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
This model was developed by Michael E. Porter in 1980. He identified 5 forces that shape every industry and determine its attractiveness and potential profitability. These forces as described as follows:
During the mid-1990s, Carrefour Group initially established a representative office in Moscow as its early enter strategy, however, as the result of financial storm in 1998, Carrefour had to exist Russia market. Till June 2006, Carrefour slowly started to plan to enter the retail market in Russia again. During the years 2006 and 2007, due to Carrefour decided to spend plenty of time on studying the Russia retail market, they had to postpone the time of entering the Russia market. After that, in 2008, because of the financial crisis, Carrefour had to delay its entry project again. A group executive director of Carrefour named Thierry Garnier said that their strategies were waiting for the best opportunity to enter Russia market, and they are rather coming late, because it would be more efficient to purchase a chain that already established distribution and logistics network (Andrew E, 2009). However, things went contrary to their wishes. By the time Carrefour prepared for taking action to enter the Russia market, other competitors had already built the significant presence in the Russia market early. For example, Auchan had opened 34 hypermarkets and presented in the eight Russian cities. Even during the Financial times, Auchan didn’t delay its opening program. Metro also had established 74 stores throughout the Russia market. At the same time, some local retail players also had achieved better performance and profit growth behavior in the local market. Consequently,
In order to reduce Costco’s reliance on the US and Canadian markets, placing an emphasis on international expansion would not only lead to diversification, but also better profitability. While it is engaged in expanding internationally, an accelerated expansion strategy should be employed in order to tap into the high growth markets. The high growth markets of the BRIC nations as well as the growing East Asian markets remain relatively untapped and would provide an excellent opportunity for global growth. The rising middle income demographic in these markets would provide a sustainable customer base for Costco’s long term growth. In order to penetrate these markets, Costco would have to duplicate its success in warehouses located in Taiwan and Korea. This expansion, however, must be managed delicately as penetrating new markets comes with its own risks. Consideration needs to be given to the differences in cultural factors and the political and operating environment that exists within these markets.
Automated routine operations and streamlined provisioning allow avoiding excessive and time-consuming actions for IT staff, thus reducing their workload and minimizing the risk of errors. The easy-to-use Self-Service Web Interface gives users the opportunity to maintain their personal information themselves without involving IT staff. Operations on multiple
The Case for this module centers on an organization implementing a new computer-based information processing system. Thousands of organizations go through the same kind of process every day—you yourself may have been involved in one or more such "technology transformations." Despite this body of experience; the advice of thousands of consultants, researchers, and computer gurus; and the leverage of multibillion-dollar corporations such as Microsoft, Google, and Oracle; a large proportion of these
However, this approach is limited. Due to globalization, lowering cost of production and availability of information, the competition is more fierce some than ever in most industries, putting more pressure on companies and shrinking their profit margins. In this competition race, products and services
The losses, however, are felt not only by the earth that produces them, but also the businesses that purchase them. As part of a growing sense of eco-consciousness in the minds of consumers, the sustainability movement has provided opportunities for business to mend their practices. Companies like Loblaw Companies Ltd. in Canada and InterMarché, a French equivalent, are both acting on the up-and-coming consumer base.
Research also suggests that the company conducts its own research and development, designing, manufacturing and merchandising of sales (Pongtratic, 2007). All this, done through retail, catalogs and web-based for both adult and children that wear outdoor clothing and use other outdoor goods (Pongtratic, 2007). There are many key specifics and critical matters presentenced in this case study. However, one of the most important key fact and critical issue gleaned is that Chouinard, his wife and business partner Malinda vowed to establish a business on their own terms that offered environmental preservation above all else (Ferrell, Hirt, & Ferrell, 2009,pg. 352). Another key fact and critical issue is that the company really cares about their employees. An example of this in the case study highlights that Chouinard believes that the quality of its products is because employees are satisfied and devoted to the cause of the company.
Globalization has an impact on almost all aspects of a business, as they can no longer survive without taking a global perspective into consideration in this ever-changing market. Increased levels of transportation and communications have made customers much more aware and selective than before. The petroleum refining and manufacturing industry’s revenue is falling rapidly, with a decline of 16.7% expected in 2016 alone. It’s also estimated to decline at an annual rate of 7.7% over next the five years due to rising competition from new South-East Asian refineries.”
3. Centralized IT system for the affiliates with the rollout of new technologies outsourced –
New competitors, economic downturns, and the emergence of substitutes are now a very real threat to The Company’s current
Burberry need to scan their market segments in order to gain the most competitive advantage. Pestle analysis looks at the political, economic, social, technological, legal and environmental factors that affect an organisation providing a ‘comprehensive list of influences on the possible success or failure of strategies’ (Johnson, Whittington, Scholes, 2011). However, the three main changes that focused on in this essay are Economic, Social and Environmental factors. The economy within China is currently very stable; being a part of the 4 fastest growing economies in the world (BRIC: Brazil, Russia, India, China), it has made large strides in recent years in the business and industrial sector. , the country
This paper focuses on global business strategy of The Coca-Cola Company, who is the leader in the beverage industry as well as, the world?s leading soft drink maker that operates in more than 200 countries and owns or licenses 400 brands of nonalcoholic beverages. The paper will concentrate on the PESTEL analysis of the organization focusing on the external factors of the business and the environment where it operates. All of the following environments will be discusses in the research; Political, Economic, Sociological, Technological, Legal, and Environmental as they the changes in the market segment. Within this paper it will discuss some of thr
In order to succeed today, organizations that are competing in global markets are increasing rapidly. The increased use of technologies such as the Internet, intranets, and extranets will definitely revolutionize how businesses will operate and how they will use computers to compete. The Internet and related technologies and applications have changed the ways companies operate their businesses processes and activities. For example, companies can network their offices and share data to be more effective and efficient. However, excessive use of the Internet, intranets, and extranets also create intense
Carrefour means “crossroad” in French, the implication of Carrefour is that people could find Carrefour stores very easily and conveniently. Carrefour logo with its blue, red and white colors has a very significant meaning behind it. It is a continuous commitment to their customers. The logo is coming from C of Carrefour and an arrow on both sides, representing