Premium Essay

Carrefour Case Write-Up

In: Business and Management

Submitted By kittycathu
Words 709
Pages 3
Carrefour S.A. Case Write-up In order to finance its ongoing expansion, Carrefour decided to issue EUR750 million 10-year bond through the eurobond market. Investment banks, like Morgan Stanley and UBS-Warburg had suggested that instead of issuing the bond with EUR, Carrefour could borrow British sterling pounds this time by taking the advantage of a temporary borrowing opportunity in the currency. Carrefour also faced three other alternatives of issuance: the bond could be issued at a coupon rate of 5.25% in euro, 3.625% in Swiss francs, or 5.5% in USD.
There are several considerations that Carrefour should take when it evaluated which currency it should issue the EUR debt. According to relative PPP equation,
%ΔS(foreign currency/domestic currency)= π(foreign country prices) - π(home country prices)
It says that the percent change in the foreign-domestic exchange rate is equal to the difference between the inflation rate in foreign country and the inflation rate in home country. The currency of a high inflation country will depreciate relative to the currency of a low inflation country by the difference in the two inflation rates. If Carrefour sets Euro as domestic currency, the country with the highest inflation rate, its currency would be expected to depreciate with the greatest amount. As it has shown in the case Exhibit 4, U.K. has the highest projected inflation rate in next 3 years compares to other countries, therefore, it’s more favorable to borrow in British pounds in order to take U.K’s advantage of borrowing opportunity. If Carrefour makes its decision based on simply comparing coupon rates, British currency debt had the highest rate, and Swiss francs gave the lowest rate. It seemed reasonable to issue the debt in CHF, but this decision would be no brainer. Carrefour’s investment banks had suggested Carrefour to make its decision by focusing on the...

Similar Documents

Premium Essay

Case Study

...Suggested Format for Case Analyses: 1. Executive Summary: brief 1 paragraph stating key problem(s) and your main recommendation(s)/decision(s). 2. Problem Identification: 1-2 page write-up of the key problem(s) you have identified within the case. This should not be a re-hash of the case itself. The Case Study questions should help you address the issues in this section. 3. Action Plan: 1-2 page write-up of your proposed solution to the problem(s) with detailed steps as to how to proceed with implementing your proposal. 4. Financial Analysis: 1-2 page write-up of the financial analysis that supports the recommendation(s) you have presented in the Executive Summary and Action Plan. Use an electronic spreadsheet to do the calculations and print out these figures as an attachment to your case analysis. Case Study Questions: Tiffany & Co.—1993: Should Tiffany actively manage its yen-dollar exchange rate risk? Why or why not? If Tiffany were to manage its exchange rate risk activity, then what should be the objectives of such a program (e.g., what specific purpose or theoretical rationale can justify a decision to hedge the yen-dollar risk)? Assuming Tiffany wanted to hedge this risk, try to identify what exposures should be managed via such a hedging program (e.g., hedge sales, net income, cash flow, etc.). Also, try to quantify how much of these exposures should be covered and for how long. Identify, in terms of cost, benefits, and risk, the......

Words: 722 - Pages: 3

Premium Essay

Pestle Analysis

...called Carrefour needs to use to expand his business in China before other foreign competitors expand in China. Carrefour is a French group of the retail sector founded in 1959 by Defforey Fournier. Currently, Carrefour is the second largest group in this sector in terms of revenue behind Wal-Mart and it is number 1 in Europe, South America (Chester, 2012) Carrefour is also present in Asia with around 371 hypermarkets and with 64 hypermarkets in other areas of the world in the form of local partnership and its aim is “to become the preferred retailer that is supportive throughout the world” in all of its formats (Carrefour Foundation Annual Report, 2010) China is an Asian country, with two states currently claim to have sovereignty: the People's Republic of China, which controls 99.6% of its territory and the Republic of China, which only controls Taiwan. It’s only in 2008, that the two governments united, have agreed for a more cooperative atmosphere (BBC Monitoring, 2014) Currently, China is the most populated country in the world with around a population of 1.33 billion. China has 20 cities with more than 5 million of people and 100 cities with over 1 million people. In the period of 2011 and 2015 China’s annual average GDP growth is predicted to be 9.5%. China is the largest growing GDP per capita in the world (Rodgers, 2012) China is a country with the world’s largest exports and the second largest imports of goods, since Chinese economic boom more opened up for......

