...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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...AND MANAGEMENT Fages Gaspard Introduction of the company * Main address: Carrefour S.A., BP 419-16, 75769 Paris Cédex1 * 6 Avenue Raymond Poincaré, Paris 75116, France * Tel: +33 1 53 70 19 00 Fax: +33 1 53 70 86 16 Website: www.carrefour.com * Carrefour is the world’s second largest retailer in terms of sales. * Truly global player with operations in over 35 countries. * Major formats are hypermarkets, supermarkets and discount stores. * Well known for entering and adapting to emerging markets. * Group turnover (2012): EUR 85.96 billion * Total number of stores (including franchises): 15,673 Carrefour SA was first listed on the French stock market in 1970. First opening stores in France during the 1960s, Carrefour went on to open the first hypermarkets in France and Europe. First started expanding into the rest of Europe in the early 1970s and 1970At the same time the ED discount format was introduced. The Carrefour own-label was introduced in 1985. The first non-European store was opened in Brazil in 1975. Carrefour's firs Asian store opened in Taiwan in 1989. Carrefour announced its intention to merge with Promodès at the end of August 1999 with the merger approved in January 2000. The Carrefour name was retained with the majority of Promodès stores rebranded. The merger pushes Carrefour to second place in global retailing. Carrefour operates a diverse portfolio of formats, including hypermarkets, supermarkets, discount...
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...entry and expansion strategies of Carrefour in China Introduction: The Chinese market, along with Brazil, India and Russia, is one of the fastest growing markets in the world. It is the country with the largest amount of consumers. 250 cities with population over 1 million and a steady rise of living standards… For the mass-market retailing, China offers limitless opportunities; more than for any other market segments. The challenge in China is that with this big population there is a wide range of diversity. Because of these differences, it is very important for businesses wanting to enter China to work with representatives from each respective region when expanding into these territories. Because Carrefour adapted exactly that strategy, and also learned from its experience in Taiwan, it was able to succeed. However, along with opportunities, foreign brands come up with numerous challenges regarding customers’ tastes, which are highly specific in China. Foreign brands, which are currently leading the market, had to adopt complex marketing strategies to gain the interest of new customers when entering the market long time ago. Carrefour, when targeting Chinese market in 1995, was facing considerable challenges before it became a market leader. Our focus is on Carrefour China market entry strategy Question 1: After a law passed in France in 1963 to restrict the development of large stores, Carrefour decided to enter the international...
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...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 concept to Europe...
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...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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...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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...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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...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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...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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...should Mr. Duarant assess the opportunity in various countries around the world? Answer: Carrefour is the world largest hypermarket in terms of size, 2nd largest in terms of revenue and 3rd largest in terms of profit. It is the Wal-Marts biggest global competitor and has around 495,000 employees. But Carrefour is preparing for a global expansion and also for strengthening their current markets. However, different market has different levels of opportunities for Carrefour. So, Mr. Duarant, CEO of Carrefour, needs to properly assess what kind of opportunity is waiting for them in different countries. There are several factors that need to be judged for assessing opportunities in various countries. First of all, consider the quantitative factors, factors that can be measured in numerical terms. Carrefour is operating business in China and wants to enter in Indian market. China has a population of 1324.6 million and India 1139.9 million, which are very close. But both are bigger than all of the European markets. That’s why, these markets offer Carrefour more sales volumes that means profit, which is an opportunity for them. Another important factor to consider is qualitative factors, factors that are difficult to measure in numerical terms; examples of these factors are the political environment of a country, geographic location, product preference of the people etc. So, for Carrefour Western European, South American and Asia Pacific countries are more preferable because their...
