Free Essay

Case Study Carrefour


Submitted By Helli
Words 792
Pages 4
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 presence of road connectivity, no cold strage facilities, retailers which want to improve supply chain need to put in a lot of effort, time and resources and it is still limited!
* Markets are very attractive due to huge potential * Economical and political changes have increased the accessibility * BUT: * Entry needs to be planned early to develop a competitive advantage in terms of supply chain and brand * Need to develop facilities like cold storage etc. * Which products? Assortment? Store formats experiment * Need to be prepared for the long haul no instant result

“Russian retail market Porter`s five forces”
Competition: Factors: * Number of competitors * Fixed costs * Product differentiation * Entry & exit barriers * Their strength * Maturity of the industry

* Before 1991 Products and services were state owned * Retailers now a days account for 15% of total retail sales * - preferred destinations are small grocery stores * Level of competition has increased over the years-> Company`s try to adopt different strategies to attract customers
Bargaining power of Customers:
Customers are in the position to affect the industry by for example demanding lower prices or better services * Major retailers are concentrated in a few urban areas growth of organized retailers , increased bargaining power e.g. hypermarkets grew by 450% not only a new customers from other store, but also from unorganized retail * because of difference in assortments of goods, promotion, quality of products and low prices

Bargaining Power of Suppliers: influence by increasing/ decreasing the quantity of goods they supply or by making variation in the quality.
The Power depends on the number of suppliers, degree of product variation, importance of the product, substitute availability and integration of downstream supplied.
Bargaining Power of Suppliers: * Russian retail market is dominated by small food shops and open markets especially for ffod products * Distribution sector mainly state owned * Not many facilities available outside major cities * Absence of refrigiation facilities transporting perishable goods across the country major challenge * Inadequate infrastructure delivery problems
Threat of new entrants: new entrants increase the level of competition and decrease the attractiveness of the industry * Newcomers enter when profit margins are high and barriers to enter low * Barriers are: economies of scale, product differentiation, capital, transfer cost, access to distribution channels, government policies.. * In Russia after the reform several enterprises were privatized * But entry barriers remained especially for international Companies it has very complicated registration * Widespread red tape and bureaucracy 20-30 agencies and one needs to get 40-50 approvals * Due to corruption Companies had to pay bribes to tax inspectors customs officials and lower bureaucrats
Threat of substitute Products: substitutes can be a threat of existing firms, because they can lower the attractiveness and profitability of any industry. It limits the price level.
A threat is determines by price and availability of substitute products, switching costs, perceived level of product differentiation and the buyers propensity to substitute. * After 1991, the end of limited availability, existing brands are undergoing a change to appeal to the consumers * Consumers in urban areas are especially band focus * With the recession there was an increase of sales of private labels of 20% * 2010 when Russia emerged out of recession there was a marginal decline,that is why discounted prices will be the driving force in the coming years.

Conclusion: * Inspite of several limitations the market remains highly attractive
Retailers like metro, Ikea, Auchan &Obi were able to establish also outside of the urban areas and introduce formats like hypermarkets, discount outlets DIY and Cash-and Carry

Similar Documents

Premium Essay

Carrefour Green Store Case Study

...Group 5 - Carrefour China, building a greener store 1. As Monaco, how would you size up the situation? What are the major issues for Carrefour China? What are your key concerns about the green store project? Carrefour is the biggest foreign retailer in China and is in the middle of a rapid expansion phase and plan to open 100 new stores in 2006-2007. One of the reasons why Carrefour was successful in the earlier parts of their Chinese expansion was that they had experience from similar local culture in Taiwan, giving Carrefour the ability to transfer existing competitive capabilities from Taiwan to China in accordance to the theory of Global firms’ competitive advantages (Lasserre, 2012). Another factor that helped the entry to the Chinese market was that due to the foreign restrictions they partnered with local firms and building owners, thus avoiding these regulations. Carrefour employed local store managers to the run the stores, however the tenure of the store managers was usually between one or two years. The short tenure lead to myopia thinking regarding the stores constructions and operations. Underinvestments in areas which the store managers deemed to be of no importance but in reality were very important for a well-functioning store followed, such as under-sized air conditioning units and refrigerators. The short-term thinking was largely ignored by the senior management who focused solely on the current expansion. The major issue for Carrefour would later be...

