Accor is one of the major French groups to have an international base, and is distinguished by a remarkable internationalization strategy. The main ambition is to ensure the continued growth of the business and ensure its sustainability.
What then are the strengths and weaknesses of Accor which enable it to continue to grow, and ensure its global strategy of internationalization? What strategy do their leaders prefer to promote profitable growth? Several strengths enable it to implement its plans despite strong international competition.
Accor is based on the complementarities of both activities and is expanding its hotels globally. It also offers its services to businesses and communities. The three pillars of sustainable development on which the Group supports its expansion are- the training, the environment, and the respect for men as part of their culture. These pillars are now required by all international companies in the effort to make a way forward.
In addition, by partnering with major international organizations, based on the Accor spirit of trust, accountability, professionalism, transparency and innovation, and strong involvement of its employees, the Group has adopted many core values that enable it to act genuinely in favor of responsible tourism.
After presenting the Accor group and it activities, followed by its presence and its global offering, we will examine the strategies used, particularly with regard to internationalization. Finally, we consider a concrete example: the establishment of Accor Brazil. Accor is a unique group with 168,500 employees and two complementary businesses:
Accor has developed into a unique network of over 4,000 hotels worldwide in 30 years. The balance of its hotel portfolio is a key asset in the growth phases as in times of crisis. The expansion of Accor's hotel network is mainly characterized by its ability to innovate and create new concepts. Accor has developed its fleet through a well managed organic growth and focused acquisitions.
Balancing the personal aspirations of employees and performance objectives of the company:
Accor Services designs, develops and manages innovative solutions that enable businesses and communities to create new sources of motivation and loyalty to their employees. Jointly improving the welfare of employees and organizational performance,
Accor Services reconciles the interests of each, and reinforces the dynamics of the business.
A world leader in securities services, with its flagship product Ticket Restaurant ®, Accor Services has embarked on an approach that can reconcile the imperatives of a balanced professional and personal life, and performance goals. Today, more than 300,000 business customers and 19 million users in 34 countries trust Accor Services.
Accor's financial policy is an essential support of its strategy. It aims to maximize shareholder value while minimizing risk. To do this, it adopts diversified funding formulas which are adapted to the various projects which enabled the Group to maintain a dynamic pace of development and cost. Sustainable growth and profitable business is the cornerstone of the daily commitment of Accor, which always operates with respect for trade balances and financial transparency.
Tags: Accor's financial policy, internationalization strategy, growth strategy of Accor
[...] Thus, the strategy of internationalization requires an optimization of the funding priority for hotels, with an international real estate strategy, and with targeted partners to maximize the value of assets in the U.S. and Europe, and improve return on the capital employed: o Transfer of walls and goodwill to reduce the capital intensity in a segment with low profitability o Maintaining an interest with between 20% and 25% stake in the Land hotel, to address the long-term value of real estate o Signing long-term contracts to sustain their long-term presence in the hotel segment with low cash flow volatility The yield management to regulate supply and demand By using a rational method of pricing, yield management can provide an optimal solution to the matching of supply with demand, thereby meeting the rapidly changing economic environment that imposes new constraints on service industries. [...]
[...] On the one hand, the know-how and innovation of the group are used to enhance the attractiveness of homes in Brazil, And on the other, the concept of hotel residence is used in the other channels of the group Sofitel Accor Brazil owes its success to tickets, to catering and travel agencies Accor Brazil is a subsidiary of Accor, which is held as follows: Its turnover was 239 million Euros in 2002. With 24% sales, the hotel business is only in the third place, behind the restaurant sector and the services sector This volume distribution business of Accor Brazil shows the originality of its implementation. [...]
[...] o Accor's strategy rests on three pillars The main strengths of Accor o A balanced geographical distribution of activities. o A highly fragmented and diverse positioning, which is suitable for application in mid-market products and economic development. o Complementarities of activities. o A strong national clientele. o A balance of modes of management in the hospitality segment. o A range of innovative services and solutions tailored to the application. o Provide leadership and global presence. o Prudent management of financial resources. [...]
[...] It will have to connect with people of different cultures, and establish a methodology to minimize the risk of error and to quickly readjust its global policies A long-term financial growth based on a strategy of internationalization The concentration of activities In the field we are studying, the strategy focuses primarily on the concentration of activities in the Accor account, alongside hotels, travel agencies, car rentals, casinos, restaurants and services on board trains. This concentration of activity is really necessary to cope with that which has been extensively developed by multinational companies and particularly by one of its direct competitors: the HFS group, and Cendant Corporation, which merged, and matches a global hotel in terms of turnover. [...]
[...] The sustained development of Accor led the Group to recruit, nearly 16,000 new employees in Europe each year, mostly among those aged 18-24, and mainly for reception stations, reception and catering. To better anticipate and meet their needs, Accor created, a Marketing Department of Human Resources in 2000. Accor then created its own website for recruitment and internal mobility. Launched in January 2001, Accorjobs enables employees and external candidates to respond to job postings and submit unsolicited applications. Accorjobs quickly established itself in France as an essential recruitment tool, with over 3500 job postings, and more than applications submitted to the site, of which 17% come from internal staff. [...]
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