Question

In: Finance

What is the required investment for relocating your organization's (Marriott International) value-chain activities to the United...

What is the required investment for relocating your organization's (Marriott International) value-chain activities to the United Kingdom for years 1, 2, and 3? What are the projected savings, if any, for the same time periods? Provide justification for your estimates.

I do not have any figures I need to create estimates

Please assist on how I can find this information.

Solutions

Expert Solution

How to find the Information of required Investment for relocating the organizations value chain activities to UK and the projected savings

1. First identify what are the value chain activities. For e.g if we are taking about the hotel industry value chain activities can include third party marketing costs, Online sales and distribution management costs, Back office accounting work etc.
As hotels are mostly a service industry many activities cannot be reolcated from the place of the business.
In manufacturing many value chain activities can be relocated for e.g : We can decide to procure / self manufacture a raw material instead of the current practice etc.

2. Post this, we need to identify the potential benefit of the relocation. For e.g, if backoffice accounting work for a hotel industry is relocated and centralized in the United Kingdom, it can lead to substantial savings in money.
Like this we need to identify the potential benefit for each relocation of the value chain activities as identified in point 1.
Projected savings for various time periods will be : Additional Income due to relocation / Reduction in costs due to relocation as explained.  

3. We also need to identify the initial investment for relocation. For e.g if back office accounting work is being relocated to UK, there might be a investment in office infrastructure might be required.

With this premise, we can create estimates and find the information


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