Individual Analysis: Written Paper

Individual analysis: written paper

In addition to the group work, each student has to prepare a written analysis of the Marriott Corporation (A) case. As in corporate life, the analysis should be kept short and concise. Therefore, the written analysis should not exceed one single A4 page (font size 12, single spaced). It should contain the major conclusions and reasons for arriving at these conclusions. The single page can be augmented by exhibits which support the conclusions. Based on previous exp eriences in the MBA class, I would like to stress that any usage of a smaller font size will lead to a significant grade reduction.

Please keep in mind that neither the presentation nor the written analysis should be in an academic format. I expect focused, well - organized argumentations which address the questions raised below. It is not necessary to add a list of academic sources and redundant content should be avoided.

Even though the assigned cases are obviously of special importance, it is expected that students prepare all cases carefully.

Case 7: Marriott Corporation (A)

The board of directors of Marriott Corporation has you asked to evaluate the proposed Project Chariot from a financial perspective.

* Please evaluate the current financial situation of Marriott Corporation. Is Marriott in imminent danger of going bankrupt? Which financial indicators would you use to judge the financial viability of Marriott Corporation?

* Using the information given in the case (i.e. do not perform extensive external data research or detailed discounted cash flow projection; just take what is given in the case and make simplifying assumptions wherever necessary), please evaluate the potential financial consequences of Project Chariot for Marriott's shareholders in numerical terms . Will this project create shareholder value and if so, how can it be that splitting a business into two separate legal entities can enhance overall shareholder value? Can this be justified by any of the enterprise valuation techniques we discussed in class?

* Finally, taking into account the interests of all stakeholders, give a clear recommendation if Marriott Corporation should proceed with Project Chariot.