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Key Topics
Requirement
Assignment based on strategic facilities management
Accor Annual Report 2013
Solution
Introduction
The paper is focused on critiquing Accor’s Annual Report 2013. The assessment has considered four aspects, namely, environmental management of the company, implications for a facilities manager and the main issues relate to space planning in the types of hotel that Accor manages, adequacy of technological platforms for the construction of new hotels, and the expenditure on renovation and maintenance, and on developments of hotels.
Accor is into hospitality sector and operates hotel chains around the world. The company was founded in the year 1967 and is current headquartered in Paris, France. The company operates around 3,600 hotels that cover different hotel types such as luxury and upscale, midscale, and economy (Accor, 2013). There are 431 luxuries, upscale and midscale hotels and 1,109 hotels are of economy level. The rest of the hotels from 3,600 are franchisees given to various interested parties around the world.
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Environmental Management of Accor
This section discusses the environmental management of Accor in light of procurement, energy management, transportation, and waste management (Accor, 2013). The procumbent refers to the process of acquiring supplies. The energy management refers to the effectively managing the energy consumption to ensure limited carbon footprint. The transportation refers to the utilization of various modes of transports to supply or receive goods. The waste management refers to the effective management of wastes generated in daily business activities.
Procurement
As per the procurement strategy of Accor is concerned, it can be stated that the company has considered wider horizon in ensuring that the procurement is done in sustainable manner. If the Annual Report 2013 is analysed, then one can observe consideration of various procurement aspects such as cost reduction, regulatory compliance, sustainable development, quality and innovation. The company has also instituted individuals to monitor the CSR orientation of the procurement activities. Moreover, the company prefers to work with the suppliers who are also inclined towards the CSR initiatives. This can be stated as the major step and reflects the inclination of the company towards sustainable methods rather than profit minded growth (Walker and Brammer, 2009). The company defined various initiatives that state its positive focus such as ensuring compliance with the procurement criteria defined in the company’s charter, inclusion of suppliers into company’s supplier assessment program, and periodic audit for sustainability. Moreover, the company focuses on procuring healthy product procurements form the local sources. All these elements state that the management of procurement within Accor is appreciable.
Energy Management
As per the company’s annual report, it has stayed within the industry average of energy consumption. The data sets shown in the report compares the various forms of energy usage within the company. The company is trying to utilize the renewable sources for its hotel chains which will be an appreciable improvement. The 10% reduction in the energy consumption at each hotel around the world has been the goal of the company (Accor, 2013). It also ensures that the franchisees are given resources and methods to employ within the hotel to reduce the energy consumption.
There are two aspects that are focused by the company to increase the efficiency, namely, managing the water and energy consumption, and effective management of the hotel equipment. The hotel equipment consume if used for longer period of time, starts to consume more energy with lesser output. The effort of the company to increase the life of the equipment by periodic maintenance is likely to contribute towards energy management (Shiming and Burnett, 2002). These aspects have been considered from the annual report of the company and it is yet to be seen that where the company lies in the decade ahead in its effort.
Transportation
The company states that it has made effort in promoting pro-environment mode of transportation to its customers. Moreover, some of the Accor hotels provide free bicycle rentals. It also states that 80 hotels have recharging station for guests EVs. The company has not mentioned how it is promoting sustainable transportation methods in its other activities such as product procurement, supplies, and others. Considering the brief statement on transportation and environment concern, it can be inferred that the company has reserved opinion towards this aspect.
The company should have also focused on its huge procurement channel that may be the major contributor to the environment pollution. The reason is that the vehicles used in the channel still uses fossil fuels to operate that contribute to the environment pollution. In this case, the company should have made effort to periodic assessment of suppliers and company’s own vehicle for pollution and efficiency check (Black et al, 2002). The periodic maintenance drives should be held and vehicles with complete life-cycle should be replaced.
Waste Management
As per the report, there are three resources for wastes, namely, inputs, refurbishing and construction waste, and guest waste. The data shows that the most of the waste produced by the company is construction related (68%), and the second major source is on-site energy use (26%). Based on the report regarding company’s waste management, it is clear that the company is trying to make positive effort towards waste management such as preparing for refurbishing and construction that is a major concern (Accor, 2013).
Moreover, the company data shows that 72.5% of the wastes generated are unsorted and non-hazardous and the rest are mixture of other forms or waste such as food, paper and cardboard, glass, and plastic. It has been stated that the hotels are now gradually orienting towards recycling various wastes such as batteries, paper and cardboard, and others. If the statements written in the waste management section are to be believed then it can be stated that the effort is being made towards better waste management methods (Kumar, 2005).
