Contents
I. Executive Summary .................................................................................... Error! Bookmark not defined.
II. Hyatt’s Past & Current Strategies ............................................................. Error! Bookmark not defined.
Past & Current Strategies ........................................................................... Error! Bookmark not defined.
Current Vision, Mission, & Strategies ....................................................... Error! Bookmark not defined.
New Vision & Mission .............................................................................. Error! Bookmark not defined.
III. SWOT & Environment Analysis............................................................ Error! Bookmark not defined.
Hyatt’s SWOT Analysis ............................................................................ Error! Bookmark not defined.
Hyatt’s SWOT Matrix................................................................................ Error! Bookmark not defined.
Wyndham’s SWOT Matrix ........................................................................ Error! Bookmark not defined.
Starwood’s SWOT Matrix ......................................................................... Error! Bookmark not defined.
Marriot’s SWOT Matrix ............................................................................ Error! Bookmark not defined.
Macro-economic Factors & Hyatt.............................................................. Error! Bookmark not defined.
IV. Hyatt’s Organizational Structure ............................................................. Error! Bookmark not defined.
Current Organization ................................................................................. Error! Bookmark not defined.
Proposed Organization ............................................................................... Error! Bookmark not defined.
V. Hyatt’s Unique Position ............................................................................ Error! Bookmark not defined.
Key Success Factors .................................................................................. Error! Bookmark not defined.
Distinctive Core Competencies and Core Competencies........................... Error! Bookmark not defined.
Value Chain Analysis ................................................................................ Error! Bookmark not defined.
VI. Market & Competitive Analysis............................................................... Error! Bookmark not defined.
Porter’s Five Forces Model of Competition .............................................. Error! Bookmark not defined.
Strategic Group Map .................................................................................. Error! Bookmark not defined.
Competitive Strength Assessment ............................................................. Error! Bookmark not defined.
IE Matrices ............................................................................................. Error! Bookmark not defined.
GE Nine-Cell Planning Grid .................................................................. Error! Bookmark not defined.
BCG Matrices ........................................................................................... Error! Bookmark not defined.
Company Life Cycle .................................................................................. Error! Bookmark not defined.
Space Matrix .............................................................................................. Error! Bookmark not defined.
Grand Strategy Matrix ............................................................................... Error! Bookmark not defined.
VII. Financial Analysis .................................................................................... Error! Bookmark not defined.
Edward Altman Z-Score ............................................................................ Error! Bookmark not defined.
Trend Analyses .......................................................................................... Error! Bookmark not defined.
Revenues, Expenses, & Net Income .......................................................... Error! Bookmark not defined.
EBIT/EPS Analysis.................................................................................... Error! Bookmark not defined.
Pro Forma New Strategy Implementation ................................................. Error! Bookmark not defined.
Net Worth and Stock Price Analysis.......................................................... Error! Bookmark not defined.
VIII.
Recommendations & Implementation ............................................. Error! Bookmark not defined.
Short Term Recommendations................................................................... Error! Bookmark not defined.
Long Term Recommendations ................................................................... Error! Bookmark not defined.
QSPM......................................................................................................... Error! Bookmark not defined.
Balance Scorecard...................................................................................... Error! Bookmark not defined.
Timeline ..................................................................................................... Error! Bookmark not defined.
IX. Sources of Resistance............................................................................... Error! Bookmark not defined.
X. Contingency Plans ..................................................................................... Error! Bookmark not defined.
XI. Epilogue .................................................................................................... Error! Bookmark not defined.
XII. References ............................................................................................... Error! Bookmark not defined.
