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Perceived advantages of Starwoods:
As the world and the hotel industry grow increasingly more global, Starwood is continuing
their legacy of innovation and looking at tomorrow's travellers and how they want to meet.
They can meet by merger and acquisitions of another partner who should be financially sound
and Starwood should be advantageous by that partner.
The partnership with TATA sons can give Starwoods business executives to take advantage
of the productivity their technology offers and save on costs that can be invested in their core
competencies. The launch of the new Cisco TelePresence meeting suites at the W Chicago
and Sheraton on the Park Sydney is another example of Starwood's commitment to
innovation by offering our clients an exciting, new meetings solution that facilitates a 'face-
to-face' meeting in the same room regardless of global location.
Above Figure shows the levels at which particular strategy decisions are made within a multi
business firm. To illustrate these three levels of decision making, the Tata Group, one of
Indias largest conglomerates, has more than 96 companies in seven business sectors. One
company in the portfolio is the Taj Hotels Resorts and Palaces, which consists of 59 hotels at
locations across India and internationally. In this very complex company, corporate - level
decisions are made for all 96 businesses, but business strategy decisions are made at the firm
level. Hence, business - level decisions that concern the Taj Hotels Company are made by
senior management of the hotel chain, while functional leaders, such as those who lead
human resources, purchasing and development, guide functional - level decisions.
When coming to what advantage that TATAs will have by this acquisition i.e.
Starwood is an industry leader in hotel management. While innovation is a hallmark of
Starwoods expertise. Currently, more than 400 hotels around the world are distinguished by
our experienced teams and management infrastructure, which includes:
Operations Innovations team comprised of Six Sigma and Lean Operations. This
team creates and shares best practices, optimizes cost savings across departments and
strengthens hotel leadership.
Strategic Sourcing team, which executes national contracts using a balanced
procurement model which strives for the best possible cost of goods, giving careful
consideration to product quality, service, health, safety, and environmental and legal
protection.
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Service Culture training for hotel managers and associates. Service culture is always
important factors for Indian hotel sector.
Starwood's commitment to being a learning organization. Because we know that
the success and quality of every hotel is dependent on the knowledge and skills of our
associates, Starwood is continuously developing new training programs.
The advantage which Starwoods perceived because of TATA hotels acquisitions are
Increased Transparency. TATAs reporting function would utilize outside auditors and
consultants to validate its numbers. Capitalization and financial information would be key
to providing the Starwoods hotels and resorts with a transparent view of funding.
Financial Independence. The new acquisitions would be funded through a pool of
funds approach. This would be an advantage towards Starwoods hotel groups and would
ensure funding reserves for sustainability in recessionary times.
Management Development. It would involve a significant rotation in this subsidiary, and
training on relevant practices and measurements would be provided.
Consistency of Business Practices. Tatas maintains clear and consistent treatment of
employees, business partners, and NGOs in all of its worldwide markets because of which
this consistency will be same and beneficiary for the Starwoods hotel and resort to do
acquisitions to TATA groups.