Loading…

Marriott Hotels - Montenegro

Christopher Deleon

Updated June 18, 2015

Transcript

Company Identification

A&W Root Beer Stand & Hot Stoppes

Brief History

1927 A&W Root beer stand
J. Willard & Alice Marriott
Became Hot Stoppes
drive - in
public company

First Hotel & First International Hotel

1957: Twin Bridges Marriott Motor Hotel

365 rooms
largest in the nation

1927-1953

1969: Acapulco Paraiso Marriott

Courtyard, Fairfield Inn, Residence Inn

1983: Courtyard for business lodging

1987: Fairfield Inn & Marriott Suites Hotels debut & Residence Inn is acquired

porfolio with different brands

1957-1969

Marriott International

1993: Marriott International becomes its own company

1995-98 Acquires the Ritz-Carlston and Renaissance Hotel & Launches Town Place Suites and Springhill Suites is launched

2011: AC Hotels debut (luxury brand)

2012: Arnie Sorenson = CEO & President

1983-1988

Moxy Hotels & New Technology

First entry to lower economy tier
aimed for younger travelers

1993-2011

Red Coat Direct App
Travel Brillantly Campaign
Marriott Rewards

2013-Current

Core Competency

Current Operations

Reasons for going International

*3,800 Hotels in 72 Countries

18 brands

6 categories

Luxury
Lifestyle/Collections
Signature
Modern Essentials
Extended Stay
Destination

Award Winning Customer Service

Hotel Philosophy

"Take care of your employees and they'll take care of your customers"

Successful History of Foreign Integration

4,000+ Destinations, 78 Countries, 19 Hotel Brands

Service Model for Success

Current Market

1. Have a happy staff

2. Focus on innovation

3. Establish high business standards

Types:

business travelers
young travelers: millenialls

International:

Europe
Asia Pacific
Middle East
Africa

Take advantage of growing markets

high tourist countries (like Montenegro)

Increase Profits and Revenue

more tourists = more customers

Growing tourist industry on coastal cities

10% tourism growth per year

Population:

650,036 people
47.1% ages 25 -54 (median age 39.2)

Language: Montenegrin (aka Serbian)

Currency: Euros

Wages:

$3.39 average per hour, $5,724 per year
$1.48 minimum per hour, $3,088 per year

Montenegr0

Hotel over booking

Mediterranean Climate

long, warm summers (80 F) & mild winters

Colder and more humid on mountains

Use other food industries around us and collaborate deals, expanding our Marriott Rewards program

Related Industries

Climate

The minimum wage for employees in Montenegro start at a yearly rate of EU 3,456=$3, 383,57 dollars in America

In Montenegro there is total of 117 different beaches, giving locals a great access to fresh fish that wil be used in Resort resturant

Factor Conditions

2007

- Joined Northern Atlantic Alliance (NATO)

guarantees stability and security
improves economic development
demonstrates democracy is stable

- Signed Central European Free Trade Agreement

- Joined International Monetary Fund and the World Bank

2012

- Became a member of World Trade Organization

Currently

- In process of joining European Union

Serbia + Montenegro made up the Republic of Yugoslavia

Left State Union of Serbia and Montenegro in 2006, declared independence

Development since Independence

Stable, democratic, multiethnic country

Shares values between itself & surrounding European countries

believes in equal partnership and mutual respect with other countries

Foreign relations

Location & Politics

Advantage of Nations,

Diamond Model

Demand Conditions

American company doing business in Montenegro is seen positively as their government sees the potential of foreign investors

Firm Strategy and Rivalry

Owner has rights to 100% of the company

More of a toursist demand than local markets

72% energy from fossil fuels (42% coal, 30% oil derivatives)

15% renewable resources (hydrolic power and biomass)

13% imported from other countries

Energy

4 Elements of Geography

Tourist Sites

Natural Resources

Main source of economic development

2012, visited by 1.4million tourists, 700 euros in revenue
directly & indirectly generated 17-23% of GDP
contributes 17.6% of jobs (29,000)

Tourism industry expected continue to increase

by 2023, 31.8% employment (59,000)

Bauxite

Used to produce Aluminum metals
Mines located in central Montenegro

Lead-Zinc Ore

used for batteries, paint, and some ammunition
located on mountain area of Ljubišnja and Bjelasica

Other Natural Resources

Topography

Mostly covered in mountains

long flat coastline (260 km long)

techtonically active area, earthquake 1979 destroyed infrastructure cities along Adriatic Sea (will need insurance on buildings)

Montenegro goverment encourages foreign markets

Socioculture

Gender Roles

Political

Language

Globalization Forces

(PEST Model)

Tourist economy is expected to increase revenue in 10 years by 2 billion dollars

Power Distance (PD)
Individualism (IDV)
Masculinity (MAS)
Uncertainty Avoidance Index (UAI)
Long Term Orientation (LTO)

Not as quick construction and infrastructure

Technological

Economy

Hofstede's Value Dimensions

Strategic Analysis

Global Corporate Form

SWOT Analysis

Foreign Direct Investment

Montenegro allows foreigners to own property
Treat foreign business as a citizen under the same tax rates

Goal
Have the largest market share in hotel industry in Montenegro

Entry Points &

Strategic Sustainability

Enter the market early

Use cheap labor to create infrastructure

Buy out local competitors that can’t compete with an international company

Dominate market share and spread brand name recognition

Be well established for when international competitors move in

Strategic Plan

Strategy Implementation

Montenegro is located between Serbia, Italy, Greece and Bulgaria. (neighbors, capital, political & trade relations)