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Carrefour

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Viviana Bernal

on 28 January 2014

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Transcript of Carrefour

Presented by:
Susana Osorio
Andrea Rojas
Viviana Bernal
2012 Financial Overview
Overview of the Company
OUR MISSION
World Participation in Total Sales
46%
27%
19%
8%
Major Grocery Retail Formats
Hypermarkets
supermarkets
Cash & Carry
Convenience
stores
E-commerce
Our Vision
Be the benchmark in modern
retailing in each of
our markets.
Main Global Strategies

Client-oriented culture
Transformation
Innovation
Personnel cultivation

TRANSNATIONAL STRATEGY
Operating in global markets
Carrefour attempts to combine the benefits of global scale efficiencies with the benefits of local responsiveness.

Key factors for evaluation and selection of a country for international operations
Market
size

Ease and compatibility
of operations

Cost and resources availability

Economic, politic, monetary and financial risk.



Neighboring
Purchasing
Power.

Store
Space
Location
G4 strategy
Refers to geographical priorities for growth of the group. France, Italy, Spain and Belgium.

Strategic Alliances

Need of a local partner to understand market and move faster
Develop private label products to supply more offerings so as to meet the needs of one-stop shopping
Supporting the growth of SMEs and small producers
Avoiding CO2 emissions related to importing the products
Fostering long- lasting relationships with local companies

Direct Procurement Strategy

75% of the goods are procured locally
Enabled the company to keep its COST LOW
Short supply chain
Faster delivery

Adaptation

We try to develop the business in way of the culture, traditions and tastes of each country or region.

System of commerce automation

Centralize the purchasing matters of all stores
Coordinate orderings, stock management and data processing
Better control and decisión making.
5.4 million unique visitors on average to the french site each month

Multi-channel system

Low cost
Expected net profit was 810.9 million euros.

€1.23 BILLION EUROS of Net Profit

Withdrew from five countries, Colombia, Greece, Indonesia, Malaysia and Singapore.

€0.58
EUROS
per share

Why the withdrew?
Colombia’s sale

Greece, Indonesia, Singapour & Malaysia

RESULTS: regained the capacity to invest, especially in our recovery in France and in developing our operations in China and Brazil

SWOT ANALYSIS
Strength

Market Leader
Wide market presence
Adaptable business model
Multi format strategy
Brand Recognition
Focus on competitive Prices
Increasing cash flows from operation

Opportunities

Strong growth potential in Asia
New stores
Entry into emerging markets
Alliances

Weaknesses

Develop in too haphazard way internationally 

Threats

Competition from discount retailers
Increasing labour cost in Europe

LOOKING AHEAD
Our Recommendations
Reinvest in our assets

Modernize our stores (renovated stores, car parks and attractive shopping arcades). France

Relaunch expansion in each of our formats, and in each of the countries in which we operate.

Continue to develop a multichannel offer and improve product offer

Decentralization of Decision making (local levels)

Reduce the impact that our business has on the environment

Be close to our customers and listen to them

Refocus operations "on countries where we hold leading positions and hves a multi-format profile,” Argentina, Brazil and France.

“We can now begin the next stage of Carrefour’s recovery and return to growth and higher profitability.”

ANALYSIS OF THE EXTERNAL ENVIRONMENT
Trends and Tendencies of the retail market
Consumers want to be more informed than ever
Retailers are letting customers make decision for them.
Personal data is being used to customize everything.
Digital has allowed brands to offer products customization at a large scale.
New digital services are helping customers virtually test products.
Retailers are using algorithms to help customer discover new products.
People are willing to sell brands’ products for them, but only if they have right incentives.

"Is not the strongest species that survive, not the most intelligent but the ones most responsive to change" Charles Darwin
Share Issue
Generate cash flow without financing
Continue the recovery plan and return a higher profitability
Improve investments in countries with actual operations that have potential growth and market share
Continue investing in emerging markets such as Brazil and Argentina
Sell or revaluated partnerships under performing assets

Competitors
INDIRECT

Convenience stores, grocery stores, and shopping centers

Carrefour has more than 100,000 items in stock under one roof

DIRECT

Low-Cost leadership

Integration B2B

Low cost

Low-Cost leadership

Insists on the lowest prices every day, to carry out total solution services, effectively control the cost of global logistics, fully leverage information technology to become e- company.

The Company operates a portfolio of sales brands, which offers a range of services for private and commercial customers.

Auchan is a French grocery chain that is growing at a rapid pace and is expanding into Central and Eastern Europe. Auchan operates hypermarkets, supermarkets, convenience stores, and employs nearly 81,000 people.

Tesco operates under a “good, better, and best" policy for its products. Tesco brand has three ranges of items: value, brand, and finest.

STRATEGY
RELATION
WITH STAKEHOLDERS
SHAREHOLDERS

Access to transparent, accurate and regularly updated information
Toll free telephone number
- Group news
- Share price & performance of the CAC 40
- Calendar of meetings and financial publications
Letter to shareholders
Shareholder’s guide
Website
Shareholders’ e-mail  
Meetings
- Annual shareholders’
- Actionaria exhibition
- Meetings with shareholders.

EMPLOYEES

A diverse workforce
Women in management 56% of its workforce
Employees declared as having disabilities
Employees training
93.6% of our employees have permanent work contract
A force in local economic development




- Financial services
- universal payment card
- personal loans
- credit options
- savings products
- car and home insurance
- complementary healthcare and welfare.
Carrefour’s trade services
- Carrefour Voyages
- Carrefour Spectacles
- Carrefour Mobile
Guarantee the best prices every day
Quality and fresh Product

CUSTOMER
ENVIRONMENT

Carrefour helps to preserve forests
Improve energy efficiency by 30% per square metre of sales area by 2020
Waste reduction and recycling
Innovations on the logistics chain  

SUPPLIERS

Partner to SMEs and local producers

INTERNATIONAL STRATEGY
¿ Why does Carrefour choose one or another country?

¿ Why is Carrefour format successful around the world?

Simple products
Control of raw materials
Pursuit of economies of scale with technology
Economies of scope- sharing activities, transferring core competencies, market power (vertical integration)
Return on assets 1.10%
Return on equity 6.73%
Return on investment 2.29%

Evaluation of Success

The previous transaction is in line with Carrefour's new strategy of focusing on geographies and countries in which it holds or aims to develop a leading position,

Carrefour’s strategies are very aggressive and bring big results.

We consider to continue developing our same strategies with some suggestions....





Net profit 3 times bigger than in 2011 owing mainly to asset sales
THANK YOU!
Full transcript