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1 – 10 of over 1000This case study offers an analysis of the main success drivers that allowed Majid Al Futtaim Retail, operator of Carrefour in the UAE, a major chain of hypermarkets and…
Abstract
This case study offers an analysis of the main success drivers that allowed Majid Al Futtaim Retail, operator of Carrefour in the UAE, a major chain of hypermarkets and supermarkets, to undertake a digital transformation and achieve its objective of successfully launching their online grocery business in 2018. Within one year of launching their e-commerce business online, Carrefour UAE was able to achieve a 100% growth in the number of orders and a 110% growth in the number of new customers. Therefore, how did this company that is headquartered in the UAE and operates in 16 international markets, do it? And what did it take to digitize a business that has been operating in the traditional retail business for more than 20 years? Our analysis of Carrefour’s business model and Majid Al Futtaim Retail’s approach to launching their online business in the UAE shows that the main reasons behind their success were having a data-driven approach, adopting a customer-obsessed mindset, building an employee-centric culture and ensuring that continuous innovation is taking place across all business functions, all the time.1
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Jesús Cambra‐Fierro and Rocío Ruiz‐Benítez
This paper proposes a framework that considers some key concepts to design and manage supply chains in both national and international contexts. For a better understanding, it is…
Abstract
Purpose
This paper proposes a framework that considers some key concepts to design and manage supply chains in both national and international contexts. For a better understanding, it is intended to illustrate this framework with the case of Carrefour in both Spain and China.
Design/methodology/approach
In the form of a case study the paper explains global strategies in both countries. The paper also discusses similarities and differences in the supply chain management in both contexts.
Findings
The paper found application of core SCM concepts to a leader distribution firm. “Thinking global and acting local” is also pertinent to application in the management of supply chains.
Practical implications
Managers may identify key processes and consider the possible contributions of each to the efficiency of their own chains. This case study could be also used as an example of the successful management of the supply chain of a company leader in its sector.
Originality/value
The present paper illustrates a leader company based on real data.
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Ming‐Ling Chuang, James J. Donegan, Michele W. Ganon and Kan Wei
The purpose of this paper is to combine secondary sources and interviews with Chinese suppliers to explore the structural paradox faced by retail multinational firms in China as…
Abstract
Purpose
The purpose of this paper is to combine secondary sources and interviews with Chinese suppliers to explore the structural paradox faced by retail multinational firms in China as they balance the competing demands of standardization and localization. The authors describe the challenges faced by two retail giants, Walmart and Carrefour, as they attempt to replicate in China their lean retailing successes elsewhere in the world.
Design/methodology/approach
This is a comparative study of Walmart's and Carrefour's ventures into the Chinese market, largely based on publicly available secondary sources, but also incorporating interviews with three Chinese nationals engaged in supplying these firms.
Findings
Walmart and Carrefour have so far failed to extend their oligopolistic dominance to the Chinese market. Walmart has stressed its well‐known standardization of operations, whereas Carrefour has better adapted to the Chinese economic culture. Issues identified are: the formation of partnership alliances and their impact on store location choice; the effect of under‐developed infrastructure on distribution and logistics; the unique Chinese business culture – guanxi (using social capital to build business relationships) and its influence on supplier relationships; the variety of consumer behavior and its effect on procurement and sourcing; and an immature information technology environment which impedes information sharing between supply chain partners. While both firms have had some degree of success, neither has been able to match the combined growth of their larger Chinese competitors.
Research limitations/implications
The authors are cautious in drawing normative conclusions or making predictions about the future. Both firms face significant obstacles as they challenge China's largest domestic retailers.
Originality/value
Many multinational corporations are aware of the topology of the Chinese market, what they lack is an in‐depth understanding and the skills needed for effective operations. This paper discusses the effectiveness of the strategies adopted by two leading global retailers as they attempt to resolve the paradox presented by the competing demands for standardization and localization and includes information provided by three of Walmart's and Carrefour's local Chinese suppliers.
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In the discount store area, foreign large retailers such as Wal‐mart, Carrefour, and Costco fight hard with domestic retailers in Korea. The Korean customer is a judge in the…
Abstract
In the discount store area, foreign large retailers such as Wal‐mart, Carrefour, and Costco fight hard with domestic retailers in Korea. The Korean customer is a judge in the centre of such a difficult fight. Therefore, foreign retailers who are willing to win the game should pay attention to what Koreans say and respond to the complaint as fast as they can. This study monitored e‐complaints of customers towards Korea Carrefour through analysing contents of the bulletin board in an anti‐Carrefour site. Upon examining e‐complaints by category and retail attributes, there were found to be more complaints in electrical goods and food and groceries by product category, and in employee attitudes and store atmosphere by retail attributes. The implications for successful retail strategies of foreign discount stores in Korea are discussed and further research is suggested.