Words: 1475 - Pages: 6

Premium Essay

Cases Questions

...2006 CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions. Table of Contents Page Case: Name and Number, Bruner 5e Note Number I. C12- Best Practices—WACC No Questions II. C2- Bill Miller & Value Trust 2 III. C5- Financial Detective, 2005 Contained in Case IV. C7- Body Shop Intl* Contained in Case, but see page 3 V. C6- Krispy Kreme Doughnuts, Inc. 4 VI. C17- The Investment Detective* Contained in Case VII. C28- Intro. to Debt Policy & Value* No Questions, but review M & M Theory on debt and value of the firm. VIII. HBS Case- “Leveraged Betas and the Cost of Equity No Questions IX. C16- The Boeing 7E 7* 5 X. C26- Jet Blue Airways, IPO Valuation* 6 XI.a C35- Merton Electronics 7 XI.b C36- Carefour S. A.* 8 XI.c C44- Palamon Capital Partners* 9 XII. GM Dividend Policy Negotiation (Information to be provided by Dr. Kiss) * Note: Excel Spreadsheets containing some of the exhibits from the case are available for this case at FIN 620, CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions Case 2- Bill Miller & Value Trust Suggested Questions for Your Preparation of the Case. ...

Words: 1437 - Pages: 6

Free Essay

Carrefour Marketing Plan in Cyprus

...Marketing FoundationMKT 2222 | Group Project: Carrefour | April 4th 2008 | | Group Members & Student Numbers:Fikri Fikrioglu – M00013290Mohammed Moin – M00074462Christos Andreou – M00022720Seminar Tutor: Paul GarneauSeminar Number: Seminar S03 | Table of ContentsBackground Information and Company Description of Carrefour 2The Marketing Environment 5SWOT Analysis 10 Consumer Decision Making Process 16Market Segmentation 20Positioning of the Company 22The Marketing Mix 23The Competitive Situation of the Company 26Primary Data Collection & Evaluation 30Conclusion 40Bibliography & References ...

Words: 13508 - Pages: 55

Premium Essay


...|University of Wisconsin-Madison | |School of Business | |Business Strategy MHR 723 | |Monday evening 6:15 -9:00 | |Spring 2008 | Ms. Lori Cross Telephone : (608) 298-0058 Mobile : (608) 692-2000 e-Mail : or Office : Grainger 4281 Office Hours : 4 - 6 (before scheduled classes) by appointment Course Description and Objectives Few leaders would disagree that a firm’s performance is directly linked with their chosen strategy and their ability to implement that strategy. Traditionally, books and articles on strategy have focused on the development of a strategic plan, based on situational and competitive analyses and forward-looking forecasts. In today’s world, these traditional methods are no longer sufficient to address rapidly changing environments and the challenge of executing global strategies. This course will......

Words: 1443 - Pages: 6

Premium Essay

Chapter 12 Global Marketing Channels and Physical Distribution

...CHAPTER 12 GLOBAL MARKETING CHANNELS AND PHYSICAL DISTRIBUTION SUMMARY A channel of distribution is the network of agencies and institutions that links producers with users. Physical distribution is the movement of goods through channels. Business –to-consumer marketing uses consumer channels; business-to-business marketing employs industrial channels to deliver products to manufacturers or other types of organizations. Peer-to-peer marketing via the Internet is another channel. Distributors and agents are key intermediaries in both channel types. Channel decisions are difficult to manage globally because of the variation in channel structures from country to country. Marketing channels can create place utility, time utility, form utility, and information utility for buyers. The characteristics of customers, products, middlemen, and environment all affect channel design and strategy. Consumer channels may be relatively direct, utilizing direct mail or door-to-door selling, as well as manufacturer-owned stores. A combination of manufacturers' sales force, agents-brokers, and wholesalers may also be used. Global retailing is a growing trend as successful retailers expand around the world in support of growth objectives. Retail operations takes many different forms, including department stores, specialty retailers, supermarkets, convenience stores, discount stores, warehouse clubs, hypermarkets, supercenters, category killers, and outlet malls. Selection, price...

