Compare and contrast
Abstract
In today's market, the target of each firm has been coordinated to distinguishing a special ability in order to achieve game changer in the commercial center by guaranteeing that their skills are all around used. With the competition in the hotel industry, there has been the need to have ways in which the industry players will have improvements in their services. It is one way in which the industry and other players will be able to improve their business processes in order to have better business. Associations should not be kept to their utilitarian spaces however ought to move crosswise over limits. Right now, associations in created nations work in an intricate domain and with loaded with regulations. In building up an item thusly, firms through the administration ought to think about setting up as a game changer. Associations are along these lines called through this in order to audit their key abilities as one of their key things so they can stand the changing interest with the evolving time.
Introduction
Strategic management is a significant component of any organization as there is a need to have ways in which organizations will stay ahead of the competition. This paper will compare and contrast two organizations in their strategic management and how they handle their management and how they ensure that they are able to manage their operations and business transactions. This paper will compare between Marriot Hotels (Gaylord Hotels) and Choice International Hotels.
The two hotel companies are seen to compete each and every day for new customers. It is an issue of concern that has to be done and assessed with the right moves. The two companies are known to focus on their niche so that they both look at their locations in order to get a bigger market share. They are both in the hospitality industry. This analysis will focus on the SWOT analysis of the companies and their financial comparison to check the performance of the two companies in order to have a better way in which the company can be analyzed.
The use of these findings will be useful in order to check the stronger competitor between the two companies (Eden, & Ackermann, 2013). The analysis will help to show the lesser competitive companies to have strategies that will improve on their competition.
The legal environment that the company operates is seen to be one that observes the laws that have been set by other bodies. The company observes the rights and the laws that have been put in place. An example is that the company has set ways in which they are able to meet the legal contingencies without having to violate on any partner or competitor (Hill, Jones, & Schilling, 2014). The company has developed a name where it operates on a legal framework that they operate. The income taxes are included in the legal contingencies that have been developed. Choice International has been confronted with various details and regulations and enactment that are connected with nature. Some of these enactments may be rivalry laws, customer security and assessment, licensed innovation law and laws administering discharges (Hitt, Ireland, & Hoskisson, 2012). After the organization had come to its full advancement, they attempted to quicken innovation so that its suppliers will be informed on the changing enactments administering US reconciliation of generation.
The social environment of the two companies is that while Marriot seem to be having many cultural influence due to a wide category of the customer base, Choice International has a lean culture which makes the social development and environment small for extensive interactions.
Gaylord Hotels, basing on their mother company Marriot Hotels, have good decision making capabilities which have enabled them to have good strategic leaps in the quest to make steps towards achieving the desired profitability (Moutinho, 2011). Choice International, on the other hand, have poor meetings and are not able to make decisions on crucial matters. They are not able to make the right decisions while undertaking the needed research. It is through this that there have been ways in which the decision making procedures will have to be done and made to have better ways in which to make the right decisions.
Promotion policies at Choice International is based purely on merit and how the person has been able to work on their credentials. This is not the case at Marriot where the promotion policies is based on the general conducts and the people skills of the person that is being promoted. There is a balance between these factors and how the factors will be used in the entire organization (Sedlak, Ćirić, & Ćirić, 2013).
There is a management style that is different in both companies. Marriot has a flat management style in that there is no emphasis on hierarchies and positions. There is more of team work in the company where there is more concern for managers to have a way in which they are able to connect with their juniors. In Choice International, there is more concern on the hierarchies and the functionalities that are associated with the roles and positions. The leadership style of Marriot is open where the leaders ensure that they have visions that are shared by the entire workforce. The leadership style of Choice International is closed where the leaders have most of the say when important decisions are to be made.
SWOT analysis of Marriot Resorts – Gaylord Hotels
SWOT analysis of Choice Hotels International
Choice Hotels is the mother company of many inns and restaurants which include Comfort Inns and Suites, Econo Lodge, Rodeway Inn, Mainstay Suites, and Suburban Extended Stay Hotels. It is from these suites that have many strengths and specialization that have made the company to come on top of the competition. It is one of the strengths that has been seen to be an issue that has been developed by the company. The weakness comes with the difficulty that comes with the many brands that have been developed and have come from the management of the many brands and aspects of the company.
Financial comparison
It is inefficient to compare the two companies because of the difference in the financial volumes of the two companies. While Marriot is a $12.15 billion business, Choice International is a $ billion business. This shows that Marriot is a large-cap business while Choice International is in the mid-cap. One of the ways in which the financial picture can be compared is by looking at the financial rations which will show how the two companies invest their capital in themselves and in their stakeholders. The gross profit margin of Choice International is 44.8% while that of Marriot is 11.7% which shows that there is no race between the two companies. The return on invested capital for Choice is 48.7% while the return on invested capital for Marriot is 19.1%. The return on assets for Marriot is 3.4% while the return on assets for Choice is 24.7%. In this analysis, it is clear that there is a need to have a way in which the two companies improve on their business operations. In the two companies, Marriott’s seem to be doing well because of the popularity of their services and their brand.
References
Eden, C., & Ackermann, F. (2013). Making strategy: The journey of strategic management. Sage.
Hill, C., Jones, G., & Schilling, M. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Hitt, M., Ireland, R. D., & Hoskisson, R. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.
Human resources management. Oxford University Press, 2011.
Moutinho, L. (Ed.). (2011). Strategic management in tourism. CABI.
Sedlak, O., Ćirić, Z., & Ćirić, I. (2013). Strategic Management Under the Conditions of Uncertainty and Indefiniteness. Strategic Management, 18(1), 62-68.
