Case Study: Dealing with Risk and Uncertainty

Find solutions for organizational problems using principles of risk management in order to increase profitability and operations.

The Case Study of Uncertainty and Risk

Unanticipated events and outcomes in the future are called risk. On the other hand, uncertainty refers to the possibility of future events or outcomes. Each of these is vital for company managers because each decision, every opportunity and decision can be a risk. This paper will analyze recent risks and uncertainty that Aloft Hotels faces and provide suggestions on how to reduce them and increase profitability.

Aloft Hotels is a Marriot International chain of hotels with headquarters in North America. It was founded in 2008. Marriott International 2002: The international hotel chain has more than 183 hotels in various locations around the globe. Aloft Hotels, which are primarily located near airports or urban centers, have had negative effects on business and tourism industry. The demand for hotels has declined significantly since the spread of the Covid-19 virus, despite efforts to prevent it from spreading around the world. Hotel management took several measures in the wake of the outbreak to stop the spread of the pandemic.

According to Marriott International’s annual report (2021), the company has published plans that will help franchisees and hotel owners reduce operating expenses and their cash costs. Multi-dimensional strategies were also used by the firm to increase the standard of cleanliness and hospitality in order to protect guests’ health. It also decreased its corporate general and administrative expenditures, and spent more on capital projects.

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