Words: 1718 - Pages: 7

Premium Essay

Strategy Case Studies

...beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity and cost cuts, especially the efficacy of '10,10,10' goal in a family-run business • To identify various challenges...

Words: 71150 - Pages: 285

Premium Essay

Spanish Consumers' Perception of Functional Foods

...2013 Charlotte Bussmann Pablo Medina Oisin Halpin Leyre Santana León Universidad Carlos III Madrid 8.11.2013 2013 Charlotte Bussmann Pablo Medina Oisin Halpin Leyre Santana León Universidad Carlos III Madrid 8.11.2013 Spanish Consumers‘ Perception of Functional Foods – A case study of Puleva Omega-3 Spanish Consumers‘ Perception of Functional Foods – A case study of Puleva Omega-3 Table of Contents 1. Introduction 2 1.1. Presentation of the Problem 2 1.1.1. Focus of our Study 2 1.2. Purpose of the Thesis 3 1.2.1. Research Question 3 1.3. Clarification of the Main Concepts 3 1.4. Structure of the Thesis 4 2. Methodology and Theory 5 2.1. Methodology 5 2.1.1. Research Design 5 2.2. Method 8 2.3. Research Techniques 8 2.3.1. Laddering 8 2.3.2. Questionnaire 10 3. Potential Conclusions 14 3.1. Recommendations to the Ebro Puleva Company 16 Appendices 17 Appendix 1 – Types of functional food. 17 Appendix 2 – SWOT Analysis of PO-3. 17 Appendix 3 – Purposes of Mixed Methods Research. 18 Appendix 4 – Hypothetical Laddering Interview + MEC 19 Appendix 5 – The Questionnaire Design. 20 Bibliography 32 1. ------------------------------------------------- Introduction ...

Words: 8078 - Pages: 33

Premium Essay

V , S Case Analysis

...Yu, Wantao (2011) Operations strategy, business environment, operations resources and performance: an empirical study of retail firms in China. PhD thesis, University of Nottingham. Access from the University of Nottingham repository: Copyright and reuse: The Nottingham ePrints service makes this work by researchers of the University of Nottingham available open access under the following conditions. · Copyright and all moral rights to the version of the paper presented here belong to the individual author(s) and/or other copyright owners. · To the extent reasonable and practicable the material made available in Nottingham ePrints has been checked for eligibility before being made available. · Copies of full items can be used for personal research or study, educational, or notfor-profit purposes without prior permission or charge provided that the authors, title and full bibliographic details are credited, a hyperlink and/or URL is given for the original metadata page and the content is not changed in any way. · Quotations or similar reproductions must be sufficiently acknowledged. Please see our full end user licence at: A note on versions: The version presented here may differ from the published version or from the version of record. If you wish to cite this item you are advised to consult the publisher’s version. Please see the...

Words: 19791 - Pages: 80

Premium Essay

Managing Information Technology (7th Edition)

...CONTENTS: CASE STUDIES CASE STUDY 1 Midsouth Chamber of Commerce (A): The Role of the Operating Manager in Information Systems CASE STUDY I-1 IMT Custom Machine Company, Inc.: Selection of an Information Technology Platform CASE STUDY I-2, Inc.: Deciding on the Next Steps for a VoIP Supplier CASE STUDY I-3 The VoIP Adoption at Butler University CASE STUDY I-4 Supporting Mobile Health Clinics: The Children’s Health Fund of New York City CASE STUDY I-5 Data Governance at InsuraCorp CASE STUDY I-6 H.H. Gregg’s Appliances, Inc.: Deciding on a New Information Technology Platform CASE STUDY I-7 Midsouth Chamber of Commerce (B): Cleaning Up an Information Systems Debacle CASE STUDY II-1 Vendor-Managed Inventory at NIBCO CASE STUDY II-2 Real-Time Business Intelligence at Continental Airlines CASE STUDY II-3 Norfolk Southern Railway: The Business Intelligence Journey CASE STUDY II-4 Mining Data to Increase State Tax Revenues in California CASE STUDY II-5 The Cliptomania™ Web Store: An E-Tailing Start-up Survival Story CASE STUDY II-6 Rock Island Chocolate Company, Inc.: Building a Social Networking Strategy CASE STUDY III-1 Managing a Systems Development Project at Consumer and Industrial Products, Inc. CASE STUDY III-2 A Make-or-Buy Decision at Baxter Manufacturing Company CASE STUDY III-3 ERP Purchase Decision at Benton Manufacturing Company, Inc. CASE STUDY III-4 ...

