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ACCOR Group presentationHistorical data
BusinessThe hotel activity
ProductsCompany Values
Implantation strategy
ConstraintsEvolution
perspectives
Advices for foreign
implantation
The ACCOR GroupThe ACCOR GroupHistorical DataHistorical 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
The ACCOR GroupThe ACCOR GroupBUSINESSBUSINESS
ACCOR activity repartition
22%
7%
71%
autres activités
Services
Hôtellerie
CA : 6828 Millions Euros in 2003
Employees world wide : 158 023 personsAccomodation : 12 095 persons
Services : 4039 persons
Other activities : 32 000 persons
The Hotel ActivityThe Hotel Activity
• CA : 4827 Millions of euros• 4th mondial group allManagement systems included• 65% Businessmen• 35% Leisure
First class 8%
Middle class 36%
Economic class 56%
First class : Sofitel
Middle class : Novotel, Mercure
Economic class : Ibis, Redroof Inns, Etap hôtel, Formule 1, Motel 6, Studio 6.
ProductsProducts
Company valuesCompany values
2 MAIN LINES
Respect humans rights
Facilitate local economy
The core values of ACCOR are :
trustresponsibilityprofessionalism transparencyInnovation
“facilitate professional evolution”
CompetitorsCompetitors
First class : Intercontinental, MARIOTT, Hilton
Middle and economic classes : Local competitors.
Examples :
Spain : Sol MeliaFrance : Envergure, Campanile, Concord,
Implantation strategy (1)Implantation strategy (1)
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…
Objectives: being present everywhere in the world and long term development
Implantation strategy (2)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…
Implantation strategy (3)Implantation strategy (3)Financial strategy
The investment strategy has to meet the rentability objectives of ACCOR
Implantation strategy (4)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 annumEvolution 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 manageris essential for the successful implantation of the group in the country.
ConstraintsConstraints
•Property rights specifics to each country and sometimes difficult to understand Legal hences, •humans rights, •social laws•Infrastructures constrains, •taxes law•Culture •Competitors presence (GB)
Losses of market / constraintsYes: Birmania project lostGermany, Spain : project delayed
Evolution perspectivesEvolution perspectives
Global brand not well known Associate the nameOf 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
Advices Advices for a foreign implantationfor 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)
We ThankWe Thank
Manager 1: RAGOZIN Serges, , Tour Montparnasse,
Manager 2: HERVE Bertrand, telephone interview
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