QuestionInternational Case : Carrefour — Which Way to Go?Wal-Mart's biggest global competitor is the big French retailer Carretour, a firm that has hypermarkets, bigstores offering a variety of goods. It has made large investments around the globe in Latin America and China.But not all is well as competitors taking market share its home market, for instance. There has been evenspeculation of a takeover by Wal-Mart or Tesco, an English chain. Mr. Barnard has been ousted after headingthe company for 12 years; he was replaced by Jose Luis Durant who is of German-Spanish descent. Althoughthe global expansion is cited by some as success, it may be even a big mistake. It withdrew from Japan andsold 29 hypermarkets in Mexico. Carrefour also had problems competing with Tesco in Slovakia and theCzech Republic. In Germany, the company faced tough competition from Aldi and Lidle, two successfuldiscounters. On the other hand, it bought stores in Poland, Italy, Turkey, and opened new stores in China,South Korea, and Columbia. Carrefour has become more careful in selecting markets. But. the company iseager to enter the Indian market, but found out in late 2006 that Wal-Mart will do so as well.In France, where Carrefour is well established, the company made the big mistake in its pricing policy. Itprobably started with the 1999 merger with Promodes, the French discount chain. Carrefour confused theFrench clientele by losing its low-cost image; whether the image can be changed remains to be seen. Mr.Durant, the new CEO since 2005, embarked on the new strategy by offering 15 percent new products in itshypermarkets and 10 percent in its supermarkets. Moreover, he wants to employ more staff, extend theoperating hours in certain hypermarkets, cutting prices, trying small stores, and pushing down decisionmaking. Mr. Durant aims to stay only in countries where Carrefour is among the top retailers.Questions:1. How should Mr. Durant assess the opportunities in various countries around the world?2. Should Carrefour adopt Wal-Mart's strategy of "low prices everyday"? What would be the advantage ordisadvantage of such a strategy?3. How could Carrefour differentiate itself from Wal-Mart?4. Identify cultures in selected countries that need to be considered in order to be successful? 

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Answer1. How should Mr. Durant assess the opportunities in various countries around the world? [IN EVERY  COUNTRY, -THE  COMPANY  SHOULD  ASSESS  THE  MARKET .-DEFINE  THE  SOCIO-ECONOMIC  PROFILE.-IDENTIFY THE  PRODUCTS  DEMANDWHICH MATCHES  THE  MARKET.-THEN   POSITION  THE  CARREFOURRETAIL  OUTLETS.=======================

2. Should Carrefour adopt Wal-Mart's strategy of "low prices everyday"? What would be the advantage or disadvantage of such a strategy? [NO  CARREFOUR  SHOULD  NOT  FOLLOW  BLINDLY  THE  WAL-MART.ADVANTAGES-it  will  gain  some  limited gain  in  the  market  entry.DISADVANTAGES-it  will not  be  able  to  match   the  supply  chain  strength  of  wal-mart.======================3. How could Carrefour differentiate itself from Wal-Mart? 

CARREFOUR   SHOULD  POSITION  ITSELF  AS  ‘’ MID  UPMARKET’’ RETAILER  AND  OFFER  PRODUCTS  ACCORDINGLY.======================4. Identify cultures in selected countries that need to be considered in order to be successful?JAPANIt is widely known for its traditional arts as well as its contemporary pop culture. 

-one  must  understand  the  buying  behaviors  and  decision  making  of  the  individuals.@@@@@@@@@@@@@@@@@@@

Management Consulting/International Case : Reengineering the Business Process at Procter & Gamble

