This website uses cookies to ensure you have the best experience. Learn more

Marriott Study Case Essay

583 words - 3 pages

How Marriott Never Forgets a Guest

When retiree Ben B. Ussery Jr. goes on vacation, he typically spends hours beforehand nailing down golf dates, scouting shops for his wife, and making restaurant reservations. But last year, when the Usserys and another Richmond (Va.) couple chose to spend a week at Marriott's Desert Springs resort in Palm Desert, Calif., he let the hotel do the legwork. Weeks in advance, Marriott planning coordinator Jennifer Rodas called Ussery to ask what he wanted to do. When all was set, she faxed him an itinerary. She had even ordered flowers for his wife. ''Marriott made it a real smooth experience,'' says Ussery. ''I'm ready to go back.''

What makes such velvet-glove treatment possible is Marriott International Inc.'s (MAR) use of customer management software from Siebel Systems Inc. (SEBL) The hotel chain, ...view middle of the document...

'''

Marriott, America's No. 1 hotel chain, is the industry leader in using technology to pamper customers. The company, which manages 1,850 hotels and resorts worldwide, began installing Siebel software in late 1998 and is spending just under $10 million for the initial pieces. A few other hotel chains are dabbling in customer-info systems, but Marriott is ahead of the pack, says analyst Bryan A. Maher of Credit Lyonnais Securities. ''It's a huge advantage,'' he says.

The biggest boost from the Siebel software is in the hotel chain's sales operations. Marriott is transforming its sales teams from order-takers for specific hotels to aggressive marketers of all Marriott properties. A salesperson in Dallas--who understands both the needs of his local customers and the chain's world inventory of hotel rooms and other facilities--can now pitch and book orders for hotels in Hawaii or China.

NO HASSLES. Early results are promising. In 1998, the sales-force software helped Marriott generate an additional $55 million in cross-chain sales. Anecdotal evidence also suggests there has been a jump in bookings from event planners, who find it easier to give business to Marriott, which has their needs on file, than put it out for bid.

Eliminating hassles for guests is the appeal of Marriott's free personal-planning service, too. It's now available at seven resorts, but Marriott aims to extend it to all 32 resorts by 2001. The software tracks guest preferences, so personal planners can anticipate amenities that repeat guests may want. ''Our spa is very popular,'' says Doug Mings, personal planning supervisor at Marriott's deluxe Camelback Inn in Scottsdale, Ariz. ''If you don't plan ahead, sometimes you don't get in.''

The service also gives Marriott reps an opening to pitch hot-air balloon rides and other fee-generating activities. Happy customers, fatter sales: With that kind of advantage, no wonder other hotel chains, such as Hilton Hotels Corp., are starting to follow Marriott's technology lead.

Other Papers Like Marriott Study Case

Marriott Case Essay

831 words - 4 pages Marriott's corporation: the cost of capital What is the weighted average cost of capital for Marriott Corporation? Are the four components of Marriott's financial strategy consistent with its growth objective? Marriott Corporation is an international company who's the growth over the year has been more than satisfactory. In 1987, Marriott's sales grew up by 24% and its return on equity stood at 22%. Moreover the sales and earnings

Marriott Corporation Essay

1091 words - 5 pages Marriot case Analysis Lodging Division 1) Finding beta for Lodging: The nearest business that could be considered for calculating the beta is the Holiday Inn Corporation which has a beta of 1.35. In order to unlevered the beta of Holiday Inn Corp using; 1.35/(1+(1-t)*D/E); where t is the tax rate; D/E is debt to equity ratio. Therefore; 1.35/(1+0.56(0.74/0.26)) The unlevered Beta for Lodging is 0.435 which is approx. to 0.44. We can

Marriott Corp

802 words - 4 pages Marriott Corporation, an American firm, has 3 major lines of business: lodging, contract service and restaurants. Its growth objective is to remain a premier growth company. The four components of its financial strategy are consistent with this growth objective for the reasons: Manage rather than own hotel assets: Marriott sold its hotel assets to limited partners to reduce assets and thus, it can increase ROA and thereby increase potential

Marriott Solution

1065 words - 5 pages Question 6 What is the cost of capital for the lodging and restaurant divisions of Marriott? Answer: The cost of capital for lodging is 9.2% and the cost of capital for restaurants is 13.1% Calculation: WACC = (1-t) * rd * (D/V) + re* (E/V) Where: D= market value of DEBT E = market value of EQUITY rd = pretax cost of debt re = aftertax cost of equity V = D+E t = tax rate To calculate the formula above, we need to determine each component

