Transcript Marriott - HEC Paris

Best in France Case Study
Monday, June 12th, 2006
Presented by: Jenna Greenspan
Sanjiv Kalevar
Erin Maynes
Natasha Myles
Executive Overview
• The Company and
its Customers
• Core Values
• The “Best” in
France
• Constraints in
France
• Marriott’s Policies
and its Adaptations
to France
• The Accor Takeover
• The War in Iraq
• Conclusion
Marriott International, Inc.
• 2005: 2741 Marriott-owned hotels in 67
countries
• Rev.: US $11, 550 M; Net Income: US $669 M
• 345 hotels outside the U.S.
• 18 Brand Names
• Bulgari, Ritz-Carlton, Renaissance, Courtyard, etc.
Core Values
• Family Driven
– Mr. Marriott: still very active in the company
• Care for the staff
– Happy staff create satisfied customers
• Equality and Diversity
– Formal Supplier Diversity Program:
• 2005: US $347 M to minority- and women-owned
US businesses
• Target Market: American tourists
Marriott Presence in France
• France: Nine hotels
• Seven in or around Paris + One Euro Disneyland +
One Porte de Monaco (the 7th opens July 31)
• At the moment, there are 2000 Marriott
rooms in Paris; will have 4000-5000 by
2010
The “Best” in France
• The most popular and most visited tourist
destination in the world (2004)
• Large availability in the labour market
The Constraints in France
• A differing culture
• Pervasive and restricting labour laws
– Hiring and Firing
– Holiday Time
– Salaries
• High pay-roll and income taxes
Marriott Policies
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Recruitment
Allowance for Holiday Time
Compensation
Training, Development and Job Design
Performance Appraisals
Marriott Policies:
Recruitment
• Based on personality and fit with Marriott
culture
• Language skills
• Hiring within country of business
Marriott Policies:
Holiday Time
• Many holidays in France; given hotels
must be open, most staff cannot take
these holidays
• Solution: Bank holiday time
• Use during lower seasons – never denied
Marriott Policies:
Compensation
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Discounts on hotels and food
Stock purchase plan
Profit sharing
Employee credit union
Discounted child care program
Marriott Policies:
Training, Development, Job Design
• Training in all areas prior to being hired;
Six week program in all areas
• Training upon hiring – understand Marriott
values and expectations
• Development to rise in the company
Marriott Policies:
Performance Appraisals
•
•
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Six weeks of training
Every six months
Goal-oriented
K – Outstanding, P – Solid Performer, U Underperforming
Marriott Costs
• Labour: Very significant operating cost
• Strategies to deal with this?
• Taxes
Current Issues:
Takeover of Accor Hotel in Paris
(March 2006)
• Over two years of preparation, research
& planning
• Complete employee retention
• US fire & security standards: 35M Euro in
renovations
• Management Training
• Re-branding January 2007
Current Issues: War in Iraq
• Image of France also based on political
and economic decisions
• Popularity of France dropped with their
lack of support on the War in Iraq
• Tourism dropped 27% - mostly Americans
(Marriott’s target market)
• Tainted image of the country affecting its
appeal
Key Takeaways
• Benefits: Can’t afford not to be here
• Difficulties:
– Cultural differences; mitigated though
policies and practices
– Costs; managed by revenues
– Bureaucracy; resolved by planning
Sources
• Personal Interviews
– Mr. David Ippersiel, Area Director of Sales and
Marketing for Western Europe
– Mr. Queisch, General Manager Marriott Rive-Gauche
• Written Media
– BBC News, “French Jobless Rate on the Rise” (April
29, 2005)
– Wikipedia, “Tourism in France”
– World Net Daily, “Angry American Emails Invade
Normandy” (July 2, 2003)
– Marriott Corporation, Website