Accor Hotels: A Strategic Plan 22

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STRATEGIC PLAN
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Department:
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Date:
Table of Contents

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STRATEGIC PLAN......................................................................................................... 1
Name:........................................................................................................................... 1
Table of Contents............................................................................................................. 2
1.0 Introduction............................................................................................................... 3
1.1 About Accor Hotels.................................................................................................. 3
1.2 Mantra Group’s Vision, Mission and Core Values............................................................4
1.2.1 Vision............................................................................................................. 4
1.2.2 Mission............................................................................................................ 4
1.2.3 Core Values...................................................................................................... 4
2.0 Situational Analysis..................................................................................................... 4
2.1 General Environmental Analysis.................................................................................. 4
2.2 Industry Analysis..................................................................................................... 7
2.2.1 Ease of entry..................................................................................................... 7
2.2.2 Power of suppliers.............................................................................................. 8
2.2.3 Power of Buyers................................................................................................. 8
2.2.4 Availability of Substitutes..................................................................................... 8
2.2.5 Competitors...................................................................................................... 8
2.3 Competitor Analysis................................................................................................. 9
2.3.1 Intercontinental Hotels Group................................................................................9
2.3.2 Best Western Hotel........................................................................................... 11
2.4 Accor Hotels Internal analysis................................................................................... 12
2.4.1 Resources, capabilities and strengths......................................................................12
2.4.2 Weaknesses.................................................................................................... 12
2.5 Comparison between Accor Hotels and Best Western Hotels.............................................13
3.0 Company’s SWOT Analysis........................................................................................ 14
4.0 Strategic Formulation................................................................................................. 17
5.0 Implementation of the strategic Alternatives.....................................................................18
5.1 Implementation Issues............................................................................................. 18
5.2 Action Plan.......................................................................................................... 19
6.0 Conclusion.............................................................................................................. 21
7.0 References.............................................................................................................. 22

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1.0 Introduction
The tourism and hospitality industry is growing tremendously due to global changes in
the business environment (Walker and Walker 2016, pp. 39). The sector is attracting more key
players who are joining the growing industry and serve the rising number of clients. As the
industry grows, the competition is also becoming stiffer due to the rise in number of businesses
offering the same services within the sector (Vanhove 2017, pp. 73). Hence, a company within
the sector needs to analyze the environment and come up with strategies that will help them gain
a competitive advantage (Stead and Stead 2014, pp. 107).
Therefore, the main objective of this report is to explore the strategic management plan
by Accor Hotels to help the company initiate and implement a strategic plan that will give them a
competitive edge in the market. Moreover, the report will analyze the whole global tourism and
hospitality industry and be able to see what Accor Hotels can do differently in order to counter
the competitive nature of the market flooded with companies offering same tourism and
hospitality services (Rothaermel 2015, pp. 95).
1.1 About Accor Hotels
Accor is arguably the world’s top leading tourism and hospitality company operating a
substantial number of hotels globally. It operates 470,000 rooms in more than 3,600 hotels in 92
countries across the globe. The company offers an all-inclusive collection of luxurious options
for its clients worldwide. Accor Group of Hotels employs more than 170,000 employees to work
for its member hotels located in various parts of the world. Thus, Accor Hotels builds its power
and influence on the experience, reputation and proficiency the company has been able to create
having been serving its customers and partners for the past 45 years (Accor Hotels 2018).

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Recently, the company acquired Mantra Group in the process of expanding their market share in
the hospitality industry.
1.2 Mantra Group’s Vision, Mission and Core Values
1.2.1 Vision
To be world’s most innovative, best performing and most valued Hotel Company.
1.2.2 Mission
To streamline and manage the existing asset portfolio through disposals and acquisitions
1.2.3 Core Values
Respect: We’re striving to pay attention on people in the outside world by allowing the blending
of cultures. We find pride in our differences and we view every human being a value addition to
us.
Trust: Our aim is to value and support everybody through trust.
Innovation: We encourage everybody to be innovative in order to offer consumers a different
experience in our services.
Inclusivity and diversity: While operating in many countries, we allow inclusivity and diversity
of our people.

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2.0 Situational Analysis
2.1 General Environmental Analysis
The global tourism and hospitality industry is evolving due to changes in the business
environment (Gustavo 2013, pp. 13). The changing trends in the hospitality sector can only be
understood through the analysis of some developments as discussed below:
Technological trends: As a result of global technological advancement and use of
technology in carrying out daily business operations, there has been increased demand in the use
of technology aided systems by most companies within the hospitality industry. For instance,
many companies are relying on technology to run their operations like online booking of rooms
and other services. Therefore, technology has highly impacted on the tourism and hospitality
industry in the world since most companies within the sector are relying on the technology aided
systems to run and maintain their daily activities.
Demographic trends: Demographics deals with people. With the rapid population growth
in the world, there is also overall changes in the people’s population size, density, age and
culture. Most of the population is aging and thus the companies within the hospitality industry
should strive to ensure that they understand the needs of the dynamic population. That is, the
company should understand how to handle the ageing tourists as well as young tourists because
their needs are differing.
Economic trends: The global economic conditions of a country determines the purchasing
power of consumers. Accor Hotels operates in countries more than 92 countries in the world.
Most of these countries are enjoying highly growing economies meaning that their people have
high spending patterns which makes the tourism and hospitality sector a lucrative industry to
invest in (Dixon, Scura, Carpenter and Sherman 2013, pp. 115).

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Political/legal trends: Some of the legal regulations put across by various governments to
help in regulation of the way companies operates within their jurisdictions. Thus, a company like
Accor Hotels has been highly affected by such regulations that regulate the business within the
countries that they have their hotels. For the example, in most countries, there are laws that
control the foreign investment policy that should be considered before investing in such
countries. Moreover, in some countries there is a fair policy that controls the nature of
competition for companies operating within those countries. That offers equal opportunities to
grow making the competition to become stiffer within the sector.
Sociocultural trends: The socio-cultural factors basically affect the values, preferences
and behavior of people. Thus, it is important for the company which is attracting tourists from
various cultural backgrounds to understand their values and beliefs. Thus, the cultural aspect of
the clients should be taken care of before developing a plan so as to cater for the diverse culture
of clients within the sector.
Global trends: Due to globalization, there are several trends affecting global changes and
thus impacting directly on the hospitality sector. Some of these global changes include human
resource management, use of technology in the company’s operations as well international
market. That offers a company an opportunity to operate in more than one country and use
technology to reach more clients across the globe. The global trends have also forced companies
to invest more on marketing so that they can make their services known.
Physical trends: Physical environment is important to any company within the hospitality
industry not only in Australia but also across the world. The physical trends include the
environmental factors that affect the operations of a company like Accor hotels since tourists will
be compelled to visit a country with a conducive and favorable physical environment. Thus, with