Delhaize Group Case Study

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There are two contrasting pressures that put opposing demands on an organization’s international strategy: global integration and local responsiveness. High pressure for global integration implies an increased need to concentrate and coordinate operations globally. This kind of approach cannot be applied to a food retailer for logical reasons.
Hence, in accordance to the research done, we identified Delhaize’s International strategy in a multi-domestic definition. Multidomestic is a term that has been used to describe a set of strategies adopted by companies that operate in more than one country at time. Expanding businesses into market overseas implicates to act differently in each of the markets the company operates in.
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Therefore, the organization becomes a collection of nearly independent units with value chain adapted to specific local conditions. Delheize itself defines the Group as an international group of local companies (report 2001). And also, “Delhaize Group is a federation of local companies, not a centralized, monolithic structure”. The Group encourages the development of local management teams, giving them considerable independence, in order to improve the response to customer…show more content…
Asia and in the USA) and at a global level to improve knowledge transfer and organizational learning throughout the Group. At the centre of Delhaize strategy have always been competencies in operating the supermarket business model. Therefore, these actions were designed to leverage efficiencies in procurement, energy and risk management. At the beginning of 2010 in the USA the intra-chain linkages and support activity integration was officially consolidated when it was announced that the already existing and applied “formulas” were to be supported by a single organizational unit, Delhaize America. The shared services embodied almost every “back office” function: supply chain, IT, finance, human resources and change management, legal and government relations, communications, strategy and research, and corporate development. (Global strategies in

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