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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.