Case Analysis of Carrefour

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Table of Contents Subject Page # History of Carrefour 3 Contingent Factors 4 Social Responsibility 8 Culture 9 Ethics & Corporate Governance 10 Organizational Structure 11 Effectiveness 13 History of Carrefour (Convenience Stores, Supermarket, Hypermarket) 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…show more content…
In order to increase adapting speed, Carrefour only sends one senior management to the locality and implemented decentralization strategy to give managers have power to make decisions which means the store managers had full operating freedom. It allowed each store has ability to adapt local culture and respond problems as soon as possible. Once Carrefour figured out the way to manage in that country, they retracted decentralization strategy and changed back to centralization strategy as they did in France. However, the decentralization strategy was recognized as a key success factor for Carrefour. In addition, Carrefour employed a large number of local staff to achieve their other strategy “localization”. Local staffs have better idea of what kind of food locals liked and what kind of tools locals preferred. They also have common sense about how to order different merchandise due to the need of local traditional festival. For example, Chinese needs moon cake for moon festival. (Mingshin University,2009). Carrefour has their own standard operation procedure for siting their hypermarket. They preferred to operate in city where market development potential and urbanization trend are highly evaluated. However, over recent year, retailer industry was saturated in city. Carrefour changed their siting standard gradually; they preferred to operate at suburban areas due to the cheap rent cost. Therefore, Carrefour

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