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Looks at the development of Carrefour‐Primodès and Wal‐Mart, the world current leaders in terms of turnover and employment. Presents seven issues of particular interest to leading…
Abstract
Looks at the development of Carrefour‐Primodès and Wal‐Mart, the world current leaders in terms of turnover and employment. Presents seven issues of particular interest to leading managers and researchers and examines how these are dealt with by the two leaders. Concludes that Wal‐Mart and Carrefour present two different models which stand in opposition on many points, and questions whether a convergence of the two will not result in a perfect model.
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Yan Du and Elie Salameh
Through the discussion of this case, students will have a better understanding of the managerial dilemma associated with the implementation of management control in an early-stage…
Abstract
Learning outcomes
Through the discussion of this case, students will have a better understanding of the managerial dilemma associated with the implementation of management control in an early-stage firm. Students will provide proposals to improving current management control. Finally, this case encourages students to think about the costs and benefits of implementing formal management control systems.
Case overview/synopsis
As the company grows, it becomes difficult to keep control of the organization. The organizational structure of Majid Al Futtaim (MAF) Carrefour Jordan is too centralized, and the top management is confronted with information overload, which inhibits their ability to pursue strategic goals. The department managers are also confronted with communication problems, and they are evaluated based on the indicators that were out of their control. Processes and rules do not permit managers sufficient autonomy, and neither do these motivate employees towards organizational strategic goals. It is obvious that many control issues needed to be addressed in MAF Carrefour Jordan. However, given the limited budgets, MAF Carrefour Jordan managers need to decide which control systems to implement first.
Complexity academic level
This case can be used in an introductory cost accounting and management control course at the undergraduate or postgraduate level. The case should be introduced after students attained a baseline understanding of management control system fundamental concepts. However, this case is equally effective in introducing concepts to students who are new to management control systems.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 1: Accounting and Finance
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Johanna Franziska Gollnhofer and Ekaterina Turkina
The purpose of this paper is to take a strategic perspective on how MNEs in the retail sector decide to enter a new market. Drawing on transaction cost theory, the contingency…
Abstract
Purpose
The purpose of this paper is to take a strategic perspective on how MNEs in the retail sector decide to enter a new market. Drawing on transaction cost theory, the contingency approach and resource-based theory, the implications of the interplay between global strategy, cultural distance and entry mode strategies are examined by means of an analysis of Carrefour’s global expansion.
Design/methodology/approach
To account for the shortcomings of prior research, a hypothesis in the relationship between entry modes and cultural distance is tested empirically using a sample of 44 foreign market entries by Carrefour over the 40 last years. The paper uses a quantitative approach, i.e., logistic regressions. To measure cultural distance, the authors rely on the GLOBE dimensions and the Kogut-Singh Index.
Findings
The findings suggest a positive relationship between a resource commitment, entry mode strategy and cultural distance for Carrefour. However, these findings are contrary to the mainstream argument that high cultural distance is related to entry strategies based on relatively low resource commitment. The authors explain these findings by integrating a cultural distance perspective with Carrefour’s overall global expansion strategy.
Research limitations/implications
Because of the chosen research approach, the research results may lack generalizability.
Practical implications
The paper provides insights into why prior research on cultural distance and entry modes has yielded mixed results. From a strategic viewpoint, the paper stresses the particularities of the retail sector and how retailers try to account for cultural distance in their entry mode decisions.
Originality/value
By focussing on a single company instead of a meta-analysis, the analysis demonstrates how the search for strategic consistency and the particularities of the retail sector reverse a well-investigated theoretical assumption. The main originality of the paper is that it shows the implications of the interplay between cultural distance and entry mode as being part of the retail firm’s overall global expansion strategy.
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Purnima Kamath and Catherine Godin
Looks at a French hypermarket, Carrefour, its background, philosophy and mission. Examines the keys to its success worldwide, with particular emphasis on its exploits in…
Abstract
Looks at a French hypermarket, Carrefour, its background, philosophy and mission. Examines the keys to its success worldwide, with particular emphasis on its exploits in Indonesia. Provides the opportunity to discuss related considerations, such as political risk and currency fluctuation.
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The purpose of this paper is to discuss the retailer Carrefour in India.
Abstract
Purpose
The purpose of this paper is to discuss the retailer Carrefour in India.
Design/methodology/approach
The paper compares the retailer Carrefour and its competitors in India.
Findings
Carrefour needed time to tie up with an Indian partner to start retail operations in India. The company also delayed its retail plans to focus on launching cash and carry (wholesale) operations. The world's second biggest supermarket group by sales is negotiating with over six Indian companies including diversified business groups, retailers and mall owners.
Originality/value
The paper provides a discussion on the Indian retail sector and the retailer Carrefour.
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Within a context of the globalization of retailing, examines the current structure of pan‐European food retail consolidation. Portrays the interlinkages between firms in the EU…
Abstract
Within a context of the globalization of retailing, examines the current structure of pan‐European food retail consolidation. Portrays the interlinkages between firms in the EU food retail market, and offers an assessment of the three leading consolidators (Carrefour, Wal‐Mart, Ahold) in that market. Considers potential acquisition/merger targets in France and the UK, and conceptualizes the future process of consolidation as a struggle between competing models of globalized retail operation. Assesses the strengths and weaknesses of those models.
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