Words: 6820 - Pages: 28

Premium Essay

Supply Chain Management

...BEIHANG UNIVERSITY 北京航空航天大学 SCHOOL OF ECONOMICS AND MANAGEMENT 经济管理学院 SUPPLY CHAIN MANAGEMENT ASSIGNMENT 1 “Supply Chain Management of Wal-Mart” Professor: ZHAO QUIHONG Student: NGUYEN HAI YEN - LS 1508256 VU THI THU HIEN - LS 1508226 GANTA. MURALI - LS 1508233 NGUYEN KHANH LINH - LS 1508230 NGUYEN THI THU HIEN - LS 1508257 INTRODUCTION Wal - mart was founded in 1962 by Sam Walton in Rogers, Ark. It is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. Almost everything can be found in Wal-Mart stores and it has everything a homemaker can ever think of. It is arguably the largest retail chain that deals with millions of product ranging from furnitures, clothes, groceries, books, movies, electronic, jewelries, baby products and much more. In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization‘s ability to meet customer needs. As a result of these changes,......

Words: 4926 - Pages: 20

Free Essay


...JOHN MOLSON SCHOOL OF BUSINESS DEPARTMENT OF MANAGEMENT Course Outline BUSINESS LAW & ETHICS COMM 315/2 Section CC Fall 2013 Instructor: Renée Desrosiers de Lanauze Office: Part-time lecturer's office MB 13th floor E-mail: Office Hours: by appointment COURSE DESCRIPTION: Through the study of laws, ethical principles and court judgments, this course will introduce students to important legal and ethical issues that they may encounter within a business organization. In today’s environment of social awareness, business can no longer focus solely on maximizing profits and must recognize and respect its legal and ethical obligations to a wide range of stakeholders, both within and outside of the business organization. These stakeholders include employees, management, shareholders, directors, officers, the immediate community and society at large. COURSE OBJECTIVES: By the end of this course, students will be able to: 1) demonstrate an understanding of the relationship between law and ethics and how these two principles should not be treated as mutually exclusive; 2) select the most effective solutions to legal and ethical issues that may be encountered within the workplace; 3) identify the appropriate steps to be followed in both the legal and ethical decision making processes; 4) apply material learned in this course in order to analyze and propose solutions to legal and ethical problems. ...

Words: 1347 - Pages: 6

Premium Essay

Narsee Monjee Assignment Answer Sheets - 9901366442

...WE PROVIDE NMIMS – NARSEE MONJEE - PGDSCM, PGDMM, PGDFM, DGM, DSCM, DMM, DITM, DHRM, DFM, DBM, DBFM, ASSIGNMENT ANSWERS, ASSIGNMENT SOLUTIONS ARAVIND - 09901366442 – 09902787224 SALES MANAGEMENT 1. Suppose you are Sales Manager (priority banking) in a Bank which deals with key account holders explain how you will? a. Recruit sales force b. Prepare the Job Description and Specification c. Design training program for them. (Marks 15) 2. Suppose you are Sales Manager in life insurance Company, managing team of fifteen sales executives. How you will use sales force automation to improve efficiency and effectiveness of sales operation? (Marks 15) Corporate Finance 1. Suppose, a prospective client who wants to invest certain amount of money comes to you but does not know anything about ‘Time Value of Money’. So, please explain to the person the concept of ‘Time Value of Money’ in detail. 2. A limited company is considering investing a project requiring a capital outlay of Rs. 2, 00,000. Forecast for annual income after depreciation but before tax is as follows : Year | Rs. | 1 | 1,00,000 | 2 | 1,00,000 | 3 | 80,000 | 4 | 80,000 | 5 | 40,000 | Depreciation may be taken as 20% on original cost taxation at 50% of net income. You are required to evaluate the project according to each of the following methods: a) Pay back method b) Rate of return on original investment method ...

