...Carrefour case study * Entry of Carrefour in the Russian Market in june 09 * Exit 4 month later Reasons to enter the market: 1. Long- term potential 2. Company´s aim of having a presence in the BRIC markets 3. Russia´s proximity to Europe Problems: absence of opportunities to grow either organically or through acquisition Barriers of Russian market: 1. Legislative framework is highly complicated 2. Corruption is rampant at all levels 3. High start up costs and several bureaucratic procedures 2008 due to recession and global economic downturn high unemployment and low purchasing power February 2009 negative growth rate Late entry of Carrefour: Competitors: Metro Germany since 2001 and Auchan France since 2002 expanded rapidly Problems in France (which accounts for 43% of total revenue) concentrate on france not Russia (demanded high resources and attention) Emerging markets: Political environment: remains volatile Investing involves a lot of red tape and bureaucracy time and resource consuming Manpower: inadequate supply of trained and qualifies manpower Result: high employee turnoer * Lack of proper educational systems- heavy investments from retailers Competition: From the unorganized sector like: street vendors, open air markets, local supermarkets, catgory specialists (green, bio, kosher, bakery) * Those have limited stock and wide presence and are affordable Distribution and Logistics: are underdeveloped, lack of...
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...Carrefour Company Background Carrefour means "crossroads" in French, arose in 1959 as a partnership among two industrialists, Marcel Fournier and Louis Defforey, in Annecy which is urban area around eastern France. However Carrefour had been progressively more developed since World War two. Fournier previously had created the branch store which is Grand Magasin de Nouveautés Fournier d'Annecy and which has networks in the Casino supermarkets, Defforey was the leader of Badin-Defforey in Lagnieu. This French international chain is the third lagest regarding profit after Tesco and wal-Mart, during the year 2008 the company changed its CEO to Lars Olofsson who believe the company “approach is to be only where it knows it can win”, there after it decided to terminate part of its business around Asia among countries which they did not benefit or gain profit from them such as Malaysia, Thailand and Singapore in year 2010, and focus on those countries with more customers and gain profit from them, one of the reason why the French international chain “Carrefour” failed in this countries is because the taste and living ways are different French style so it was hard for Asians to adapt quickly. Carrefour is actively committed to promoting local economic development. Since retail activities are all about contact with people, the group consistently emphasizes local recruitment plus management and staff training on the job wherever they work. Typically, the Carrefour group will be one...
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...CARREFOUR STORES * The Carrefour supermarket company is set up by the Fournier, Badin and Defforey families who run a discount supermarket in Annecy. * Hypermarkets, supermarkets, convenience stores, cash & carry e-commerce. * Carrefour has all the resources to cater to the different needs of its customers – whether they live in an urban or rural environment, whether they be private or professional clients, in France or abroad. * In every store format, with different banners, the Group develops attractive, modern and inviting stores. Carrefour teams join forces to increase the competitive advantage of its multiformat approach. During 2015, this investment, carefully tailored and constantly. * More than 12,200 stores in over 30 countries, the Group offers its customers a wide array of formats and banners for every shopping pattern – daily purchases in local stores or weekly trips to the hypermarket – that meet the needs of the diverse clientele, from business customers purchasing wholesale supplies, to family shopping trips. THE 10 PRINCIPLES OF THE CARREFOUR CODE OF BUSINESS CONDUCT – 1. Strictly respect the law 2. Contribute to a safe and healthy working environment 3. Commit to diversity and good working conditions 4. Protect the Group’s assets and resources 5. Guarantee confidentiality 6. Avoid conflicts of interest 7. Refuse all forms of corruption 8. Develop loyal and transparent business practices ...
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...Carrefour and Grupo Pão de Açúcar Merger Intercultural Negotiation Rafael Campos de Oliveira November 2012 Contents Table Introduction Background Information a. Background Information of Carrefour b. Background Information of Pão de Açúcar c. Background Information of Groupe Casino 1. Situation before the negotiation 2. The proposal 3. Groupe Casino position 4. End of Negotiation 5. Future for Carrefour and Pão de Açúcar 6. Final commentaries 7. References Carrefour and Pão de Açúcar merger Introduction This paper will describe the negotiation to merge Pão de Açúcar, the largest retailer in Brazil, and Carrefour, the second largest supermarket chain in the world. The initial plan was to create a Brazilian super retail chain with a global presence but due to several reasons the negotiation didn’t succeed. These reasons will be presented in the following chapters, along with an analysis comparing the theories learned in the Intercultural negotiation class. The methodology of this research was based in articles published by newspapers, containing both analysis of this case and interviews with the people involved. Background information BACKGROUND INFORMATION OF CARREFOUR Carrefour S.A. is a one of the largest hypermarket chains in the world – according to public information – it had more than 1395 hypermarkets at the end of 2009. Carrefour is...
