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Internationalization strategy of the Accor group

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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. [...]

[...] Accor has also adapted to the Brazilian law of hospitality. For example, in Brazil, an establishment must have private toilets to be entitled to as a hotel. The economic Formula 1 hotel range has been adjusted accordingly. Beyond making a good account of local constraints, Accor has also sought to limit its risks. The group uses a plurality of modes of management in its hotel. Although globally the predominant modes of operation are direct ownership and leasing and 42% of hotel rooms), Accor is also using management contracts, or management and franchising ( The importance of people In the early 90s, Brazil chose to conduct a vigorous neoliberal economic policy under pressure from the IMF and the United States. [...]

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