Our TeamOur Team

de Lamaze Hortense

Besset Sophie

Darras Marianne

Menut Agnès

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

BibliographyBibliography

Stratégie d’internationalisation

Site www.accor.com