An article in The Wall Street Journal reported that large hotel chains, such as Marriott, are tending
Question:
a. Explain the nature of the agency problem facing Marriott.
b. Why would Marriott worry about the quality of the hotels it doesn’t own but franchises?
c. Why would a chain such as Marriott tend to own its hotels in resort areas, such as national parks, where there is little repeat business, and franchise hotels in down-town areas, where there is a lot of repeat business? Think of the reputation effect and the incentive of franchises to maintain quality.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021718
11th edition
Authors: Christopher Thomas, S. Charles Maurice
Question Posted: