Discuss the incremental impact of a hypothetical, but reasonable, simple new inv

Question

Discuss the incremental impact of a hypothetical, but reasonable, simple new investment project, such as a new product or facility or a cost-cutting investment, as an initial step in thinking about the future. Be sure to address the following:

A. Based on your knowledge of this organization (Marriott International), what is a likely investment it would consider and why? Be sure to describe the basic features of the investment as a foundation for considering its potential financial impact.

B. Evaluate the approximate costs and benefits of the investment you identified, explaining how these would affect your spreadsheet projections and business decisions. Estimates are sufficient, but should be grounded in common sense and insight into the organization.

C. How does the potential investment affect budgeting and related business decisions? For example, does the investment involve significant cash spending this coming year, followed by benefits in the following year? How might that affect short-term and long-term spending priorities? Does the benefit outweigh the cost?

COMPANY CHOSEN: MARRIOTT INTERNATIONAL, INC.

Explanation / Answer

Marriott would definitely invest in new developing countries by collaborating with other hotel chains. Marriott is one of the ,biggest names in the hotel industry, it would definitely invest in pre existing emerging hotels in developing countries such as India and China. It will increase the overall revenue generation from the same Markets and improve the overall availability of revenue generation from the same market.

This would definitely change my spreadsheet projection as implementation of this type of investment in developing countries would benefit the company by a huge margin. This type of approach would also enable Marriott International to find a better revenue management system by collaborating with other companies in the specific market segment and to improve their understanding by maintaining high level of profits.

Definitely this type of investment required increment in the total gas which is invested in different firms. This type of approval would require proper orientation and mitigation of different as well as also involved significant cash depending on the front needed to be fixed on the developing countries as well as investment on pre existing hotels in the same market segment.

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