Define Entrepreneurship and outline the major theoretical concepts in the field. Apply theoretical concepts to the entrepreneurial decision making process.
Entrepreneurship is a process of designing and launching a new business. The person who designs and launches or in other words a person who creates the businesses is known as entrepreneurs. The report talks about the Marriott International Inc. entrepreneurial organization. The paper talks about the history of the organization and the establishment and the growth of the company along with that it includes the challenges faced by the company. There is a discussion of the entrepreneurial schools of the thought in relation to the Marriott International Inc. It consists of the emerging trends that can create an impact on the working of the company. The potential opportunities and the threats related to the growth of the company will be discussed
Meaning of entrepreneurship
Entrepreneurship is the capacity and the willingness to develop, organize and manage the business venture along with the risks in order to make the profit. In simple words, an entrepreneur is a businessman whose focus is on launching and running of the business considering the high risk involved in the launching of the product (Kuratko, 2016). Entrepreneur of the company act as a leader and oversees the growth of the company.
Overview of the company
Marriott International Inc. was established in the year 1993 when the company was separated in the two companies. The two companies were Marriott international and the Host Marriott Corporation. Marriott Company is American multinational hospitality company that manages a broad number of the hotels and the related lodging facilities. The company was founded by the J. Willard Marriott which is currently managed by his son Bill Marriot and the CEO Arne Sorenson.
Basically, the company was founded by John Willard Marriott in the year 1927. The company opened its new first hotel Twin Bridges Marriott hotel in Virginia in the year 1957. In 1987, the company opened the first Fairfield Inn and Marriott Suites Hotels. This how the company became the first lodging company who offer a portfolio of brands (Marriott, 2017). In 1995, the Marriott was the first hotel who offered the online reservation facility to its customers. In the year 2010, company said that they are planning to add over 600 hotels by the year 2015.
Establishment and the growth
The company is continuously registering the growth by acquiring the companies across the world. In the year 2012, the company acquired Gaylord Hotels Brand similarly, in the year 2013- Marriott debuts MOXY HOTELS. The company showed the focus towards the design AC hotel of the Marriott imported into the America. In 2014, the company doubles its distribution in the Africa by increasing more than 23,000 rooms along with that they acquired Protea Hotels Brands. The company Acquires Delta Hotels and Resorts in the year 2015 and became the largest Full-service Hotelier in Canada. In the previous year, the company again acquired the Starwood Hotels and Resorts. The aim of the company is to create the world's largest hotel company that consists of more than 5,700 properties that offer more than 1.1million rooms across 30 brands in more than 110 countries (Marriott, 2017).
Challenges faced by the company
The company is facing some challenges which are creating an impact on the working of the company. First and the foremost issue is a downfall in the economic growth of U.S., the U.S. economy is showing a downfall (Salvioni, 2016). This is creating an impact on the past three quarter’s sales. There are 300 corporate customers which decline from 4% year over year. The second challenge is terrorism and political unrest, the international growth is a must for the company and company is planning for the expansion of approximately 285,000 rooms outside North America. The increase in the political unrest and the terrorist attacks are affecting the action plan. The merger of the company with the Starwood Hotels and Resorts Worldwide is becoming a culture challenge for the company. The company won the bidding war for Starwood against the Chinese company Anbang, there is a risk which says that the China government can reject the merger within China.
Entrepreneurial schools of thought
The “schools of thought” are considered to be a foundation for entrepreneurial theory. This is an approach that emphasis in researchers about the successful entrepreneur. There is a presence of the macro view as well as a micro view of entrepreneurial school-of-thoughts Approach (Miles, Gilmore, Harrigan, Lewis, and Sethna, 2015). There is a description of the Entrepreneurial approaches considering the company.
- The displacement school of thought is one of the approaches that are related to the establishment and the growth of the company. For instance, the company faces the on the sales and revenue of the company from decline economic growth in China, and the ongoing economic turmoil in Europe (Frederick, O’ Connor, and Kuratko, 2013). Threats of the terrorist attract due to increase in the terrorist organizations such as ISIS.
- The strategic planning school of thought focuses on the planning process that helps in successful venture development. The simplest way to view strategic formulation is leveraging of unique elements. The Marriott make use of the unique markets, unique people, unique products, or unique resources that are used by the company for the effective venture formulation (Frederick, O’ Connor, and Kuratko, 2013). This is the reason company is acquiring the hotels and resort of different places so that they can get to know about the culture of the country and they can easily expand their business.
The emerging trends create an impact on the growth of the company in the near future.
Technology trends: - Technology creates an impact on Marriott, the reason being the use of the advanced technology. The company like Airbnb is offering the online rental services. The company allows the private individuals to rent rooms directly to the visitors. Approximately 6 million guests stayed in Airbnb properties in the year 2013. The advancement of the technology will create an impact on Marriott in the near future as well. Tourist will be able to check-in and check-out with the use of the mobile apps (Van Niekerk, 2016).
Consumer trends: - There will a positive impact on the consumer on Marriott as more and more people are willing to plan for a tour across the world. According to Mashable, the number of tourist planning for the tour is continuously increasing (Bolton, and Mattila, 2015). There was a rise in the tourist by 13% between the year 2013 and 2014. The Marriott Company is expected to get the increased number of the Chinese and the Asian travelers.
Economic trends: - The economic trends that will affect the working of the Marriott include the economic growth. The slow economic growth of the china and the turmoil in Europe create an impact on Marriott. The buying power of the customer is declining in Europe; the decline in the buying power will reduce the ability to travel. Exchange rate for the U.S. dollars is quite high which resist the people to visit the U.S. These factors will definitely impact the working of the company. The growing discrimination of the income group will resist the middle-class people to stay in Marriott (Soelistijo, Anjani, Pratama, Pili, and Herdyanti, 2015).
The growth strategies that company should follow must include opportunities and threats. These strategies will help the company to increase their market share and the revenue of the company. The company is already using the acquisition growth strategy and doing well, the two strategies apart from the acquisition are stated below that shows the way to enhance the market share and the revenue of the company.
Product development growth strategy can be used by the company in the future. The company should add on the additional services in the products they are offering to the customers (Christmann, 2017). The new feature will enforce the customers who are planning to travel to stay in Marriott. The company is expecting to get the crowd from the china and Europe. According to that company can add on the featured services for Chinese and European. This will enhance the company’s revenue and provide the satisfaction to the customer which will lead to increase in the market share of the company.
Diversification growth strategy will help the company to make use of the advanced technology that helps the company in attracting the potential customers. In diversification, a company will bring some new services that they going to introduce in the new market (Johnson, 2017). The company can compete with the service provided by the Airbnd and try to enhance the market share and revenue
The report is based on Marriott International Inc. that shows the entrepreneurial role in the company. The initial part of the report talks about the brief of the company and the challenges faced by the company. Though, Marriott is going doing company is acquiring the companies and expanding the business in the global market. There is a description about the approached in context to the entrepreneurial schools-of-thought. The approach discussed is displacement approach and the strategic planning approach. Further, there is a description of the strategies that company will use to an expansion of the business and enhance the market share along with revenue.
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