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Marriott Vs. Accor

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Kelsey McKey

on 3 March 2013

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Transcript of Marriott Vs. Accor

Marriott Vs. Accor
-Marriott was founded by J. Willard Marriott in 1927 (root beer stand)
-1971, headquartered in Bethesda, Maryland
-The Key Bridge Marriott,50th anniversary in 2009
-Licensed 3,718 lodging properties. Companies Background Companies Culture Marriott & Accor Resources, Capabilities and Value Chains Financial Analysis Transnational Strategy: Increase exposure in emerging markets by 2015
-Double presence in Europe and China
-Grow 12 hotels to 100 in India
-Grow 32 hotels to 100 in Africa/ Middle East
-Make all properties in Brazil environmentally responsible

The European market currently offers the highest demand for lodging and with establishments in the majority of gateway cities, Marriott feels it is favorably positioned to take advantage of this opportunity. In order to do so the company has recently announced two new brands, Autograph and Edition. They are both aimed at capturing the luxury market and are meant to catapult Marriott’s expansion plans Marriott's International Strategy Internal New Ventures, Franchising & Licensing:
Leveraging Strengths Marriott's Corporate
Strategy
-In 1967, founded the SIEH
(Société d'investissement et
d'exploitation hôteliers) hotel group,
in Evry, France.
-In 1983,changed its name to the Accor Group.
-4,426 hotels on five continents (90 countries).
-Headquartered in Paris, France.
-Upscale, midscale, and economy hotel services. Pioneering spirit of conquest.

“A key to Accor’s success, Group’s culture”.

Respecting difference in their ages, cultures and positions within the organization.

“Our culture is also shaped by a constant concern for people and a commitment to the highest performance standards”.  Core values: people, excellence,
embracing change, acting
with integrity.

“These values are the legacy
and our future”.

“As we pursue our vision
of making Marriott the #1
hospitality company in the
world, we never lose sight
of our founding principles
and our proud heritage”. Financial Resources: Existing financial funds as well as the ability to raise new funds.

Human Resources: carefully selected staff.

Physical Resources: Information technology and their facilities.

Intangible Resources: Well built brand, strong reputation, known brand, trademarks.

Marriot Consolidated Inventory/Total Yield willdeliver improved revenue management capability.

Accor will leverage the unrivaled capabilities and expertise provided by its unique business model that functions around revenue management strategy. -Standardization of Quality: Focus on sustaining the quality and reputation of their brands through superior customer service
-The company operates and franchises hotels and licenses vacation ownership resorts under 18 brands, including Marriott Hotels & Resorts, The Ritz-Carlton, JW Marriott, and Bulgari to name a few. Accor's Corporate
Strategy Related Diversification: Owner, operator and franchisor of budget to luxury hotels on all five continents with a strategy based on four pillars 3. A  value-creating asset management strategy:  that improves the Group’s business performance, optimizes its balance sheet and support growth.
4. A development strategy:  that aims to consolidate the Group’s current leadership in Europe and Latin America and position it among the leaders in Asia-Pacific, especially China.

Accor has a divisional corporate structure because the firm is organized in different divisions around the world. 1. A powerful marketing approach: with a revitalization of the Economy Hotels activity and the Accor brand.
2. Unique operational expertise: derived from Accor’s skills and capabilities in its three strategically aligned businesses, hotel owner, operator and franchisor, in all segments and all regions. Accor's International
Strategy Localizational Strategy: cover all their bases aggressively expanding in upscale segments will help set Accor apart. Progress in laying the foundation for an extensive network with a multiple brand portfolio that caters to international markets across multiple segments.Grow

5 hotels to 90 in India by 2015

November 2011: Accor attained exclusive purchasing rights to Mirvac Hotels & Resorts portfolio, an acquisition that will greatly expand Accor's presence in Australia with over 48 new hotels and resorts nationwide. Accor will 'absorb' the existing Mirvac luxury brands. “India is one of the world’s most dynamic economies and a country that offers significant prospects for the development of hotels.” - Michael Issenberg (Accor Asia Pacifc Chairman and COO. Comparison Among Top
Competitors Kelsey McKey, Maureen Levy, Leighton Laville & Alejandra Curiel Marriott's Latest Financial Performance Revenue per Available Room (RevPar) = Increase 6%-8%.

Diluted earnings per share (EPS) = $1.65-$1.75

EBITDA = $1,115-$1,165 million

Operating income (EBIT) = $895-$945 million.

Their cost-cutting and border jumping strategies seem to be allowing Marriott to experience stable growth over the 2012 fiscal year. Accor's Latest Financial Performance Revpar= increase 7.8% in up & midscale rooms and 4.1% in economy rooms.

EPS = approx. $.16

EBITDA = approx. $1,210 million

Operating income (EBIT) = approx. $691 million

Revenue growth driven by price and 10.6% increase in Management and Franchise fees Centralized corporate structure with a recent trend of some decentralization due to the recent push into international properties.
Top ranking executives to high up management
Cost cutting: company focus away from high investments in effort to keep the balance sheet strong.
Goal - Increasing marginal profit per property without increasing their room rates.
-Cutting down on employees, restaurant hours, water and fuel consumption, and other utilities on the property level will allow money to be saved without sacrificing their competitive prices.

Marriott has a divisional corporate structure because the firm is organized in different divisions around the world. Marriott's Future Plans -Focusing primarily on international growth

-By 2015, hoping to double presence in Europe, especially since Europe has the largest lodging market in the world
Striving to expand to secondary cities and emerging markets

-Focusing on expansion into secondary and developing cities

-Plans to expand “Green” hotels in the near future, will continue to focus on international expansion and new innovations within the hotel industry.
Likely to be successful because of new ideas and Brand Loyalty.

Has a competitive advantage going to secondary markets. Accor's Future Plans -Strengthen brand by modernizing hotels, hoping to achieve higher market share-Improving communication -Develop a strong franchising network-Strengthen leadership in European region -Strengthen presence in Brazil, India, and China-Hoping to quadruple their network in China-Increase market share in Europe
-Continue expanding internationally with their innovative brand marketing-Brand loyalty and an existence in emerging markets gives Accor a competitive advantage Broad and Task
Environment -Part of the hospitality industry
-Core Competencies:
-Leadership
-Managing Execution
-Building Relationships
-Generating Talent and Organizational Capacity
-Learning and Applying Personal Expertise -Part of the hospitality industry
Core Competencies:
Nurturing Empowerment
Data Management
New Service
Development Resources and Their Capabilities Important Resources:
-Its Reputation
-Quality in all accommodations
-A work culture that allows flexibility Important Resources:
-Advanced communications systems that encourages loyalty from customers
-Have certain brands aimed to serve local markets
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