Explanation of external environment of Carrefour in Asia
Having completed a full legal restructuring of its operations in China, Carrefour is preparing for rapid expansion in the country. China has the region’s highest GDP growth rate, an enormous population, and disappearing trade barriers. Opportunities in the country’s booming retail sector require immediate attention for Carrefour to stake a greater share of the market before other foreign competitors, who are amassing at the borders, make headway. Your management consulting firm has been retained to complete an assessment of Carrefour’s international strategy, particularly as it relates to the Asian region.
Your report must THOROUGHLY address the following key strategic issues:
1. Conduct a complete study of the external environment in Asia, and identify the critical strategic factors in each of the following areas:
A. The General Environment
B. The Industry Environment
C. The Competitor Environment
2. Based on the analysis, what advice can you give Carrefour’s management to improve the company’s successful expansion into China?
3. Recommend an integrated and coordinated set of commitments and actions which will exploit the company’s core competencies, sustain growth, and ensure maximum performance and value for shareholders.