Performance Evaluation Of Marriott International’s Acquisition Of Starwood Based On The Balanced Scorecard

In recent years,with the rapid development of China’s economy,the living standards of Chinese residents continue to improve,so the people’s demand for life is increasingly rich,hotels as an indispensable part of residents’ amateur travel tourism,its development is changing with each passing day,domestic hotels have to bring forth the new,foreign hotel brands accelerate the pace of the global layout,in this process,strong alliance,Many hotel enterprises acquire market share and existing high-quality assets through mergers and acquisitions,but the results of mergers and acquisitions are not perfect,and the research on the performance evaluation of mergers and acquisitions in the hotel industry is not perfect.As one of the giants in the hotel industry,Marriott International had sluggish performance before 2016,low profit,slow expansion,and slightly weaker competition with Hilton.Under this background,Marriott International completed the largest transaction in the history of the hotel industry in 2016,and acquired Starwood at a price of 13.6 billion US dollars.Surpassing Hilton to become the world’s largest hotel company,and has remained so far,this paper analyzes the merger,hoping to provide help and reference for the hotel industry mergers and acquisitions and post-merger integration.The hotel industry selected for this case study is different from the manufacturing industry and high-tech enterprises,etc.,and the dimensions of customer and other aspects are more important than financial aspects.In order to better analyze the overall situation of hotel enterprises,this paper firstly searches for a large number of relevant literatures and reports through various platforms and channels at home and abroad,trying to restore the most authentic M&A process and scene.In order to analyze the research object and its background,summarize the current research progress with the help of literature,and outline the relevant theoretical content.Then,this paper introduces the basic information and merger process of Marriott International and Starwood,and analyzes the case of Marriott International’s merger and acquisition of Starwood through its four dimensions with the help of Balanced scorecard,and makes a qualitative analysis of its merger and acquisition performance,avoiding the situation that traditional analysis methods pay too much attention to the financial level and neglect the overall situation.Next,with the help of questionnaires from nearly 30 hotels,more than 40 practitioners and related scholars,the questionnaire is summarized and sorted out,the analytic hierarchy process is used to assign values and comprehensive scores to indicators,and quantitative analysis is carried out.Through the scores of each indicator in the questionnaire,the merger and acquisition is evaluated,and the shortcomings and shortcomings are put forward and suggestions are made.Finally,the experience is summarized.This paper provides reference for the future M&A and post-M&A integration of Chinese hotel enterprises.Through this study,it is found that Marriott International’s acquisition of Starwood is relatively successful,and the evaluation of the other three dimensions reflects good performance except for the internal process dimension.Based on the analytic hierarchy process and the summary results,it is found that this merger and acquisition has enhanced Marriott International’s market position,improved the enterprise’s customer influence and customer satisfaction,which is in line with the theory of market power.At the same time,this merger and acquisition shows synergy in all dimensions of the enterprise,so it can be said that this merger and acquisition is a very successful merger and acquisition case.In view of this result,this paper starts from four dimensions on the performance of the M&A case and puts forward targeted suggestions on performance improvement.In addition,it studies and thinks on the M&A of Chinese hotel enterprises in the post-epidemic era and puts forward suggestions.To a certain extent,the research in this paper can provide reasonable reference for the M&A of hotel enterprises.