Accor Hotel PESTLE Analysis and Competitiveness

The assignment provides a detailed analysis of Accor hotel using the PESTLE framework. It identifies external factors such as political, economic, social, technological, legal, and environmental that impact the hotel's business. The report also examines the hotel's competitiveness by analyzing its strengths, weaknesses, opportunities, and threats. Additionally, it offers recommendations for future improvements to enhance the hotel's brand value and customer satisfaction.

Extended Business
Project

Table of Contents
INTRODUCTION...........................................................................................................................1
Background of the company............................................................................................................1
PESTLE Analysis............................................................................................................................1
Analyse the market competitiveness (Value chain Analysis)..........................................................3
Marketing Analysis ( Mix 7P's).......................................................................................................3
Brand Value................................................................................................................................4
Human Resource Management .......................................................................................................5
Objective.....................................................................................................................................5
Function.......................................................................................................................................5
Corporate and regulatory affairs ................................................................................................5
HR Strategy.................................................................................................................................5
Recommendation for next 2-5 years ...............................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business project is a type of project which can categorise by purpose and content.
Business projects are deliberated to obtain defined business objectives and are straighten with a
company's business strategy (Cho and Brown, 2013). This mean it has defined end date which
can not repeatable and ongoing tasks. Extend of business project in competitive market provide
competitive advantage and help to know position of a company to get sustainability. To
understand the project selected company, Accor hotels, which is a French multinational
hospitality company. Accor hotels has a broad portfolio of 26 marques covering different
portion of the hotel market. The presented report going to present current position of the hotel in
the different functional areas such as HR, accounting and finance, Operation and marketing.
Background of the company
Accor hotel group is the largest hotel group in the world outside of the united states. The
hotel is essential part of the CAC 40 index on the Paris Bourse. It is a French multi-national
company that owns, manages and franchises hotels, resorts and vacation properties. The
headquarter of the hotel group in Paris, Issy les Moulineaux, Evry and Courcouronnes. The
branches of the hotel across the world about to 100 countries with more than 4200 hotels and
250000 employees worldwide. After the analysis it is getting that the capacity of the total is
approximately 570,00,00 rooms with about 25% in France.
PESTLE Analysis
The PESTLE analysis is a external analysis which can provide all detailed information
regarding to company in particular areas. It can help to company to understand external
environment and how can deal with it and prepare effective strategies and policies. The PESTLE
factors that affect the functioning of Accor hotel which are -
Factors Impact
Political In globalised environment Accor hotel is the largest part of the
hospitality industry in Europe. In the present they are manage and
control about to 140 countries which can based in Cedex, France (Too
and Weaver, 2014). The changes in political regulation that are
affected to Accor hotel conditions. In the context of hotel industry,
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Accor French company still can not handle any type of threat due to
deduction in level of terrorism and they have good relation with EEC
country and other as well.
Economic The economic condition compare to Accor hotel from last few year so
it is getting that between 2006 and 2012 in chain hotels is expected to
growth by 5.7% in particular year as compared to increase of 3.7% a
year for the market as whole. Different economic factor can influence
on the economy of the hotel such as demand, cost, profits and price.
Mainly factors impact on the economy that was acquisition, demerger
and merger. They can increased their stakeholders from last few years
like Poland's Orbis by 4.9% from 40.58% to 45.48% at the cost of 42
million (Martinsuo, 2013).
Social The Accor hotel has been used 7 language at their online sites to
provide services to customers. To provide facility regarding to booking
they can provide maps, graph to easy to understand and add value of
booking experience because of social changes. There are considering
demographic change regarding to population and increase number of
female worker in the particular sector. The hotel has been provided
franchises with the help of HR and added value services.
Technological It is one of the essential factor of macro environment that was
influenced the benefits of company as well as customer. In present time
world moves so fast they are adopting all new technology in the
reference to provide customer satisfaction. Accord hotel can following
these technology – Website and hotel booking, Up to date information
system, Electronic media card (pre paid card) becoming more demand
able.
Environmental It is a major factor that can affect to policy of the hotel in direct way
which can not control easily. Falling oil prices can affect to travel cost
so as a result it can affect to demand of hotel rooms. It is a potential
threat of business so for this hotel group provide their personal
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transportation to come hotel from airport and stations.
Legal The labour laws highly affected in America so in the case of Accor
hotel group also affected because of it. So hotel has to continue by the
rules for avoid fines and getting into legal disputes. There are
following the rules which can follow by the hotel like Common law
system, right to privacy, employment, work place and safety and
security.
Analyse the market competitiveness (Value chain Analysis)
Inbound Logistics – It can present to highly sophisticated system that ensure about the
fast operations in 572 hotels and resorts across the countries. The hotel group provided hotel
chain management and inbound logistic in order to contact with customer directly and handle
their all distribution channels (Ellis and Berry, 2013) .
Operations – The operations of a hotel operates at world wide level which can divided
into different segments such as management and franchise segment, ownership segment ans time
share segment.
Outbound Logistics – It is mainly related to finished goods which can deliver to
customer at the end stage. Accor outbound logistics mainly related to competitive advantage
which is relate to highly standards and transportation services from moving out of hotel and
other places.
Marketing sales and services – Brands with in the hotel industry are aimed at several
customer segments and 2009 saw various companies to launch new brands. To target to X
customers in 2009 international hotels are opened a new brands as well as they are accepting to