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...Taking Wal-Mart Global Lessons From Retailing's Giant Vijay Govindarajan and Anil K. Gupta [pic] During 1992-93, Wal-Mart agreed to sell low-priced products to two Japanese retailers, Ito-Yokado and Yaohan, that would market these products in Japan, Singapore, Hong Kong, Malaysia, Thailand, Indonesia and the Philippines. Then, in 1994, Wal-Mart entered Hong Kong through a joint venture with the C.P. Pokphand Company, a Thailand-based conglomerate, to open three Value Club membership discount stores in Hong Kong. MODE OF ENTRY Once Wal-Mart had selected the country or countries to enter, it needed to determine the appropriate mode of entry. Every company making this move faces an array of choices: It can acquire an existing player, build an alliance with an existing player or start greenfield operations, either alone or in partnership with another player. Wal-Mart entered Canada through an acquisition. This was a logical move for three reasons. First, Canada is a mature market - an unattractive situation for greenfield operations, since adding new stores (i.e., new capacity) will only intensify an already high degree of local competition. Second, because there are significant income and cultural similarities between the United States and Canadian markets, Wal-Mart faced relatively little need for new learning. Thus, entering through a strategic alliance was unnecessary. Third, a poorly performing player, Woolco, was available for purchase at an economical price. Furthermore...
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...Executive Summary The wave of globalization is everywhere and the food retail industry is not spared. Hypermarkets such as Tesco and Carrefour have long been in existence and is rapidly making its presence felt in further expansion plans in the Asia Pacific region. Started in North and America and Europe, hypermarkets became the dominant retail grocery today. Consumers’ expectations for ease in grocery shopping, together with the increased of car ownership made shopping in big supermarkets a trend to last for a long time to come. With higher income and change in lifestyles, coupled with an increasing middle income group – it has opened a whole new market for the retail chain industry. Due to the saturated local market, hypermarkets are bent on expansion in finding new markets internationally. Even though governments have opened up their economies to foreign players, there are rules and regulations imposed on new players in order to protect their own local retail industries. Global retail industry has come a long way since commencement. Worldwide retail sales is now valued at $USD7 trillion (Source: Deloitte :2003). Invention of bar-coding system enables stores to manage tens of thousands of items and also assisted in ‘Just-In-Time’ store replenishment system. This report would explain the emerging markets to be tapped, and the different opportunities and threats faced by the entrants; various rules and regulations imposed by the local government in which hypermarkets...
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...International Borrowing at Carrefour S.A. Briefly discuss the background of Carrefour SA and its financing practices. What are the borrowing alternatives? Carrefour S.A. is operating as a chain of hypermarkets, combining a supermarket, drugstore, discount store and gas station. Carrefour is originating from France, however, during 40 years it has expanded its operations to ten other European countries, six South and North American countries and nine Asian countries. The largest sales and profits of the company come from operations in France. But only in 2001 sales coming from France were less than from foreign operations. Carrefour management had generally financed company growth through securities denominated in the currency of business operations. More than 90% of borrowings are in Euro, and the remaining 10% - in other currencies (US dollars, Argentine peso, Swiss franc, etc.). Foreign currency exposure was generally hedged through currency-forward contracts. Now Carrefour needs to borrow EUR 750 million. The Carrefour management has to decide in which currency the company should borrow, and if all of the borrowing should be via bond issue. Using the parity forward rates calculate the cost of borrowing in CHF, GBP and in USD. In order to identify the internal rate of return (IRR) for each of currency options, we have projected cash flows in each currency based on the respective coupon rate. In order to translate cash flows in euro and make them comparable, we have...
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...why different firms adopted different strategies even in the same environmental context. Question To analyze the strategies of Carrefour and how these strategies interact with Chinese government policies and local market conditions? CARREFOUR The Carrefour Company was created by the Fournier and Defforey families in 1959 in France, with the meaning of its name— “crossroads” expressing convenience. Today, Carrefour has reached 30 countries in Europe, Latin American and Asia. Currently, Carrefour has opened over 12,500 stores all over the world, with sales in 2006 of $114.9 billion and 456,000 employees. Store Formats. Carrefour operates three store formats in China: Carrefour hypermarkets, Champion supermarkets, and Dia discounted convenience stores. Since Carrefour entered China in 1995, hypermarkets were the principal format for Carrefour expansion. Carrefour opened 150 Dia discounted convenience stores in Shanghai and 100 in Beijing in 2003 (www.carrefour.com.cn), but faces fierce competition from 7-Eleven stores from Taiwan. Carrefour would more likely to learn from and follow 7-Eleven in the convenience store niche . Store Location. China is still a country with a relative low income level and hence the mainstream power of consumption remains in large and prosperous cities and city centers. Therefore, Carrefour establishes their stores in first tier cities and also in more prosperous and business areas . Yan (2003) argues that Carrefour’s ...
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