Carrefour China

In: Business and Management

Submitted By malcoy
Words 389
Pages 2
Political issue - Politic is an important issue for understanding consumer attitude toward economic conditions. The president's or the leader's management of the economy will have a great impact on consumer confidence. If Chinese people have trust in their political leaders who form and develop economy, then they will have more confidence in their economy. Leaders or politicians can also influence consumer' behavior, not only products or companies from their countries, but toward other foreign countries as well. Example ( Chinese government influence their people to go against France)
Social issue - Social institutions including, family, friends, schools, religions, and political also influence consumer' selections. For example, a fifteen year old girl wants to have an i phone because her classmates have them. In China, social environment and personal interactions have a powerful effects on human and consumer behavior. Social class, culture, and reference group are always related to purchase and consumption decisions. It can be both direct and indirect effects on the behavior. Communication between people concerning about a particular product and company is a direct effect. By indirect means the influence of the society on an individual and member's value and attitude toward a particular product and company.
Economic issue - The success or failure of Chinese 's economy can have an impact on consumer behavior based on their economic factors. If their economy is strong,consumers will have more money and power to purchase goods and products. In a contrast, struggling economy will create a problem such as unemployment, and people may lose their consumer confidence. Also, price inflation due to the economy is also damaging the company. With price inflation, the input cost increases and hurts the consumers. On a store level, Carrefour has an especially loose franchise…...

Similar Documents

Carrefour

...International Borrowing at Carrefour S.A. Briefly discuss the background of Carrefour SA and its financing practices. What are the borrowing alternatives? Carrefour S.A. is operating as a chain of hypermarkets, combining a supermarket, drugstore, discount store and gas station. Carrefour is originating from France, however, during 40 years it has expanded its operations to ten other European countries, six South and North American countries and nine Asian countries. The largest sales and profits of the company come from operations in France. But only in 2001 sales coming from France were less than from foreign operations. Carrefour management had generally financed company growth through securities denominated in the currency of business operations. More than 90% of borrowings are in Euro, and the remaining 10% - in other currencies (US dollars, Argentine peso, Swiss franc, etc.). Foreign currency exposure was generally hedged through currency-forward contracts. Now Carrefour needs to borrow EUR 750 million. The Carrefour management has to decide in which currency the company should borrow, and if all of the borrowing should be via bond issue. Using the parity forward rates calculate the cost of borrowing in CHF, GBP and in USD. In order to identify the internal rate of return (IRR) for each of currency options, we have projected cash flows in each currency based on the respective coupon rate. In order to translate cash flows in euro and make them comparable, we......

Words: 323 - Pages: 2

Carrefour Mena

...failure of companies. Carrefour is a well-known brand throughout the world. This case study report offers an understanding of the Carrefour Middle East operations. The report begins with an introduction of the company and its brief history, followed by its organizational structure and business model. The subsequent section explains the logistical and cross-functional drivers and their role in the Carrefour supply chain design. It is followed by Carrefour’s operational strategies in the Middle East and its value chain. Lastly, some of the existing supply chain challenges faced by the company in Middle East are explained followed by the roadmap ahead. Introduction Supply chain management is one of the key activities that determine the success of a company (Cambra and Polo, 2008; Quayle, 2003). Companies consider various key factors and practices while designing supply chain strategies. 1.1 Carrefour Company Background Carrefour was founded in 1959 on the basis of a collaboration between two budding entrepreneurs, Marciel Fourniel and Louis Defforey in Eastern France ( Carrefour History,2004). Carrefour was primarily geared towards being one of only a few free service supermarkets in France during this time due to the grocery store business being known as family run operations. In 1963, Carrefour invented a new concept : the hypermarket, and opened its first hypermarket location outside Paris which sold various food and non-food items (Carrefour Group History , 2013)...