Words: 2065 - Pages: 9

Premium Essay


...Globalisation of the food retail industry – forecasts to 2013 2008 edition Page i Globalisation of the food retail industry – forecasts to 2013 2008 edition By Helen Lewis June 2008 Published by Aroq Limited Seneca House Buntsford Park Road Bromsgrove Worcestershire B60 3DX United Kingdom Tel: Fax: Web: +44 (0)1527 573 600 +44 (0)1527 577 423 Registered in England no: 4307068 © 2008 All content copyright Aroq Ltd. All rights reserved. Page ii Single-user licence edition This report is provided for individual use only. If you would like to share this report with your colleagues, please order additional copies or sign up for a multi-user licence by contacting: Kathryn Wedgbury Research manager, Tel: +44 (0)1527 573 604 Email: Copyright statement © 2008 All content copyright Aroq Limited. All rights reserved. This publication, or any part of it, may not be copied, reproduced, stored in a retrieval system, or be transmitted in any form by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of Aroq Limited. This report is the product of extensive research work. It is protected by copyright under the Copyright, Designs and Patents Act 1988. The authors of Aroq Limited’s research reports are drawn from a wide range of professional and academic disciplines. The facts within this report are believed to be correct at the time of......

Words: 3625 - Pages: 15

Premium Essay

Entry Modes

...University of Glasgow Adam Smith Business School International Business & Entrepreneurship Research Method MGT 5174 A Comparative Study of Entry Modes Adopted by Sainsbury’s and M&S in China Based on Resource-based View Theory Yuyu Xiong 2203873 07/24/2016 Word Account: 3013 Table of Contents 1. Introduction……………………………………………………………………..…3 1.1 Background ………………………………………………………………..…3 1.2 Research Questions …………………………………………………………..3 1.3 Research aim and objectives………………………………………………… 4 2. Literature Review ……………………………………………………………..….4 2.1 Timing ………………………………………………..…..4 2.2 Scale of Entry ………………………………..…..……5 2.3 Steps taken before choosing entry modes………………………………..…. 2.4 Entry Modes……………………………….……………………………..…. 2.5 Factors that influence the choice of entry mode…………………………..…. 3. Methodology…………………………………………………………………..….6 3.1 Research philosophy………………………………………………….………6 3.2 Research......

Words: 3482 - Pages: 14

Premium Essay


...The Battle R e ta i l for What is FDI in retail? Retail battle: It’s finally about politics and numbers, not FDI FDI in retail: Why it works for everyone FDI fineprint: Easing FDI doesn’t ease problems plaguing retail 04 06 08 The verdict FDI in retail: Why the politicians are illogical, and have got it wrong Don’t pity the kirana guy, he knows how to fight back Economy, not kirana shops, is biggest loser in retail FDI debate Why the kirana dukan doesn’t care about Big Brother 11 13 15 17 All sides of the debate GOVERNMENT FDI in retail ‘distinct and different’: Sharma Out on a limb: Govt says FDI in retail will ‘immensely benefit farmers’ Reader debate: Is FDI in retail bane or boon? PUBLIC India Inc appeals political parties to support FDI in retail India Inc divided over FDI in multi-brand retail INDUSTRY FDI in retail: Opposition, allies term it anti-people Will not allow Parliament to function until FDI in retail is withdrawn: NDA OPPOSITION Why some farmers are relieved to be dealing with Wal-Mart Farmers Retail FDI: The merits are over-hyped, say academics Academics Cong meets over FDI in retail: Is a rollback on the cards? Will FDI last? FDI nod given, global retailers wait for more clarity The world is waiting FDI in retail What is ? Retail battle: It’s finally about politics and numbers, not FDI he Congress is hell-bent on pushing through its proposal for foreign direct investment......

