ACCOR HOTEL INDUSTRY
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Accor Hotel Industry
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Table of Contents
Introduction: 2
lo1: 3
1.1 business profile of Accor hospitality and unite in detail by identifying its strength and weakness. 3
1.2 analysis of Accor hospitality and unite using comparative measures of performance 3
Lo2: 3
2.1 Recommend with justification, appropriate actions to overcome the identified weaknesses in the business 3
2.2 Ways by which existing performance could be maintained and strengthened 4
2.3 Recommend with justification, new areas in which the business could be expanded 5
Lo3: 5
3.1 Assessments of existing business objectives and plans 5
3.2 Revision of plans to incorporate appropriate changes 6
3.3 Prepare an action plan to implement the changes 7
Lo4 8
4.1 Report on the impact of the proposed changes on the business and its personnel 8
4.2 Plan how the changes will be managed in the business 9
4.3 Monitor improvement in the performance of the business over a given timescale 10
Conclusion 10
References 12
Introduction:
Small business enterprise is an organization that has a limited number of employees as well as the company does not have a huge sales volume. This type of enterprise is owned by privately as well as operated by the partnership or proprietorship or by the corporation. The main definition of the small scale businesses is changing according to the different country and industry. According to United Kingdom small business act, the company has to hire less than 500 employees within one year period for Non-manufacturing Industries. In the United Kingdom, small scale business also defined by their balance sheet, value aspect, net profit as well as annual sales. According to the United Kingdom Small scale business act those organizations cannot earn more than 7 million dollars.
A reputed name in the small scale hotel industry is Accor Hotels. It is a well-known multination French hospitality company. Accor hotels mainly have the franchise of resorts vacation properties and hotel. Accor hotel is a very popular hotel industry in all over the world. The main headquarters of the company situated in Paris, Evry, Issy-ies-Moulineaux and Courcouronnes. The Accors hotel industry has 4200 hotels and more than 250000 employees all over the world. The total capacity of the hotel room is 570000.
In this assignment the researcher mainly described the business profile of Accor hotel industry, also describe their strength and weakness. In the next part, the author measures the performance of the hotel industry. In the next part, the researcher gives a proper justification of their weakness and suggest some appropriate action to overcome the situation. The author also helps the company by describing the procedure to maximize its strength. The author also suggests some new area where they can expand their business. In the next part, the author is assessing the existed plan and revision them. The researcher also describes the impact of proposed changes and manages them in the business.
lo1:
1.1 Business profile of Accor hospitality and unite in detail by identifying its strength and weakness.
Type: Accor is a French multinational company which owns, manages and franchises different properties for vacation, resorts, and hotels. It is an elementary CAC40 index on the Paris Bourse.
Structure and Size: Accor is one of the largest group of hotels in the world in outer united states. The group of hotels operates in about 100 countries. The Accor group of a hotel has more than 4200 hotels with 250,000 employees working worldwide. The total capacity of the hotel is 570,00 rooms of which 25% is in France. Accor hotels have an extensive collection of 26 brands like Raffles, Fairmont, Novotel, Pullman, and others in different sections of the hospitality market. The hotel group brings proficiency in the game of hospitality
Mission: the mission of the hotel is to make its services more efficient and manage their existing asset portfolio through administration and acquisition based on the margin, location, and generation of cash (Sen and Kaushik, 2016). Also, the group of hotels wants to provide the owners of partner hotels with best service choices.
Goals and objectives: The hotel group also aims to provide its customers with the best services in the hospitality industry. The group of hotels values the perspective of every person and wants them to be an important part of their development. The group of hotels wants to make a unique combination of amazing experience with strong human values and high-performance solutions. Accor hotels believe in innovation and support cultural transformation.
Strength and weakness of Accor hotels:
The internal resource of an organization acts as a strength of the company and provides it with an advantage.
Strength:
Accor provides its customers of all type of services of a diverse range to cater to every type of customers.
Accor has a huge network of hotels and vocational properties
Accor hotel is a big brand name in the hospitality industry the group of hotels serve the customers with amazing services and also with lucrative loyalty programs. It makes sure that the guests are welcomed in the best way. The guests are assisted with the best hospitality executives.
Weakness:
The company is losing its businesses online due to small hotels like oyorooms and Airbnb.
The company is spending a lot of money so that their services can be improved more and hence needs huge cash flow (Seal, 2019).
The luxury brands of the hotel have suffered a lot due to the lack of proper attention in their services
the company has emphasized the sub-brands like Mercuri or Novotel so much, that people hardly know the original brand Accor.
1.2 Analysis of Accor hospitality and unite using comparative measures of performance
Figure:1- increase in revenue over the years.
(Source: Ren, 2018)
The only way to achieve greater efficacy is to monitor the organizational performance and measure the organizational units which deals with the internal department of the company .this way the company can understand the relative performance and take the appropriate actions needed. Over the years, the revenue of the Accor group has increased, and it approximately earned 1.94 billion Euros in 2017 (Wen et al. 2016).
