Carrefour Case Study

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:

Hermès International, sometimes also referred to as Hermès of Paris or Hermes, is a French luxury goods manufacturer. It has been consistently ranked as the world’s most valuable luxury brand in different valuation and ranking studies published by leading consultancies. Hermès as a brand enjoys an iconic status in the world of luxury. A combination of rich heritage, exquisite craftsmanship, eye for detail and high levels of quality and professionalism through the entire manufacturing process gives Hermès a position of superiority in the very competitive and ruthless world of luxury.

Perhaps the business is considered medium-sized because there are over 100 employees. Although technically speaking the federal government recognizes a large business over 100 employees. Regardless, the company can afford to offer two different forms of health insurance. The current perspective client for the medium-size business is the La Fontaine dealership, which offers a variety of vehicles from Ford to Toyota. LaFontaine dealership currently employs 250 people. The first perspective plan that the company could offer the employees is a Preferred Provider Organization (PPO) from Blue Cross Blue Shield of Michigan. The projected costs for the employer to have this insurance per month are $36,000. The employer will pass on 30% of the costs to each employee, thus, each employee would pay $108 every month or $54 on their biweekly paycheck. Overall, it equals to just $1296 for the year, which still falls below the $2000 maximum allowed from the ACA. Blue Cross Blue Shield of Michigan PPO is constructed in such a way that the ACA considers it a Silver plan because it covers 80% of the healthcare costs with just 20% of the cost being placed on the enrollee. The resource-based relative value scale (RBRVS) will pay the physicians in this plan in a fee-for-service system. If the enrollee stays with and preferred provider network, then the services will be covered at 80% with the patient only paying a 20% coinsurance provided that they have met their deductible of $1500 or $3000

Coles Supermarkets Australia Pty Ltd, trading as Coles, is an Australian supermarket chain owned by Wesfarmers.Coles provides fresh food, groceries, general merchandise, liquor, fuel and financial services to more than 21 million customers on average each week through its store network and online platform. Coles is constantly exploring and investing in important environmental projects and partnerships to reduce environmental impacts. Coles is constantly improving efficiencies within their supply chain, reducing greenhouse gas emissions across their businesses, and focusing on waste reduction and recycling. Coles measures and reports their emissions, energy use and waste on a regular basis, and seek out ways to minimize the impact of their operations on the environment .Coles also contributes to many charities and organization to give back to the society. Coles

Different compensation packages for Parent Country Nationals , Host Country Nationals, and Third Country Nationals

The company had ambitious objectives with their own retail units, having as an objective to open three hundred stores, but the company realized that retail stores were a distraction to management making harder to focus in their core business and damaging the relationship with their main retailers, making clear that the company was struggling on creating profits in products that were not part of their core business, the strategies and objectives needed to be adjusted in order to turnaround the decrease in sales and profits of the

The following data is from our final query that contains most of our data from each table so it can easily be transferred to excel. The data

I am an executive of XYZ, Inc., a well-known company in United States for its luxury watches, jewellery and handbags. There are 22 retail outlets in whole of United States. Achieving great success in the United States the company has decided to expand their business and open their retail outlets in different countries. To start off with the company has decided to open their first international store at Shanghai, China. Then after a year of time the company has decided to open stores even in Brazil, Russia, India and China.

American Apparel is a clothing industry knows for its passion, ethical practices and innovations. The employees at American Apparel are getting 50 times more than the employees are getting in Bangladesh. The employees at American Apparel are paying so much in a reference to have careers to build up not just the jobs in hand. From 2002, they used to call it Sweatshop-free.

Capital Budgeting is a planning process that been used to determine whether an organization long term investment like new products, machinery, plants and research are worth to funding of cash through the firm capitalization structure such as debt, equity or retained earnings. Capital budgeting is a process of allocating company or organization resources for major investment, capital or expenditure. The goal of capital budgeting is to ensure that the value of the firm increase to the shareholder.

Famous brands was founded by George Halamandres in 1960, he had a vision of bringing steak houses to south Africa after a trip to the USA in the 1950s. Famous brands first casual dining restaurant was Steers. In 1994 they were registered on the JSE at a price of R1 per share, In 1997 famous brands acquired their next franchise, Debonairs Pizza and then in 1999 they acquired Fishaways, over the last twenty years they have acquired many other casual dining franchises such as Wimpy, Milky Lane, Mugg & Bean and Keg to name a few, they have 27 brands under their franchise network with a total of 2782 restaurants in South Africa, Africa, United Kingdom and the Middle East, They are acquiring a 28th brand. Famous brands also have a Manufacturing and logistics division they currently have 117 trucks in that logistics fleet. Famous Brands are now worth an estimated 11 Billion rand.

The level of threat of new entrants is relatively high because the barriers to start up a store are low. According to IBISWorld, the retail industry is forecasted to be relatively stable and growth by 2.1% per annum for the next five years. Since the industry profits has increased, we would expect additional firms to enter the industry to take advantage of the high levels of profits, and over time driving down the profits for all firms in the industry. The high set up cost such as lease contracts, increase in property prices and wages cost shall act as an obstacle for new firms to entry the industry. In addition to that, SUL has the higher advantage for being the first mover in the industry thus establishing its brand identity and has many accesses to distribution channels.

In 1999, the French leading luxury brand, Louis Vuitton, decided to enter the Indian market. Maharajahs, is a Sanskrit title given to those in India who have the title of “great king”, “high king” or “great ruler”. The Maharajahs have been very familiar with Louis Vuitton since the late 19th century. This relationship between the Maharajahs and the Louis Vuitton brand allowed the decision of entering the Indian market a lot easier. However, the relationship itself had reached a halt and when the bureaucratic restoration of India began, the relationship started to decline more. Due to this, Louis Vuitton had to start seeking out an alternative customer base if it wanted to keep up with the ever changing market place in India. The task that Louis Vuitton had was to establish itself as an exclusive brand to fit the perception Indians had about luxury goods while extending its reach as far as possible. Many of the prior strategies that Louis Vuitton has previous started would not very plausible in India’s market place.

Metro Group was Germany’s biggest retailer (250 stores, 10 warehouses, 100 suppliers) that operates globally in 6 divisions: Metro Cash & Carry (wholesale), Retail (hypermarkets), Extra (supermarkets), Media Market and Saturn (consumer electronics), Praktiker (building materials), Galeria Kaufhof

Wal-Mart is also doing strategic alliance to get hold of Chinese market. Even Wal-Mart was planning to acquire kopeyka in Russia for its entry to Russian market however it entry was stopped by X5 market leader of Russian retail by purchasing the company in $1.6 billion. We can say that acquisition is good strategy for Carrefour in countries like China, Russia, India, or Brazil which have many cities with population in millions or in market where it s difficult to get enter. However Carrefour was the first international retailer in China so it focused on organic growth and kept it at 20% for 2008 but keeping in mind the small acquisition as well. So we can say that Carrefour was quite successful in it strategy of organic growth and acquisition. Wherever it has acquired companies it has achieved its strategy of organic, sustainable growth, with fast return on investment and market leadership. However there are many countries where Carrefour failed like Russia, South Korea, Japan, Slovakia, and Czech Republic, Malaysia, Singapore etc There were many other factors which were cause of its exit from those countries. Still Carrefour has sold it operations in that country to companies like Tesco, E-Led. We can assume that Carrefour could have it strategy to test new markets get