SWOT Analysis

            Marriott International Inc. is a leading firm in its industry. It is known for aiming to maintain its dominance in its position in the market. A SWOT analysis of Marriott shows the following;  

Strength

Marriott has a track record that shows it has never failed in integrating complementary firms. It has always been successful to do all this through mergers and acquisition. It has done all this to ensure its operation are smooth and with less completion. Marriott is innovative and has hotels all over the world. They are innovative because they recently launched a mobile app. You can see advertisements about it on Facebook or other social media platforms. (Marriott corporate.2017). You no longer must use a key to get into your room. You just unlock it with your phone now. Not just that but you can do a mobile check-in and skip the front desk. Also, Marriott has its presence and reputation all over the world which makes them well-known in quality business.

Weakness

            Marriott Inc. is well known for its desire need to expand. The business has expanded so much to the extent of failing to monitor and maintain the quality of their services throughout. I know this first hand all their hotels are not the same. Some may mention the fact that the Marriott is a family company and how this creates room for error. And it could. Understanding that family tradition and family opinions can offend others or promote an atmosphere that feels "stuck" can put a roadblock up for those future investors. (Marriott corporate.2017). Another weakness is even though they are expanding to many other countries, this could also lead to over population of the hotels and not further along other local companies or promote more of a diversity in the market.

Opportunity

            The opportunities Marriott has been modernizing their hotels rooms to fit the trending market and more profitable emergence into new marketable areas. (Marriott International Inc.2017) For the interior design point, there is room to create more of a unique home familiar style within the walls of its rooms. This allows for a better experience for the loyal customer and to the old customer who thought they may have not liked the hotel franchise. The other opportunity of emerging into new markets creates a profitable growth for the company to expand their presence into new categories such as the technology market. Bringing in the google home or amazon Alexa experience or personalize the delights that customer have in their everyday home and bringing it into the hotel room will only further the experience. (Marriott International Inc. 2017)

Threat

            Vulnerability to terror attacks- the travel industry is one that is highly targeted by terrorists. Especially 5 star rated properties. If it were to get attacked, the firm would lose its trust in their esteem clients. Threats to Marriott include more competition to enter the existing hotel industry and price freezing. As more and more innovative companies make a break through, there is more attraction to them and the idea to try something new in the customer's perspective, leaving Marriott to fend for themselves in the fight of hotel rooms. Also, as the market expands, the prices of other companies can tend to look better, especially if they offer the same amenities and rewards.

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• Identify the most important or critical items on your SWOT Matrix that you believe warrant immediate attention to improve strategic management. Select one from each of the four categories.
• Be sure you justify your decisions.

CASE 9‐4 Self‐Constructed Assets

Jay Manufacturing, Inc., began operations five years ago producing the probo, a new type of instrument it hoped to sell to doctors, dentists, and hospitals. The demand forprobos far exceeded initial expectations, and the company was unable to produce enough probos to meet that demand. Jay was manufacturing probos on equipment it built at the start of its operations, but it needed more efficient equipment to meet demand. Company management decided to design and build the equipment because no equipment currently available on the market was suitable for producing probos.

In 2017, a section of the plant was devoted to development of the new equipment and a special staff of personnel was hired. Within six months, a machine was developed at a cost of $170,000 that increased production and reduced labor cost substantially. Sparked by the success of the new machine, the company built three more machines of the same type at a cost of $80,000 each.

Required:

1. In addition to satisfying a need that outsiders cannot meet within the desired time, what other reasons might cause a firm to construct fixed assets for its own use?
2. In general, what costs should be capitalized for a self‐constructed asset?
3. Discuss the appropriateness (give pros and cons) of including these charges in the capitalized cost of self‐constructed assets:
   1. The increase in overhead caused by the self‐construction of fixed assets
   2. A proportionate share of overhead on the same basis as that applied to goods manufactured for sale (consider whether the company is at full capacity)
4. Discuss the proper accounting treatment of the $90,000 ($170,000 – $80,000) by which the cost of the first machine exceeded the cost of the subsequent machines.