Words: 239887 - Pages: 960

Free Essay

Role of Power

...contemporary organizational issue you find intriguing. Use one field site or example for the entire paper. Also, be explicit about the level issue. For example, if you are using the concept of personality then it is an individual level issue. A list of concepts and their related levels is provided in a separate document. Focus of paper-related requirements: Outline: Submit a formal outline for your paper, complete with references. The purpose of the outline is to help you organize your content, which also results in increased clarity, improved logic, and better structure of the paper. There may be adjustments from this document to your final paper, but at this stage the paper should not require major revisions. Final Paper: Use a case study format for the structure of your paper. Identify and analyze issues using course concepts, and propose recommendations for the organization you are focusing on. Use of course concepts 1. Use a minimum of 8 concepts for the paper. Include a list of the concepts you used at the beginning of the paper. 2. Briefly define each concept you use within the text (a paragraph or two). 3. For each concept, write a diagnosis at one level (e.g., the person level). For example, you might write “The employee misses work frequently due to stress from conflict with her supervisor.” Note, stress and conflict would require definitions.) 4. For each concept, write a solution or solutions. Identify the level(s) you addressed in Step 2...

Words: 594 - Pages: 3

Premium Essay


...Calendar Overall for Case-Study Presentation & Mid-Term Exam – MGT 4760 (Strategic Management) Sem 1, 2012/2013 Sec 8 (M-W) No. | Week | Topics | Class Day | Date | Schedule | Details | | 1 | Chapter 1: The Nature of Strategic Management | 1- Mon 2- Wed | 10/912/9 | | | | 2 | Chapter 2: The Business Vision and Mission | 3- Mon 4- Wed | 17/919/9 | | | | 3 | Chapter 3: The External Assessment | 5- Mon 6- Wed | 24/926/9 | | | | 4 | Chapter 4: The Internal Assessment | 7- Mon 8- Wed | 1/103/10 | Quiz 1 (Chapter 1.2.3) | | | 5 | Chapter 4: The Internal Assessment | 9- Mon 10- Wed | 8/1010/10 | | | | 6 | Chapter 5: Strategies in Action | 11- Mon 12- Wed | 15/1017/10 | | | | | BREAK(22/10 – 28/10) | 13- Mon 14- Wed | 22/1024/10 | | | | 7 | Chapter 5: Strategies in Action | 15- Mon 16- Wed | 29/1031/10 | Case Presentation Session 1Case Presentation Session 2 | Group 1:L: Lia Hilaliah (Case Study 3)Group 2:L: Mas Syairah bte Mohamad (Case Study 5) | | 8 | Chapter 6: Strategy Analysis and Choice | 17- Mon 18- Wed | 5/117/11 | | (Mid-Term Exam 7/11 Wednesday)Seminar Room 1.1 | | 9 | Chapter 6: Strategy Analysis and Choice | 19- Mon 20- Wed | 12/1114/11 | Case Presentation Session 3Case Presentation Session 4 | Group 3:L: Mohamed Sheikh (Case Study 9) Group 4:L: Izzati Nor binti Salleh (Case Study 14) | | 10 | Chapter 7: Implementing Strategies: Management and Operations...

Words: 418 - Pages: 2

Premium Essay

Ob, Arctic Minings Consultants, Case Study

...ARCTIC MINING CONSULTANTS Case Synopsis Arctic Mining Consultants is a mining company that deals with mineral exploration. In this case study, the project given is staking 15 claims in Eagle Lake, Alaska. The project Manager was Tom Parker, who has a wide experience and specialized knowledge in all nontechnical aspects of mineral exploration. He is a geological field technician and field coordinator for Arctic Mining Consultants. He assigned his previous field assistants John Talbot, Greg Boyce and Brian Millar to help him complete the project. The job required them to stake at least 7 lengths each day in order to be completed on time. However, the whole team has became very tense and agitated, especially Tom Parker, as the deadline was just around the corner and there’s still many to be finished within the limited time. The problem became worse with the way Tom managed and treated his team. The only motivation to the team was the $300 bonuses promised by the company when the job is done on time, otherwise, they might wished to give up already. This happened because working as a field assistant and in long-working hours only giving them low wages, which is considered unreasonable compared to what they have to do. During the eight hard days, everything had actually proved the strengths and weaknesses of each of the team members, including Tom. Case analysis symptoms 1) What symptom(s) exist in this case to suggest that something has gone wrong? The symptom(s) to suggest...

