Post on 11-Mar-2018
transcript
enlarged Europe = 500 million consumers
EU applicant countries(2002)
BulgariaCyprusthe Czech Rep.EstoniaHungaryLatviaLithuaniaMaltaPolandRomania,the Slovak Rep.Slovenia
Turkey.
overlapping European business cultures
Anglo-American
Latin
Rhineland
Scandinaviannew Russiancapitalism
New strategies of internalization
relative size is necessary to compete on the big enlarged EU domestic market of 500 million consumers;
EU market is open to world competition;
to compete globally ---French companies have to focus on core businesses, acquire companies in all key markets and build international alliances;
companies like Airbus, Carrefour, Danone, Michelin, Ondeo, Renault etc fight for world leadership on their segment.
Airbus
Source: Dussauge 1999
AirbusA3001974
AirbusA 3201984
AirbusA3301993
AirbusA 3191995
ATR Bae 146
Aerospatiale 1+5 1+5 1+5 1+(2) 2+3+(5)
3 3 3 31+2+3+4+5
DASA 2 2 2 (2)+5
CASA 4 4 4 4
Alenia 1+4
BritishAerospace
1 2
3
3
4
4
5 : final assembly
from activity sharing ...
90% of business 10% of business
… to Airbus integrated company
Airbus Integrated Company shareholders (2000): – EADS: merger of Aerospatiale-Matra (France),
DaimlerChrysler Aerospace (Germany) and CASA (Spain).
– BAE SYSTEMS (UK) 40,000 employees in Europe, 100,000 employees around the world.design, engineering and manufacturing in France, Germany, Spain and UK.Two final assembly lines: Toulouse, France & Hamburg, Germany
Michelin19%
Goodyear17%
Continental7%
local players21%
Cooper2%
Yokohama4%
Toyo2%
Bridgestone19%
Sumitomo5%
Pirelli4%
a world oligopoly: tire industry
[1999]
Michelin: managing a brand portfolio
UNIROYALRIKEN STOMIL-OLSZTYN TYREMASTER SIAMTYRE WARRIOR
MICHELIN KLEBER BF GOODRICH TAURUS PNEU LAURENT WOLBER
Carrefour international presence
EUROPE AMERICAS ASIAGNPPer cap.
region firstopen.
stores region firstopen.
stores region firstopen.
stores
High-income&MiddleIncome
FranceSpainGreecePortugalItalyBelgium
196319731991199119931998
38372656332306985534
KoreaSingaporeJapan
199619972000
2011
Lower-MiddleIncome& LowIncome
TurkeyPolandCzech RSlovakia
1993199720002000
465162
BrazilArgentinaMexicoColombiaChile
19751982199419981998
1893611833
TaiwanMalaysiaChinaThailandIndonesia
19891994199519961998
24627117
Source: Carrefour 2000
Group
Carrefour
We are
The 1st European retailing group
The 2nd worldwide retailing group
We are
The 1st retailer in:FranceSpain
GreeceBelgium
ArgentinaTaiwan
Indonesia
We have
• Over 2 billion cash transactions a year
• Over 9000 stores spread over 31 countries, including 731 hypermarkets
• Over 380 000 employees
In 2000, we opened
•1 Dia - hard-discount store per day
•1 Champion supermarket every 3 days
•1 Carrefour hypermarket per week
Today, we satisfy our customers’ needs
With our different StoresHypermarkets, Supermarkets, Maxi discount stores, Convenience stores,Cash and Carry
Carrefour, Reflets de France, Filière Qualité Carrefour, ScelgoBio, Viversano, Harmony, TeX, TopBike, De Nuestra Tierra, GreenCut ...