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...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 ...
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...Financial report : Carrefour Yi LI Yuhuan CHEN FEI XU Matthieu GRACIEUX Nicolas CHAPACOU 1 Table of Contents 1) 2) 3) 4) 5) 6) 7) 8) Business Description .................................................................................................. 3 Market Summary ....................................................................................................... 5 Strategy and Competitive Positioning ......................................................................... 9 Risks ........................................................................................................................ 13 Financial analysis ..................................................................................................... 15 Forecast, Valuation and Recommendations .............................................................. 17 Appendix ................................................................................................................. 19 Sources .................................................................................................................... 22 2 1) Business Description - Carrefour SA operates hypermarkets, supermarkets, convenience stores, cash and carry stores, and hypercash stores worldwide. The company also operates food and non-food e-commerce Websites. Its hypermarkets offer food products; and non-food products comprising clothing products, electronic goods, household appliances, multimedia products, furniture...
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...| MNGT220 Case Study on Carrefour in China | | | Wong Angus Kwan Ho 33239096Matthew Lok 33239355Lei hou in 33149836 Pan Yue 33517622Ma Jing 332396812/7/2014 | | Word count: 1098 (excluding reference and title) Brief Introduction The world’s second largest distributor had good results in Asia and Latin- America, earning an average turnover growth of over 6% and reaching total sale volumes of 16.14 billion euro and 7.22 billion euro respectively. However, Carrefour on its home market France sales had a recent decline of 1%. The Carrefour group has over 13,000 stores in Europe with four categories: hypermarket, supermarket, convenience store or hard discount store. The report aims to explore the competitive environment for Carrefour in the Chinese market. 1. Briefly describe the competitive environment of the home market for Tesco/Carrefour/Walmart. Porter’s Five Forces Rivalry among existing competitors The French retail market is highly competitive, there are some large retailers are accounted for big market share. The top retailers are Leclerc, Carrefour and Intermarché with 17%, 12.5% and 11.7% market share respectively. They are competing at the level of the sales force, of the advertising, the image and adopted strategy. Bargaining power of suppliers The diverse product range distributed by retailer, there is a large number of substitute inputs. Thus, high competition exists among suppliers...
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...The Summary of Carrefour Case SUMMARY OF CARREFOUR Carrefour S.A. was Europe’s largest retailer. In the past, Carrefour management had generally financed company growth through securities denominated in the currency of business operation. Carrefour considers borrowing in British pounds sterling in order to take advantage of a borrowing opportunity in that currency. With a debt-financing requirement of EUR750 million, the bond issue would be one of Carrefour’s largest. It altered the world of retailing with the introduction of the “hypermarket”. This format combined a supermarket, drugstore, discount store, and gas station into one massive, one-stop-shopping megastore. The company expanded rapidly in France and beyond. Carrefour was profitable in all major operation regions. The company generated 5% of operating profits from Asia, 2% from Latin America and 26% from Europe outside France, with the remainder of profit coming from French operations. The company would increase sales by 5% on constant exchange rates and increase recurring net income by 10-15% Carrefour’s Financing Policy operated primarily within the local economy when buying and selling product In 2001, Carrefour borrowing were EUR 13.5 billion, of which EUR6.4 billion were in publicly traded bonds. Foreign-currency borrowing was generally hedged so that total debt requirements were currently 97% in EUROS. Carrefour’s current market opportunities considered the bond-denomination...