Words: 4301 - Pages: 18

Carrefour

... Ryan Ayre, CJ Peszneker FINC 480 10.3.13 Case Analysis: Carrefour S.A. Context and Key Issues This case, centered in 2002, involves Carrefour S.A., at the time, Europe’s largest retailer. Leading up to 2002, Carrefour largely grew its business, including acquisitions, outside of its home country of France. At the time, Carrefour had retail operations in 26 different countries and funded any of its capital needs within these countries with the country’s currency denomination. Confronting Carrefour is a decision brought to it by its investments banks, Morgan Stanley and UBS-Warburg of funding future capital needs by borrowing in British pounds which provided opportunity to benefit from pricing differences in currencies through the Eurobond market. The options presented to Carrefour for borrowing include: A 10-year bond, selling at par with a coupon rate of 5.25 Euros A 10-year bond, selling at par with a coupon rate of 5.375 British pounds A 10-year bond, selling at par with a coupon rate of 3.625 Swiss francs A 10-year bond selling at par with a coupon rate of 5.50 U.S. dollars Background Carrefour was started in 1963 under the hypermarket concept which included a drugstore, gas station, supermarket and discount store all in one building. There initial store in Sainte-Genevieve-des-bois encompassed 2,500 square meters of retail space and 400 parking spots. With this revolutionary retail concept, Carrefour expanded rapidly into Belgium (1969), Brazil (1975). Included in......

Words: 1141 - Pages: 5

Financial Analysis Report of Carrefour

...Financial report : Carrefour Yi LI Yuhuan CHEN FEI XU Matthieu GRACIEUX Nicolas CHAPACOU 1 Table of Contents 1) 2) 3) 4) 5) 6) 7) 8) Business Description .................................................................................................. 3 Market Summary ....................................................................................................... 5 Strategy and Competitive Positioning ......................................................................... 9 Risks ........................................................................................................................ 13 Financial analysis ..................................................................................................... 15 Forecast, Valuation and Recommendations .............................................................. 17 Appendix ................................................................................................................. 19 Sources .................................................................................................................... 22 2 1) Business Description - Carrefour SA operates hypermarkets, supermarkets, convenience stores, cash and carry stores, and hypercash stores worldwide. The company also operates food and non-food e-commerce Websites. Its hypermarkets offer food products; and non-food products comprising clothing products, electronic goods, household appliances, multimedia products,......

Words: 7288 - Pages: 30

Carrefour- a Comparison of the Behaviour of Carrefour in- and Outside China in Terms of Csr

...Carrefour- A Comparison Of The Behaviour Of Carrefour In- And Outside China In Terms Of Csr Carrefour- a Comparison of the behaviour of Carrefour in and outside China in terms of CSR - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Table of contents - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Executive summary I. Chapter – Introduction 1. Purpose of the Study 2. Objective of the study 3. The setup of the study II. Chapter – Carrefour’s position in China 2.1 Chinas retail market at a glance 2.2 Carrefour’s role in China III. Chapter – The purpose of CSR for multinational companies 3.1 The definition of CSR 3.2 The growing importance of CSR in China 3.3 The importance of Human Rights 3.4 Human Rights in China 3.5 Carrefour’s general employment practice standards 3.6 Carrefour Europe vs. Carrefour China 3.7 Conclusion VI. Chapter – Environmental concerns and CSR 4.1 Environment 4.2 Environmental Problems in China 4.3 Carrefour Europe vs. Carrefour China V. Chapter – Food Safety problematic and CSR 5.1 Food Safety 5.2 International Food Standards and Initiatives 5.3 Food Safety in China 5.4 Carrefour Europe vs. Carrefour China Literature Internet - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Executive summary China is one of the countries where globalisation......

