Table of Contents of Strategic Management Report

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A Report On Strategic evaluation of Marriot International Inc. | In The Partial Fulfillment of the Module: Exploring Strategy | | Matriculation Number: 12009103 | Tutor: Umang ThapaTable of Contents Heading | Sub Heading Page No. | Executive Summary | 1 | Introduction | History 2 | | Background 3 | | | | | Strategic Profile | | Critical Themes | | Conclusion | | References | | Appendices | | | Strategic evaluation of Marriot International Inc. Executive Summary J. Willard Marriott started Marriott Corporation in 1927 with a root beer stand, expanding it into a leading lodging and food service company with sales of over $6 billion by 1987. At the time, Marriott had three main lines of business, lodging, contract services and restaurants, with lodging generating about 51% of company’s profits. The four key elements of Marriott’s financial strategy were managing hotel assets rather than owning, investing in projects with the goal of increasing shareholder value, optimizing the use of debt, and repurchasing their undervalued shares. Marriott Corporation relied on measuring the opportunity cost of capital for investments by utilizing the concept of Weighted Average Cost of Capital (WACC). In April 1988, VP of project finance, Dan Cohrs suggested that the divisional hurdle rates at the company would have a key impact on their future financial and operating strategies. Marriott intended to continue its growth at a fast pace by relying on the best opportunities arising from their lodging, contract services and restaurants lines of businesses. To make the company managers more involved in its financial strategies, Marriott also considered using the hurdle rates for determining the
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