Case 7,8

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Discussion Question—pg. 549-551 Case 7 Ahold: The Biggest Supermarket Retailer You Have Never Heard Of 1. What are the advantages and disadvantages of the growth strategies pursued by Ahold, Carrefour, and Wal-Mart? Ahold Global Expansion (1970’s—Spain, Portugal, United States; 1990’s—Central Europe, Latin America, Asia) Pro: High penetration in U.S. market. Con: Low penetration in its mother continent. The profit margin for Ahold’s U.S. division is 5.7 percent, while the profit margin for the European division is only 3.9 percent of sales. Pro: High international experience. 34 years since the first acquisition in the United Sates, Bi Lo. Pro: “No other European retailer has been as…show more content…
| Wal-Mart & Carrefour’s Centralized Decision Making |Advantages |Disadvantages | |Top-down Control. |Risk is great if the top of the organization becomes | |Uniformity of activities. Obviously when centralized, the |incapable of leading the organization. | |activities will be either in the hand of one individual or a few |Employees also will feel less motivated to perform for the | |one but under his (one) direct, control. This will result into |organization as they will not have an avenue for sharing | |uniformity of activities and thereby ensuring uniform decision and|their ideas on how to improve the organization. | |uniform process. |Lack of secrecy. Secrecy in a centralized set up cannot be | |Quick decision making. |maintained as the orders and
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