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...to get a cut of the action in China. It is viable for companies to create an efficient strategy that will effectively distinguish themselves from its competitors and have the capability to conquer the foreign market. However, when entering to unfamiliar territories there are many challenges that companies ought to overcome such as cultures, regulation, communication barriers, and so forth. Currently, Wal-mart and Carrefour are dominating in China as the foreign discount stores but they have different strategy to compete in China. Background In 1959, Carrefour was created in Southern France and became international by 1969. “It innovated with the hypermarket format in France in 1963 where it introduced the idea of one stop shopping for food, clothing, electronics, appliances, etc. Although it does not compete in the USA, it has adapted successfully to Latin American and Asia markets” (Arnold, 2002, p. 563). “Now, it serves over 2 billion clients per year in its more than 9,000 stores, which are present in 32 countries across 3 geographic zones. Carrefour is not only the second but also the most internationalized retailer worldwide” (Shiue, Der-Juinn, & Yeh, 2006, p. 171). In 1962, Wal-mart began its story in Northwest Arkansas as the discount store and quickly expanded to the largest family owned business. “It is active in 11 countries and has stores in North and South America, Europe and Asia. It has over 4,400 stores, of which three quarters are in the USA...
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...Case Study: Wal-Mart in China (2012) In 1996, China’s national economy was growing at a rapid pace. The gross domestic product reached over US$1064.4 billion, an increase of 9.7% over the previous year. To further increase and attract foreign investment, the Chinese government increased its number of experimental, special economic-zoned cities in which foreigners could operate a business. There were, however, restrictions set forward by the government, in that all foreign businesses would have to be in a joint venture or other type of cooperative agreement with at least one Chinese partner, with that Chinese partner getting a stake greater than 51%. In August 1995, Wal-Mart, the great American retain chain and Middle America success story, arrived in China, establishing a joint venture with Shenzhen International Fiduciary Investment Co, Ltc, China. In 1996, Wal-Mart opened its first supercentre and a Sam’s Club in the special economic zone of Shenzhen. In 2007, Wal-Mart acquired a 35% stake in Trust-Mart, a Taiwanese-owned chain of retail supercentres operating in the Middle Kingdom. By 2010, Wal-Mart’s presence in China grew to 189 units in 101 Chinese cities, with the creation of over 50,000 local jobs. By 2012, the company nearly doubled its presence with 370 stores in 140 cities. As the U.S. and European economies slumped in late 2011 and into 2012, the world’s number-two economy became an even more important growth market. In the first quarter of 2012, China’s...
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...Growth of a Genius in Management My understanding in management deepened with the rise of my age. My charisma in interpersonal relations that can help win instant popularity easily was displayed when I was pupil. Every classmate treated me as their best friend naturally. This situation gave me a good opportunity to get to know everyone’s strength and needs. The ability to gain instant popularity is not human nature, and neither is mine. But my parents set me good example. My father is a business man who told me that keeping honest and smiling is one of the best ways to make customers come back again. And my mother said that keep their secret to others is the guarantee that they will confide to you. Under the impact of these two elements I have become a man who always was the soul of a team without being aware of it. However, it does not mean that I was to please everyone on purpose. The third day I came into junior school I fought with a classmate because he did not like the way I deterred him from loudly talking in the library. It made me realize that the smooth implementation of rules involves a right method. So I adopted a soft style to communicate to the people around me using advises rather than orders. I did not get any experience in management during senior school. Because all the members in this best senior school were study-oriented, no one would break the atmosphere of learning. But when I recall these 3 years time, it still enlightens me. I noticed that we can make...
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...WAL-MART STORES, INC Step 1: Identify the Firm’s Existing Vision, Mission, Objectives, and Strategies. Vision and Mission: There is no formal vision and mission of Wal-Mart available in this case study. Objective: Wal-Mart is a retail store that strives to excellently serve, respect and focus on both domestic and international customer by providing every-day low prices’ general merchandise to satisfy customers’ needs and help customers to save money. Strategies: 1. Forward Integration * Wal-Mart acquired four stores and six sites from Makro, the Korean Club store retailer. (pg 614) 2. Horizontal Integration * Wal-Mart had acquired entrenched, dominant player, the Wertkauf hypermarket chain in Germany. (pg 611) * Wal-Mart acquired 229 stores of Asda Group PLC, the UK’s third largest supermarket chain. (pg 615) 3. Product Development * Wal-Mart reported experimenting internationally with new operational elements, including jewelry, one-hour photos, optical labs, and online home-delivery programs. (pg 605) 4. Market penetration * Wal-Mart plans to add another 50 German stores by the year 2003. (pg 614) * Wal-Mart plans to open 120-130 new stores in existing international markets. (pg 616) * Wal-Mart announced plans to open 44-55 new stores, 200 new Supercenters, 20-25 new Neighborhood Markets, and 40-45 new Sam’s Clubs. (pg 616) 5. Cost Leadership * Wal-Mart foresaw opportunities to serve customers in other countries, using its management...
