study on miri marriot (1)1st.docx

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Group 5/Business Administration EXECUTIVE SUMMARY This report is an assignment for students into “Introduction to Business Assignment” pursuing the Diploma in Business Administration at IBS College. We are required to perform research and analysis on Miri’s business environment and one of the companies which is based in Miri. Miri is the second largest city in Sarawak. It serves as the government administrative centre of Miri District (4,707.1 square kilometers). Miri has a population of about 269,000 (2008). It is the birthplace of Sarawak’s and Malaysia’s petroleum industry. Miri has grown phenomenally since oil was discovered in the early 1900s, burgeoning into the business, commercial and educational centre it is today. The city’s other major industries include processed timber, oil palm production, and tourism. Miri was elevated to city status on May 20, 2005 and is the 9 th city in Malaysia. Miri mainly thrives on its vibrant oil and gas industry, which contributes significantly to the Gross Domestic Product (GDP) of Sarawak. Tourism is the next focus of economy in Miri. Miri is often called 1

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Page 1: study on miri marriot (1)1st.docx

Group 5/Business Administration

EXECUTIVE SUMMARY

This report is an assignment for students into “Introduction to Business Assignment” pursuing the

Diploma in Business Administration at IBS College. We are required to perform research and

analysis on Miri’s business environment and one of the companies which is based in Miri.

Miri is the second largest city in Sarawak. It serves as the government administrative centre of Miri

District (4,707.1 square kilometers). Miri has a population of about 269,000 (2008). It is the

birthplace of Sarawak’s and Malaysia’s petroleum industry. Miri has grown phenomenally since oil

was discovered in the early 1900s, burgeoning into the business, commercial and educational centre

it is today. The city’s other major industries include processed timber, oil palm production, and

tourism. Miri was elevated to city status on May 20, 2005 and is the 9 th city in Malaysia. Miri mainly

thrives on its vibrant oil and gas industry, which contributes significantly to the Gross Domestic

Product (GDP) of Sarawak. Tourism is the next focus of economy in Miri. Miri is often called

Northern Gateway to Sarawak and is one of the state's main and most important tourist attractions,

hence the hospitality industry is important in Miri. Hotels and resorts are abundant in Miri, and

business in this line is good.

For this assignment, we have chosen “Miri Marriot Resort & Spa” for our study. This is a hotel

under the ‘International Marriot Chain’, and is based at Jalan Temenggong Datuk Omong Lawai in

Miri. ( more will be mentioned about this establishment in the following pages). Apart from making

our own study and research on this hotel through the internet and phamplet, we have also arranged

an interview with Mr Gilbert Webber, the Director of Operations of Miri Marriot Hotel to gain more

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information and knowledge on the basic business structure of the company, the challenges it faced

during the launching of business, and the organizational structure of the company.

During our study and research, and also the interview with the Director of Operations of the

establishment who had been very kind and helpful, we have managed to obtain the followings to

complete our assignment :

Introduction Of Company

Organizational Structure

Type Of Business Organization

Type Of Management Style

Organizational Environment – Internal And External Environment

Challenges And Difficulties

We will submit our conclusion on this research and analysis, at the end of this report.

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INTRODUCTION

Miri Marriot Resort & Spa is located in Miri in the north of the Malaysian state of Sarawak on

Borneo, a legendary island renowned for boundless adventure, rich cultural heritage and natural

wonders. Just minutes from the city center, nestled within 20 acres of lush tropical gardens

overlooking the South China Sea and the resort offers :

Discerning Leisure and Business Travelers Superb Accommodations

Trendy Restaurants and Bars

Mandara Spa

Myriad Of Resort Facilities and Recreational Pursuits

Warm Personalized Service

Marriot is an international lodging leader, with more the 3,500 properties and the broadest

portfolio of brands in the industry. J.Willard and Alice S Marriot, the founders, first set up their

A&W root beer stand in Washington DC, in 1927, and little did they know their fledging

business would develop into the vanguard of the hospitality industry. Since its founding in 1927,

with its first hotel, Marriot has firmly established a culture and a tradition on innovation, service

and leading performance. At Marriot, they value their owners and franchisees and have great

pride in the strength of relationship. Every owner and franchisee has a dedicated account

manager, so they have a single point of contract and an advocate within Marriot. They are also

dedicated to providing the resources needed to get the hotel up and running and competing

effectively in its market. The Miri Marriot Resort & Spa is the company we are making the

research and analysis on for this assignment.