Words: 296 - Pages: 2

Carrefour Misadventure in Russia

...Master of Business Administration Strategic Management Carrefour Misadventure in Russia Supervised By John Kalmus Submitted By STU 22782 Submitted To IBAM Word Count 3898 Submission Date 22 January 2011 Carrefour strategy is comprised of following components • Organic, Sustainable and Profitable growth • Fast return on capital employed • Market Leadership through • Acquisition Carrefour started business in 1963 by introducing the idea of hyper market by providing thousands of products under one roof. Soon after the success of hyper market Carrefour started targeting the customers with discounted stores. Carrefour is now world Europe largest and world second largest. Carrefour Major Merger and Acquisitions • 1998 acquisition of Comptoirs Modernes • 2000 merger with Promodes • 2000 partnership with Maus group to enter to Switzerland • 2001 acquisition of Notre largest retailer in Belgium • 2003 acquisition of Italian retailer Hyparlo which increased its stake in Colombia from 55 to 100 • 2003 joint venture with Norwegian company Norges Gruppen • 2003 acquisition of Ahold in Poland • 2004 sold 1.2 billion $ assets for growth • 2005 acquisition in Taiwan, Turkey, Cyprus and France • 2005 sold $264.1 million assets to Tesco in Czech Republic and Slovakia • 2006 acquisition of 5th largest retailer in Spain • 2006 selling of South Korea operations to E-Land • 2007 acquisition in Romania • 2010 100% acquisition of Turkish......

Words: 4424 - Pages: 18

Carrefour

...CARREFOUR S.A. Synopsis and Objectives In August 2002, the French retail giant Carrefour S.A. is considering alternative currencies for raising (euros) EUR750 million in the eurobond market. Carrefour’s investment bankers provide various borrowing rates across four different currencies. Despite the high nominal coupon rate and the lack of any material business activity in the United Kingdom, the British-pound issue appears to provide the lowest cost of funds if the exchange rate risk is hedged. The case is designed to serve as an introduction to topics in international finance. Topics of discussion include foreign-currency borrowing, interest-rate parity, currency risk exposure, derivative contracts (in particular forward and swap contracts), and currency risk management. Students are tasked with exploring (1) motives for borrowing in foreign currencies, (2) the exposure created by such financing policy, and (3) strategies for managing currency risk. Suggested Questions for Advance Assignment to Students 1. Why should Carrefour consider borrowing in a currency other than euros? 2. Assuming the bonds are issued at par, what is the cost in euros of each of the bond alternatives? 3. Which debt issue would you recommend and why? Hypothetical Teaching Plan 1. What is going on at Carrefour? 2. Is the Swiss-franc issue, at 3⅝%, a “no-brainer”? 3. What can a firm do to manage the exchange-rate......

Words: 2310 - Pages: 10

A Comparative Anaylsis of Walmart and Carrefour

...Solutions to Organizational Challenges Introduction “With China expected to grow three times faster than the U.S. this year, it is no wonder that American companies are looking to China as they try to boost their profits” (Epstein & Meredith, 2010). Companies are reacting quickly to get a cut of the action in China. It is viable for companies to create an efficient strategy that will effectively distinguish themselves from its competitors and have the capability to conquer the foreign market. However, when entering to unfamiliar territories there are many challenges that companies ought to overcome such as cultures, regulation, communication barriers, and so forth. Currently, Wal-mart and Carrefour are dominating in China as the foreign discount stores but they have different strategy to compete in China. Background In 1959, Carrefour was created in Southern France and became international by 1969. “It innovated with the hypermarket format in France in 1963 where it introduced the idea of one stop shopping for food, clothing, electronics, appliances, etc. Although it does not compete in the USA, it has adapted successfully to Latin American and Asia markets” (Arnold, 2002, p. 563). “Now, it serves over 2 billion clients per year in its more than 9,000 stores, which are present in 32 countries across 3 geographic zones. Carrefour is not only the second but also the most internationalized retailer worldwide” (Shiue, Der-Juinn, & Yeh, 2006, p. 171). ...

