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International corporate level strategies
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Only few months after opening its first stores in Russia in June 2009, Carrefour announced that it would be leaving the country. This withdrawal was a shocker and is a setback for international retail development in Russia.
Carrefour’s group sales resulted in a 2.9% drop for the 3rd quarter of 2009. The strongest sales decline comes from the companies operations in Europe. The only regions that resulted in positive growth were Asia, with sales growth by 5.1% and Latin America with a 5.3% growth.
Carrefour says that the lack of organic growth prospects and acquisition opportunities in the short and medium term is behind its decision to withdrawal from Russia. Whit out these opportunities it is hard to achieve its goal to attain market leadership. Other factors might play a role in this decision. Some of the severe obstacles and barriers that foreign companies face while entering the Russian market includes complicated statutory framework, widespread bureaucracy, red tape and corruption. Because of these obstacles, and the lack of credit, it was very challenging for Carrefour to acquire a domestic player. Its efforts to acquire a majority stake in Seventh Continent didn’t work out.
For Carrefour, acquiring Seventh Continent, which was facing some financial problems, was not an attractive investment, since Carrefour was under a lot of pressure from some of its largest shareholders to sell operations in emerging markets. So withdrawing from the Russian market in an early stage was probably the right move to take.
Carrefour’s goal is to become one of the top three players in terms of market share in all the countries in which it operates. But that goal was hard to be achieved in Russia because of the difficulties in acquiring a loca...
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...ecession are beginning to attract investor interest.
Kantar Retail and Coca-Cola Research Council published a report on emerging markets, which stated that although large international retailers were affected by the global economic crisis, which reduced the cash available for funding their expansion, the conservative economies of emerging markets protected many of the financial institutions there.
Works Cited
"Carrefour: abandoning Russia." Datamonitor Research Store -. Datamonitor, 19 Oct. 2009. Web. 25 Feb. 2014. .
Hamstra, M. (2010). World Travelers. SN: Supermarket News, 58(22), 10-14. http://0-eds.a.ebscohost.com.library.winthrop.edu/ehost/detail?sid=be523ac6-fc94-4ed2-84eb-4f36c417c804%40sessionmgr4002&vid=1&hid=4210&bdata=#db=bth&AN=51457025
The ice-cream space in Russia can be visualized in context of three strategic groups namely –
Greta, niece of Lukas and a recent MBA graduate, has newly joined Deutsche’s board of directors and must make a recommendation on three issues: the financial plan for 2001, the declaration of a quarterly dividend, and adoption of the proposed incentive and compensation package for Oleg. The financial plan includes a 7 million euro investment in new plant and equipment for the Ukrainian operations in 2001, followed by a 6.8 million euro investment in 2002 for a new Ukranian warehouse and distribution center. This is a significant investment, and the practicality of rooting themselves in the Ukraine in this manner needs to be fully assessed before Deutsche commits to such an expensive endeavor.
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
Companies all over the world varies but yet shares a common challenge, that is to solve problem not only effectively and efficiently but also creatively. The P-O-L-C framework which stands for Planning, Organising, Leading and Controlling plays a major role in both the company’s survivability and success. The SWOT analysis looks at both internal and external factors that can affect the Starbucks’s performance. The purpose of this report is to define and analyse how Starbucks respond and should have respond to the change of its external environment on the cofee market,This report will also identify and disscuss how The P-O-L-C framework and can help starbucks to compete and reduce the loss of their failing peformance in the Australian market and how SWOT analysis helps to define some externalities that can be a threat to Starbucks.
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
Russia, spanning 11 time zones and serving as home to about 150 million people, possesses tremendous natural and human resources. Demand today for imported consumer goods, capital equipment, and services remains remarkably strong, with imports representing an unusually large percentage of the national market. Despite outstanding long-term market potential, Russia continues to be an extremely difficult country in which to do business.
