Carrefour Case Study

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CASE STUDY CARREFOUR IN ASIA MANAGERIAL FINANCE (FIN 745) EXTERNAL ENVIRONMENT 1. GENERAL 1.1. DEMOGRAPHIC Carrefour operates in 29 countries around the world. World population is rising, geographic distribution of populations is shifting, world population is aging rapidly, ethnic mixes in developed countries are changing rapidly, and average household incomes are increasing. The demographic environment presents both opportunities and threats for Carrefour. Increases in population size and household incomes help to expand the market in which Carrefour operates. However, changes in the geographic distribution of populations, due to technological advances in communications, may cause difficulties for Carrefour in…show more content…
1.5. TECHNOLOGICAL Technological advances in data storage, information systems, the internet, and other forms of communication continue at a rapid pace. The centralization of its IT systems and administrative procedures achieves further savings. The technological environment presents opportunities and threats for Carrefour. Improvements in technology will allow Carrefour to perform better analysis of data related to existing and future customer bases. The improvements will also allow Carrefour to continue to improve its supply chain, which is vital in enabling Carrefour to offer low prices. These technological improvements, however, may also be readily available to competitors. If competitors can easily mimic Carrefour’s processes through advances in technology, Carrefour will suffer setbacks. 1.6. GLOBAL The global environment presents opportunities and threats for Carrefour. Military and political conflicts may increase expenses in transportation, among other areas, that make it difficult to maintain low prices. The rapid globalization of business markets presents opportunities to Carrefour as countries relax regulations that hinder trade and foreign entry into domestic markets. The increased importance of environmentally friendly business operations may

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