With our Brands
Insurance, Financial Services, Flowers, Holidays, Optical,, Car maintenance, Frozen Food Stores
With categoric stores
Ooshop, VeryWine, Gardening, Furnitures ...With E-commerce
Our ambition
Meet the challenge of modern consumption
9225* stores spread across 31 countries
731 Hypermarkets2290 Supermarkets
3745 Maxidiscount stores2261 Convenience stores198 Cash & carry stores
Latin America: 639
Asia: 108
Europe: 8478
* at February 2002, including partners
731 hypermarketsupdated 2002, February 5th
Brazil : 74
Argentina : 22
Colombia : 5
Mexico : 19
Chile : 4
Belgium : 57
Malaysia : 6
Indonesia : 8
Greece : 11
Turkey : 10
Czech Republic : 11
Italy : 37Spain : 113
Portugal : 5France : 214
Poland : 9
Chine : 27 South Korea : 22
Japan : 3
Taiwan : 26
Thaïland : 15
Singapore : 1
Other countries, with partners : 20
Latin America: 124
Asia: 108
Europe: 499
Switzerland : 11
Romania : 1
2000 consolidated turnover- including taxes -
FranceAbroad
Group
33 99730 805
64 802
52,5%47,5% 25,0%0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
% : proforma change
Euros millions
Commercial sales by type of businessUnder store banners
60%
Hypermarkets
7%
Maxidiscounters
13%
Cash & Carry, Convenience stores, Frozen Food storesWholesale activities
Supermarkets
20%
Consolidated turnover per region
Europe79%
including France53%
Asia6%
Latin America
15%
A strong growth strategy
31 countries
19 countries
9 countries
5 countries
200019941989
FranceSpainBrazil
ArgentinaTaiwan
+Turkey
ItalyPortugalMexico
+ Monaco
+ ChinaSouth Korea
Czech RepublicThailandPoland
SingaporeColombia
ChileIndonesiaMalaysia
+ GreeceBelgium
United Arab Emirates*Mauritius*
Madagascar*Slovakia
JapanTunisia
Dominican RepublicQatar
RumaniaSwitzerland
1998* partners
Employment in Asia
• 38 745 employees (updated December 31th, 2001= 10% of integrated companies staff
Thailand15%
Taiwan18%
Singapore1%
Korea13%
ndonesia9%
Japan4%
Malaysia7%
China33%
I
CarrefourCarrefourChinaChina
CHINA - Year 2000
Area: 9.6 million km2
Territorial division: 31 Provinces, Autonomous regions,etc. Capital: BeijingPopulation: 1.25 billion (2000)GDP: 8,940.4 billion yuan (1,000 billion USD)Annual per capita income: 6280 yuan (758.5 USD)Sales of consumer goods: 3415.3billion (412.5 USD)
CARREFOUR CHINAChina entry date: 1995Trading name: Carrefour (China)Management Consulting Service Co., Ltd.Employee: 15,000Turnover in 2000: Over 8 billion yuan
Carrefour in China
Shanghai (6)Wuxi (1)Nanjing (1)
Shenyang (1)
Dalian (1)
Beijing (4)
Qingdao (1+1)
Wuhan (2+1)
Dongguan (1)
Zhuhai (1)Guangzhou
(1)
Chongqing(2)
Tianjin(2+1)
Ningbo (1)
Chengdu (1+1)Hangzhou (1)
black number : existing store: 27red number : signed project :9
Shenzhen (2+1)west regioneast region
Harbin (1)
Changsha (1)
Carrefour in China: Opening Dates
1995.12.25 Beijing Chuangyijia Store
1996.01.16 Shanghai Qu Yang Store
1996.11.26 Shenzhen Nan Tou Store
1997.10.06 Tianjin Nan Kai Store
1997.12.03 Shanghai Wu Ning Store
1998.01.08 Chongqing Mian Hua Jie Store
1998.01.13 Tianjin Long Cheng Store
1998.04.08 Chongqing Jin Guan Yin Store
1998.10.19 Zhuhai Le Tian Store
1998.11.18 Wuhan Shi Sheng Store
1998.12.09 Hanghai Jin Qiao Store
1998.12.12 Shanghai Gu Bei Store
1999.07.15 Beijing Fangzhuang Store
2000.01.28 Dalian Store
1999.09.26 Shanghai Nan Fang Store
1999.10.27 Nanjing Da Qiao Store
1999.11.23 Ningbo Jiang Dong Store
1999.12.09 Qingdao Ming Da Store
1999.12.08 Beijing Ma Lian Dao Store
1999.09.30 Chengdu Ba Bao Jie Store
1999.09.09 Wuhan Wu Sheng Store
1998.12.14 Dongguan Store
2000.08.04 Meilin Store
2000.08.08 Fangyuan Store
2000.08.09 Gongjiang Store
1999.01.06 Shenyang Bei Zhan Store
A store is on average...
*10,000~15,000 Daily Debits
*500~600 employees
*10,000 square meters.