old generations. On the basis of recreating they are redesigning graphic identities ans reinventing
products for the campaigns in the particular local market around the world.
Technology development - There is considering all advance technology which can adopt
by hotel to improve their services and fulfil the demand of customers.
Marketing Analysis ( Mix 7P's)
Particulars Details
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Product Accor hotel is a multinational company and they have four thousand three
hundred hotels according to their portfolio in twenty brands. There are
including some luxurious brands like Grand Mercure, Pullman, Angsana,
Sebel, Sofitel, Rixos, Banayan tree and the economy. At the level of mid
scale consist of Ibis budget, Ibis styles, Mama shelter, Mercure and
Notovel.
Place The network of a hotel has spread about to five contingent and one
hundred countries. The headquarter of a company located in Paris in
France and its popular destination are Lisbon, Hong kong, Hamburg,
London, Paris, Rio de janerio, new york city and singapore.
Price On the basis of financial year 2017, Revenue and net income of Accor
hotels has identified at Euro 1.93 billion and Euro 481 million respectively
(Davis, 2014)
Promotion The brand of the hotel has been recognised as popular on social media and
they are launched their own official website in order to fast, easy
transaction. For maintain the position of a hotel there is required to set up
different marketing plan.
People It is defined as a factor regarding to service which is inseparable from the
person providing it. A hotel can know by their food as well as their staff.
The branches of the hotel establish at many places So there are working
about 350,000 people in the hotel. There are several department where
different types peoples are working.
Process The particular process has been exposure through purchasing. As per the
prime segment there is contact through website, network and other
distribution channel.
Physical evidence Before a service is experienced it has to be delivered and in the context of
the company for reduce the uncertainty physical evidence can work as
case study. It can used by hotel to know the risk in particular service and
should be confirm.
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Brand Value
The brand value of the Accor hotel has been arisen last few years. The hotel group can
focus on the their products and services and expand their business at world wide. It is one of the
top most brand in hotel of US which is quite high in the present market. As per the report it has
been analysed that company has experienced from 51 years. The brand value of the hotel near
about Euro 550 million. There are considering values of the hotel such as sustainable
performance which is creating value as soon as possible for long time perspectives. Spirit of
conquest where are guest cosmopolitan, innovation and respect (Bryde, Broquetas and Volm,
2013) .
Human Resource Management
Objective
The key objective of the hotel to extended their business on world wide level for
accomplish leadership in the international market. For maintain image in market hotel has been
followed all rules and regulation. The hotel is making efforts in the context to their products and
services of hotel for their values are related to them and introduce different services.
Function
Accor hotel has been operated many operation in Paris and US regarding to their growth
policies. The operations of a hotel such as purchasing, construction & maintenance, distribution
& hotel website and technological support. Their different operations done by hotel together as
an incorporated advancement with mutual objective and it can help to attain organization's goals
and objectives.
Corporate and regulatory affairs
It is part of social responsibly for Accor in 2010 because they can focused on their four
commitment are culture, health, local and heritage, humanitarian. The corporate and regulatory
affairs can affect to business in direct and indirect way. There are considered main three
regulatory affairs that can managing all regulations as per the need and they are also promoted to
corporate social responsibility (Rahimi, Møller and Hvam, 2016) ..
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HR Strategy
The Accor hotel part of hospitality industry where has been different functional areas
which can work for hotel development. Human resource management plays an essential role in
order to predict demand regrading to employees as well as reduce to their turn over, labour cost.
They are applying effective strategy in order to improve employees productivity, improving
goods and services of their products to fulfil the objective of HRM function. It is important
department of a hotel which can manage and control all activities such as succession plan,
compliance with labour and promotion policies.
Recommendation for next 2-5 years
The hotel one of the top most hotel in hospitality industry which can face a lot of
competition. In the context of the hotel there is need to maintain brand value and their effective
position. There is need to hotel can improve their technology base for easily contact with
customers regarding to services. It can help to beat their rival company and apply all advance
technology in order to attract more customers and supplies their products in effective way. In
present time mostly companies has used Artificial intelligence to provide room service and hotel
must take initiative decision regarding to health issues (Ferguson, Makarem and Jones, 2016).
The advance technology show impact upon hotels reliability and supplies product to consumer in
effective way. They can provide healthy food and other things which is healthy for customer.
Besides, the hotel must conduct CSR programs in order to build its brand value and provide
success for long time period.
CONCLUSION
As per the above discussion it has been analysed that different number of factors has been
affected to Accor hotel. On the basis of analysis there are recognised different functional areas
that can affect to Hotel policies and procedures regarding to their products and services. In the
particular report bring out PESTLE analysis in subject to know positioning of hotel in external
environment. Apart from there are analysed competitiveness of Accor hotel. Besides, a number
of recommendations have been provided regarding to future improvements.
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REFERENCES
Books and Journals
Cho, Y. and Brown, C., 2013. Project-based learning in education: Integrating business needs
and student learning. European Journal of Training and Development. 37(8). pp.744-
765.
Too, E. G. and Weaver, P., 2014. The management of project management: A conceptual
framework for project governance. International Journal of Project Management. 32(8).
pp.1382-1394.
Martinsuo, M., 2013. Project portfolio management in practice and in context. International
Journal of Project Management. 31(6). pp.794-803.
Ellis, K. and Berry, D. M., 2013. Quantifying the impact of requirements definition and
management process maturity on project outcome in large business application
development. Requirements Engineering. 18(3). pp.223-249.
Davis, K., 2014. Different stakeholder groups and their perceptions of project success.
International journal of project management. 32(2). pp.189-201.
Bryde, D., Broquetas, M. and Volm, J. M., 2013. The project benefits of building information
modelling (BIM). International journal of project management. 31(7). pp.971-980.
Rahimi, F., Møller, C. and Hvam, L., 2016. Business process management and IT management:
The missing integration. International Journal of Information Management. 36(1).
pp.142-154.
Ferguson, J. L., Makarem, S. C. and Jones, R. E., 2016. Using a class blog for student
experiential learning reflection in business courses. Journal of Education for Business.
91(1). pp.1-10.
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