Case Analysis of Carrefour Essay

3447 Words Dec 16th, 2012 14 Pages
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
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(Jack Welch) In 1969, Carrefour started its first global venture by opening a hypermarket in Belgium. Until now, Carrefour has been operating over 9000 stores in more than 30 countries. The result presented that Carrefour has strong experiences and capabilities in operating on a global level as a high degree of profits are internationally generated. Carrefour’s globalization strategies are joint-venture, alliance, and acquisition. Those strategies allow Carrefour had benefit to enter new areas with related local enterprises. Thus Carrefour could gain new capacity from other and also avoid some entry problems. For example, in China, the government only approved foreign enterprises to open stores by joint-venture. Additionally, Carrefour can use existing channel from local enterprise to reduce expansion time. (Lhermie, C., 2001)
For retailer, price is the most important factor for retailer to succeed. The only way to have better price is through purchasing in a big volume to lower the prices. Therefore, in 1999, Carrefour acquired its competitor in France “Promodes,” who is also one of the world’s largest operators of retailer industry. Its business territory is not only in France but also in Spain, Italy, Brazil, etc. Carrefour assumed that acquisition is necessary strategy to do. Through acquisition strategy, Carrefour became the second biggest retailer in the world. Carrefour’s

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