Case Analysis Accor 2007

Introduction

The current paper presents the structure, strategy and values according to which Accor has been based upon and tries to find answers to one challenging question about the acquisition of Motel 6: where should Motel 6 fit into Accor's organization structure?

Operating in nearly 100 countries, Accor is the European leader in hotels and global leader in corporate services. The Paris based company, one of the world's largest conglomerates, consists of hotels, restaurants, travel agencies, car rental companies, and restaurant voucher firms. Since its foundation in 1967, Accor has grown nearly twenty percent annually. The success of the company has been due to the vision of its co-founders, Paul Dubrule and Gйrard Pйlisson.

Back in he 1960's the travel industry in France was growing and there was a clear need for an increase in lodging facilities. While most of the developments in the industry were concentrated only in major urban areas such as Paris, Paul Dubrule decided to do something different.

Noting the success of American lodging properties that were located in suburban areas and along major highways, Dubrule and Pйlisson, who were both working in the computer business and living in the United States at that time, opened their first American-style Novotel hotel outside of Lille in northern France. The success of this 60-room hotel allowed them to continue and exploit the European highway marketplace, expanding to airports and popular holiday sites at seaside and in the mountains. This was only the beginning of what would become one of the largest hotel/hospitality companies in the world - Accor group has at present over 3,800 hotels and 475,000 rooms in 90 countries and gathers the following brands Sofitel, Novotel, Mercure, Suitehotel, Ibis, Etap Hotel and Formule 1.

It was in July 1990 that Accor purchased the American motel chain, Motel 6. Successful integration of the new acquisition became a challenging issue for Accor.

The Accor Structure

The operational structure at Accor is built on a decentralized management model. The Board of Directors, based in Paris, defines the company Strategy and ensures that it is implemented through its three regional offices: Europe, Middle East Africa & Asia, and Rest of the world. The Board of Directors decides:

* The corporate strategy

* The recruitment of the Regional Directors and the General Managers of each hotel

* The major financial decisions of the group (mergers, acquisition, renovation)

Each Regional Director is responsible for the implantation of new hotel and from project phase to opening. Each General Manager is operating independently as a company with international standards and a local taste.

The company manages its worldwide operations as a decentralized portfolio of national companies. The responsibilities and resources are decentralized while the finance and strategy are centralized.

Dubrule and Pйlisson built an organization of so-called "variable geometry", free of highly defined organization charts. They believed that organizations must adapt to their people and be able to build the positions around people instead of filling the positions with candidates.

The Accor Strategy

There are three core pillars that compose the Accor strategy:

Consolidating market share and accelerating expansion

* geographically balanced business portfolio

* variety of hotel financing and operating structure (marketing, booking system, expert skills)

Attracting and retaining customers

* targeted approach to sales and marketing

* partnerships: a strategic sales priority

Developing the human capital

* open door policy introduced by the two founders - enables employees to express themselves without their manager present, if they so desire. An investigation is conducted to determine the facts and rapidly introduce corrective measures if necessary.

* recognizing employees achievements system

* participatory innovation - encourages employees to provide suggestions

* social dialogue accepted and encouraged

The Accor strategy to achieve a high level of employee motivation, commitment and performance is defined as an "employee-centered management", which has a huge weight in the success of the company.

The Accor's Culture and Values

The culture of Accor is one that values employees, stimulating initiative and corporate spirit. It rewards results and good performance. It is attentive to quality and teamwork and has always favored training and employee's self-expression.

Its mission statement - " Succeeding together" - .has allowed Accor to highlight 5 fundamental values that find concrete expression in the everyday work:

* Trust is the foundation of Accor's management - explain, listen, inform clearly, recognize the role each employee plays in the success of the Group, etc

* Performance is the key to Accor's continued success. Employees are eager to do their job well, try to improve, seek training etc.

* The