Best in France Case Study Monday, June 12 th , 2006

1. Best in France Case Study Monday, June 12th, 2006 Presented by: Jenna Greenspan Sanjiv Kalevar Erin Maynes Natasha Myles

2. 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 Executive Overview

3. 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.

4. 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

5. 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

6. The “Best” in France • The most popular and most visited tourist destination in the world (2004) • Large availability in the labour market

7. The Constraints in France • A differing culture • Pervasive and restricting labour laws • Hiring and Firing • Holiday Time • Salaries • High pay-roll and income taxes

8. Marriott Policies • Recruitment • Allowance for Holiday Time • Compensation • Training, Development and Job Design • Performance Appraisals

9. Marriott Policies: Recruitment • Based on personality and fit with Marriott culture • Language skills • Hiring within country of business

10. 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

11. Marriott Policies: Compensation • Discounts on hotels and food • Stock purchase plan • Profit sharing • Employee credit union • Discounted child care program

12. 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

13. Marriott Policies:Performance Appraisals • Six weeks of training • Every six months • Goal-oriented • K – Outstanding, P – Solid Performer, U - Underperforming

14. Marriott Costs • Labour: Very significant operating cost • Strategies to deal with this? • Taxes

15. 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

16. 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

17. 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

18. 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