Starwood Hotels Pest Analysis
This report is analyzing Marriott International’ merger with Starwood hotels, going through an evaluation of different levels of strategy.
Merging is the combination of one or two companies or other business entities into one single entity, to achieve a greater efficiency of scale and productivity. Mergers and acquisitions are usually done to expand a company’s reach, add new segments, or gain more market share.
Marriott International is a huge global lodging company, established in 1927 by J. Willard Marriott, the business grew year after year either through adding new hotels or acquiring existing hotel chains. The Marriott International merger with Starwood Hotels and Resorts created the world’s largest lodging company in the world with 5,700 hotels and resorts in more than 100 countries, 1.1 million rooms and a new portfolio of brands. …show more content…
Examples of such events is the September 11 attacks in 2011 to the World Trade Center. The increasingly global tension and the rise of new terrorist groups like ISIS make this factor is a real threat to the lodging business.
Another example is the downing of Malaysian airlines flight in July 2014 by a missile fired from Ukrains. This would be another important factor and it is known that the fall in air travel would decrease the demand for hotel rooms and so affect the lodging business.
The current turbulent in the international business environment followed by the economic slow down in China and the European economic turmoil would be the major factors affecting Marriott’s business. Another related problem is the high exchange rate of the U.S. dollar abroad discourage tourists from visiting destinations in the U.S.A.