Marketing Essay

2116 Words Apr 20th, 2015 9 Pages
Marriott Corporation 02/11/15
BUS 590: Innovative Business Models for the ‘Next’ Economy
Team A: Congying Ling | Devon Nobles | Sai Prashant Boy Reddy | Snehal Ramtekkar


J.W. Marriot founded the Marriot Corporation (MC) in the year 1927. The main business of this corporation was developing hotel properties around the world and selling them to outside investors while retaining lucrative long-term management contracts. By 1991, MC had around 202,000 employees ranking it as the 12th largest employer in the United States. The 1986 tax reform act ended most of the tax incentives for real estate
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As they are separate entities, MII’s losses (if any) will not impact MII’s positive earnings. Unburdened by debt, MII would have the ability to raise additional capital to finance growth, perhaps to participate in the consolidation of the hotel industry by purchasing the assets of competitors in financial difficulty.
The stock holders will be given equal value stocks in HMC, and while they would benefit from Project Chariot, the situation was quite different for bondholders. Although MC management was confident that HMC would have the financial strength to make all payments of interest and principal on long-term obligations when due, the separation of the two companies would affect the security of MC debt holders. This is currently the biggest concern for MC as their decision could hurt their current bond holders dearly and this might even result in bad press in the eyes of the future potential investors in either of the companies. PESTLE Analysis

1. Political
Each country has a different set of politics, rules and regulations which effects every business. In the case of Marriott policy on health, non-smoking rooms, the tourism policies also have a huge effect.
Also hotel development means stable taxes for the government, hence, easy for foreign investors to get approval for

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