Words: 1571 - Pages: 7

Carrefour Strategy in China

...CARREFOUR’S STRATEGY IN CHINA Study and analyze the entry and expansion strategies of Carrefour in China Introduction: The Chinese market, along with Brazil, India and Russia, is one of the fastest growing markets in the world. It is the country with the largest amount of consumers. 250 cities with population over 1 million and a steady rise of living standards…   For the mass-market retailing, China offers limitless opportunities; more than for any other market segments. The challenge in China is that with this big population there is a wide range of diversity. Because of these differences, it is very important for businesses wanting to enter China to work with representatives from each respective region when expanding into these territories. Because Carrefour adapted exactly that strategy, and also learned from its experience in Taiwan, it was able to succeed. However, along with opportunities, foreign brands come up with numerous challenges regarding customers’ tastes, which are highly specific in China. Foreign brands, which are currently leading the market, had to adopt complex marketing strategies to gain the interest of new customers when entering the market long time ago. Carrefour, when targeting Chinese market in 1995, was facing considerable challenges before it became a market leader. Our focus is on Carrefour China market entry strategy Question 1: After a law passed in France in 1963 to restrict the development of......

Words: 848 - Pages: 4

Carrefour

...should Mr. Duarant assess the opportunity in various countries around the world? Answer: Carrefour is the world largest hypermarket in terms of size, 2nd largest in terms of revenue and 3rd largest in terms of profit. It is the Wal-Marts biggest global competitor and has around 495,000 employees. But Carrefour is preparing for a global expansion and also for strengthening their current markets. However, different market has different levels of opportunities for Carrefour. So, Mr. Duarant, CEO of Carrefour, needs to properly assess what kind of opportunity is waiting for them in different countries. There are several factors that need to be judged for assessing opportunities in various countries. First of all, consider the quantitative factors, factors that can be measured in numerical terms. Carrefour is operating business in China and wants to enter in Indian market. China has a population of 1324.6 million and India 1139.9 million, which are very close. But both are bigger than all of the European markets. That’s why, these markets offer Carrefour more sales volumes that means profit, which is an opportunity for them. Another important factor to consider is qualitative factors, factors that are difficult to measure in numerical terms; examples of these factors are the political environment of a country, geographic location, product preference of the people etc. So, for Carrefour Western European, South American and Asia Pacific countries are more preferable......

Words: 420 - Pages: 2

Carrefour Misadvenure

...George Jones December 7th, 2015 Carrefour's Misadventure in Russia In 1960, Marcel Fournier and Louis Defforey founded Carrefour. They opened their first store in 1963 and was a big hit due to its lower prices compared to its competition. The store had various items such as self-service grocery, clothing, sports equipment, electronics, and even auto accessories. The size of the store (2,500 square meters) earned it the name “hypermarket”. Carrefour set out to become one of the top three players in every international market they operated in. Carrefour is branched all over the world in Europe, Middle East, Asia, and Latin America. As I analyze this case before wondering about Carrefour’s demise in Russia, I understand why they were attracted to Russia. With such a large population, it would appear that Russia would offer a great consumer economy. Russia has low unemployment, a high level of consumption, great availability for top resources, and a strong current account with minimal public debt. This makes Russia very attractive on paper, but you must also be aware of the cons before making such a leap. There’s a lot of competition, slowing economic growth, high inflation, complicated legislative, and a declining industrial output. To sum it up, Russia was a massive headache for Carrefour. A lot of time and effort went into the smallest of tasks in Russia due to the existing level of bureaucracy that took place in Russia. Russia rejected Carrefour’s bid to purchase......

Words: 501 - Pages: 3

Carrefour Marketing Plan in Cyprus

...Marketing FoundationMKT 2222 | Group Project: Carrefour | April 4th 2008 | | Group Members & Student Numbers:Fikri Fikrioglu – M00013290Mohammed Moin – M00074462Christos Andreou – M00022720Seminar Tutor: Paul GarneauSeminar Number: Seminar S03 | Table of ContentsBackground Information and Company Description of Carrefour 2The Marketing Environment 5SWOT Analysis 10 Consumer Decision Making Process 16Market Segmentation 20Positioning of the Company 22The Marketing Mix 23The Competitive Situation of the Company 26Primary Data Collection & Evaluation 30Conclusion 40Bibliography & References ...

