Principle & Practice of Management

1622 WordsNov 3, 20127 Pages
PRINCIPLE & PRACTICE OF MANAGEMENT International Case : Carrefour — Which Way to Go? How should Mr. Durant assess the opportunities in various countries around the world? Mr. Durant, the new CEO since 2005, embarked on the new strategy by offering 15percent new products in its hypermarkets and 10 percent in its supermarkets. Moreover, he wants to employ more staff, extend the operating hours in certain hypermarkets, cutting prices, trying small stores, and pushing down decision making. Mr. Durant aims to stay only in countries where Carrefour is among the top retailers. 2. Should Carrefour adopt Wal-Mart's strategy of "low prices everyday"? What would be the advantage or disadvantage of such a strategy? Yes certainly they have to…show more content…
In a bottom-up approach the individual base elements of the system are first specified in great detail. These elements are then linked together to form larger sub-systems, which then in turn are linked, sometimes in many levels, until a complete top-level system is formed. This strategy often resembles a "seed" model, whereby the beginnings are small but eventually grow in complexity and completeness. However, "organic strategies" may result in a tangle of elements and subsystems, developed in isolation and subject to local optimization as opposed to meeting a global purpose. As a Consultant I recommended a top-down approach. A multi-billion dollar corporation like Procter and Gamble Corporation, which carries 300brands and growing really has a strong grasp in re-engineering. Procter and Gamble Corporation’s chief technology officer, G. Gil Cloyd, explains how a company which carries multiple brands has to contend with the "classic innovator's dilemma in most innovationsfail, but companies that don't innovate die. His solution, innovating innovation..."(Teresko, 2004). Cloyd has helped a company like Procter and Gamble grow to $5.1 billion by the fiscal year of 2004. According to Cloyd's scorecard, he was able to raise the volume by 17%, the organic volume by 10%, sales are at $51.4 billion up by 19%, with organic sales up 8%, earnings are at $6.5 billion up 25% and share earnings up 25%.Procter and Gamble also has

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