The corporate strategy presents the entire plan for any diversified company and has been associated with creating a competitive advantage for the contemporary companies. Any diversified business entity comprises of two distinct strategies namely; business unit strategy and the corporate strategy. The business unit strategy is also referred to as the competitive strategy which focuses on establishing an organizational competitive advantage within every business unit managed by the organization. On the other hand, corporate strategy entails two distinct questions regarding which business a company ought to engage in and the manner in which corporate officers should manipulate the larger segment of business units that make the organization (Tepeci, 2009). In this regard, this essay explores two potential corporate strategies that can be adopted by Marriott Hotels International in propagating its business agenda.
First, Marriott should consider collaboration with suppliers as a lucrative corporate strategy. In engaging in collaboration with its suppliers, the hotel is likely to reap extensive cost benefits attributable to small price mechanism or efficiency in the entire supply chain which is pivotal in reducing overhead costs of operations. For instance, the hotel needs supplies in light bulbs, and efficient shower heads that consumers little water and biodegradable laundry sacks for its clients. Subsequently, this collaboration would be pivotal in ensuring that the hotels allied to Marriott effectively meet their sustainability objectives. Being a founding member of Hospitality Sustainability Purchasing Consortium, the hotel chain is responsible for ensuring maximum possible sustainability level of suppliers as well as their products within the market segment that is characterized by diligent measure with the industry-wide index (Holcomb & Okumus, 2007).
To excel in this collaborative mechanism, the hotels should not only offer guidance to enhancing sustainability in their kitchens but also provide extensive training programs through the field and commercial meetings with suppliers to share key insights into the mutual business engagement. This aspect forms some of the mechanism in which the hotel could raise it sustainability levels in the kitchen by actively collaborating with suppliers. This aspect would also result in increased loyalty among the suppliers of key hotel produces such as seafood and cooking oil among others.
Secondly, the corporate image is an important aspect of enhancing business framework of any organization. Marriott being an international business entity would create an ideal environment for the flourishing of other players that does not offer competitive force to its business but indirectly influence its business portfolio positively. The second strategy should, therefore, involve supporting Conservation mechanisms globally. The prospects of conservation are one of the most interesting topics in the global social-economic and cultural scenario (Holcomb & Okumus, 2007). Initially, the undertaking of this mechanism would create sound corporate image returns for the company both in short-run and in the long-run.
In addition, the mechanism seeking to enhance conservation would also reduce both direct and indirect effects of the environment on the hotels business processes. This process would also be effectively integrated into the hotels innovative conservation mechanics that are essential to promoting efficient entrepreneurship within the hotel business portfolio anchored on its environmental strategy. To undertake this strategy, Marriott should not only contribute towards existing conservation units such as Amazonas Sustainable Foundation (Holcomb & Okumus, 2007). Besides, it could also establish it's all spirited programs to initiate conservation such as conservations of the Mediterranean waters which have a significant impact on tourists who forms the majority of the companys esteemed client base.
Besides, the Hotels should also engage in conservation of biodiversity which offers an indirect impact on its business by enhancing tourism which forms the basis for its client flow. Subsequently, mechanism seeking to advance environmental protection should be undertaken. This could be done jointly with other government units or single-business initiative aimed at promoting zero tolerance to deforestation. It could be executed in the form of international campaigns channeled through print, mass, and social media platforms (Holcomb & Okumus, 2007). Finally, the two strategies will not only establish a direct expansion of client base in future but also enhance the corporate image of the hotel which could translate to increased profitability in the long-run.
Tepeci, M. (2009). Increasing brand loyalty in the hospitality industry. International Journal ofContemporary Hospitality Management, 11(5), 223-230.
Holcomb, J. L., & Okumus, F. (2007). Corporate social responsibility: what are top hotelcompanies reporting?. International journal of contemporary hospitality management,19(6), 461-475.
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