Appendix A. Vision and Mission Statements ................................................................................................. i
Current Statements: “Our Mission, Goal and Values” .................................................................................. ii
New Statements: “Our Mission, Goal and Values” ....................................................................................... ii
Appendix B. SWOT Matrices ........................................................................................................................ iii
Table 1: Hyatt SWOT Analysis ...................................................................................................................... iv
Figure 1: Hyatt SWOT Strategy Matrix ....................................................................................................... viii
Figure 2. Wyndham SWOT Strategy Matrix ................................................................................................. ix
Figure 3: Starwood SWOT Strategy Matrix ................................................................................................... x
Figure 4: Marriot SWOT Strategy Matrix ..................................................................................................... xi
Appendix C. Hyatt’s Organizational Chart................................................................................................... xii
Figure 5: Current Hyatt SBU Diagram .........................................................................................................xiii
Figure 6: Current Hyatt Organizational Chart .............................................................................................xiv
Figure 7: Current Hyatt Board of Directors Organization ........................................................................... xv
Figure 8: Post-Acquisition Hyatt SBU Diagram ...........................................................................................xvi
Figure 9: Post-Acquisition Hyatt Organizational Chart .............................................................................. xvii
Figure 10: Post-Acquisition Hyatt Board of Directors Organization ......................................................... xviii
Appendix D. Value Chain Analysis & Sales Composition............................................................................. xix
Figure 11: Pre-Implementation Hyatt Value Chain ......................................................................................xx
Figure 12: Pre-Implementation Starwood Value Chain .............................................................................. xxi
Figure 13: Post-Acquisition Hyatt Value Chain .......................................................................................... xxii
Appendix E. Five Generic Forces Model.................................................................................................... xxiii
Figure 14: Pre-Implementation Hyatt Five Forces Model......................................................................... xxiv
Figure 15: Hyatt Post Implementation Five Forces Model ........................................................................ xxv
Appendix F. Porter’s Five Forces Model ................................................................................................... xxvi
Figure 16: Pre-Implementation Hyatt Porter’s Five Forces Model ........................................................ xxxvii
Figure 17: Hyatt Post Acquisition Porter’s Five Forces Model .............................................................. xxxviii
Appendix G. Strategic Group Maps........................................................................................................... xxix
Chart 1: Pre-Implementation (Room per Property vs. Employees) ........................................................... xxx
Chart 2: Pre-Implementation (Number of Countries vs. Properties)........................................................ xxxi
Chart 3: Post-Implementation (Rooms per Property vs. Employees) ...................................................... xxxii
Chart 4: Post-Implementation (Number of Countries vs. Properties) .................................................... xxxiii
Appendix H. IE Matrices .......................................................................................................................... xxxiv
Table 2: Hyatt IFE ..................................................................................................................................... xxxv
Table 3: Hyatt EFE ................................................................................................................................... xxxvi
Table 4: Starwood IFE ............................................................................................................................ xxxvii
Table 5: Starwood EFE .......................................................................................................................... xxxviii
Table 6: Diamond IFE .............................................................................................................................. xxxix
Table 7: Diamond EFE .................................................................................................................................. xl
Table 8: Wyndham IFE ................................................................................................................................ xli
Table 9: Wyndham EFE ...............................................................................................................................xlii
Table 10: Marriott IFE ................................................................................................................................xliii
Table 11: Marriot EFE................................................................................................................................. xliv
Chart 5: IE Matrix Pre-Implementation ......................................................................................................xlv
Chart 6: IE Matrix Post-Implementation .................................................................................................... xlvi
Appendix I. GE McKenzie 9 Cell Matrix (CSA/ISA)..................................................................................... xlvii
Chart 7: CSA/ISA 9 Cell Matrix Pre-Implementation ................................................................................ xlviii
Chart 8: CSA/ISA 9 Cell Matrix Post-Implementation ................................................................................ xlix
Table 12: CSA/ISA Pre-Implementation ......................................................................................................... l
Table 13: CSA/ISA Post-Implementation ...................................................................................................... li
Appendix J. BCG Matrix................................................................................................................................ lii
Chart 9: Pre-Recommendation: BCG Chart ................................................................................................. liii
Chart 10: Post - Recommendation: 1 Year BCG Chart ................................................................................ liv
Appendix K. Company Life Cycle .................................................................................................................. lv
Figure 18: Pre-Recommendation Company Life Cycle ................................................................................ lvi
Figure 19: Post-Recommendation Year 5 Company Life Cycle .................................................................. lvii
Chart 11: 7 Year Company Life Cycles........................................................................................................lviii
Appendix L. SPACE Matrix ........................................................................................................................... lix
Table 14: SPACE Factors ............................................................................................................................... lx
Chart 12: SPACE Matrix ............................................................................................................................... lxi
Appendix M. Edward Altman Z-Score .........................................................................................................lxii
Table 15: Hyatt’s Edward Altman Z-Score .................................................................................................lxiii
Table 16: Starwood’s Edward Altman Z-Score ........................................................................................... lxiv
Appendix N. Financial Tables ......................................................................................................................lxv
Table 17: Hyatt’s Financial Ratios .............................................................................................................. lxvi
Table 18: Marriott’s Financial Ratios ........................................................................................................ lxvii
