Findings
Discuss about the Hospitality Management of Accor Hotels.
In the current business scenario, the importance of strategic management has increased (Theriou, 2015). Depending on the strategic management practices, the organizations get the chance to develop new strategies, which will be helping in the case of dealing with the external and internal environment. Therefore this can be said that in every industry the strategic management practices have significant impacts on developing the business performances. In this study, it has been identified that the large organizations are getting larger where the small and medium sized organizations are still struggling for developing their business in the international market. Through this study, the impact on the large business organization in the case of grabbing the market has been highlighted. In order to highlight the situation, the study has focused on the Accor Hotels, which is a popular hotel group in France. In this study, the unique business strategies of the AirBnB and other boutique hotels have been discussed, which has created challenges for Accor hotels.
Accor Hotels is the popular hotel group in the global hospitality industry it has enhanced its business near about 100 countries in the world (Accorhotels.com, 2018). It provides its luxury services to the people through 4300 hotels. With the increasing rate of popularity, the business revenue of the organization has also increased. In the year 2016, the business revenue of the company was € 5631 M. it has also been identified in this study that the company has introduced near about 20 luxury brands in all over the country (Accorhotels.com, 2018). By establishing the rich brand portfolio, the organization has grabbed the attention of a large number of customers. With the luxury products, the company has maintained its uniqueness in the market. From the report of 2016, it has been identified that the company serves all over the country with 250000 employees. In order to provide the effective service to the customers, it has provided training to 122000 employees in 2015 (Accorhotels.com, 2018).
After analysing the business history of the company, it has been identified that from the initial stage, the company has developed its strong business infrastructure in the hospitality industry. In the year 1967, it opened the Novotel in Lille in France. In the year 2008, it launched MGallery and A|club, which is a global loyalty program (Accorhotels.com, 2018). In 2009, the alliance was done between Master card Europe and Accor service for developing the prepay solution. In the current business scenario, the tourism and hospitality industry is developing in the fastest way. By bringing the effective business strategies in the organization, the hospitality industry has increased its rate of profitability as well as the rate of employment. Hence, this can be said that the among all the business industries, the tourism and hospitality industry has the higher level of contribution in the GDP rate of many countries (Monteiro, 2016).
SWOT Analysis
If the business strategy of the organization is being analysed, it will be identified that the company has developed its business through acquisition and organic growth (Elbanna, Andrews & Pollanen, 2016). If the growth of the company is being analysed, it will be identified that the company opens hotel in every 33 hours. In the last year, it has opened 52,000 rooms. In the coming years, the company has adopted the adopted the strategy for enhancing its business in South East Asia, Sub –Saharan Africa and Middle East (Accorhotels.com, 2018). The company has invested the large amount for grabbing the business market of local organizations. In the initial stage, the hotel has been developed by adopting the partnership strategies. However, in the current situation, it has adopted the merger and acquisition strategies for expanding its business.
Through the SWOT and PEST analysis both the internal and external environment of the company has been analysed.
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Strength |
Weakness |
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§ It has developed its strong brand image in the international hospitality industry § By adopting the effective business strategies, the organization has appointed the large number of efficient employees (Accorhotels.com, 2018). § The company has strong financial backup § It has established large market segment with the large customer base |
§ Due to the growing hospitality industry, the company is dealing with the issues regarding rapid technological development. § The internal employee conflicts have affected the organizational culture § With the increasing prices, it has started losing its brand value. |
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Opportunities |
Threats |
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§ The rate of employment in the hospitality industry has started increasing. Therefore, this can be said that in the long run, it will bring various opportunity in the future. § With the increasing rate of economic contribution, the industry has become one of the important business sources in every country. § Demands for tourism is increasing. Therefore, this can be expected that in the long run, the customer base of the company will increase. |
§ The AirBnB and other boutique hotels have adopted the unique strategies, which has created pressure on the company (Accorhotels.com, 2018). § The new organizations have started providing the same facilities to the customers in the lower ranges. As its result, the customers are getting attracted by the company. § Increasing Tax policies and customer management issues are the threats to the company (Sotiriadis, 2015). |
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Situation |
analysis |
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Political |
It has been identified that in the organization named Accor is a popular hospitality group in the European market. In the current business scenario, it is operating in near about 140 countries (Accorhotels.com, 2018). Therefore, his can be said that the company is influenced by the legislative and political consequences of these countries. It has been identified in this study that the company has not faced any kind of political threats till now (Capon & Go, 2016). The organization regularly donates the large amount to the local political authority for avoiding the external benefits. |
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Economic |
Economic condition is an important, influential factor in the organizational development. In this study, the author has focused that the cost, products and pricing depend on the GDP rate of the particular country (Roper & Hodari, 2015). As the company has expanded its business in many countries, therefore this can be said that Europe is in the 28th position in the global GDP ranking, where the United Kingdom is in 30th position. Therefore, this can be said that the European GDP rate will be helping to the company to maintain its luxurious service. This also influences the employment rate in the company. The study has tried to shed light on the financial report of the company, where it has been identified that the company named Accor has increased its costs from 40.58% to 45.48%. Therefore this can be said that the external economic situation is in favour of this organization. |
