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The ACCOR Group

The ACCOR Group. Our Team. Besset Sophie. Darras Marianne. Menut Agnès. de Lamaze Hortense. Advices for foreign implantation. Constraints. Evolution perspectives. Implantation strategy. ACCOR Group presentation Historical data Business The hotel activity Products

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The ACCOR Group

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  1. The ACCOR Group

  2. Our Team Besset Sophie Darras Marianne Menut Agnès de Lamaze Hortense

  3. Advices for foreign implantation Constraints Evolution perspectives Implantation strategy • ACCOR Group presentation • Historical data • Business • The hotel activity • Products • Company Values

  4. The ACCOR GroupHistorical Data • SIEH founded in France in 1967 ; first Novotel in Lille. • First implantation in Brasil in 1976 • SIEH became ACCOR Group in 1983 • Partnership program (SNCF, Air France) starts in 1998 • Wide program of SOFITEL opening in 2002

  5. The ACCOR GroupBUSINESS CA : 6828 Millions Euros in 2003 Employees world wide : 158 023 persons Accomodation : 12 095 persons Services : 4039 persons Other activities : 32 000 persons

  6. The Hotel Activity • CA : 4827 Millions of euros • 4th mondial group all Management systems included • 65% Businessmen • 35% Leisure

  7. First class 8% Economic class 56% Middle class 36% Products First class : Sofitel Middle class : Novotel, Mercure Economic class : Ibis, Redroof Inns, Etap hôtel, Formule 1, Motel 6, Studio6.

  8. Company values • 2 MAIN LINES • Respect humans rights • Facilitate local economy • The core values of ACCOR are : • trust • responsibility • professionalism • transparency • Innovation • “facilitate professional evolution”

  9. Competitors First class : Intercontinental, MARIOTT, Hilton Middle and economic classes : Local competitors.Examples :Spain : Sol MeliaFrance : Envergure, Campanile, Concord,

  10. Implantation strategy (1) Objectives: being present everywhere in the world and long term development Country selection criteria • Economic and middle class accommodations • Leisure flows (tourists and locals) • Need of developed Communication and Infrastructures • First class accommodation • International flows, Airway communication well developed, main international towns…

  11. Implantation strategy (2) Products adaptation Once the commercial positioning is defined, the concept of the product remains the same & is applied in every country  IBIS example The adaptations concern decoration, food, architecture, room size, bathroom…

  12. Implantation strategy (3) Financial strategy The investment strategy has to meet the rentability objectives of ACCOR

  13. Implantation strategy (4) Ressources management • First Implantation  French Manager • In the long term, the aim is to develop as much as possible jobs • in the host country (Except for Sofitel, French Manager automatically) • 70% of the employees sent on formation courses per annum • Evolution and instillation of Accor values • Values applicable to all countries • by a local manager who knows the local culture. • Collaboration between the Accor Group and the local manager • is essential for the successful implantation of the group in the country.

  14. Constraints • Property rights specifics to each country and sometimes difficult to understandLegal hences, • humans rights, • social laws • Infrastructures constrains, • taxes law • Culture • Competitors presence (GB) Losses of market / constraints Yes: Birmania project lost Germany, Spain : project delayed

  15. Evolution perspectives Global brand not well known  Associate the name Of Accor to the different products (Sofitel…) Implantation in priority in Europe (GB, Spain, Italy), and China 75 international main cities to be, and only 55 where ACCOR possesses hotels. (San Francico, Boston, Beijin) Develop Internet market

  16. Advices for a foreign implantation • Study of the economical context, market potential • Understanding of the legal frame • Management and product adaptation to the local culture • Tax law • Specific to France: • Heavy tax system • Social management (35 hours)

  17. We Thank Manager 1: RAGOZIN Serges, , Tour Montparnasse, Manager 2: HERVE Bertrand, telephone interview

  18. Bibliography Stratégie d’internationalisation Site www.accor.com

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