Table 19: Wyndham’s Financial Ratios .................................................................................................... lxviii
Table 20: Starwood’s Financial Ratios ....................................................................................................... lxix
Table 21: Diamond’s Financial Ratios ......................................................................................................... lxx
Appendix O. Historical Financial Trends .................................................................................................... lxxi
Chart 13: Historical ROE Trend for Industry.............................................................................................. lxxii
Chart 14: Historical EBITDA Margin Trend for Industry ............................................................................ lxxii
Chart 15: Historical Debt to Equity Trend for Industry ............................................................................ lxxiii
Appendix P. Hyatt’s Revenue, Expense and Net Income ......................................................................... lxxiv
Chart 16: Historical Cost of Revenue Trend for Hyatt and Starwood ....................................................... lxxv
Chart 17: Historical Net Income Trend for Hyatt and Starwood ............................................................. lxxvi
Chart 18: Historical SG&A Trend for Hyatt and Starwood ...................................................................... lxxvii
Chart 19: Historical Other Expense Trend for Hyatt and Starwood......................................................... lxviii
Chart 20: Hyatt Revenue Breakdown 2012.............................................................................................. lxxix
Chart 21: Hyatt Property Breakdown 2012 ............................................................................................. lxxix
Chart 22: Industry Market Share 2012 ..................................................................................................... lxxx
Chart 23: Post-Implementation Industry Market Share ........................................................................... lxxx
Chart 24: Company Comparison 2012 ..................................................................................................... lxxxi
Chart 25: Company Comparison 2011 .................................................................................................... lxxxii
Chart 26: Company Comparison 2010 ................................................................................................... lxxxiii
Table 22: Company Comparison 2012 ................................................................................................... lxxxiv
Table 23: Company Comparison 2011 .................................................................................................. lxxxiv
Table 24: Company Comparison 2010 .................................................................................................... lxxxv
Chart 27: Industry Net Income/Revenue Comparison............................................................................ lxxxv
Chart: 28: Industry Cost of Revenue/Revenue Comparison .................................................................. lxxxvi
Chart 29: Hyatt Revenue, Expense and Net Income ............................................................................. lxxxvii
Chart 30: Hyatt Seasonality of Business Chart by quarter ................................................................... lxxxviii
Chart 31: Hyatt Total Cost Breakdown ................................................................................................ lxxxviii
Appendix Q. QSPM................................................................................................................................. lxxxix
Table 25: QSPM – Expansion .......................................................................................................................xc
Table 26: QSPM – Roku vs. Netflix .............................................................................................................. xci
Table 27: QSPM – Pet Service vs. Baggage Fees ........................................................................................ xcii
Table 28: QSPM – Car Service vs. Charter Flights ..................................................................................... xciii
Appendix R. Grand Strategy Matrix .......................................................................................................... xciv
Chart 32: Grand Strategy Matrix ................................................................................................................ xcv
Appendix S. Net worth Assessment & Stock Price Projection .................................................................. xcvi
Table 29: As-Is Hyatt Net Worth .............................................................................................................. xcvii
Table 30: 1 Year – Hyatt Net Worth ......................................................................................................... xcvii
Table 31: 5 Year – Hyatt Net Worth ........................................................................................................ xcviii
Table 32: As-Is Diamond Net Worth ....................................................................................................... xcviii
Table 33: As-Is Morgan Hotel Group Net Worth ...................................................................................... xcix
Appendix T. EBIT Assessment ....................................................................................................................... c
Table 34: EPS/EBIT Analysis ......................................................................................................................... ci
Chart 33: EPS/EBIT Analysis ........................................................................................................................ cii
Appendix U. Pro Forma ...............................................................................................................................ciii
Table 35: As-Is Hyatt Income Statement ....................................................................................................civ
Chart 34: As-Is Hyatt Revenue, Expense, and Net Income Chart with Projection .......................................cv
Table 36: As-Is Hyatt Balance Sheet............................................................................................................cvi
Chart 35: As-Is Hyatt Balance Sheet Chart with Projection ....................................................................... cvii
Table 37: As-Is Hyatt Cash Flow Statement .............................................................................................. cviii
Chart 36: As-Is Hyatt Cash Flow Statement Chart ...................................................................................... cix
Table 38: As-Is Starwood Income Statement ...............................................................................................cx
Table 39: As-Is Starwood Balance Sheet ..................................................................................................... cxi
Table 40: As-Is Starwood Cash Flow Statement ........................................................................................ cxii
Table 41: Pro-Forma Hyatt Income Statement ......................................................................................... cxiv
Chart 37: Pro-Forma Hyatt Revenue, Expense, and Net Income Chart ..................................................... cxv
Table 42: Pro-Forma Hyatt Cash Flow Statement..................................................................................... cxvi
Appendix V. Gantt Chart .......................................................................................................................... cxvii
Chart 38: Gantt Chart .............................................................................................................................. cxviii
Table 43: Estimated Costs of New Strategies ............................................................................................ cxx
Table 44: Estimated Revenues of New Strategies .................................................................................... cxxi
Appendix W. Balance Scorecard .............................................................................................................. cxxii
Table 45: Balance Score Card .................................................................................................................. cxxiii
Appendix X. Location Review ................................................................................................................ cxxviii
Figure 20: Location Analysis – Hyatt ....................................................................................................... cxxix
Figure 21: Location Analysis – Starwood ................................................................................................. cxxx