ACCOR Group's Expansion Strategy Research Paper

ACCOR Group's Expansion Strategy - Research Paper Example 8,121 + 6.8 EBITDAR 2,321 11.4 EBITDAR margin 28.6% 1.2 Operating profit Before tax 907 24.8 The growth rates for the company in revenues for year 2007 were as per the following: Revenues + 6.5% Expansion + 4.3% Impacts of the currency (decline of dollar against Euro) - 2.7% Disposals - 1.3% Growth rate + 6.8% Analysis Amnt In m 9000 - 8000 -7000 - 6000 - - 5000 - 4000 - 3000 - 2000 - 1000 - Revenue EBITDAR Profit (before tax) Graph of the two financial statements; Revenue, EBITDAR, profit (before tax) Year 2004 Year 2007 11 -10 - 9.0 - 8.0 -7.0 - 6.0 - - % 5.0 - 4.0 - 3.0 - 2.0 - 1.0 - Revenue EBITDAR Profit (before tax) Graph of the two financial statements; Revenue (reported change), EBITDAR (reported change), profit before tax (reported change) Year 2004 Year 2007 i. Before implementation of the new strategies As per the above table, the company's profit before taxation amounted to 592 million which was13.2% for that year. In the same year, the company's consolidated revenues shot up by 4.3% which were the same as moving from 295 million to 7,123 million. Not including...While carrying out the research regarding ACCOR group of companies, importance of selecting the appropriate paradigm is emphasized. This includes the opinions on how to carry out the research as well as the necessary approach of data collection and analysis. The methods used to collect the appropriate data included a quantitative data collection approach: getting the relevant data from the company's management information systems where it has provided its financial reports before the implementation of the strategies and after this period. The collected data is then analyzed using tables and charts in order to draw conclusion on whether the strategies made any changes to the company. There is also analysis of the strategies used by two other major rivals of ACCOR group of companies which are used to corroborate the hypothesis to be deductive. Roy 1995As per the above table, the company's profit before taxation amounted to 592 million which was13.2% for that year. In the same year, the company's consolidated revenues shot up by 4.3% which were the same as moving from 295 million to 7,123 million. Not including the effects of transitions in scope of exchange rates and consolidation, the revenues went up by 4.6% for the same year as well as 5.1% in the fourth section of the year. This indicated the company's demand in the group's activities.

Business strategy Assignment Example | Topics and Well Written Essays - 1000 words

Business strategy - Assignment Example Indian restaurant owners would already have a solid customer base from which to work from, and there is also the possibility of picking up some other ethnicities too. Cheap Indian food could be offered by encouraging Indian to be spoken within the restaurant, thus attracting the target market. c) The video rental firm market segment is not as attractive as it used to be. This is because more and more young people are using other means to watch their favorite movies. This type of business could possibly work if it was attached to some other kind of product, most likely televisions or DVD players. Special promotions could even be used to encourage people to rent a video along with another kind of purchase. 2) I do not agree that the appropriate positioning is obvious once you have identified the right segment. This is because once the right segment has been discovered further research must be done to narrow down the target customer market. This could be done through surveys of focus groups. Also, the market is always evolving and changing, so it is impossible to automatically know where to position a product in the market. 3) An organization’s competitive stance is the segment of the target market that a company chooses to pursue: low-cost supplier, differentiation, or niche marketing. The functional strategy of marketing activity depends on what the competitive stance is. For example, a company that chooses a low-cost strategy must produce its products for as cheaply as possible in order to offer low prices. Also, this company would need to produce far more products than its competitors in order to make any kind of profit. In a well-designed strategy, an organization’s competitive stance and marketing activity can work well together as long as when one changes, the other one changes to reflect that change. 6) Apple has a competitive advantage over its competitors