AdvertisementExpert: Leo Lingham - 3/15/2013

QuestionInternational Case : Reengineering the Business Process at Procter & GambleProcter & Gamble (P&G), a multinational corporation known for products such as diapers, shampoo, soap, andtoothpaste, was committed to improving value to the customer. Its products were sold through variouschannels, such as grocery retailers, wholesalers, mass merchandisers, and club stores. The flow of goods in theretail grocery channel was from the factory's warehouse to the distributors' warehouses before going to thegrocery stores where customers selected the merchandise from the shelves.The improvement-driven company was not satisfied with its performance and developed a variety of programsto improve its service and the efficiency of its operation. One such program was electronic data interchange,which provided daily information from the retail stores to P&G. The installation of the system resulted inbetter service, reduced inventory levels, and labor-cost savings. Another approach, the continuousreplenishment program, provided additional benefits for P&G as well as for its retailer customers. Eventually,the entire ordering system was redesigned, with the result of dramatic performance improvements. Thereengineering efforts also required restructuring of the organization. P&G had been known for its brandmanagement for more than 50 years. But in the late 1980s and early 1990s, the brand management approachpioneered by the company in the 1930s required rethinking and restructuring. In a drive to improve efficiencyand coordination, several brands were combined with authority and responsibility given to category managers.Such a manager would determine overall pricing and product policies. Moreover, the category managers hadthe authority to withdraw weak brands, thus avoiding conflict between similar brands. They were also heldresponsible for the profit of the product category they were managing. The switch to category managementrequired not only new skills but also a new attitude.Questions:1) The reengineering efforts of P&G focused on the business process system. Do you think other processes,such as the human system, or other managerial policies need to be considered in a process redesign?2) What do you think was the reaction of the brand managers, who may have worked under the old system formany years, when the category management structure was installed?3) As a consultant, would you have recommended a top-down or a bottom-up approach, or both, to processredesign and organizational change?4) What are the advantages and disadvantages of each approach. 

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Answer1) The reengineering efforts of P&G focused on the business process system. Do you think other processes, such as the human system, or other managerial policies need to be considered in a process redesign? 

CATEGORY  MANAGEMENT  SYSTEM NEEDS  TO  BE  SET  UP

-policies-procedured-practicesEtc======================2) What do you think was the reaction of the brand managers, who may have worked under the old system for many years, when the category management structure was installed? 

-NEGATIVE  REACTION  FROM  THE  BRAND  MANAGERS  ARE  EXPECTED.BRAND  MANAGEMENT  IS A  STAFF  FUNCTION , WHILE   THE  CATEGORY  MANAGEMENT  IS  A  LINE  MANAGEMENT FUNCTION.

SUCH  CHANGE  NEEDS-change  management  drive-orientation  programme.=======================

3) As a consultant, would you have recommended a top-down or a bottom-up approach, or both, to process redesign and organizational change?TOP  DOWN   APPROACH  IS  THE  RIGHT  APPROACH , AS  IT  RELECTS -the  management  mission-the  management  objectives-the  management  strategies.====================4) What are the advantages and disadvantages of each approach.TOP DOWNADVANTAGES-it clearly  shows  the  management  intentions  and drive.DISADVANTAGES-low  participation  from  the  bottom  line  staff--------------------------BOTTOM UPADVANTAGES-it clearly  shows  EMOTIONAL  PARTICIPATION  OF  THE  STAFF.DISADVANTAGES-LACKS   THE  LEADERSHIP--------------------------========================@@@@@@@@@@@@@@@@@@

Management Consulting/international case : the restructuring of daimler-benz and global car industry

AdvertisementExpert: Leo Lingham - 10/4/2012

QuestionQuestions:1) What is your assessment of Daimler-Benz's operations in many different fields?2) Should the various groups operate autonomously? What kinds of activities should be centralized?3) Daimler-Benz is best known for its Mercedes-Benz cars. Why do you think Daimler bought AEG in the first place and why did it venture into the Aerospace and Inter Services businesses?4) Given the apparent mistakes in acquiring non-automotive businesses, what should Jurgen Schrempp do now?

Questions:1) Prepare a profile of the potential buyer of the Lexus.2) What should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe?

3) Why has the Lexus model been very successful in the U.S. but has not been marketed in Japan?(Suggestion: Review the frequency of repair records of luxury cars. Also talk to Lexus dealers or Lexusowners).4) Do you think Lexus will succeed in Japan? Why or why not ? 

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Answer

Questions: 1)  What is your assessment of Daimler-Benz's operations in many different fields? 

