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