Accor - Case Study Example

Accor Table of Contents Question 3 Question 2 3 Question 3 4 Work Cited 6 Question Accor has been one of the branded and chief hospitality groupsof hotels of Northern France with more than 6000 restaurants and 1900 hotels. Although Accor was a giant in lodging, restaurants and travel sector among others, so as to enhance the business and the revenue, the founders decided to undertake the strategy of acquisition. In order to make a stable position in the markets of the United States of America, Accor decided to acquire Motel 6.

Motel 6 was one of the largest and reputed chains of budget hotels performing its operations in North America. Thus, the prime idea behind this acquisition was to improve both the business and the financial position of Accor among others. Therefore, the acquisition, proved to be a boon for Accor as it enhanced the corporate image as well as the total revenue of its North American operations from 3% to 16% (Rosenzweig, P. M. & Raillard, B., “Accor (A)”). Hence, it can be evidently depicted that the strategy of acquisition improved the market share and sustainability of Accor in the competitive market.

Question 2 As Motel 6 was one of the big budgeted and reputed hotel chains of North America, so the acquisition process resulted in a challenging situation for Accor. Besides, the acquisition of Motel 6 led to the change of the organizational structure of Accor. Hence, in order to retain both operations and the CEO of Motel 6, the concept of individual operation with identical ownership was followed by the founders of Accor. Apart from this, the idea of decentralization of the responsibilities among varied employees was also implemented so as to maintain the successful operation of organizations.

This initiative was applied in order to enhance the brand image and the stability of the organization. Thus, Motel 6 would act as a separate identity with distinct brand image thereby enhancing the market share and revenue of both itself and the parent organization. Hence, it can be affirmed that the change in organizational structure was implemented so as to maintain proper functioning and operation of Motel 6. Hence, the above discussed strategy proved to be quite beneficial for Accor (Rosenzweig, P. M. & Raillard, B.

, “Accor (A)”). Question 3 Accor was one of the renowned and legendary brands in hotel industry. After the acquisition of Motel 6, the organizational structure of Accor was changed. In order to maintain this notion, the other innovative idea came into existence i.e. introduction of a new company named ‘Novetal’. With this brand name many new hotels were acquired. Moreover, in order to fit Motel 6 in the organizational structure of Accor, another vital strategy was adopted i. e. diversification towards luxury hotels along with individual ownership and operation.

This plan proved successful and efficient for Accor. Thus, it helped to enhance the corporate image of Accor along with customer loyalty among others in the market. Moreover, the total revenue of the parent organization also improved. Apart from this, the concept of decentralization was also introduced among the organizational hierarchy. This facilitated in the distribution of the responsibilities among the employees so as to accomplish the task in an efficient manner. This is highly essential for the hospitality industry as it might enhance the relationships of the customers thereby attracting new ones.

Along with decentralization, consistency and cooperation among the co-members were also necessary so as to continue the proper functioning and operation of the organization. Hence, it can be depicted that it was rather a significant strategy which proved beneficial for Accor while maintaining the operations of Motel 6. Integration of Accor was performed appropriately and hence there was no requirement for apparent change in the process followed. The strategy helped to enhance the productivity, customer reliability and interest of the shareholders thereby improving the profitability of Accor.

Work Cited Rosenzweig, Phillip M. & Raillard, Benoit. Accor (A). Harvard Business School, 1992.