Case Study Scenario: Marriot Internationalt has a long and successful history of serving customers beyond their expectations. The company commenced as a nine-seat AW root beer stand in 1927, has grown to become the leading and one of the most recognisably brands in the hospitality industry. Headquartered in Bethesda, Maryland, the US, Marriot Internationalt has a presence in North America, the Middle East, Europe, Africa, Asia Pacific, Caribbean and Latin America. Thanks to the imperishable and competitive values that J. Willard Marriot Internationalt left on the genes of the company, as the company's success at present as well to a considerable extent is the outcome of the application of those values. The core values that guide Marriot Internationalt are "We put People first", "We pursue Excellence", "We Embrace Change", and "We Act with Integrity". Marriot Internationalt's financial success also informs the commitment and capability of the company in maintaining mutually beneficial relationships, whether it be with the franchisees, employees or customers. Customers highly regard the loyalty program of Marriot Internationalt named as Marriot Internationalt rewards as more than 120 million active customers are part of the program. For the 20th consecutive year, Marriot Internationalt could find a place on the Fortune's 100 Best Companies to Work For. Physical assets of Marriot International This company is operating many branches in the Australia and provide wide range of services to their customers. Currently, Marriot International has ten branches in Australia and having more than $500 million dollars of investment on physical assets. Th Following are the the tangible and intangibleassets of the company-Physical assets of Marriot International This company is operating many branches in the Australia and provide wide range of services to their customers. Currently, Marriot International has ten branches in Australia and having more than $500 million dollars of investment on physical assets. Th Following are the the tangible and intangiblessets of the company- Tangible Assets Intangible Assets Cash Patents Furniture Logo Plants and Machineries Copyright Buildings Brand value Vehicles Self-developed softwares Stock Customer data Equipments Trademark Computers and other technical devices GoodwillA 2 6 Asset management plan Marriot International prepare an Asset Management Plan, driven by an understanding of the owner's objectives for the asset and the specific needs of the property as identified during the strategic review. During the initial strategic review the company undertake the following tasks: a comprehensive physical property review; a detailed market review and competition benchmarking; a review of historic operational and financial performance; and Page | 36 Document Type: Trainer Assessment Pack (TAP) Version 8 - Compliance and Quality Assurance Department Release Date: Feb 2019 Review Date: Dec 2020 Unit Name: SITXFINO05 - Manage physical assets . a review of operator contracts, agreements and compensation. Performance Monitoring of AssetsI 2 I 6 Following the initial Strategic Review and preparation of the Asset Management Plan, Marriot International implement a performance monitoring and reporting regime, based on regular property visits and interaction with the operator. This will involve, as a minimum: . market supply and demand updates competitive benchmarking analysis performance analysis against budget and prior years . review of sales and marketing activities . revenue analysis and cost control review of operator charges, contract compliance and compensation review of guest satisfaction surveys Planning and Budgeting Short- and long-term planning includes both operational and capital budgeting. This includes: monthly forecast, annual business plan and budget reviews; asset register maintenance Asset management procedure Effective asse management is essential for the business growth of the company. The purpose of assets management procedure is to ensure that expenditures by the Marriot International is planned, evaluated, authorised, monitored and implemented in a systematic manner to meet the objectives of the best practice.Method of Measurement: Asset Class Model of Measurement Cycle Furniture and Equipment Cost 3 yearly Building Revaluation 3 yearly Vehicles and vessels Cost 5 yearly Computers and other technical Cost 1 yearly devices Machineries Cost 3 yearlyDepreciation Depreciation is charged on fixed assets to allocate the cost of the assets over their estimated useful lives. The depreciation charge for each period is recognised as an operating expense and is charged to the budget centre that holds the asset. The depreciation method used reects the pattern in which the asset's future economic benefits are expected to be consumed by the Marriot International hotel. Asset Type Date Method Rate Depreciable base Residual Depreciation Acquired or value in prior Life years Building 1/2/2017 5L 3 200,000 50,000 75,000 years Furniture 1/2/2017 5L 3 75,000 25,000 10,000 and years Equipments Vehicles and sis/2017 5L 5 20,000 5,000 1,000 vessels years Computer 1I2/2017 5L 1 10,000 2,000 1,000 and other years technical devices Machineries 1/2/2017 5L 3 50,000 20,000 8,000 years Goals and business Objectives of asset management 1. To Improving Efciency, Performance, and Utilization: Asset management provides businesses with a clear picture of their total owned assets at any given time. This bird'seye view into your capital investments can reveal some valuable insights, such as areas in which assets are sitting idle and areas in which assets are at maxedout capacity. To Facilitating Data Collection: Asset management provides a plethora of data that drives decisionmaking. For instance, data showing that a particular class of assets performs better or has a longer lifespan when purchased from a specific vendor can help you make more informed purchasing decisions. Over time, these types of decisions have a substantial impact on the bottom line by allowing you to make sound investments. Maximizing Return on Investment: Asset management aids businesses in maximizing the return on every investment. When you rely on asset management to inform purchase decisions and stay on top of ongoing maintenance, you'll get more life out of your expensive assets. Page | 38 Task This assessment will provide the complete procedure for managing the physical assets for the Marriot International hotel. As mentioned in the above case study, Marriot International has different types of an asset having different life span and depreciation of each asset. It is required to manage physical assets in a timely manner to improve the performance and efficiency ofthe business. In this task of this assessment, you will be playing the role of the Asset manager of the Marriot International and develop practices for managing the physical assets of the company. Subsequently, it is essential to create procedures or practices for maintenance, repair and purchase of physical assets. To develop the practices for managing physical assets, you are required to perform the following 1. 2. 3. 4. 5. Develop the current physical asset register. Develop practices for managing physical assets such as maintenance, repair and purchase. Establish and implement the maintenance and repair rules that minimise the disruption and loss of revenue. Integration of practices to support environmental sustainability into use of physical assets. Evaluation of current and potential nancial ability to acquire physical assets. Template 1- Physical Asset Register Physical Asset Register Company Date Prepare by Location Template 1- Physical Asset Register Physical Asset Register Company Date Prepare by Location Asset Description Purchase Depreciation Depreciation Number Price Method RateTemplate 2- Develop practices for managing physical assets I Practices for systematic maintenance I Practices for repairment I Practices for purchase Practices for systematic maintenance Practices for repairment Practices for purchase Description 1. FRIDGE 4. 5. Page | 40 Document Type: Trainer Assessment Pack (TAP) Version 8 - Compliance and Quality Assurance Department Release Date: Feb 2019 Review Date: Dec 2020 Unit Name: SITXFINO05 - Manage physical assets|_l Template 3- Establish and implement maintenance and repair template Date Maintenance Maintenance Date of Validation Next Description Performed validation performed maintenance law before put by- planned on into service (date)- Cool room Dave Kris Template 4- Integration of practices to support environmental sustainability Practices Description 1. 2. Page | 41 Document Type: Trainer Assessment Pack (TAP) Version 8 - Compliance and Quality Assurance Department Release Date: Feb 2019 Review Date: Dec 2020 Unit Name: SITXFINO05 - Manage physical assets3. 4. 5. Template 5- Evaluate current and potential financial ability to acquire physical assets Asset Name Current price Depreciation value BudgetTemplate 5- Evaluate current and potential financial ability to acquire physical assets Asset Name Current price Depreciation value Budget