In the context of this course, you will be asked to address theissues/questions below for Marriott International, Inc. (MAR),www.marriott.com. When addressing the issues/questions, be sure todo so in the context of this course and Marriott. You have beenappointed as the special assistant to the Chief Executive Officer(CEO), Arne Sorenson, who has asked you to address the followingfive situations:
(a) A fellow MBA alum from Lynn University, who now works inAdmission at Lynn University would like to give each MBA student abenefit, which is programmed into the Lynn University ID card. Thisbenefit would allow the student one night each month, depending onavailability, for a room at the Marriott Courtyard for $40.Normally the room rate is $100 and the full cost of a nightâs stayis $50. Discuss whether or not this would be feasible, i.e.Marriott is able to do this transaction without it being adonation.
(b) Marriott currently buys its ice machines from a manufacturerin China. A representative from a company in Vietnam is offering tosell them for 20% less than cost from the manufacturer in China.Discuss the issues that you would consider in deciding whether ornot to accept this offer.
(c) The CEO wishes to develop an incentive plan for the hotelmanagers.
Before this is put into place, the CEO wishes you to make surethat budgeting
in the hotels is done correctly. He has asked you to submit adocument discussing
the key points that you have learned in MBA 640. Be as thoroughas possible.
(d) Marriott has only used absorption costing. The CEO has askedyou
to explain the merits of using variable costing under certaincircumstances.
(e) The CEO has asked you to explain how target costing/pricingwould be used in
Marriottâs pricing policies.
In the context of this course, you will be asked to address theissues/questions below for Marriott International, Inc. (MAR),www.marriott.com. When addressing the issues/questions, be sure todo so in the context of this course and Marriott. You have beenappointed as the special assistant to the Chief Executive Officer(CEO), Arne Sorenson, who has asked you to address the followingfive situations:
(a) A fellow MBA alum from Lynn University, who now works inAdmission at Lynn University would like to give each MBA student abenefit, which is programmed into the Lynn University ID card. Thisbenefit would allow the student one night each month, depending onavailability, for a room at the Marriott Courtyard for $40.Normally the room rate is $100 and the full cost of a nightâs stayis $50. Discuss whether or not this would be feasible, i.e.Marriott is able to do this transaction without it being adonation.
(b) Marriott currently buys its ice machines from a manufacturerin China. A representative from a company in Vietnam is offering tosell them for 20% less than cost from the manufacturer in China.Discuss the issues that you would consider in deciding whether ornot to accept this offer.
(c) The CEO wishes to develop an incentive plan for the hotelmanagers.
Before this is put into place, the CEO wishes you to make surethat budgeting
in the hotels is done correctly. He has asked you to submit adocument discussing
the key points that you have learned in MBA 640. Be as thoroughas possible.
(d) Marriott has only used absorption costing. The CEO has askedyou
to explain the merits of using variable costing under certaincircumstances.
(e) The CEO has asked you to explain how target costing/pricingwould be used in
Marriottâs pricing policies.
