Value of Marriott Corporation Business Plan

Question: Discuss about theValue of Marriott Corporation Business Plan. Answer: Introduction The excellent business plan for Marriott will enable the company to enter into contract services and lodging businesses quickly and thus make the company be the most valued employer and services provider in the market. The use of divisional hurdle rates by Marriott will in the long term impact on the economic productivity of the company. The financial strategy of Marriot to invest in projects that maximise shareholders wealth would in return build confidence on the operations of the company to the outsiders. Further, with repurchasing of undervalued share prices, the company will be able to regularly repurchase its leased stock whenever the market price goes substantially lower than its equity cost of capital. Also, with the optimisation of the utilisation of debt in Marriott's capital structure will enable the company to assess its overall capability of servicing the outstanding debts[1]. This business plan requires that the projects for the company get audited as used so as to maintain preferable checks and updates in the most standardised manner. The proper auditing of the projects lives, macro data, and margins will assist all divisional managers to have discretion over unit specific assumptions which conform to the operations and capital of Marriott. Further, Marriot will be able to build confidence in the policies it has put in effect as stated in the business plan about the warrant value than it could have been if based on the daily analysis of the market price of its hotel inventory. Furthermore, this program of activities has a significant value in assisting Marriot to accurately measure the opportunity cost of capital as well as risks accompanying the market value of the debt and equity capital. This helps the manager's design approaches for measuring and controlling the financial and market risks[2]. References Kaplan, R., Anthony, A. (2015). Advanced management accounting. PHL Learning. Marriott Corporation: The Cost of Capital (Abridged), 9-289-047 (April 1, 1998).