*18,000 products available
*60% of sales in food
*40% of sales in non-food
Suez Group Water Business
ONDEO OBJECTIVES
WATER: Turnover + 60% over 5 years (1999-2004)€ bn
1999100 millioncustomers
60,000 industrial customers
1981 199220 millioncustomers
199648 millioncustomers
Objective 2004
ONDEO Value Chain
Design Construction Operation Customer
Assess Buildsolutions
Implementsolutions
Asset management Customer care
Finance Management
our customers’problems
Withdrawal from non-strategic businesses (1997-2000)
eliminating all confectionery business;
eliminating more than half the Group's grocery brands in Europe: pasta, condiments, sauces;
eliminating beer business in Europe.
Focusing on core business
Dairy Products: DANONE
Biscuits: LU
Beverages: EVIAN
20 years of acquisitions in Asia
1980 - Japan: JV with Ajinomoto (fresh dairy products) 1987 - Canton: JV for fresh dairy products 1989 - India: participation in Britannia. 1989 - Australia: control of Griffin's1991 - Honk-Kong: acquisition of Amoy 1994 - Shanghaï: JV in yogurts Shangai Danone Dairy (yogurts)1994 - Shanghaï: JV in Shanghai Danone Biscuits (biscuits)1995 - China: participation in the Haomen breweries1996 - China: control of the Hangzhou Wahaha1996 - China: acquisition of Wuhan Dongxihu Beer1998 - Singapore: participation in Yeo Hiap Seng (beverage market leader) 1998 - Indonesia: agreement with Aqua (bottled mineral water) 1998 - China: agreement with Health (bottled mineral water)1998 - Singapore: participation in Yeo Hiap Seng (beverages)2000 - China: acquisition of Robust (water and dairy beverages)2000 - China: participation in Aquarius Water 2000 - Malaysia: buy back of United Biscuits activities
12% of sales in Asia-Pacific in 2001
China represents over 70% of sales in the region
4 companies together account for nearly 80% of sales in the region:– China : Wahaha and Amoy– India : Britannia– New Zealand : Griffin's
Renault - Nissan alliance (1999 - 2001)
common platforms (small and lower medium segments): objective 50% of production volume (3.5 million vehicles) by 2005. joint development on a common small diesel engine.joint purchasing organization: objective 70% of purchasesjoint distribution in Europeindustrial and sales synergies abroad joint IT Systems
Two entities - one strategy (2002)
separate identities and independence of the two groups, responsible for their own operating activities. reinforcing the cross-shareholdings:
– Renault’s stake in Nissan up from 36.8% to 44.4%– Nissan share in Renault 15% without voting rights.
setting up Renault-Nissan BV, 50-50 JV in charge of coordinating the alliance’s operations worldwide. The French State has announced it would lower its shareholding in Renault to 25%.
Changes in French business system (1990 -2002)
privatization: drastic reduction of state involvement in industry, banking, automotive sector (Renault), oil industry (Totalfinal Elf), telecommunications;growing interest of French public to the Paris "Bourse”; loss of influence of "noyaux durs”: the intricate networks of cross ownership between associated banks and corporationsloss of influence of government and high civil servants (“grand corps”) thanks to globalisation, Europe and greater autonomy at regional level: the French "regions".
France fully state controlled companies (2002)
SectorAerospace & Defence: e.g. Snecma (aircraftengines)MortorwaysChemicalsEnergy: EDF (largest European electricitycompany) , GDF (Gaz), Coal etcLeasure: Française des JeuxMedia: France TelevisionFinancial Services: La PosteTransportation: SNCF (French Railways) ,Paris Metro
Companies to be privatized (2002)
Company State’s share(%)
Air France 55.9France Telecom 55.5Thales (defense electronics) 51.0ASF (motorway operator) 51.0Renault (car industry) 25.0Thomson Multimedia 21.0EADS (aircraft industry) 16.7Bull (computers) 16.3Dassault Systems 15.8Credit Lyonnais (bank) 11.6
Growing influence of foreign investors
40%42%
37%35%
51%42%
38%45%
39%
0% 10% 20% 30% 40% 50% 60%
Alcatel
AXA UAP
ELF
Paribas
Suez-Lyonnaise
percentage of capital owned by foreigners in 1997
Conclusion
French companies go global with:more focused strategies
in depth corporate transformation
Focusing on core businesses
conglomeratediversification
forwardintegration
international strategy
backwardintegration
focusing of core business
Transforming the corporation
2 building
capabilities
4 managingintangibles
3managing
alliances andJVs
5 restructuringinternationaloperations
1 value creation
throughoutthe network
6 transformingthe institution
redefinitionof
core business