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Figure 2: REVPAR of Accor in the year of 2018
(source: Patwardhan, Mayya and Joshi, 2016)
The hotel services of the Accor group reported its volume of the business of â¬20 billion, up 13.4% at constant exchange rates, revenue of â¬2,618 million, up 8.4 %, reflecting solid trading conditions over the year and the development in the portfolio of hotel, in line with the Group’s targets (5% organic growth). Revenue growth that was reported had amounted to 5.4%, due to the negative impact of currency effect (Tan, 2018).
Lo2:
2.1 Recommend with justification, appropriate actions to overcome the identified weaknesses in the business
The study topic is discussing the gap in the following segment such as; losing to the online sites as the opportunity in the online section is rising in the world opportunity also is increasing but the Accor as an old company did not expand its business in this section this much which is a major weakens. Another is, franchising issue; the franchise helps the organization to gain a stable ground also helps to cut the overall cost in the capital section. In recent years the company is also getting back in comparison with the other brands, and somehow is failing to catch up with the brand values (Xie, 2018). To avenge these whole weaknesses which are faced by the Accor as an organization, they implied the theory of Intensive growth in their organization. Intensive growth means when a company is expanding its business by expanding their services or their market reach. In this case, the company of Accor is expanding its services in various new markets to achieve a ground of a subtle base (Kim and Chae, 2018). The intensive strategies have four sections to make that delicate ground in the market arena. Such as market preparation, product development, market development, and diversification. In the market preparation, the firm tries to sell its existing service in the same market with the risk of getting lost in the market. In the product development part, the company attempts to develop its services to give the companies more accurate service and authentic service as well. In market development, their company tries to sell its existing services into a new market area (Hudson and Hudson, 2017). In the final section, the company aims to sell its services which are new and also it is getting traded in the new market area. In this case study, the organization named Accor is trying to set their business in the new market areas by implying these intensive business strategies into their business plans.
2.2 Ways by which existing performance could be maintained and strengthened
Accor is suggesting the approach of intensive growth management to expand their business as well as improve their firm services. However to keep this strategy the firm need to follow some keys, to achieve the company’s desired goals regarding the services and market (Akin et al. 2018). Such as,
Add new facilities in the firm to maintain the company’s brand value about their services in the market.
The Accor needs to sell its services with more accurate services to its existing consumer, in the hope to gain a loyal consumer base.
They are expanding the business in the new areas with totally different consumers to gather more consumer base.
The company needs to target new consumer base.
The company also needs to focus on its sell tactics.
2.3 Recommend with justification, new areas in which the business could be expanded
Accor is all set to grow its business in new territories with the help of intensive growth strategy. Also, to do that the company needs to maintain some primary ground while expanding its business in new areas, such as,
The company need to have a stable and steady base of customers who are loyal towards the hospitality services of Accor (Akin et al. 2018)
Managing a team is an important aspect as well; a group is a key to achieve any goal regarding the company’s growth in a new area.
A capital resource which needs to be checked in the hope to achieve a ground where the company can think to expand their business in new territories, without any hurdles.
Lo3:
3.1 Assessments of existing business objectives and plans
Accor hotels in their current business plan and objectives are operating in the market of the United Kingdom as a hospitality service provider. They are working under six major brands in the United Kingdom; midscale Novotel and Mercure, Formula 1, Budget Etap, Motel 6, etc. Their existing business is tied up with several other major hospitality service providers. The active cooperation with major firms would help Accor to expand the scope of their business. At present, Accor’s partners are targeting the same potential customers as Accor (Li, Fang and Huan, 2017). The prime business partners of Accor are the service providers of tour and travel services, transport, information services, and leisure activities. Thus, Accor has been able to create an extensive business network, and the network is growing each year (Horne, 2017).
Accor is the largest hotel chain that competes in a worldwide market. They are generating personalized services (such as government social benefit programs and rewards for the employees) at a steady rate. They are also involved in several organizational operations such as Training and human resources, marketing and sales, construction and maintenance, etc. The figure shows the operations of Accor hotels:
The main objectives of the Accor Hotels are:
To improve work in collaboration
To develop their human resource so that they can adapt themselves to a high-performance business (Fan, 2018).
To enhance the sales of the firm
To build effective communication with the company stakeholders
To maintain and improve the quality of the performance
These general objectives of Accor hotels help them stay focused on their business. It also enables Accor to identify threats and opportunities (dos et al., 2017).
3.2 Revision of plans to incorporate appropriate changes
Revising the plan of the Accor will enable us to identify the appropriate changes that are needed to be incorporated in order to transform the plan into a reality. The changes that are needed to be incorporated into the organization are:
Increased workforce: To expand its business into new territories, Accor would require an increased amount of human resources. The newly appointed workforce is then needed to be trained.
Transportation: Accor would require developing their own transportation service to make their clients comfortable.
Database management: The database of the Accor is needed to be updated in order to incorporate modified data about the business.
