Question

Questions

• What company and industry have you selected, and what are some of the risks that the company and industry are facing in the current economic and political environment? You need to research risks from current financial publications (e.g., Bloomberg, The Financial Times, The Economist). Note: For this assignment, a current publication is no older than four years. Quote your source.
• Has the company addressed these risks? If yes, how? If not, what should they have done?
• Is another competitor on the market facing the same risks, and how did they address them? Briefly summarize.

Answers

The company I have decided to focus on is Marriott. Marriott was founded in 1927 in the United States. Marriott has hotels in over 87 countries and has 19 brand names. Recently, there had been a merge between Marriott and another major hotel brand, Starwood Hotels. Starwood was officially taken over by Marriott in 2018, to create the largest hotel company in the world (Whitmore, 2018). Whitmore also mentions the merger will create the largest loyalty program as well.  

            The political risks Marriott faces are international terrorism. With hotels continuously growing and building in other parts of the world, there is always the fear of terrorist attacks happening. Jan Freitag (2017) explains that in an area where a terrorist attack has happened, there is no normal curve of demand since they all behave differently. She says that when hotels rely more on leisure travelers, then the hotel is affected more in the short term. Hotels are continuing to grow and expand into different countries of the world and most of them are thriving. Hotels, including Marriott, need to make sure their staff is trained in what they need to do in order to protect themselves and their guests at all times. Marriott has taken into consideration the risks of international terrorism and has trained their staff on the importance of protecting their guests and the procedures that need to be taken.

            The economic risks Marriott is facing are taxation changes. When a guest books at a hotel, that hotel charges taxes per night you stay there. The taxes differ on each state. The room rate is the price in which is taxed with state and local tax fees. The Department of Taxation and Finance (2012) explains that “Hotel operators must collect sales tax on the room rate or rental charge for hotel occupancy.” Hotels must charge these taxes to their guests for their hotel occupancy. On top of taxes, some “touristy” places may charge an additional fee such as a “resort fee.” Marriott has addressed these risks as they charge their guests the taxes per night as well as a resort fee when staying in a touristy area.

            Any company in the hotel industry has to address these risks. These risks are not just a Marriott companies problem, they are a hospitality industries risk as a whole. The Hilton, Hampton Inn and other hotel brands have these risks and have taken the same measurements the Marriott Corporation has in order to make sure their company succeeds.

For chegg: Please note I have answered the questions above already. What I am asking of you is to provide a analytical feedback. No plagiarism. In your response to the above post, please provide feedback, including different examples related to the risks and their impacts on the specific industry or company. Comment on the similarities and differences in your responses.

Answer 1

Answer:

for the company chosen above by you:(Marriott)

1.What company and industry have you selected, and what are some of the risks that the company and industry are facing in the current economic and political environment? You need to research risks from current financial publications (e.g., Bloomberg, The Financial Times, The Economist). Note: For this assignment, a current publication is no older than four years. Quote your source:

company and industry selected is:

The company I have decided to focus on is Marriott. Marriott was founded in 1927 in the United States.

Marriott has hotels in over 87 countries and has 19 brand names.

Recently, there had been a merge between Marriott and another major hotel brand, Starwood Hotels.

Starwood was officially taken over by Marriott in 2018, to create the largest hotel company in the world (Whitmore, 2018). Whitmore also mentions the merger will create the largest loyalty program as well.  

some of the risks that the company and industry are facing in the current economic and political environment:

political risks:

The political risks Marriott faces are international terrorism.

With hotels continuously growing and building in other parts of the world, there is always the fear of terrorist attacks happening.

Jan Freitag (2017) explains that in an area where a terrorist attack has happened, there is no normal curve of demand since they all behave differently.

She says that when hotels rely more on leisure travelers, then the hotel is affected more in the short term.

Economic risks:

The economic risks Marriott is facing are taxation changes.

When a guest books at a hotel, that hotel charges taxes per night you stay there.

The taxes differ on each state.

The room rate is the price in which is taxed with state and local tax fees.

2. Has the company addressed these risks? If yes, how? If not, what should they have done:

YES, the Marriott company has addressed these risks.

For political risks:

As Hotels are continuing to grow and expand into different countries of the world and most of them are thriving.