Words: 13508 - Pages: 55

Carrefour

...Connor Matuszewski BUAD 417 29 February 2016 Carrefour S.A Case In 2002, Carrefour S.A. is the largest European retailer with total sales of 53.9 billion euros and retail outlets in 26 countries. To fund and maintain its “expansion trajectory”, Carrefour needs to raise 750 million euros through taking on debt. The company has traditionally issued debt in euros, but is considering three other options to issue a 10-year Carrefour bond. The bond would be issued at par with four possible coupon rates: 5.25% in euros, 5.375% in British pounds, 3.625% in Swiss francs, or 5.5% in U.S. dollars. At first glance it might appear that issuing in Swiss francs is clear because of it has the lowest coupon rate, but Carrefour’s investment banks have recommended borrowing in British pounds. This analysis will reevaluate the company’s options. The initial criteria is calculate the fair forward rates of the currencies using the Implied Forward Rate: F(f.c./EUR) = (1+i(f.c.))N/(1+i(EUR))N*S(f.c./EUR) In the formula, F(f.c./EUR) is the forward rate for N years, (1+i(f.c.))N will be the interbank interest rate for N years maturity of dollars, pounds, or francs, (1+i(EUR))N represents the interbank interest rate of euros with an N year maturity, and S(f.c./EUR) is the prevailing spot rate exchange rate. Using the interbank rates and cross exchange rates gives the implied forward rates for the next ten years: ...

Words: 485 - Pages: 2

Carrefour

...BACKGROUND Carrefour has first introduced the concept of hypermarket in the small French town of Sainte-Genevieve-des-Bois in 1963. It is an all in one shopping store that combines the supermarket, drugstore, discount store, and gas station. In the retail industry, where the competition is tough, it is only normal to see mergers and acquisitions between big companies and small-time businesses. The most notable mergers are with Euromarche and Montlaur in 1991. After three years, the company expanded rapidly in France. The first store outside France was in Belgium and Brazil in 1969 and 1975. And as time goes by, they also expanded in Asia and Latin America through acquisition and merger. Carrefour was the largest retailer in France, Belgium, Greece, and Spain. In 2001, the company’s total profit was EUR2.8 billion. The composition of this are 5 percent is originated from Asia, 2 percent is from Latin America, 26 percent originated in Europe outside France, and the rest is coming from France. The net sales of the company EUR69.5 billion came from Asia (7 percent), Latin America (12 percent), Europe outside France (32 percent) and France (49 percent). This was the first year that the total sales from outside France exceed the total sales coming from France. In 2002, Morgan Stanley and UBS-Warburg suggested that Carrefour should consider borrowing British pounds sterling in order to take advantage of a borrowing opportunity in that currency. Carrefour would issue......

Words: 1127 - Pages: 5

Carrefour- a Comparison of the Behaviour of Carrefour in- and Outside China in Terms of Csr

...Carrefour- a Comparison of the behaviour of Carrefour in and outside China in terms of CSR - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Table of contents - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Executive summary I. Chapter – Introduction 1. Purpose of the Study 2. Objective of the study 3. The setup of the study II. Chapter – Carrefour’s position in China 2.1 Chinas retail market at a glance 2.2 Carrefour’s role in China III. Chapter – The purpose of CSR for multinational companies 3.1 The definition of CSR 3.2 The growing importance of CSR in China 3.3 The importance of Human Rights 3.4 Human Rights in China 3.5 Carrefour’s general employment practice standards 3.6 Carrefour Europe vs. Carrefour China 3.7 Conclusion VI. Chapter – Environmental concerns and CSR 4.1 Environment 4.2 Environmental Problems in China 4.3 Carrefour Europe vs. Carrefour China V. Chapter – Food Safety problematic and CSR 5.1 Food Safety 5.2 International Food Standards and Initiatives 5.3 Food Safety in China 5.4 Carrefour Europe vs. Carrefour China Literature Internet - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Executive summary China is one of the countries where globalisation has led to a significant change of the economical as well as the social frameworks. Multinational corporations are expending......

Words: 8802 - Pages: 36