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Socio-cultural |
It has repeatedly been discussed in this study that the company has developed its strong brand image in the market by providing good quality of service to the customers (Karadag, 2015). On the other hand, in the current situation, people have become more interested towards travelling. This can be considered as the opportunity for the people. As the company provides luxury products, therefore it targets the upper class and upper middle-class people. In the developed countries the living standard of people is higher. Hence, this can be said that in the case of developing countries, the socio-cultural environment of the countries is in favourable condition. |
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Technological |
In the current situation, development of hospitality industry is highly influenced by the technological advancement of the country. After the globalization, the large scale of technological development has shown in the European countries (Monteiro, 2016). This has made the information system easier for the people. Therefore, this can be said that technological environment is in the favourable condition of this organization. |
Accor is considered as the largest hospitality chain, which has the strong hold in the global tourism industry. The company has focused on implementing the strategic planning in the workplace for bringing the growth in corporate level (Elbanna, 2016). In order to bring the development in the hospitality industry, the company has developed Centers of expertise model in the organizational infrastructure (Accorhotels.com, 2018). The company has developed the purchasing procedure by introducing the high-performance tools in the organization. It has also focused on the optimizing the equipment, food and service costs. It has been identified that the company has introduced various negotiation policies national, global and regional level of supplier recruitment. In order to make the booking procedure easier, the company has increased the hotel visibility on the internet. Through the online brand development, the company has got the chance to grab the attention of the large number of customers (Phillips & Moutinho, 2014). By bringing the development in marketing, construction, maintenance and legal affairs, the company has got the chance to monitor the organizational functions properly. On the other hand, by installing the wireless support systems, it has become easier fie the organization to support its customers.
Innovation is the main strategy of the company to maintain its popularity in the global market. In order to bring the sustainable development initiatives in the organisation, the company has involved in bringing the child protection, child education, local development, reducing malnutrition and reduce epidermis (Accorhotels.com, 2018). By adopting this strategy on the company, the company has got the chance to give tough competition to its competitors in the market. This strategy has also helped the organization for maintaining its stable position in the international market.
PEST Analysis
In order to develop its business in the international market, the company has adopted the merge and acquisition strategy. After researching the market, the company has decided to enter the market by acquiring the existing organizations, which are dealing with financial or management related problems (Salvioni, 2016). This process has helped the organization in the case of grabbing the attention of local people. In order to develop the business in the international market, the company has adopted the Dynamic strategic plan. Here the company maintains its continuous development practices in the hotels. By focusing on the different customer segment, it has decided to reinvent its products, redesign the graphics and rethink the strategies (Khodadadi, 2016). Through this process, the company has got the chance to introduce an effective marketing idea for increasing its sales.
Strategic implementation has the higher level of impact on the business organization. If the organization will not be able to implement is business plan properly, this can bring the huge loss for the organization (Khodadadi, 2016). In order to implement the strategic plan, the company needs to focus on developing its Human resource practices. Through following the proper monitoring process in the organization, the manager of the company has got the chance to measure the organizational performance. On the other hand, it has been mentioned in this study that leadership is an important human resource management practices in every organization (Zientara & Bohdanowicz, 2016). Hence, by adopting the proper leadership management practices, the company has motivated its employees towards achieving the goals and objectives. In order to expand its business, the company has provided the opportunity to entrepreneurs to develop their own business. This was the strategy of the hotel chain to establish monopoly business practices in the international market.
If the organizational structure of the company is being analysed, it will be identified that it has focused on following the new brand based organizational structure for the European market (da Cunha Cardoso, 2015). With the large segmentation, the demands of the customers have created various challenges for the company. The increasing market competition and increasing labour wages in different countries have created problems for the organization.
Conclusion
In this study, it has been identified that the organization named Accor hotels have adopted the merge and acquisition strategy to expand its business all over the world. By adopting this strategy, the company has reduced the threats of new organizations in the market. As its result, the numbers of small and medium organizations have started disappearing. It has also been identified in this study that although the company has established strong competitive advantages in the market, the AirBnB and other boutique hotels have brought the innovation in the market which is still not adopted by the company. As its result, the AirBnB and other boutique hotels have started grabbing the attention of the customers.
After analysing the issue, it has been identified that the company, it can be suggested that if the Accor hotels merge these organizations, this will help the company to take over the strategies. By using this strategy, the threats from the market will decrease. On the other hand, it will also help the company to use these strategies as its strength in the market.
References
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