARSH)

• Property Guest Object Oriented System (Pgoos)

3. Culture & Corporate Social Responsibility

Datamonitor 360. (n.d.) Marriott SWOT Analysis. Retrieved on October 3, 2011 from http://360.datamonitor.com.proxy2.cl.msu.edu/Product?pid=A60E65CA-A952-42A7-A580-B3C707CEF91F&view=SWOTAnalysis

JD Power Customer Satisfaction 3. Culture & Corporate Social Responsibility

North America hotel ratings: Luxury (2011). JD power: Travel: North America hotel ratings. Retrieved on September 28, 2011 from http://www.jdpower.com/travel/ratings/north-america-hotel-ratings/luxury/

Business Values

1) Commitment to Human Rights

2) Ethical and Legal Standards

3) Working with Suppliers

4) Helping Our Workforce Grow

“How We Do Business Is As Important As The Business We Do”

3. Culture & Corporate Social Responsibility

Why Marriott? (2011). Marriott Corporate Website. Retrieved on September 22, 2011 from http://www.marriott.com/careers/CareerPaths-hotel-employeee-benefits.mi

Fortune 100 Best Employers

Rank Company

70 SC Johnson

71 Marriott72 Microsoft

73 PricewaterhouseCoop-ers

74 Nordstrorm

3. Culture & Corporate Social Responsibility

100 best companies to work for. (2011). CNN Money. Retrieved on September 28, 2011 from http://money.cnn.com/magazines/fortune/bestcompanies/2011/snapshots/71.html

Accomplishments

Society & Environment

• Climate Counts Ranks Marriott® Tops in the Hospi-

tality Sector

• Marriott Headquarters Receives Gold Medal for

Green Buildings

• Marriott UK Hotels #7 on Sunday Times’ “Best

Green Companies” and “Best for Employee Environmental Engagement” Lists.

• 2010 worldwide charitable contributions totaled $34.6 million from

donations of cash and volunteer time

3. Culture & Corporate Social Responsibility

Environment. (2011). Marriott Corporate Website. Retrieved on September 22, 2011 from http://www.marriott.com/corporate-social-responsibility/corporate-environmental-responsibility.mi

Goals

• Further reduce energy and water consumption by 25 percent per

available room by 2017

• Create green construction standards for hotel developers and

green our multi-billion dollar supply chains

• Educate associates and guests to support the environment

• Invest in innovative conservation initiatives in-cluding

rainforest protection and water conservation

Continuous Improvement

3. Culture & Corporate Social Responsibility

Environment. (2011). Marriott Corporate Website. Retrieved on September 22, 2011 from http://www.marriott.com/corporate-social-responsibility/corporate-environmental-responsibility.mi

-Team C

In closing, we believe Marriott International is a great place to work, as evidenced by Marriott’s

1. Business & Performance

2. Competitors & Competitive Advantage

3. Culture & Corporate Social Responsibility

Presentation and References with live links can be found on the Linked In profiles of all group members.

References

Datamonitor 360. (n.d.) Marriott Business Description. Retrieved on September 30, 2011 from

http://360.datamonitor.com.proxy2.cl.msu.edu/Product?pid=A60E65CA-A952-42A7-A580-B3C707CEF91FDatamonitor 360. (n.d.) Marriott Company Overview. Retrieved on September 30, 2011 from http://360.datamonitor.com.proxy2.cl.msu.edu/Product?pid=A60E65CA-A952-42A7-A580-B3C707CEF91FDatamonitor 360. (n.d.) Marriott SWOT Analysis. Retrieved on October 3, 2011 from http://360.datamonitor.com.proxy2.cl.msu.edu/Product?pid=A60E65CA-A952-42A7-A580-B3C707CEF91F&view=SWOTAnalysisEnvironment. (2011). Marriott Corporate Website. Retrieved on September 22, 2011 from http://www.marriott.com/corporate-social-responsibility/corporate-environmental-responsibility.miFactiva. (n.d.) Marriott International Company Information. Retrieved on September 22, 2011 from http://global.factiva.com.proxy2.cl.msu.edu/pcs/default.aspxFactiva. (n.d.) Marriott International Competitors. Retrieved on October 3, 2011 from http://global.factiva.com.proxy2.cl.msu.edu/pcs/default.aspxFinancial statements. (2010). Marriott 2010 annual report. Retrieved on September 27, 2011 from http://investor.shareholder.com/MAR/marriottAR10/financials/financial_statements/index.htmlFind your world: Marriott’s signature. (2010). Marriott 2010 annual report. Retrieved on September 27, 2011 from http://investor.shareholder.com/MAR/marriottAR10/signature/index.htmlFortune 500: Our annual ranking of America’s largest corporations. (2011). CNN Money. Retrieved on September 28, 2011 from http://money.cnn.com/magazines/fortune/fortune500/2011/index.htmlInvestor relations. (2011). Marriott Corporate Website. Retrieved on September 22, 2011 from http://investor.shareholder.com/mar/default.cfm

References (cont.)MarriottNews. (Producer). (2009, May 26). I am Marriott. Video retrieved on October 9, 2011 from

http://www.youtube.com/watch?v=YUxIxjPPfIcMergent Online. (n.d.) Marriott Company Details. Retrieved on September 22, 2011 from http://www.mergentonline.com.proxy1.cl.msu.edu/companydetail.php?compnumber=94547&pagetype=synopsis Mergent Online. (n.d.) Marriott Competitors. Retrieved on September 26, 2011 fromhttp://www.mergentonline.com.proxy1.cl.msu.edu/competitors.php?compnumber=94547Mergent Online. (n.d.) Marriott Company Financials. Retrieved on September 22, 2011 fromhttp://www.mergentonline.com.proxy1.cl.msu.edu/companyfinancials.php?compnumber=94547North America hotel ratings: Luxury (2011). JD power: Travel: North America hotel ratings. Retrieved on September 28, 2011 from http://www.jdpower.com/travel/ratings/north-america-hotel-ratings/luxury/Our brands. (2011). Marriott Corporate Website. Retrieved on September 22, 2011 from http://www.marriott.com/corporateinfo/glance.miQuarterly financial data. (2010). Marriott 2010 annual report. Retrieved on September 27, 2011 from http://investor.shareholder.com/MAR/marriottAR10/financials/quarterly_financial_data/index.htmlThomson One: Investext (n.d.) Marriott International Company Overview. Retrieved on September 30, 2011 from https://www.thomsonone.com/Workspace/Main.aspx?View=Action%3dOpen&BrandName=&IsSsoLogin=TrueWhy Marriott? (2011). Marriott Corporate Website. Retrieved on September 22, 2011 from http://www.marriott.com/careers/CareerPaths-hotel-employeee-benefits.mi100 best companies to work for. (2011). CNN Money. Retrieved on September 28, 2011 from http://money.cnn.com/magazines/fortune/bestcompanies/2011/snapshots/71.html