Please present a’’ Critical Strategic analysis’’ of the following business activity:
Marriott’s merger with Starwood Hotels
News & Web Links The links below provide some starting and useful points we MUST add our own detailed research to develop the analysis:
http://www.marriott.com/about/corporate-overview.mi http://www.starwoodhotels.com/corporate/investor.html http://www.theguardian.com/business/2016/mar/21/starwood-hotels-accepts-merger-marriott-international http://www.theguardian.com/travel/2016/mar/28/starwood-hotels-marriott-anbang-china-cuba
Prof. John M. Bryson, 2003. What To Do When Stakeholders Matter: A Guide to Stakeholders Identification and Analysis Techniques. Citeseerx.ist.psu.edu
The Modern roots of Strategic Management, by Susan Segal-Horn (2004)-European Business Journal.
The following structure is required:
Introduction to the report · An evaluation of the relevant levels of strategy · A critical evaluation of the key stakeholders · External Analysis – using PESTEL to identify and explore key trends in the environment· Industry Analysis – using 5 Forces to critically analyze the relevant industry factors (Porter’s five forces of competitive position analysis – Supplier power, Buyer power, Competitive rivalry, Threat of substitution, and threat of new entry ·How the PEST and 5 forces are linked. Map the positions of main stakeholders and analyze the impact on the company. Focus on the Key Drivers of Change. Provide examples of competitive characteristics that illustrate the nature of the competitive position. Conclusion. (Reference: Harvard Style Citation & Referencing) .
(Student is expected to use a wide range of references from news, industry and company sources as well as academic theory to support their analysis.). Analysis means commenting on your findings and EXPLAINING what the evidence suggests about the company.
The introduction should be brief. It is not meant to provide a history of the company.
The Conclusion needs to draw the analysis to a close and comment on the sustainability of the company’s strategic position. Remember you do not introduce new findings into the Conclusion.
If you include Appendices you must refer to them in the relevant section of the report findings.
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The merger of Marriott International, Inc. and Starwood Hotels and Resorts Worldwide, Inc led to the establishment of the world’s largest hotel firm. The merger took the hospitality industry by storm after facing numerous challenges before the deal was struck. The new organization integrates Marriott’s robust existence in providing luxurious and select-service sectors with Starwood’s high-quality lifestyle brands and international presence, as well as the regular hospitality services offered by the two organizations, forming the world’s largest resort chain. The merger of these companies is deemed to increase opportunities for various stakeholders, including shareholders, customers, and other players (Marriott 2015). The intent of this article is to conduct a critical strategic analysis of the merger.
An Evaluation of The Relevant Levels of Strategy
Figure 1: Bowman’s strategy clock
The Bowman’s Strategy Clock presents the strategic approach that a company can employ in increasing competitive advantage. In this context, the following are the strategic approach employed after the merger.
Corporate Strategy Level
The board of directors of the two companies approved the merger on 16th November 2015. The two entities combined their businesses to form a comprehensive portfolio. The strategy is evident in the strategic levels of both companies, and it was instrumental in strengthening the merger. The corporate strategy level entails the general drive and scope of the organization, accumulating value for the shareholders’ investments and the distribution of resources among different corporate components. The corporate strategy for Marriot and Starwood is designed to concentrate on accelerating growth and linking the capabilities of each organization to increase competitive advantage and sustainability in the market. The two companies were leaders in the hospitality business, and the merger increased their opportunities for business ventures. Also, Starwood would sell the Vistana Signature, which is a timeshare vacation enterprise that Marriot had withdrawn from in 2011. The timeshare business is lucrative and requires a different approach to management and maintenance to remain sustainable. From this perspective, withdrawing from the timeshare business facilitated the merge, enabling the newly formed organization to focus on hotels and resorts. Subsequently, the companies would take the same management approach as a single company. Marriott employs the asset-light strategy, which means that the company does not engage in long-term real estate market…