Accor in Norway

SUMMARY

I. Presentation of the brand

II. Presentation of the country

III. Country risk analysis

IV. Implantation in Norway

V. Conclusion

VI. Bibliography

I. Presentation of the brand

Accor is a French hotel group, who manages, owns, and franchises hotels, resorts, and vacation homes. Accor is the leading hotel group in Europe and this companie is the sixth largest in the world.

Founded in Lille (France) in 1967 by Paul Dubrule and Gérard Pélisson, Accor Hotels has become the European leader (in terms of number of hotels and rooms in the 28 countries of the European Union) and the number 6 worldwide. Its activity is still very concentrated in Europe and the countries near the Mediterranean (nearly three quarters of its revenues) as well as in the economy segment. However, the group is seeking to develop in more dynamic areas such as Asia and profitable segments.

Accor Hotels has a portfolio of 43 brands, which cover all hotel segments:

This sector of activity, which constitutes an expanded field for the group's communication strategy. The group defines its portfolio as "brands that are powerful in their local markets, complementary and legible by the customer" It therefore displays the wilĺ to better communicate with the customer by offering a clearer offer that better corresponds to their expectations. To do this, it relies on the competition and the hotel offer

• Luxury (11%): Sofitel, Raffles, Fairmont

• Top range (11%): Grand mercure, Pullman, Sebel

• Mid-range (44%) : Adagio, Novotel, Mercure

• Economic (34%) : Hôtel F1, Ibis

available today on a global level. As its competitors are present in all ranges of hotel products, especially at the top end of the market, Accor wants to respond to this competition by repositioning its brands in the same ranges. Accor sees itself as much more than a world leader. More than 260,000 experts around the world are determined to reinvent hospitality, no longer as a place or a service, but as a series of connected moments. They put people at the heart of everything they do and are driven by a passion for service and a desire to go the extra mile. They take care of several million customers in their 5,200 locations. This company's ambition is to expand even further into the world

II. Presentation of the country

Norway is a country in Northern Europe, west of the Scandinavian

peninsula. Norway has two dialects of Norwegian, Bokmål and Nynorsk,

as official languages, and the Norwegian krone as currency. It shares

borders with Sweden, Finland, and Russia. Its long Atlantic coastline is

home to many fjords. The country surpassed 5 million inhabitants a few

2

years ago (2012), and population growth has declined a little each year

since (+0.91% in 2016; +0.7% in 2019). Immigration is largely the cause of

the country's increasingly moderate population growth. Norway is mostly

empty, except for the south, which concentrates virtually all the

population.

Norway's economy grew at a breakneck pace following WWII, and it is today one of the world's wealthiest countries, with a well-developed social policy. Natural resources abound in Norway. Oil and natural gas enable the kingdom to live comfortably and to maintain a high standard of living as well as a favorable social policy, making it the envy of many countries. Despite the fact that fishing is a well-established activity, the country's whale killing raises international concerns. Tourism is similarly underdeveloped, despite the grandeur of the terrain. The various fjords that dot the coast are visited by many cruises. Let's not forget that it's also an aurora country...

III. Country risk analysis 3

Economic risk

In 2020, the Norwegian economy slowed and recovered more quickly than the economies of most other European countries. The Norwegian krone reached a 40-year low in March 2020, following a dramatic drop in oil and gas prices. Norway decided in April 2020 to temporarily reduce oil production in order to raise global oil prices. Despite public monetary support and a thorough program of bank loans, the Norwegian government's gross debt has remained unchanged, unlike the rest of Europe. Despite this, the current account surplus is expected to shrink to USD 10.2 billion, down from USD 16.5 billion a year ago, due to a sharp decline in the value of oil and gas exports since 2019. The surplus is expected to recover swiftly in 2021, reaching USD 18.3 billion, assuming higher oil prices.

Politic risk

The Norwegian state is built on a parliamentary democracy system and is a constitutional monarchy. The king

...