Case Study Of Accor SA

2) The higher ratio of Debt to Total Equity may result to the lower of the debt credit rating. The lower of the credit rating will result to increase of the interest rate which will cost more to the company.

As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business

Since its foundation in 1927 Marriott Corporation grew into one of the leading lodging and food services in the US. With three major business lines: lodging, contract services and related business, Marriott has the intention to remain a premier growth company. To achieve this goal the corporation’s strategy is to develop aggressively appropriate opportunities within their business lines. Marriott would like to be the preferred employer, the preferred provider and the most profitable company in each of the operating areas. The financial strategy includes four key elements:

When cash flow is an issue, consider the following strategies for bringing in additional revenue and trimming operating costs:

Also, according to its leverage ratios, the company’s debts are not only very high, but are also increasing. Its decreasing TIE ratio indicates that its capability to pay interests is decreasing. The company’s efficiency ratios indicate that despite the fact that its fixed assets are increasingly being utilized to generate sales during the years 1990-1991 as indicated by its increasing fixed asset turnover ratio, the decreasing total assets turnover indicate that overall the company’s total assets are not efficiently being put to use. Thus, as a whole its asset management is becoming less efficient. Last but not the least, based on its profitability ratios, the company’s ability to make profit is decreasing.

Accor – This is a private French Company and of the largest employers in the lodging industry. It employs 168,600 employees working in 4,000 properties in 90 countries. It is ranked second with the revenues of $9.03 billion in 2005. It is well known for its upscale brands, Len and Sofitel. Accor also operates and owns stakes in several hospitality and food services.

The debt ratio of the company is expected to follow the following trend with dip in some years due to more current liabilities and leverage of the company.

The interworking’s of a large corporation such as the Intercontinental Hotel Group (IHG) requires careful examination to ensure the company can obtain and sustain success within the industry. Throughout the internal environment analysis, the report will provide insight one the resources, capabilities, core competencies, and competitive advantages being deployed by IHG. According to the 2015 IHG annual report, “IHG brands primarily use a franchise based business model, where the hotel group manages hotels on behalf of the hotel owners” (InterContinental Hotels Group, 2016, p.12). In addition, the business strategy allows for an asset light strategy, where IHG can help the hotel owners generate higher returns on their invested capital.

The Hotel Industry is characterized by large capital outlays, and elevated proportion of fixed expenses. The competition mainly entails costs and differentiation of products and services. Income from any hotel project can be upheld through room sales, food and beverage, exhibitions and conventions, entertainments, shopping complex, car parking service, and Neon-Signage.

Accor is a French hotel group which is present in 92 countries with more than 3,600 hotels and 470,000 rooms. Accor is the world's leading hotel operator and market leader in Europe.

Despite this the company is profitable and can cover all its obligations, stock price of company is increase by 28.95%, Dividend per share by 15,62% compared to 2012. Decrease in profitability mainly caused by a negative balance

Debt Equity ratio reflects the relative claim of creditors and shareholders against the assets of the firm. As Long term borrowings is more, the company has more Debt to Equity ratio in 2014-2016. The company has to take necessary actions to maintain company in good position.

Competitiveness: The First most purpose behind having change in the way the business is run can be the development of new competitors in the business sector. The development of new competitors in the business sector can prompt change in the costs, change in the methods for communicating, and so on. Advancement of New Competitor is given extraordinary significance and loads of changes are made in admiration to it in light of the fact that it straightforwardly influences the clients and visitors for any firm and none of the firm wishes to free his client or guests. So for the most part new competitors in the business sector are the first purpose behind change in any organization. As a CEO of the new hotel I have to start change to meet to standard of the industry likewise looking for uniqueness from adversaries to make my hotel remarkable from others.

Starwood Hotels and Resorts are one of the world 's largest hotel and leisure companies. They conduct their hotel and leisure business both directly and through subsidiaries. The writer will discuss the main line of business of the company, countries in which the company operates, competition, target market, product strategy, distribution strategy, communication strategy, pricing strategy, differences in implementation: from one country to another.

Accor was founded in 1967 by Paul Debrule and Gerard Pelisson. Accor is a European leader in hotels and tourism, global leader in corporate services. It have almost 4000 hotels from economy to upscale which are operates in nearly 100 countries with 150.000 employees. Accor hospitality is planning to double the pace of hotel development in coming years by having a commitment to make 200.000 new rooms between 2006 until 2010.