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Veracruz

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Vision-MissionVision : 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

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To provide “ Good Food & Good Service at a Fair

Price”

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Marriot International North American full-service lodging

North American limited-service lodging

International lodging

Luxury

Timeshare

Synthetic Fuel

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Marriott Facts2,832 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.

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SWOT - Analysis

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Strengths

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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

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Weaknesses

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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

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Opportunities

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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

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

Threats

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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

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Action Points

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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

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Action Points

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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

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Action Points

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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

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Action Points

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Financial Analysis

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Liquidity Ratios

2008 2007 2006 2005

Current Ratio

1.33 1.24 1.31 1.59

Quick Ratio 0.55 0.7 0.84 1.04

Their current ratio goes beyond the industry standard but their quick ratio is less than industry standard

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Show’s Marriott’s Acquisition culture, where they use the shareholder’s investments when venturing to other avenues.

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Leverage Ratios 2008 2007 2006 2005

Debt to Total Asset Ratio

0.84 0.84 0.7 0.62

Debt to Equity Ratio

5.45 5.25 2.28 1.62

Long Term Debt to Equity Ratio

2.16 1.95 0.69 0.52

Times Interest Earned

5.37 7.17 12.15 3.69

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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

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Profitability Ratios 2008 2007 2006 2005

Operating Profit Margin 0.07 0.1 0.08 0.5

Net Profit Margin 0.03 0.05 0.05 0.06

Return on Total Assets 0.04 0.08 0.07 0.08

Return on Stockholder’s Equity 0.26 0.49 0.23 0.21

Earnings per Share $0.99 $1.75 $1.41 $1.45

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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

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Growth Ratios 2008 2007 2006 2005

Sales -0.85% 8.30% 5.28% 14.37%

Net Income -47.99% 14.47% 9.12% 12.25%

Earnings Per Share -43.43% 24.11% -2.76% 16.94%

Dividends per Share 17.39% 19.79% 20.00% 21.21%

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Strategies and Objectives

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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

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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

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Sales for strategy (Sales force One)

accommodating all customer needs in a

one-stop-fashion

Customer Strategies

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“Look no Further Best Rate Guaranteed”

Hassle Free Navigation, and access

And transparency in prices

Partnerships with 3rd party websites

Internet Strategies

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Marriott International Space Matrix

Internal Strategic Position Average Points

Financial Strength (FS) 4.28

Competitive Advantage (CA) -1.5

External Strategic Position Average Points

Environmental Stability (ES) -4.1667 (y axis - .12)

Industry Strength (IS) 4 (x axis - 2.5)

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Marriott International Position

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Local SettingsShangri-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

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Primary CompetitorsShangri-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)

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Philippines’ Top Hotels

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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

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Answers to Questions

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Is Marrio) relying too heavily upon the domes6c market for  expansion  instead  on  the  faster  growing  economies overseas?

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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. 

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Proposed Acquisi.ons

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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 !!!!!

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Proposed Org‐Chart 

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