Hr Marriott

3122 words - 13 pages illustrate on the relationship between business strategy and five key HRM functions – recruitment, human resource development, performance appraisal, remuneration and retention. Background of Marriott International Mariott International was founded on 1927 by J.Willard Marriott. Their business started with a food and goods service in A&W root beer franchise in Washington, D.C. In 1957, with the leadership of Bill Marriott, Marriott international

Assignment Marriott Annual Report

653 words - 3 pages Marriott International, Inc Annual Report 2011 Accounting Principles 100 June 16, 2012 Marriott International, Inc., a leader in the hospitality industry, extended their attention to customer comfort to their intended annual report audience, and created a communication instrument that stands apart from most others in the typically dull arena of corporate reporting. In 2011, note worthy endeavors included Global Growth which caused an

Marriott vs Us

577 words - 3 pages “liabilities” in section 752 of US Internal Revenue Code, and partnership basis should not have been adjusted by the amount caused by the short sale. IRS alleged that Marriott created the partnership just for the purposes of tax shelter and disallowed the loss; based on the fact that obligation to short sell is considered a liability and Marriott should have included the obligations in partnership basis. At the time of Marriott’s case none of the

Financial Analysis for Marriott

1861 words - 8 pages Problem Statement Marriott Corporation’s Vice-President of Project Finance, Mr. Dan Cohrs has been tasked with determining appropriate hurdle rates for the three operating divisions in the upcoming year, 1988. The three operating divisions include lodging, contract services, and restaurants. The overall company strategy is to “remain a premier growth company”, which is evidenced in the previous year through sales growth of 24% return on equity

Marriott International Management

3047 words - 13 pages inclusion are closely tied to core values and strategic business goals, so they are embedded into every facet of the business. Today the company has one of the most diverse and inclusive workforces. Marriott has been named one of the World’s Best Multinational Workplaces by Great Place to Work®, the world’s largest annual study of workplace excellence. Current diversity and inclusion efforts include multicultural workshops and tools that help managers

Marriott Corporation Cost Of Capital

4605 words - 19 pages Harvard Business School 9-298-101 rP os t Rev. March 18, 1998 Marriott Corporation: The Cost of Capital In April 1988, Dan Cohrs, vice president of project finance at the Marriott Corporation, was preparing his annual recommendations for the hurdle rates at each of the firm's three divisions. Investment projects at Marriott were selected by discounting the appropriate cash flows by the appropriate hurdle rate for each

Marriott Corporation: the Cost of Capital

1847 words - 8 pages case of asset owners’ insolvency, Marriott is liable for the guaranteed debt resulting in the originally projected NPV to be further discounted. III. Market Risk Premium for WACC Estimation Since Lodging assets have long useful life, Marriott uses costs of long-term debt for its cost of capital calculations in Lodging division. On the other hand, it applies costs of short-term debt to evaluate cost of debt for Restaurants and Contract

Related Essays

Marriott Wacc Case Study

2549 words - 11 pages arriott Corporation: The Cost of Capital (Abridged) Executive Summary: The case "Marriott Corporation: The Cost of Capital (Abridged)" focuses on an ideal opportunity to review the capital asset pricing model and the weighted average cost of capital through calculation of the cost of capital for Marriott as a whole. Dan Cohrs is faced with making recommendations for the hurdle rates at Marriott Corporation and its three

Marriott Case Study

759 words - 4 pages INDUSTRY RELATED WORD LIST Investment Banking Consultant private equity Leadership venture capital Re-engineering techniques Corporate finance systems professional project finance strategic planning valuation case research methods financial analysis SAP forecasting BAAN competition analysis Peoplesoft country and risk analysis CFA MIS data modeling Commercial Banking relational databases lending

Marriott Case Study

990 words - 4 pages of Capital for Marriott Corporation? Marriott^' s WACC=(1-0.441)(0.1011)(0.6)+(0.1555)(0.4) =8.48% What risk free rate and risk premium did you use to calculate the cost of equity? The chosen risk free rate used was 4.58% from the long-term US Government bond returns. The risk premium used was the spread between the S&P 500 and long-term, high-grade corporate bonds of 6.77%, given that in the case, it was stated that Marriott’s debt

Marriott Case Essay

1066 words - 5 pages the Weighted Cost of Capital is 10.08% for Lodging, 14.49% for Restaurant and 13.93% for Contract Service. Analysis WACC for Lodging and Restaurant To determine WACC for the lodging and restaurant of Marriott has used the following formula: WACC = (1– T)*rD* (D/V) + rE*(E/V) T = Corporate tax rate rD =Cost of debt before tax rE =Cost of equity after tax D =Market value of Debt E =Market value of Equity V =Division Value (D+E) Each the above