Bianchi, C. & Ostale, E. (2006). Lessons learned from unsuccessful internationalization attempts: Examples of multinational retailers in Chile. Retrieved January 11, 2011, from http://www.carlospitta.com/Courses/Gestion%20Financiera%20Internacional/Cases/Failed%20retail%20attempts%20in%20Chile.pdf
The Beverage Industry is a highly competitive one and tends to be dominated by a few major actors. The two biggest worldwide known and most influential companies are Coca-Cola and Pepsi. The limited growth opportunities make this competition very intense, requiring companies to follow the trends and be always aware of the competitors' progress. However, the demand for the products depends a lot on the economic conditions within the society. Those few big players enjoy the benefits of the strong loyal customer base during the growth and stability stage in the economy, whereas in times of economic difficulties customers turn to cheaper substitutes. Thus, although the key feature of the industry is that it is very difficult for a new unknown company to enter the market and compete with well-known long-established businesses, the companies should pay significant attention to the new entrants, especially in times of economic instability. Consumer tastes are also seasonal, meaning that the demand for the carbonated beverages is higher during the hot months of the year. Shifting consumer preferences bring the concern of operating uncertainty, which greatly affects pricing strategies. The large companies pay reliable dividends...
Bulgaria is considered for entry largely because of the strong economic growth it has experienced as a result of entry into the EU, with strong growth being experienced in the years prior to entry (Emerging Europe Monitor, 2007). However, the coffee market in Bulgaria has been developing long before this, with Business Eastern Europe (1999) reporting on the Israeli company Elite’s launch of coffee into the Croatian market in November 1999, following successful operations in other Eastern European countries including Bulgaria.
There were fierce competitions among the producers that have scale and scope of operations which were similar to each other. For instance, the Pepsi Co. and Coca Cola companies have developed the strategy and infrastructure, which are hard for the local sellers to complete with them. However, there were still many producers including new entrants that try to access the market and compete seriously with low price and differentiation- strategies among rival...
In this report, discussions aim to assist an Irish SME to optimise its analysis and assortment of the BRICS countries (Brazil, Russia, India, China, and South Africa) - the developing or newly industrialised nations. The term ‘company’ herein mainly refers to small and medium enterprises rather than the large international enterprises. Besides, the exporting aspect is the main concern in this context. Furthermore, the entry mode to each market is presumed to be the subsequent decision of a company after identifying the market. Thus, it would not be covered in this report.
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
The force of globalization sped up by highly technological advancement rapidly increases the uncertainty and complexity of the international business environment. To prosper, organizations must adapt to the changing environment (Waddell, Creed, Cummings & Worely, 2014). On a global stage of competition, Fonterra Co-operative Group Limited (Fonterra) has maintained its momentum of growth and reserved its renowned place among the top five world’s dairy giants in 2013.
Today Kazakhstan is one of the well developing countries in the whole world. Since Kazakhstan became independent country in 1991 and from that period many things were significantly changed including of course business environment. The country was developing in terms of such factors as economic, political and legal, demographic, social, competitive, global, and technological. Kazakhstan is in the 9th place by territory and located in Central Asia, and also has access to the Caspian and the Aral Sea where a huge amount of oil has. The neighbors that Kazakhstan has connect are China, Kyrgyzstan, Turkmenistan, Uzbekistan and the Russian Federation. In addition, with all these countries Kazakhstan has good relationships in different spheres. As I mentioned above from the moment when Kazakhstan got independence there were a lot of changes, for example, whether before the capital was Almaty then from 1997 the capital of Kazakhstan became Astana. Today Astana is one of the biggest and beautiful cities that attract many tourists to visit Kazakhstan. Talking about language that official is definitely Kazakh and also Russian language is quite widespread that many people can speak free. Furthermore, Kazakhstan possesses a rich selection of mineral reserves as well as numerous oil and gas fields. Kazakhstan’s strategic location in Eurasia has important implications on the country’s economy, politics, and culture which collectively create a favorable business environment for multinational companies. The factors that I would like to write are economic, legal and political.