Marriott Managing Through the Years Marriott has a long and storied history that has been transformed im many iterations from its humble beginnings in 1927. During these Years, there have been numerous challenges along with the tremen- dlous amount of success experienced by Marriott. Handling the suc- cess and challenges of such an expansive global corporation takes the right kind of leadership with a shared vision on achieving success inall oftheir business endeavors. Marriott's Story In 1927, J. Willard and Alice S. Marriott opened the first A&M root beer franchise. A short time later, they made the decision to add hot Mexican food to their menu, which inspired the name of ‘heir restaurant, The Hot Shoppe. From this venture into the food service industry, a hospitality spark was ignited in the hearts of the young couple, and setting them on course to building one of the largest hospitality franchises in the world, In 1957, the Twin Bridges Marriott Motor Hotel opened, fea turing a drive-in registration desk. Eight years later in 1965, its first fast-food restaurant, Hot Shoppes, Jr. was opened, By 1972, Marriott had entered into partnerships with Sun Line cruise ship, and announced plans for two Great America theme parks. JW, Marriott Jt, was named its chief executive officer. Growth was coming to Marriott in a variety of business ventures, and all of them seemed to have a focus on hespitality—providing its customers with products and services 10 meet their diverse needs. Throughout the 1960s, Marriott focus was centered on its hotel business and the creation of the Courtyard and Fairfield Inn brands. During the 1990s, Marriott made several acquisitions, including Ritz-Carlton, Renaissance, and ExecuStay, to bolster ite already successful hotel business. The 2000s brought on additional acquisitions, the creation of some new business units within the Marriott family that changed its focus from traditional hotel offer ings to more upscale independent luxury hotels. These included the ‘Autograph Collection and the EDITION brands, which emphasized the uniqueness of the hotels locations reflecting current trends in that locale. Then in 2012, the announcement was made by Bil a riott that he had decided to step down as CEO, and Ane Sereno, emerged as only the third CEO in the history ofthe company, The marked the end of the family influence at the top of the organs tion, and brought, along with this change, significant challenges a¢ well as opportunities for Marriott." Management Thought at Marriott Such large organization cannot operate without a wellthought ‘out plan and its successful execution by its management staff To run such a business at the level of success that has been achieved bby Marriott, itis crucial to have in place the necessary guiding prin ciples to insure every employee is focused on the same goal. Mar riotthas been able to emanate this focus through its core values We believe our strength is rooted in our core values: putting People first, pursuing excellence, embracing change, acting with integrity and serving our world. These values are our leg- acy and our future. As we pursue our vision of making Mariott the #1 hospitality company in the world, we never lose sight of ‘our founding principles and our proud heritage. Our business 's always evolving...but we'll always stay true to who we are? Such values have @ lasting impact on Marriott employees, inf encing the direction and decisions that must made to compete Gfectively in @ global market. With over 300,000 employees, these core values become the driving force behind the work that Mariott needs to complete in order to meet the diverse and changing needs of its customers. Marriott recognizes that c2ch of these employees have distinct talents that can help the Brcnaration achieve its goals, David Rodriguez, Senior Diversity Executive, states the commitment to Mariotts employeex: We strive to create an inclu sive environment where the talents and unique ideas of 300, {000 associates at our managed andfranchised properties worldwide can flou ociates feel respected and valued, we fone i nur as- way t00. This is more than a phil = ne works.” Philosophy —its a strategy that ‘hiskind of corporate commitment towards its em fos uit Marriott into the global leader ti wae nee hat ayindusty day in the hospital | Marriott cultivated a unique * 7 "people fist building Marriott from a family restaurant bua, lodging company with more than 3.7 counties and territories * culture while 188s toa global '00 properties in over 73 Leading Marriott into the Future Creating a company that values its employees, focuses on the customer, and maintains a keen sense of innovation within all aspects of its business is @ tough challenge for any company. Marriott has built itself on sound principles and a continued fo cuson being the best in its industry, According to its 2012 Annual Report, Marriott plans to “remain true to what we've done best for nearly 85 years: putting people first. With strong leader. ship and a record of innovation, we look forward to a successful 2012" Now that there is a changing of the guard at Marriott with Arne Sorenson taking over as CEO, it will be interesting to see how this, company continues to evolve and remain competitive without a Mariott family member at the helm of the organization. It is an incredible opportunity as well as a challenge to fill the shoes of its former CEO Bill Marriott, who was recognized as the EXCEL ‘Award recipient in 2008, "Marriott International has @ respected, well-documented communication program, and Bill demonstrates his personal commitment every day, from traditional employee engagement while inspecting 250 Marriott properties each year, to adopting ‘tew communication tools such as blogging,” says Jay Coleman, ABC, chair of the 2008 EXCEL Award committee.* Time will tell if Marriott can continue their long and storied suc- ‘ess within the hospitality industry. The inclusion of their employ- creating an atmosphere of respect, and sound management will be a crucial requirement to this continued success for Mar- Fiott, According to its corporate website: The company offers the advantages of sound management, a record of industry leadership, and a solid business model. (Our brands, senior leaders and service culture that places a high value on our employees are the foundation of a long history of success and a promising future.” itis this type of strategy that will propel Marriott into the future, \where it can remain a driving force in the global hospitality industry. In a company with 300,000 employees, it may seem this manage ment approach would be nearly impossible. However, with the right leaders in place—those who not only believe in this philosophy, bbut actually seek out ways in which they can accomplish it—the challenge of inclusivity becomes a reality. David Rodriguez, Senior Diversity Executive, sums up Marriott's management challenge: Is not enough to chase demographic diversity; you also have to be very concerned about the inclusive environment you are building? Discussion Questions What challenges do you see in the successful manage- ment of Marriott? How will the change in leadership at the CEO level impact how Marriott manages the company? }. Based on the way in which Marriott built up its business into the successful operation it is today, do you feel this makes the management easier, or more difficult? Explain why. Further Research Review Marriott’s operations from a global perspective. In \which areas of the world do they have a significant pres- ‘ence? In which areas of the world is their presence lacking? What do you feel may be the reasons for this significant or lack of presence? C5