...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...
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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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...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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...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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...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 stores, cash & carries, c-stores and a number of neighbourhood store formats...
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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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...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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...(compensation), creating a positive work environment (employee relations), and supporting the organization’s strategy (HR planning and change management). 1. BACKGROUND OF COMPANY 1. JUSCO Store JUSCO is the acronym for Japan United Stores Company, a chain of "general merchandise stores" (or hypermarket) and the largest of its type in Japan. The various JUSCO companies are subsidiaries of ÆON Co., Ltd. The JUSCO name was adopted in 1970 by a company originally founded as a kimono silk trader in 1758. Renamed ÆON in 1989, it operates stores throughout Japan under JUSCO and other names and also has a presence in Malaysia, Hong Kong, mainland China, and Thailand. In 1985 the first JUSCO overseas store was opened, in Plaza Dayabumi, Kuala Lumpur, Malaysia, as a jointly-owned company with Cold Storage (Malaysia) and three local companies. It was the first time that a Japanese company had entered into a significant joint venture in the Malaysian retail industry. JUSCO assumed total operational control of the chain in 1988. Currently 18 JUSCO stores and supermarkets are in operation in Malaysia with another four confirmed openings and three planned stores by 2010. 2. CARREFOUR Company Carrefour is a French international hypermarket chain. The headquater of Carrefour is located in Levallois-Perret, France....
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...Redesigning retail: Operating model imperatives for international retailers Deploying the right operating model can help international retailers drive profitable growth by balancing customer relevance and operational efficiency across diverse and dynamic markets. Today’s consumers are a formidable bunch. Armed with more information than ever thanks to technology, they shop anytime, anywhere and with anyone they choose. Moreover, choice, convenience and service mean just as much to them as price. Evolving customer demands are driving retailers to tailor their offerings, expand into new business segments and enhance customer touch points. At the same time, competition— always fierce in retail—is intensifying. Only the fittest or luckiest retailers have survived the global downturn, and investors are demanding ever better performance from them. Already-lean retailers are searching for new ways to achieve structural and operational efficiencies in a bid to outpace competitors. Furthermore, new players from other retail segments and industries are ramping up their retail presence. For example, big-name manufacturers including Apple, P&G and Nike are now bypassing traditional retailers and reaching consumers directly through multiple channels. Growing numbers of retailers are going international—and small wonder. Home markets are saturated, but markets near and far, particularly in emerging economies, still offer white space (see Figure 1). The world’s largest retailers are entering...
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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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...in 1919. Currently, this British-based international grocery and general merchandising retail group operates 4331 stores across 14 countries (the United Kingdom, Ireland, the U.S., China, India, Thailand, South Korea, Malaysia, Japan, Turkey, Poland, Hungary, Czech Republic and Slovakia) , employs 472,000 people, and recently generated $513million in 2012 sales. Furthermore, Tesco is the largest private sector employer in the United Kingdom, and is recognized as the third largest global retailer based on revenue and the second largest measured by profit. Over the years Tesco has been transformed from a group of market stalls to a world-leading retail group. While it originally specialized in supplying food and drink, it now offers an increasing range of non-food products including clothing and consumer electronics and provides a wide range of services such as, financial services health, telecoms, Internet, and insurance. Besides of it’s stores, Tesco has also dominated in online grocery market with annual sales exceeding $5 billion and Tesco.com is acknowledged as the world’s largest online grocer which providing other things groceries, home retailing, and music downloads. Impressively, Tesco was still performing extremely well with a 15.1% growth in annual sales and a 5.5% growth in profits even amidst the global financial crisis in recent years. Carrefour is a famous hypermarket chain who selling a wide range of grocery products ranging from frozen goods and fresh products...
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...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 120 2,241 476 518 59 544 494 578 16 443 31 303...
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...1.0 Tesco Malaysia Tesco stores (Malaysia) Sdn Bhd was first introduced on 29 Nov 2001 in Malaysia. Malaysia was selected as the market of entry due to its developing economy with political stability, market capacity which was positive signs of establishing a business in a country. The first Tesco store was officially opened in May 2002 in Puchong. Sime Darby owns 30% of Tesco shares and the rest is own by Tesco itself, since the launch of the business. Tesco has a total of 49 hypermarkets in Malaysia. Tesco basically caters for the needs of people by the sale of fresh foods to groceries, household needs to apparels they cover almost everything. Tesco carries a total of 86,000 lines of products including more than 1,300 Tesco branded items. Tesco is one of the only retail outlets to have the online services whereby customers are allowed to order products just by clicking on their computers and the goods are directly delivered to their home’s(Studymode.com). Tesco is operated by their CEO Mr Grorg Fischer who has lots of experience in the retail industry and plans to broaden the online services. (News Straight Times Oct 2014) Tesco is one of the leading companies that aim’s to provide business strategies and practices to adapt business based on the changes of the environment. Therefore the vision of the company is “To be the most highly valued business by the customers we serve, the communities in which we operate, our loyal and committed colleagues and of course, our shareholders”...
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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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...is dominated by few retail giants, with Wal-Mart competing in several retail categories. Wal-Mart competes against Kmart and Target in the general merchandise retailing; against Costco in the warehouse club segment; and against Kroger, Albertson’s and Safeway in the supermarket retailing. Competition among retailers centers on pricing, store location, variations in store format and merchandise mix, store size, shopping atmosphere, and image with shoppers. Further analysis provided by the following figure diagnoses the competitive environment of the retail industry. As a fact, Wal-Mart is considered as the world’s largest retailer nationwide that has been guided by its founder Sam Walton’s passion toward customer satisfaction, and his beliefs in excellence, as well as his philosophy in lowering his prices that has been proven with his famous slogan “everyday low prices.”1Visible outstanding success has required a lot of effort, strategies, dedication, and wide consideration. Such as Wal-Mart, victory is an echo that needs a lot of challenge to market real as Sam Walton did. Since 1962 which was the year of the first Wal-Mart retail store birth till nowadays, Wal-Mart has built up their achievement tremendously to reach the highest fiscal year ending over its rivals. In 2005 only, Wal-Mart fiscal year ending has evaluated with $285.2...
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