Words: 2346 - Pages: 10

Premium Essay

Case Study Sample

...Running head: CASE STUDY XYZ Case Study XYZ: An Examination of Project Procurement Management Practices Group 12 John Doe Jane Smith Bobbie Sue University of Maryland University College Project Procurement Management, Semester XXXX, Section XXXX Professor Stephen R. Guth MMMM DD, YYYY [No Abstract or Introduction required for this assignment] The Inception Phase Rating Scale: 5—Excellent, 4—Very Good, 3—Good, 2—Poor, 1—Very Poor |Project Management Area |Inception Phase | |Scope Management | | |Time Management | | |Cost Management | | |Quality Management | | |Human Resource Management | | |Communication Management | | |Risk Management | | |Procurement Management | ...

Words: 804 - Pages: 4

Premium Essay

Organizations Conflicts

...policy. 2) Employee conditions: a. Lack of motivation  b. Compensate for low wages by over indulgence of free food allowance c. High turnover rate due to availability of high application rates. d. Employees are mostly college and high school students e. Lack of respect for managers. f. No incentive to increase motivation. In the case study Perfect Pizzeria, the area supervisor has many problems that need his attention. The largest appears to be the organization. In this case study I will assume that the area supervisor has the authority to affect change within his organization (i.e. he is the franchise owner). Being in an area with few job opportunities should give him the perfect opportunity to recruit bright, ambitious, and motivated people to staff his pizzerias. How can the area supervisor change his organization to achieve a more fluid corporate culture? I think this change can be achieved by human resource changes, structure changes, motivational changes, and reward for good performance as well as accountability for poor performance. Each one of these areas will require a change from the corporate level. For the sake of my case study I am going to assume that the area supervisor (franchise owner) can lobby to achieve this change within the organization. The first area to look...

Words: 445 - Pages: 2

Free Essay

Why Financial Intermediaries Exist

...letters in industry or for a class, knowing your purpose and audience will help determine what information to include. Generally, business letters follow a particular format, although your instructor or company may require you to use alternative formats. This guide provides writers with an introduction to writing business letters. Case Studies: This guide examines case studies, a form of qualitative descriptive research that is used to look at individuals, a small group of participants, or a group as a whole. Researchers collect data about participants using participant and direct observations, interviews, protocols, tests, examinations of records, and collections of writing samples. Starting with a definition of the case study, the guide moves to a brief history of this research method. Using several well documented case studies, the guide then looks at applications and methods including data collection and analysis. A discussion of ways to handle validity, reliability, and generalizability follows, with special attention to case studies as they are applied to composition studies. Finally, this guide examines the strengths and weaknesses of case studies. Desktop Publishing: Desktop publishing is the process of laying out and designing pages with your desktop computer. With software programs such as PageMaker and Quark Xpress, you can assemble anything from a one-page document to a...

Words: 795 - Pages: 4

Premium Essay

Brussels and Bradshaw

...Brussels and Bradshaw In response to the case study, Brussels and Bradshaw is a well-established financial institution that offers their clients competitive and innovative solutions for their community and work environments. The banking institution offers a summer internship to bright and driven individuals. The internship includes 14 weeks of very intense training and long hours. Interns are paid $20,000 for the contract. During the screening process, out of all the possible candidates Audrey Locke was selected. Audrey has some experience as an assistant, assurance analyst and financial planning analyst. Brussels and Bradshaw is operating in more than 25 countries globally; this case study takes place in Toronto. Many behavioral issues in the Brussels and Bradshaw institution are unprofessional and stressful. Job stress is defined as feeling one’s capabilities, resources, or needs that do not match the demands or requirements of the job (Hitt, Miller, & Colella, 2011 p. 249). Working 70 and 80 hours per week or possibly 120 hours will put a major burden on anyone, especially someone new to the working environment. Audrey is excited with her internship and very eager to learn. She is assigned a mentor and buddy by the business development manager, Kelly Richards. Kelly has 10 years of experience. Although associates consider her human resources, Kelly’s job is strictly administrative. Audrey is never introduced to her mentor and her buddy, Christine Page is very...