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...Understand the motives for internationalization. ➤ Apply the theories underpinning the internationalization process. ➤ Explain the Psychic Distance and Born Global concepts. 5 ➤ Advise a multinational firm on choosing an appropriate entry mode for internationalization. ➤ Advise a multinational firm on de-internationalization. 148 Global strategic development Opening case study Internationalization of a French retailer—Carrefour In 1960, Carrefour opened its first supermarket in France. In 1963, Carrefour invented a new store concept—the hypermarket. The hypermarket concept was novel, and revolutionized the way French people did their shopping. It moved daily shopping from small stores to enormous stores where customers find everything they want under one roof, in addition to selfservice, discount price, and free parking space. The first Carrefour hypermarket store was established at the intersection of five roads—hence the name, Carrefour, which means ‘crossroads’. Carrefour is the leading retailer in Europe and the second largest worldwide, with Exhibit A International development of Carrefour Year Country and mode of entry No. of stores (2009) 1969 1973 1975 1982 1989 1991 1993 1993 1994 1995 1996 1997 1997 1998 1998 2000 Belgium—Carrefour’s first hypermarket outside France Spain Brazil—Carrefour’s first hypermarket in the Americas Argentina Taiwan—Carrefour’s first hypermarket in Asia Greece Italy Turkey Malaysia China Thailand Poland Singapore Colombia Indonesia Japan...
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...Assignment Case Study – Process Analysis in Carrefour PROCESS ANALYSIS IN CARREFOUR GROUP INTRODUCTION - History of Carrefour First in Europe, Carrefour is the 2nd retailer in the world. With a presence in thirty-two countries, it makes half its sales outside France. This makes it the most international of all food retailers. The Group is concentrated on three continents: Europe (13 countries), Latin America (4 countries) and Asia (8 countries), a field of expansion to which one might add Africa, the Caribbean and the Middle East (7 countries). The Group started this world-wide expansion more than 40 years ago, from which it has gained considerable experience. With the strength of this expertise, Carrefour pursues a growth strategy that is increasingly based on its international business. Thus, in 2004, 80% of the new points of sale were created outside France. Growth has been achieved, with an increase of sales outside France of 8.3% at constant Exchange rates in 2004. The scope of Carrefour focuses on four main grocery store formats which are hypermarket, supermarket, discount and convenient stores. Operations range from supermarkets stores and a variety of other outlets to convenience. But what Carrefour is known for above all else is the hypermarket. A hypermarket is, essentially, a super-sized supermarket that typically stocks some 70,000 items and has a sales floor as big as 20,000 square meters or approximately 215,000 square feet. Carrefour introduced the...
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...ventures (Butler, 2012). These firms have incurred significant deficits in their quest for a new market. However, there seems to be evidence that some of these companies have been able to establish themselves in some foreign markets. For example, Tesco has failed in Japan but has proved to be a success in South Korea. Over this past century, there has been an evident emergence of multinational retail corporations. The general philosophy of these companies has been economically driven, that is, to prosper in terms of sales revenue and to expand globally while acquiring maximum market shares. The most dominant firm in this aspect is U.S. based Wal-Mart that leads with sales revenue exceeding $466.1 billion in 2012, followed by French based Carrefour with income of $112.6 billion (Forbes, 2013). They are trailed by U.K based Tesco at $96.8 billion and by Germany’s Metro in fourth place with sales of $90.5 billion (Forbes, 2013). The common strategy of these stated firms has been to target their marketing efforts towards rapidly emerging countries by investing in the establishment of foreign branches. An emerging market can be defined as an economy which is in the process of a shift into an open and global economy. There are numerous factors contributing to firms opting for ventures in these countries. According to Forbes (2013), emerging markets may contribute to nearly three quarters of the world economical growth for the coming years. Moreover, the Asian population, which represents...
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