Accor

Service Operations Management

Formal Report

Accor Group

SUMMARY

The group Accor, present in 140 countries with 168 000 assistants, is European leader and world-wide group in the universe of the trip, tourism and services with two big international trades:

- The hotel business, with Sofitel, Novotel, Mercury, Suitehotel, Ibis, Etap Hotel, Formula 1, Motel 6 and Red Roof Inns, more than 4 000 hotels (more than 470 000 rooms) in 92 countries, the casinos, the trip agencies and the restoration (with

Lenфtre and of big others signs);

- The services to the businesses and to the public groups: 21 millions of persons in 35 countries, using an extensive range of benefits (tickets and cards restaurant and nutrition, services and assistance to the person, motivation, employees loyalty programmes), of which Accor assures the conception and the management.

The objective of this report is to present an analysis of the functions of the service operations management of the group ACCOR.

This report allows putting forward the fact that the business ACCOR put on a multilateral management, at once global and local.

Global Management notably for the integration of new structures but also for the management of the sustainable development within the group and a local management to take into account the expectations of the employees and assistants and to offer them a panoply of services aiming to improve their satisfaction and their performances within the business.

The recommendations that can be been a continuation of this report are that the group ACCOR must improve his picture while privileging the global management and a better communication.

CONTENTS

TERMS OF REFERENCE 5

I. Planning and processes 6

1. Development strategy 6

2. Management of the risks 6

3. Integration culture 7

II. Quality 9

1. Quality Management 9

2. Sustainable development management 9

III. Resource Management 11

1. Human resources Marketing 11

2. Local Management 11

3. Services to the employees and to the assistants 12

Conclusion 13

Recommendations 14

APPENDIX 1 15

APPENDIX 2 17

APPENDIX 3 19

TERMS OF REFERENCE

The question to which replies this report is the following one:

With reference to the theory of service operations management, analyse the functions of service operations management in a service organisation of your choice.

The sources for this report following:

* Liger, P. (2005) Devenir un employeur attractif avec le marketing RH http://management.journaldunet.com/0501/050166tribune_accor.shtml (Access date: 09/11/2006)

* Haas, C. (1994) L'expйrience du groupe ACCOR http://www.revue-espaces.com/tmp_pdf/7949article-1757.pdf (Access date: 09/11/2006)

* Geismar, R. (2003) Accor: une stratйgie de croissance durable et rentable http://www.melchior.fr/ (Access date: 09/11/2006)

* Accor Communication and External Relations Department, (2006) Annual report 2005 http://www.accor.com (Access date: 09/11/2006)

* http://www.academie-accorservices.com/fr, (Access date: 09/11/2006)

I. Planning and processes

1. Development strategy

The hotel sector is the principal income Accor's sources, since it represents 68% total sales of the first quarter 2001. Accor exploits about 3 500 hotels (390 000 rooms) in 90 countries (Appendix 1 p.4).

The Accor wallet balances the risks since it operates on all the market segments:

- Economical: Ibis, Etap, Formule1, Motel 6 and Red Roof Inns

- Luxury: chain of hotels four stars Sofitel

- Business and leisure: Mercure, Novotel and Coralia

The distribution of the hotels Accor equally geographically is balanced. To at the end of December 2000, 49% of the wallet of rooms of the group were situated in Europe (of which 29% in France) and 32% in North America. That reflects the structure of the world-wide sector of housing: according to the estimations, Europe and the United States represent respectively 50% and 30% world-wide market.

The development of the hotel capacity of Accor carried out itself thanks to a balance between organic growth and external growth.

The recourse to the external growth principally was used to penetrate again markets (former: Red Roof Inns and Motel 6 to the United States) or allow a quick development on the markets where the organic growth was difficult to implement (Postiljon, Good Morning Hotels, Frantour).

2. Management of the risks

Under its different brands, Accor covers all the segments of the market, all while remaining centred on the category hotels economical (58%). In comparison with the superior segments, this segment offers a superior resistance to the economical