Marriott International 1School of BusinessROE DuPont AssignmentAn Individual Analysis Submitted in Partial Fulfillment of the Requirements for the MBADegreeCourse: Strategic Financial PlanningSubmitted To: Prof. Timothy HowesSubmitted By:Parth Patel
Marriott International 2Marriott InternationalMarriott International, Inc. is a leading global lodging company with more than 6,000properties in 122 countries and territories, reporting revenues of more than $17 billion in fiscalyear 2017. Founded by J. Willard and Alice Marriott and guided by family leadership for nearly90 years, the company is headquartered outside of Washington, D.C. in Bethesda, Maryland.The company has grown to one of the biggest hospitality company in the world and the leader in the country with the industry having three big players in United States. Marriott International, Intercontinental Hotel Group, Hilton Worldwide. In this project we look at MarriottInternational and its major competitor Hilton Worldwide.Marriott is the parent brand to 19 different brand-named hotels. Each hotel is marketed tocater different niche audiences. Marriott has skillfully created unique brand names that fulfill thewants and needs for mostly all customers whether the customer is a budget shopper, familyvacationer, or elite businessman.
Marriott International 3Du Pont IdentityThe DuPont identity tells us that ROE is affected by three things:1. Operating efficiency, which is measured by profit margin;2. Asset use efficiency, which is measured by total asset turnover;3. Financial leverage, which is measured by the equity multiplier.If the ROE is unsatisfactory, the DuPont identity helps analysts and management locate the part of the business that is underperforming.