Words: 509 - Pages: 3

Premium Essay

Coach Purses

...Business case studies determine and define the primary issues that a company faces in the modern world market. A well designed business case study can provide a detailed contextual analysis of limited conditions and their horizontal relationships to other entities. In the case of Coach, they are an international clothing accessory company with a reputation of making pristinely handcrafted items with unique designs and a label that represents over seventy years of craftsmanship. In order to fully understand Coach’s business model, empirical data must be collected and analyzed to include the historical and current financial statistics, an in-depth analysis of the company overall, an analysis of the company’s business model, and finally current issues and future forecast that affect the longevity of the enterprise. By studying the history of Coach, both investors and those with an interest in the company can gain insight into key factors that motivate company decisions. Background/History The history of Coach starts in 1941 in a small family run leather workshop with six primary artisans in Manhattan that had skills passed down from generation to generation. It was not long until leather good become sought after for their high quality and workmanship. Through the guidance of the longtime and current CEO, Lew Frankfort, Coach expanded their business from just 6 million dollars 30 years ago to current sales exceeding 3.6 billion dollars. (Coach, 2012) From 1941 to present, the...

Words: 1026 - Pages: 5

Premium Essay

Muller Case Study

...Case Studies and Exercises Lecture 2. The Rise of Multinational Companies Case: MUELLER: China Bound? (A), (B) and (C). (308-358-1, 308-359-1 and 308-360-1). Discussion Questions: 1. What are the primary ownership advantages of Mueller? 2. What are the major ways in which Mueller could serve the China market? 3. What are their primary advantages and disadvantages?? 4. If Mueller decided to invest in China, what would be the main functions of its subsidiary? 5. How could the risks involved in the FDI to China be managed? Lecture 3. The Myth of the Global Company Case: Lafarge: From a French Cement Company to a Global Leader (304-019-1) Discussion Questions: 1. What are the main characteristics of Lafarge’s internationalisation strategy and competitive competences and how do these differ from those of other cement companies such as Cemex and Holcim? 2. What were the assumptions underlying Lafarge's strategy and how justified were these? 3. To what extent is Lafarge a French company with foreign operations, as distinct from a global MNC, and how is it likely to develop as a MNC? 4. What are the implications of Lafarge’s growth for the internationalisation of other French firms? Lecture 4. Competing Capitalisms in the 21st Century Case: Messier's Reign at Vivendi Universal (9-405-063) Discussion Questions: 1. What was Messier's strategy in transforming CGE into Vivendi, what assumptions was it based on and how justified were these? 2. What does this transformation reveal about the...

Words: 961 - Pages: 4

Free Essay

Research Case Study: Vodafone's Youth Market

...Research Case Study: Vodafone's Youth Market | | INTRODUCTION This case study will explain how the highly competitive telecommunications market lead Vodafone to set up an on-going 'panel' of respondents to give them a greater understanding of the youth market. THE CLIENT Vodafone is probably the biggest success story of the telecommunications market, becoming a household name with a penetration of 29% (TNS Telecoms panel Q3 2001) of the mobile phone market. Vodafone's media and planning agency, OMD UK plays an important strategic role in terms of researching the commercial market. THE CHALLENGE Operating in such a highly competitive industry meant that Vodafone had to look at new ways of researching how it could best profit from the hugely competitive youth market. The youth market is defined as anyone aged between 16-24 years old. Currently 90% of all 16-24 year olds own a mobile phone in the UK, amounting to 6.1m people in the UK. THE SOLUTION OMD UK, along with 2CV Research, recruited a panel of volunteers who receive monthly questionnaires over a long-term period in order to build up a profile of habits, attitudes and opinions of the young Vodafone user. The panel is made up of 200 respondents, all of whom must have an email address and a mobile phone (this is 85% of the youth market), and is maintained by 2CV. Questions sent out every month cover a whole range of areas, not just telecommunications. The idea is to build a very comprehensive picture of...

Words: 841 - Pages: 4