Artificial Intelligence: The automatic booking system of Accor is needed to be maintained by artificial intelligence. Therefore, AI programs are needed to be installed and maintained.
Structural Changes: The new business plan requires some substantial structural changes for the organization. The structural changes will facilitate optimization of operation time and reduce space and time complexity of the organizational operations.
Corporate Social Responsibility: Accor has to build a corporate social responsibility unit for the new business plan. The wing will control all the potential corporate social responsibility related issues in the area where new business is going to be started.
3.3 Prepare an action plan to implement the changes
Action plan for the necessary changes can be divided into two different segments:
Action Plan for the structural changes: The structural changes are not easy to implement. Accor can use Lewin’s Model for change management in this regard. The whole organizational operation should be stopped for a day so that the necessary changes can be implemented. All the organizational members should have a clear conception of what is going to happen. After that change can become functional.
Action Plan for the operational changes: Operational change will require extensive training for all the working staffs so that they can understand all the aspects of the plan. Various aspects of change must state clearly by the management.
Lo4
4.1 Report on the impact of the proposed changes on the business and its personnel
The organization always tries to implement potential changes in the organization. There are some impacts on the Accor both internally and externally due to the changes in the organization. The impacts can be
Shock: When there are certain changes in Accor, the first impact of the affected internal and external part of the organization will be a feeling of shock. The main reason for this shock is the personal fear of how the changes will affect the present status of the organization.
Denial: When Accor is changing its internal strategies for its betterment, the impact of those changes can create a denial within the employees of the organization. After the impact of shock, the employees go through the feeling of denial. The internal and external part of the organization can deny the changes that are implemented. The reason for this denial comes from the disbelief of the employees that they won’t be able to cope up with the upgraded changes.
Rejection: in the chain of the feeling of shock and denial, the rejection can come in the path of Accor for implementing changes. This rejection comes from the comfort zone of the employees. They do not want to lose the comfort zone of the habituated workplace (Demirçiftçi and Kızılırmak, 2016).
Tolerance: the person in Accor stays with the changes, but they do not accept the changes, they stay with the feeling of tolerance. With time they can be habituated with tolerance.
Embrace: there must be some employees who will embrace the changes in the organization.
4.2 Plan how the changes will be managed in the business
After Accor have some changes in the organization, there would be some impacts on the internal and external part of the organization. The organization should have some action plans to manage the actions. Accor should
Describe the changes to its employees that what the exact changes are going to take place (AMAZONAS, SILVA and ANDRADE et al. 2018).The organization should explain why the changes are important for the organization.
The organization should ask for the reactions of the employees. Accor should know about the feeling of the employees.
The organization should acknowledge the reactions of the employees. They need to check if there is any misunderstanding.
The organization needs to ask the employees about their suggestions regarding the changes that took place in the organization.
Accor needs to ask for support to manage the impacts of the changes in the organization.
Accor needs to involve as many as of the employees as possible in work.
The organization should have a through follow the reactions of the employee. Accor needs to have proper and regular monitoring on the employees to see manage the impacts of the changes in the organization.
4.3 Monitor improvement in the performance of the business over a given timescale
There are some methods to monitor and improve performance after the implementation of changes in Accor hotels. It can do
Data collection from monitoring: There are several ways to collect data from regular monitoring. The Accor can maintain CRM software for customer retention. The organization can use reviews of site operations, employee surveys, and feedback from the customers to collect important data about the company.
Data analysis and new pattern: Accor should go through the data regularly. From this data, new patterns can be generated.
Implementation of New Protocols: once Accor can identify the pattern of the issue, it can introduce new protocols to the organization. Sometimes improving the changes in the workflow is easier than the other times. If there is an inventory issue, the management of Accor needs to take care of the facts (AMAZONAS, SILVA and ANDRADE et al. 2018). Implementation of new protocols is important for the organization.
Conclusion
It can be concluded from the upper study Accor hotel industry is one of the best hotel industry in all over the world. They have almost 4200 hotels as well as the company also connected with some sub hotels like Novotel, Fairmont, Pullman, Sofitel and Ruffles. The Accor hotel industry is giving their best to the customer. As well as they emphasize their sub-brand so much that many times people don’t know about Accor Hotels. In this paper, the researcher mainly suggests the intensive growth strategy for the expansion of brand name in the new market. To enter in the new market the need to apply some objective and need the change in their procedure, such as they need to expand their workforce, use their own transportation system, need to improve their data base management, also need to apply some advance technology for booking system. The company also needs some structural change in their organization as well as they need to hire a new team to maintain CSR in the new market.
References
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AMAZONAS, I.T., SILVA, R.F.D.C.E. and ANDRADE, M.O.D., 2018. ENVIRONMENTAL MANAGEMENT IN HOTELS: SUSTAINABLE TECHNOLOGIES AND PRACTICES APPLIED IN HOTELs1. Ambiente & Sociedade, 21.
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Fan, X., 2018. A Study of Onefinestay’s guest experience in comparison to high-end hotels: Evidence from Onefinestay’s blog analysis.
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