Carrefour - Company Presentation

Introduction:

Over the past 40 years, the Carrefour group has grown to become one of the world’s leading distribution groups. The world’s second-largest retailer and the largest in Europe, the group currently operates in four main grocery store formats: hypermarkets, supermarkets, cash&carry and convenience stores. The Carrefour group currently has over 9,500 stores, either company-operated or franchises.

Vision and Mission Statement

       Vision: Carrefour has one simple ambition to be the preferred  retailer wherever it operates.

Mission: Carrefour is totally focused on meeting the expectations of its customers. Our mission is to be the benchmark in modern retailing in each of our markets. As a global retailer, Carrefour is committed to enabling as many people as possible to purchase consumer goods, in accordance with the principles of fair trade and sustainable development.

 Management Structure:

Carrefour has a hierarchical structure with a more functional managerial organizational structure.  Their organization is such that the President of supervisory board and President of management board forms top of the hierarchy. Below him the Director of Organization and Systems and the Director of Merchandise and Marketing.  Beyond the functional divisions lies the director for each specific global zone or region for which Carrefour is located. 

This organizational structure works very efficiently for Carrefour.  It delegates, to the major functions of the large corporation, the abilities to handle all of the necessary business dealing requested by each separate division.  Allowing each function to know the dealings of each division allows them to compare better how each division is performing compared to the other divisions.  This also allows for a more standardized means of coordinating the functions of each division, limiting confusion and overlapping responsibilities.  Carrefour has several types of “products” (stores) and is located in over 20 countries, which would make a divisional structure very complex.

Awards and Recognition

1.    2011 Qualiweb customer relations award: Carrefour won the 2011 Qualiweb customer relations award in the corporate category.

2.     Top Employeur:   Carrefour wins a “Top Employeur” (Top Employer) award by CRF Institute for the second consecutive Year in 2010 in recognition of its performance in the field of human resources.

3.    Enseignes d’Or awards: On the occasion of the 19th Enseignes d’Or awards, the Carrefour Group was presented with the Enseigne d’Or de l’Efficacité (Golden Banner for Effectiveness)  for its new urban convenience concept, Carrefour City.

4.     UN Civil Society Award:  Carrefour received the “United Nations Civil Society Award” aimed at initiatives combating drugs. In cooperation with the Colombian government the company has helped families to grow alternative crops, such as coffee or fruit, instead of producing coca. 

5.    Carrefour ranked 5^th Carrefour was ranked 5^th in by Accountability in the “Fortune Global 100 Accountability Rating 2005” as well as by Innovest in its study on the Integration of Responsible Practices In Business Activity. 


CSR Activities

  

Carrefour Malaysia has taken an initiative to offer job to the handicapped people. This move is in line with the companies Corporate social responsibility which seeks to create equality in workplace by putting an end to the prejudice and discrimination often experienced by the disabled community.


Everyday Carrefour employees actively pursue initiatives related to its stores, logistics and own-brand products in order to reduce the Group’s impact on the environment. For example Carrefour actively promotes sustainable forestry through its partnership with WWF and the sourcing of FSC certified wood products. Carrefour has integrated environmental criteria into its paper purchasing and has made a life cycle analysis of both its catalogues and its check-out bags. Carrefour has launched a line of frozen fish products which guarantee the conservation of stocks and environmental protection, thus promoting responsible fisheries. Every year Carrefour’s business units organise awareness raising campaigns in partnership with local authorities and local NGOs for the UN World Environment Day. 

The Group is also engaged in promoting good nutrition through product development and information campaigns.

The company values: freedom, responsibility, sharing, respect, integrity, solidarity and progress are shared throughout the group, along with a code of ethics and regular dialogue with worker representatives

Customer Retaining Policy

Customer retention is very important in any of the business.

When it comes to service marketing this factor becomes more crucial. Carrefour has done a lot to make the customer loyal to the company. Following are some of the measures taken by Carrefour to make the customer visit the store frequently.

1.   The spacious and the comfortable shopping environment help the     customer to spend more time in the store.

2.   The merchandise was neatly displayed to help customer to easily find the commodities they needed.

3.   In 1995 they introduce a loyalty program called Spes Amica, which was based on the loyalty card used by the customer.

4.   Customer details were collected at the point of sale, further data analysis was done to enable CF to identify and classify customers on the basis of customer attributes combined with customer behaviour.

5.   To increase the loyalty, customers using the Spes Amica cards were given extra discounts, additional points toward a gift in a prize catalogue, entertainment offers, and special coupons.

6.    CF also offers supplementary services like free delivery for big appliances, free shopping for the everyday lucky customer, free parking, and goods return and exchange facility within 15 days etc.

7.    Website and toll free number help the customer to register their compliance so that an immediate resolution can be taken by CF.

Employee Satisfaction Measures

Carrefour believes that "The employees are a crucial part of a successful commerce business".

1.   Following are some of the facts related to Carrefour as an Employer.

2.    3 billion customers visit Carrefour stores every year475 000 employees in the world / 295 000 in Europe

3.   The 7th biggest private employer in the world

4.    More than 100 000 persons were recruited by Carrefour in 2009

              (Permanent contracts)

5.   Every day Carrefour employees serve or help to serve millions of customers and consumers in our various stores and trades

6.    In France, 75 % of the employees in Hypermarkets live less than 5km away from their stores.

7.    90% of the decisions of recruitment are taken in the area where the store is Located

Example of Romania

1.   There are around 9 000 employees working for Carrefour Romanian 2009

2.   There was no trade union before 2009.

3.   In 2009 UNI and Carrefour management promoted together the creation of trade unions inside Carrefour

4.   A first collective agreement was signed in 2010.

5.   Thanks to these negotiations between management and social partners employees got a collective salary increase, food tickets, better conditions for weekends etc.

Social dialogue at a European level

1.    A European Work Council since 1996 with 30 members from each European country

2.    One global meeting per year and 3 or 4 steering committees.

3.    Information on Carrefour group strategy at a European and national level

4.   Exchanges on good HR practices

SWOT ANALYSIS OF CARREFOUR:

STRENGTH

1.   Carrefour is the largest hypermarket chain in terms of size.

2.    Second Highest revenues in the retail industry after Wal-mart.

3.    Ranked third in terms of profit in the industry after Tesco and Wal-mart.

4.   Joint ventures in different countries

5.   Large network of Discount, grocery and convenience stores, cash and carry, hypermarkets.

6.   Employee base of approximate 495,000 around the globe

7.    Pioneer in hypermarkets especially in France.

8.    Selling number of products with its own private brands.

9.   Strong brand in the world of retail industry.

10.             More than 50% sales of the company come from France.

11.             Operating in 33 countries.

WEAKNESSES

1.   Reduce operating expenses.

2.   Weak position in Asia and Middle east countries

3.   Labour relations

4.   Taking too much time in opening new stores.

5.   Has not been able to attract Japanese customers

6.   Weak own brand sales

7.   Poor E-commerce performance.

OPPORTUNITIES

1.    Joint ventures and acquisition for more expansion

2.    Discount stores development

3.    Improve sale performance

4.   Reduce operating cost

5.    Research and development required in marketing area to understand the dynamics of different segment.

6.    Maintain better labour relations.

THREAT

1.   Threat from Walmart and Tesco who are bigger player than   Carrefour

2.    Recent controversies in Asia

3.   Declining sales in Europe due to Euro-crisis

4.   Change in management structure.