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Accor in Asia

Author: Schütte, Hellmut ; Jurgens, MichèleINSEAD Area: Asian Business and Comparative ManagementPublisher: Fontainebleau : INSEAD, 1997. ; INSEAD Euro-Asia Centre (EAC) 1997.Language: EnglishDescription: 16 p.Type of document: INSEAD CaseAbstract: As the world's largest hotel group, Accor has been late entering Asia. In 1987 it finally pushes ahead with an aggressive expansion strategy using its brands Novotel, Mercure and Ibis. However, lack of capital and arguments between HQ in France and the legally independent regional center in Sydney in 1996 raise questions as to whether the rapid development can continuePedagogical Objectives: The case discusses the strategic and organizational issues facing a latecomer in the hotel/leisure industry in Asia. It focuses on the question of how much autonomy should be transferred to the region, and how much standardization is required in an industry which increasingly operates with global "brands", but faces different service requirements in different parts of the world.
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The case discusses the strategic and organizational issues facing a latecomer in the hotel/leisure industry in Asia. It focuses on the question of how much autonomy should be transferred to the region, and how much standardization is required in an industry which increasingly operates with global "brands", but faces different service requirements in different parts of the world.

As the world's largest hotel group, Accor has been late entering Asia. In 1987 it finally pushes ahead with an aggressive expansion strategy using its brands Novotel, Mercure and Ibis. However, lack of capital and arguments between HQ in France and the legally independent regional center in Sydney in 1996 raise questions as to whether the rapid development can continue

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