Marriott corporation the cost of capital

Manage rather than own hotel assets, Invest in projects that increase shareholder value, Optimize the use of debt in the capital structure, and Repurchase undervalued shares; are aligned with the growth objective. This means aggressively developing appropriate opportunities within our chosen lines of business—lodging, contract services, and related businesses. In each of these areas, their goal is to be the preferred employer, the preferred provider, and the most profitable company. Does this make sense?

Marriott corporation the cost of capital

Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions.

Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Marriott corporation the cost of capital

Step 2 - Reading the Marriott Corp.: The Cost of Capital HBR Case Study To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study.

Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions.

Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information.


My case study strategy involves - Marking out the protagonist and key players in the case study from the very start. Drawing a motivation chart of the key players and their priorities from the case study description.

Marriott corporation the cost of capital

Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic. Evaluate each detail in the case study in light of the HBR case study analysis core ideas.


Step 3 - Marriott Corp.: The Cost of Capital Case Study Analysis Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template.

You can do business case study analysis by following Fern Fort University step by step instructions - Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.

HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey.

Time line also provides an insight into the progressive challenges the company is facing in the case study. The Cost of Capital Once you finished the case analysis, time line of the events and other critical details.

Focus on the following - Zero down on the central problem and two to five related problems in the case study. The Cost of Capital. SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.

Marriot Corp: Cost Of Capital | Case Study Solution | Case Study Analysis

The Cost of Capital In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point.

Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

The Cost of Capital Another way of understanding the external environment of the firm in Marriott Corp.: You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry.

The Cost of Capital Case Study Solution Once you have developed multipronged approach and work out various suggestions based on the strategic tools.

The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

[10 Steps] Case Study Analysis & Solution

Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm.The Cost of Capital (Abridged) case study solution, Marriott Corp.: The Cost of Capital (Abridged) case study analysis, Subjects Covered Capital costs by Richard S.

Ruback Source: HBS Premier Case Collection 10 pages. Mar 23,  · Marriott use the Weighted-Average-Cost-of Capital (WACC) method to measure the opportunity cost for investments. WACC = (1-t)rD(D/V) + rE(E/V) where D and E are the market values of the debt and equity respectively; rD is the pre-tax cost of debt; rE is the after-tax cost of equity; V is the firm value (V=E+D); and t is the corporate tax.

Marriott Corporation: The Cost of Capital. Click to edit Master subtitle style October 14, Nroop Bhavsar Prerak shah 6/5/12 Willard Marriott’s root beer stand Grew into one of the leading lodging and food service companies Lines of business: Lodging Contract services Restaurants • • q q q 6/5/Company Background • Began with J.

This is a Spanish version. Gives students the opportunity to explore how a company uses the capital asset pricing model (CAPM) to compute the cost of capital for each of its divisions. Marriot Corporation: the Cost of Capital.

In front of Dan Chores is the issue of recommending three hurdle rates for each of Marriott Corporation's three divisions, which have significant effect on the firm's financial and operating strategies as well as its incentive compensation. In Host Marriott Corporation spun off some of the contract services business with the name Host Marriott Services% ).

The cost of debt is approximately Host Marriott Corporation converted into a real estate investment trust called Host Hotels & Resorts (Marriott International. its debt-to-market value ratio is % /5(11).

Academic Case Studies: Marriott Corporation