Implications for Facilities Manager and Issues
In this scenario the facilities manager has to think strategically and bring in added value to the management (Shah, 2008). The facilities manager has to think about the general business environment while keeping in consideration of the strategies defined by the management of the hotel. The facilities manager has to assign space considering the long term orientation rather than short term vision. Moreover, the facilities manager (FM) has to focus on performance management, and workforce development. The FM has to focus on the maintenance of the hotels as the provision for disposal has been eliminated.
Technology Platforms Adequacy Assessment and Suggestion
The company can use Industrialized Building System for the construction of hotels. In this method, the various components are made in a controlled environment to make it stronger and long lasting (Hamid et al, 2008). After the development, the component is placed into right position and assembled.
The components can be built at the site or away from there. There are various types of IBS methods used for construction that can be used for hotel construction as per requirement such as pre-cast concrete framing, form work systems, steel framing, and others. The use of this method ensures that there is lesser wastage on the site. Moreover, it helps increase the quality and decrease the cost incurred to construct.
In this method, limited number of unskilled worker is required and thus improves the work quality. The working environment on the site becomes safer and thus the cost for protection mechanisms is reduced. It also increases the speed of the construction and reduces the area covered while constructing (Hamid et al, 2008). Above all, it helps get desired look of the building. One of the examples is Burj-Al-Arab hotel of Dubai which was developed using this construction technology.
Expenditure on Renovation and Maintenance
As per the data given in the Annual Report of Accor, in the year 2012, the company spent €287 million for renovation and maintenance expenditure and €262 million the next year. Also, the company spent €639 million on the development expenditure excluding discontinued operations in the year 2012 and €191 million in the next year.
From here it can be inferred that the company was bullish about the future hospitality market in the year 2012 and therefore, major expenditure is witnessed in renovation and development. Moreover, the company spent €199 million on acquiring lands in 2012 and €177 million in the next year (Accor, 2013).
The similar reduced patter can be observed in buildings, fixtures, equipment and furniture. The only value that is greater than 2012 is expenditure in constructions that were already in progress. In 2012 it was €190 million, whereas in 2013 it was €247 million.
Interesting thing to note here is the expenditure on buildings, fixtures, equipment and fixture that amounts to €4730 in 2012 and €4629 in 2013. The company invested heavily in purchasing furniture in both the year. The investment in the company’s infrastructure in these two years can be taken as positive move by the company. One of the main reasons is the gradual growth in the economy around the world. The economy has nearly moved out of the 2008 turmoil and is looking towards bright future. Moreover, the advancement in technology and heavy use of it in the hospitality sector is the sign that the hotel will witness increased footfall in the days to come.
Conclusion
The overall analysis showed that the company is moving into the right direction with appreciable consideration of environmental aspects. Though the annual report cannot be stated as the truth because most of the time what is observed on the face is different from behind. However, if the report is considered as the proof of actions taken by the company and the future steps it is going to take then the effort of the company towards environmental concerns is appreciable. Moreover, the company made considerable investment in the development and renovation in 2012 and 2013 which shows its positive orientation towards the future market.
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Accor, 2013. A new voyage begins - Annual Report 2013. Accor.
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Black, J.A., Paez, A. and Suthanaya, P.A., 2002. Sustainable urban transportation: performance indicators and some analytical approaches. Journal of urban planning and development, 128(4), pp.184-209.
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Hamid, Z., Kamar, K.A.M., Zain, M., Ghani, K. and Rahim, A.H.A., 2008. Industrialized Building System (IBS) in Malaysia: the current state and R&D initiatives. Malaysia Construction Research Journal, 2(1), pp.1-13.
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Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management, 28(1), pp.36-67.
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Kumar, S., 2005. Resource use and waste management in Vietnam hotel industry. Journal of cleaner production, 13(2), pp.109-116.
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Shah, S., 2008. Sustainable practice for the facilities manager. John Wiley & Sons.
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Shiming, D. and Burnett, J., 2002. Energy use and management in hotels in Hong Kong. International Journal of Hospitality Management, 21(4), pp.371-380.
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Walker, H. and Brammer, S., 2009. Sustainable procurement in the United Kingdom public sector. Supply Chain Management: An International Journal, 14(2), pp.128-137.
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