Words: 12610 - Pages: 51

Premium Essay


...strategy execution at all levels of the organization. Course objectives 1. Understand Strategic Management as a process and be able to apply its principles to diverse business situations. (Linked to MBA’s Learning Goal #1. B) 2. Develop skills necessary to analyze the competitive situation facing various types of economic organizations; isolate important sources of competitive advantage and disadvantage; generate and make decisions among various strategy alternatives; plan for successful execution of selected strategies; and persuasively communicate these analyses and recommendations to others within the organization. (Linked to MBA’s Learning Goal #3. A, B, and C) 3. Gain experience with the case analysis method as applied to business situations. (Linked to MBA’s Learning Goal #3. C) 4. Gain experience working in teams to solve business problems. (Linked to MBA’s Learning Goal #5. A) Class policies Attendance: You will be expected to attend all classes. If you have a good reason you must miss class, please let me know. Excessive or unexcused absences will result in a reduction in grade. General 1. Varying points of view, constructively offered, are welcome and encouraged. Complexity and ambiguity are characteristic...

Words: 2765 - Pages: 12

Premium Essay

International Marketing

...Marketing Plan for the Sale of Greek Yogurt in France Table of Contents: Introduction 2 A. Country outlook A.1. Cultural Environment 2 A.2. Economic Environment 3 A.3. Legal/Political Risk 5 A.4. Relevant Data on Communications and Transportation 6 A.5. Country Fit 7 B. Market Analysis B.1.1. Market Description 8 B.1.2. Profile of Prospective Buyers 10 B.1.3. Market Trends 11 B.1.4. Distribution 11 B.2. Competition 12 C. Marketing Mix C.1. Strengths and Weaknesses 13 C.2. Marketing Objectives 13 C.3. Product 14 C.4. Price 14 C.5. Promotion 15 C.6. Place/Distribution 15 Conclusion 15 References 16 Introduction In this course, we are called to develop an international marketing plan to export a product produced in Greece and specifically greek yogurt in France. We should study the procedures that a manager should follow in order to organize this plan. At first, it is important to evaluate the outlook of France, focusing on cultural and economic environment, relations between Greece and France, legal and political risks and forms under which trade could be performed. The examination of country – product fit, is followed by market analysis, meaning......

Words: 3129 - Pages: 13

Free Essay

Tumi Feasibility Study

...Transmittal Letter December 4, 2010 Tumi Luggage in Brazil: A Feasibility Study Tumi Luggage is a very popular , high end, luxurious product. With its success in the US, in some parts of Europe and Asia, it is with best interest to research the feasibility in expanding its operations i nto the beautiful and lucrative country of Brazil. Feasibility and Marketing Plan: Tumi Luggage in Brazil Dr. Judy Strauss Associate Professor of Marketing University of Nevada, Reno Reno, Nevada 89557 Dear Dr. Strauss: We are pleased to present you with Bulletproof’s Feasibility and Marketing Plan for Tumi Luggage in the beautiful and lucrative country of Brazil. This plan will assist you in gaining valuable insight into the opportunity available for Tumi Luggage in Brazil. This plan is the result of an extensive research utilizing both primary and secondary findings. The suggestions proposed are carefully correlated with the market opportunities that are currently present in Brazil. The plan has been constructed in three different sections: (1) analysis of the potential market in Brazil, (2) the technical, financial and organizational elements that should be considered when entering the Brazilian market and (3) a marketing plan, if implemented, could create an overall increase in brand recognition, Tumi’s profitability and overall global market share. It is with confidence that the recommendations contained in this plan will cultivate excellent opportunities for Tumi Luggage, and...

Words: 14576 - Pages: 59