Hotels, including Marriott, need to make sure their staff is trained in what they need to do in order to protect themselves and their guests at all times.

Marriott has taken into consideration the risks of international terrorism and has trained their staff on the importance of protecting their guests and the procedures that need to be taken.

For Economic risks:

The Department of Taxation and Finance (2012) explains that “Hotel operators must collect sales tax on the room rate or rental charge for hotel occupancy.”

Hotels must charge these taxes to their guests for their hotel occupancy.

On top of taxes, some “touristy” places may charge an additional fee such as a “resort fee.”

Marriott has addressed these risks as they charge their guests the taxes per night as well as a resort fee when staying in a touristy area.

3.Is another competitor on the market facing the same risks, and how did they address them? Briefly summarize:

YES, Any company in this  industry has to address these risks.

These risks are not just a Marriott companies problem, they are a hospitality industries risk as a whole.

For Example:

The Hilton, Hampton Inn and other hotel brands have these risks and have taken the same measurements the Marriott Corporation has in order to make sure their company succeeds.

for another company i choose:(Flipkart)

1.What company and industry have you selected, and what are some of the risks that the company and industry are facing in the current economic and political environment? You need to research risks from current financial publications (e.g., Bloomberg, The Financial Times, The Economist). Note: For this assignment, a current publication is no older than four years. Quote your source:

company and industry selected is:

Flipkart is the company i have selected.

some of the risks that the company and industry are facing in the current economic and political environment:

political risks:

Flipkart have got multiple risk those related to Economic and Political Environment.

first let me discuss about political influence those have high level of impact or effect on daily business activity of Flipkart ,

• As Flipkart in Ecommerce sector, so Political stability of the developed country where Flipkart operates, such can be treated as Opportunity.
• Governmental Support for E- Commerce business of Flipkart , such can be Opportunity and to some extent, Threat may be induced.
• Governmental efforts on cyber security, can be treated as opportunity.

Economic risks:

Further Flipkart's performance can be affected by various Economic factors, such Economic Environment take crucial role as basically.

where Flipkart do run online retail business, again effects because of economic trends and changes can affect the business of the Flipkart.

• Economic Stability of most developed markets, this can be treated as Opportunity for Flipkart E-commerce Business.
• Disposable Income increase in the developing countries, treated as Opportunity.
• Potential Economic Recession of China, this can be treated as Threat.

2. Has the company addressed these risks? If yes, how? If not, what should they have done:

YES, the Flipkart company addressed these risks.

For political risks:

Flipkart can get more benefits from political stability condition.

such condition creates opportunity for any company so that Flipkart can diversify their business in developed countries.

let’s have Example, Flipkart could develop bookstore operations in united states physically which can support E-Commerce business, again overall governmental support for any e commerce business can be treated as opportunity.

with having such support, Flipkart can continue expansion of their markets, due to rising competition such can be treated as external threat may hamper Flipkart .

government putting effort in fighting Cyber crime, such can improve Flipkart business condition.

For Economic risks:

Again Economic stability increased likelihood of success for Flipkart , in such markets Flipkart minimized Economic issue.

thereby minimize risk to Company’s online retail business operation, Flipkart created lot of growth opportunity in developed countries.

For Example, Flipkart's Financial condition can be improved by disposable income enhancement, again Flipkart addressed Potential threats associated with recession of China.

Further Flipkart need to formulate better strategy for managing Economic Risk.

3.Is another competitor on the market facing the same risks, and how did they address them? Briefly summarize:

YES, Any company in this  industry has to address these risks.

These risks are not just a Flipkart companies problem, they are a hospitality industries risk as a whole.

For Example:

Yes, there are competitors like one of the Popular Ecommerce online Retail store named Alibaba group holding Limited, as this organization take biggest platform for Ecommerce Business in China.

They gain their business by considering various Political and economical risk area, as they expand their business by considering income increase in the emerging countries.

also take sufficient action to take care for the situation like Recession condition of the china, further Alibaba put more efforts on its expansion as they get Government support from china.

Cyber security tackled by the Government, those are the conditions can be treated as Opportunity, such help Alibaba for fulfilling Business Extension and Organizational Strategic Objective.