Daimler-Benz, with more than 300,000 employees worldwide, consisted of four major groups: The first, by far the biggest and most successful group, was Mercedes-Benz with about 200,000 employees. It is best known for its passenger cars and commercial vehicles. [THIS  BUSINESS  UNIT  HAS  THE  CORE  COMPETENCE  AND   HENCE  VERY   SUCCESSFUL.--------------------------------------------------------------The second was the AEG Daimler-Benz industries in the business of rail systems, microelectronics, heavy diesel engines, energy systems technology, and automation. [THIS  BUSINESS  UNIT  HAS  TOO MANY SUB-UNITS  AND  WIDE  DIVERSIFICATION  AND  LACKS  CORE  COMPETENCY  IN SOME  WHICH  AFFECTS  THE  OVERALL  PERFORMANCE.----------------------------------------------------------------------------

The third was the Aerospace Group in the business of aircraft (the company has a more than one-third interest in the Airbus consortium), space systems, defense and civil systems, and propulsion systems. 

[THIS  BUSINESS  UNIT  HAS   MANY SUB-UNITS  AND  ARE  INTEGRATED AND  HAS  THE   CORE  COMPETENCY  /  HENCE  IS SUCCESSFUL..----------------------------------------------------------------------------Finally, there was the Inter Services Group consisting of systemshaus, financial services, insurance brokerage, trading, marketing services, mobile communications services, and real estate management. 

[THIS  BUSINESS  UNIT  HAS  TOO MANY SUB-UNITS  AND  WIDE  DIVERSIFICATION  AND  LACKS  CORE  COMPETENCY  IN SOME  WHICH  AFFECTS  THE  OVERALL  PERFORMANCE.=============================================================2) Should the various groups operate autonomously? What kinds of activities should be centralized? 

[THE  BUSINESS  UNITS  SHOULD  OPERATE  AUTONOMOUSLY  . THE   KINDS   OF  ACTIVITIES  THAT  COULD CENTRALIZED ARE-IT  SYSTEMS-HR  SYSTEMS

-FINANCE============================================3) Daimler-Benz is best known for its Mercedes-Benz cars. Why do you think Daimler bought AEG in the first place and why did it venture into the Aerospace and Inter Services businesses? 

[ BETTER  USE  OF  TECHNOLOGY  AND  COMPETENCEPLUS  SALES   OPPORTUNITIES.===========================================4)  Given the apparent mistakes in acquiring non-automotive businesses, what should Jurgen Schrempp do now? 

[ RE-ORGANIZE / RESTRUCTURE  THE  BUSINESS   UNIT  AND  HIRE  COMPETENT   TALENTS  TO  RUN  THE  SHOW]

##################################################################################

Questions: 1)  Prepare a profile of the potential buyer of the Lexus.

Target Customer DescriptionThe target customer with Lexusʼ flagship hybrid design is seeking to present a bold image toothers. Price is therefore a secondary factor to the message their car portrays in their purchasingdecisions. Potential customers are born within ten years of the “baby boomer” generation agedforty-five and up. As a wealthy and image-conscious person he/she can spend money freely,taking up hobbies and living a visibly envious life. He/she purchases this car for its “green” statusto benefit his/her self-image. They choose to purchase hybrids either because they areenvironmentally conscious, or they wish to appear to be. They combine extravagance and excesswith environmental care by purchasing a car that is both “green,” and also features top-of-the-linetechnology, performance, and luxury. ---------------------------------------------------------------------------------------

2)  What should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe?

[BOTH   MERC / BMW  HAVE  QUALITY  PRODUCT/ PRODUCT  POSITIONING. THEY  NEED TO   STUDY  THE  MARKET   AND DEVELOP  A   SEMI-LUXURY  BRAND  TO  MATCH  ‘’LEXUS’’------------------------------------------------------------------

3)  Why has the Lexus model been very successful in the U.S.  but has not been marketed in Japan?  (Suggestion:  Review the frequency of repair records of luxury cars.  Also talk to Lexus dealers or Lexus owners).

[ IN  THE  US  CAR MARKET , THERE  WAS A  GAP  BETWEEN   MERC/BMW   AND   THE   LOCAL  BRANDS.THIS  IS  WHERE  THE   LEXUS  FITTED  IN  WELL   WITH  THEIR   PRICE/ PROFILE]------------------------------------------------------------

4)  Do you think Lexus will succeed in Japan?  Why or why not?

LEXUS  CAN  SUCCEED  IN  JAPAN, PROVIDED   IT  IS  POSITIONED  PROPERLY.