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TYPE OF BUSINESS ORGANIZATION

Miri Marriott is owned by Majupun Sdn. Bhd. who has appointed Marriott to manage the

hotel for them.

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Marriott who is the world renowned hospitality company employs its Management team to

operate the hotel according to Marriott’s standard and policies (abiding to the local laws &

policies).

Management team comprises of the General Manager who is in charge of hotel and assisted

with a team of Executive Committee namely Director of Operations (running the day to day

operations of the hotel), Director of Finance (financial aspects), Director of Human

Resources (recruitment & training), Director of Engineering (repairs & maintenance) and

Director of Sales & Marketing (sourcing & generating sales, public relations into the

property).

The next level will be the Department Heads who will report to their respective Executive

Committee.

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TYPE OF MANAGEMENT STYLE

“How we do business is as important as the business we do”. This statement represents

our pledge to maintain an ethical workplace and a commitment by associates to do the

right thing.

High ethical standards foster pride and confidence among our associates and help us to

maintain our competitive advantage.

Our Management style focus on taking care for all associates, hands on management and

commitment to meeting customer needs through excellence in quality, service and

hospitality.

We believe that if we take care of our associates well, they in return will take care of our

guests the same way. This beliefs and values form Marriott’s management philosophy.

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ORGANIZATIONAL ENVIRONMENT

The environment of business at this organization one of sustainability. The working climate at

the hotel is peaceful and work relations is very cooperative. All staff are rewarded well according

to the merit of their performance. The internal environment that does make an impact in the daily

running of this business is the scarcity of human capital (personnel) and the lack of skilled

workers in the relevant fields like specialized chefs and dedicated public relations staffs. Here,

the workers are all a happy lot and strive together to make big sales, as they are all rewarded in

the end if their service ‘points’ are achieved. Therefore, there are no significant internal problems

within the hotel, and this environment does not affect the business.

External environments that effect the business depends on the :

Market Forces ; and

The Country’s Economy

During times when there are announcements during the ‘Budget Day’ that are not favorable to

consumers, then the spending power is affected, hence people tend to spend less and do not

patronize the hotel. Another aspect of external environment that affects the hotel is the situation

of security and safety. If the public feels the city is unsafe, then many prefer to stay safe at home.

The hotel’s business is affected when not many people go out and spend time and money at

hotels.

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CHALLENGES AND DIFFICULTIES

Main challenges for the property is in Human Capital since Miri has limited skill

manpower in the hospitality industry.

Oil & Gas industry which is apparent here has more appeal to the workforce especially

offshore assignment because of its remuneration and benefits.

Airlines like Air Asia, MAS and Maswing is also another industry and avenue where

offers perceive as lucrative. Our associates who had been trained in guests service will be

the likeable focus by these service industry to cross them over.

Not many suppliers or vendors in Miri could provide certain food supplies and this is a

challenge when comes to pricing for quality food. As such we need to depend on one

food vendor.

CONCLUSION

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Doing business in Miri, especially the Hotel and Hospitality line, is viable. Our research have

found that the marketability of hotels in Miri is big. There are demands for various category and

classes of hotel. They are people who look for budget hotels and there are also people who go for

‘High-End’ hotel. In the case of Miri Marriot, which is ‘high-end’ and a 5 star hotel, the rate of

patronizing is very high.

From our research, Miri Marriot shows that the business environment in Miri is good and

healthy. The occupancy rate is very high, because they cater to the higher-income bracket, and

these group of people are aplenty in Miri. The hotel have been recording high sales ever since its

inception. Many senior staffs from local and outstation Oil and Gas companies flock to Miri for

meetings and work-related matters, and their choice of stay would definitely be Miri Marriot.

Apart from the various outstation companies that operate in Miri, there are 6,305 private limited

companies ( about 1% of the total Malaysia Private Limited Companies) *source from

companies Commision of Malaysia ( Suruhanjaya Syarikat Malaysia).

In general, Sarawakian believe that Miri is the most expensive town as compared to the rest of

Sarawak. This could be attributed to the regular shopping by Bruneians coming to Miri.

Therefore we conclude that Miri is a booming town, and the business environment is vibrant and

dynamic.

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APPENDIX

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Marriot Resort & SpaFolio A

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Folio B

Folio C

Folio D

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Folio E

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Folio F

Folio G

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Folio H

Folio I

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REFRENCE

• Wikipeadia –Miri Marriot

• www.miricity.com

• Mr. Gilbert Webber – Director Of Operations Miri Marriot

• Suruhanjaya Syarikat, Malaysia

• Front Office Manager Miri Marriot : Mr.Roy

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