make journal entries for the following information. separate J E should be made for entries made: (1) Government Fund and (2) Government-Wide Statements. City acquired a computer system for $40,000 Completed construction of a new library incurring $500,000 in new costs. In the prior years, City had incurred $600,000 in construction costs. The project was accounted for in a capital project fund. City sold land for $17,000 that it had acquired four years ago with a sales price of $50,000. City acquired a new fire truck and traded in the old fire truck. The previous fire truck had an ending basis of $50,000 and that amount was what the City received in the value of the trade- City paid an additional $90,000 for the acquisition of the new fire truck

New schemes announced by the budget statement include ten new hawker centers by 2027, a third desalination plant, SkillsFuture initiative to support lifelong learning for adults, and a second edition of Construction Productivity Roadmap to boost the industry’s capabilities.

Source: The Straits Times, March 13, 2015

1- Explain the supply-side effects of building ten new hawker centers and a third desalination plant. ?

2- a ) Explain the potential supply-side and demand-side effects of Skills Future initiative.?

b ) Explain the potential supply-side and demand-side effects of adopting new technologies to boost productivity in the construction industry.?

c )Draw a graph to illustrate the combined demand-side and supply-side effect of the fiscal policy measures in part (a).?

Riverbed Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $5,040,000 on March 1, $3,360,000 on June 1, and $8,400,000 on December 31.

Riverbed Company borrowed $2,800,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 8%, 5-year, $5,600,000 note payable and an 11%, 4-year, $9,800,000 note payable. Compute avoidable interest for Riverbed Company. Use the weighted-average interest rate for interest capitalization purposes. (Round "Weighted-average interest rate" to 4 decimal places, e.g. 0.2152 and final answer to 0 decimal places, e.g. 5,275.)

When revenues, costs and gross profit are recognized at the completion of the contract rather than periodically throughout the contract:

a) Costs are higher and gross profit is lower

b) Either method results in the same revenues, costs and gross profits being recognized by the end of the project.

c) Revenues are higher and gross profit is lower

d) Revenues and gross profit are higher

What is the relationship between Construction-in-progress (CIP) and the Billings on Construction Contract account?

a) Billings is contra to CIP and reduces the balance of the CIP account.

b) CIP is contra to accounts receivable and reduces the balance of the accounts receivable account.

c) CIP is an equity account and Billings is a liability.

d) Billings is an inventory account and CIP is a financial asset, like Accounts Receivable.

As part of the Project Scope Statement of a house construction project, prepare the detailed
Milestone Schedule (Baseline Milestone – Date) by arranging the following activity
items/milestones in a proper sequence from No. 1 to 15, assuming the first milestone date as 05-
01-2020 and the last as 30-09-2020. Assume the dates in between corresponding to the various
milestones which are given in no particular order: Foundation complete, Excavation complete,
Permits approved & construction begins, Contract signed, Design complete, Framing complete,
Roofing complete, Architectural design started, Final inspection and acceptance by Owners,

Interior finish, Exterior finish, Landscaping complete, HVAC system installed, Plumbing-
electrical-mechanical passed, Plumbing-electrical-mechanical installed.

There are two ways for a concrete truck to go from a ready-mixed concrete plant to the construction site. The first way is direct, for which the mean and standard deviation of travel time are 30 min and 5 min, respectively. The second way is through Town A. The mean and standard deviation of travel time between the plant and Town A are 14 min and 5 min, respectively. The mean and standard deviation of travel time between Town A and the construction site are 14 min and 6 min, respectively. If the total travel time is above 45 min, the concrete in the truck will go bad. Calculate the probability that the concrete goes bad for both cases of choosing the direct and indirect ways. Assume travel time has a normal distribution.

There are two ways for a concrete truck to go from a ready-mixed concrete plant to the construction site. The first way is direct, for which the mean and standard deviation of travel time are 30 min and 5 min, respectively. The second way is through Town A. The mean and standard deviation of travel time between the plant and Town A are 14 min and 5 min, respectively. The mean and standard deviation of travel time between Town A and the construction site are 14 min and 6 min, respectively. If the total travel time is above 45 min, the concrete in the truck will go bad. Calculate the probability that the concrete goes bad for both cases of choosing the direct and indirect ways. Assume travel time has a normal distribution.