Hbs Marriott Corporation - 4534 Words

Harvard Business School 9-282-042 Rev. September 15, 1986 Marriott Corporation The idea of repurchasing shares was no stranger to Bill Marriott by January 1980. Almost five million shares of common stock had been repurchased on the open market by Marriott Corporation during 1979 at a total cost of $74 million and an average price of $15.16 in the belief that they were undervalued—a belief that still was not fully reflected in the market price. At $19 5/8, the stock was selling at only six times cash flow per share; and its price/earnings ratio of nine was a far cry from historical multiples as high as fifty times as recently as 1973. Its low price seemed to offer once again an obvious opportunity to benefit shareholders.†¦show more content†¦Operations expanded to 476 company-operated restaurants, 55 hotels and resorts, a cruise ship line, two theme parks, and 66,000 employees. (See Exhibit 1 for financial information on Marriotts various businesses.) Hotels (35% of sales)—Marriott Hotels was one of the worlds leading and most successful operators of hotels and resorts. By 1980, more than 23,000 rooms were offered through 55 hotels and resorts located primarily in the U.S. Approximately 70% of company-operated rooms were owned by outside investors and managed by Marriott under agreements averaging 70 years in length. These management agreements contributed approximately $40 million to operating profits in 1979—profits that tended to rise with inflation. Contract Food Service (32% of sales)—Marriott operated almost 300 contract food units, providing a wide range of food service capabilities to a variety of clients. It was the worlds leading supplier of catering services to airlines, with 62 flight kitchens serving domestic and international air travelers. The Food Service Management Division also managed restaurants, cafeterias, conference centers and other facilities for over 200 clients, including business, health care, and educational institutions. Restaurants (25% of sales)—Marriotts Restaurant Group consisted of 476 company-owned units offering a variety of popularly priced food in 46 states. Roy Rogers fast food restaurants and Big Boy coffee shops accounted forShow MoreRelatedHbs Case â€Å"Marriott Corporation: the Cost of Capital†1440 Words   |  6 PagesMarriott Corporation: Questions for HBS case â€Å"Marriott Corporation: The cost of capital† 1) Are the four components of Marriotts financial strategy consistent with its growth objective? In my opinion, the four components of Marriotts financial strategy are consistent with its growth objective. 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In fact, images of Rosie the Riveter represent how we secured the home front during World War (National Park Service). MoreRead MoreInnovators Dna84615 Words   |  339 Pages(Continued from front flap) is the Horace Beesley Professor of Strategy at the Marriott School, Brigham Young University. He is widely published in strategy and business journals and was the fourth most cited management scholar from 1996–2006. is a professor of leadership at INSEAD. He consults to organizations around the world on innovation, globalization, and transformation and has published extensively in leading academic and business journals. is the Robert and Jane CizikRead MoreProject Mgmt296381 Words   |  1186 Pagesoregonstate.edu/faculty/bio .htm?UserName=Larson References Ball Parks of Baseball, â€Å"Cisco Field,† http://www.ballparksofbaseball.com/future/ CiscoField.htm (accessed June 2, 2009). Benko, C., and F. W. McFarlan, Connecting the Dots (Boston: HBS Press, 2003). Cohen, D. J., and R. J. Graham, The Project Manager’s MBA (San Francisco: Jossey-Bass, 2001). Faylor, C., â€Å"Next Generation Wii Is Rumored to Hit the Market in 2011,† Shacknews.com (Oct. 1, 2008). Kay, J., â€Å"US Box Office Spellbound by Harry