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Cartridge World Prepared for: Best in France 12 May 2009 Orla Liston I Richie Carroll I Jason Poulsen I Atsushi Saito I Olga Fedorova
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Cartridge World
Prepared for:
Best in France12 May 2009
Orla Liston I Richie Carroll I Jason Poulsen I Atsushi Saito I Olga Fedorova
Orla Liston I Richie Carroll I Jason Poulsen I Atsushi Saito I Olga Fedorova
ClosingClosingFrench BenefitsFrench BenefitsConstraintsConstraints
Cartridge World
When did it come to France- Came to France in 2003, but originated in Australia in 1991.
What's its business-Remanufacturing of ink and toner cartridges for consumer printing-Sale of compatible cartridges and printing accessories-Refill of empty ink cartridges for inkjet printers, laser printers, fax machines and photocopiers with top quality, brand-specific ink and toners.What are its key figures (world sales, French sales, profits, market share etc.)-It currently has close to 18% of the worldwide ink cartridge market (Revenue) -Sold nearly 60 million ink jet cartridges and 10 million laser cartridges in France in 2007.-World’s fastest growing ink refilling retailer in the $60 billion printer cartridge industryNote: Only 22% of cartridges are refilled in Australia, 27% in the USA and 15% in the UK.
Company
ClosingClosingFrench BenefitsFrench BenefitsConstraintsConstraints
Company ProductsCompany
Senario1: Import and sell
Senario2: Produce in France
• FC2: Store, Factory, Negotiation, Tax• VC1 - VC2 = Transportation, and products are small• Estimating FC2 and VC2 might be difficult Hidden cost
ClosingClosingFrench BenefitsFrench BenefitsConstraintsConstraints
Company ProductsCompany
• Don’t produce products in France—Import and resell
• Their cost– Fix cost: Store– Variable cost: Labor, Transportation,
Cartridge parts
ClosingClosingFrench BenefitsFrench BenefitsConstraintsConstraints
Clientele
Who are the company's clients?-Consumers and SME Worldwide-+1600 stores in +45 countries
What are their expectations?-Network of sites-Cater to local needs both in Australia and Internationally-Provide competitive prices on superior products
How will a French presence help or hurt the company's ability to satisfy client demands?-Necessary to access French speaking clients-Provide more tailored service in France-France is one of the largest European markets
Company
ClosingClosingFrench BenefitsFrench BenefitsConstraintsConstraints
Why it Came to France
Company approach to international growth-1600+ stores in more than 45 countries, with an average of 4 Cartridge World franchises being opened EACH WEEK!-French Federation of Franchises; 130+ stores in France.Where else did it consider?-It is currently growing hugely worldwide, so it has considered and located in many other countries apart from France.Why was France a key target location-Owner for Europe had worked in France and UK so was familiar with France and how business was done here—very comfortable move
Company
CompanyCompany ClosingClosingFrench BenefitsFrench Benefits
Company Values
What are the core values of the company?
What values may not fit with perceived French values?
Constraints
EfficiencyEfficiency IntegrityIntegrity PridePride CustomerSatisfactionCustomer
Satisfaction
EfficiencyEfficiency
CompanyCompany ClosingClosingFrench BenefitsFrench Benefits
Principle Constraints
What are the principle constraints the company foresaw before coming to France?-Social Protection: very strong protective labor laws—protects employees
Very challenging to fire employeesEasy to get in trouble for something if you don’t know the
system well-Higher Taxes-High Risk of Strike-Shorter Work Week: only 35 hours per week
Constraints
CompanyCompany ClosingClosingFrench BenefitsFrench Benefits
Surprises?
Did they discovery any others once they arrived?•Not that bad because they are a franchisor that hires French people
-The French understand their own system•Mostly challenging for the executives
-Top-down problem not bottom-up problem-Executives from American schools and American business style-Very to the point and don’t like to waste time-Hard to find franchisors that can handle/understand American system -Management to hire people well-versed in both cultures/bilingual
Constraints
CompanyCompany ClosingClosingFrench BenefitsFrench Benefits
Worst Constraints
Which are the worst constraints?-35 Hour work week-Taxes are higher here How do these constraints differ with their other locations?Longer work hours in US and other Western cultures, similar to home country of Australia
Constraints
CompanyCompany ClosingClosingFrench BenefitsFrench Benefits
Losses?
Did the local subsidiary lose projects to other countries because of these constraints?-No; Cartridge World franchised all over Europe, over 1,600 stores in 45 countries-Franchisor, generally not hiring other non-French people to work in France—with the exception of management above the franchisees and below the executives-Franchising in different nations makes a lot of sense
Constraints
CompanyCompany ClosingClosingFrench BenefitsFrench Benefits
AdaptationsConstraints
What kinds of adaptations did/is the company making to its people management systems?
-Try to deal with the differences
-Hiring fully bilingual people
-Hiring English speakers so as to help communication
-Hiring those who can understand differences working in different countries, and between Europe and non European differences
CompanyCompany ClosingClosingConstraintsConstraints
Key Benefits
What are the key benefits of being in France?-High quality of infrastructures-High labor productivity per hour (as a % of the US level)-High quality of life in France-France is 5th largest economy in the world-Location benefits for expanding throughout European market
French Benefits
CompanyCompany French BenefitsFrench BenefitsConstraintsConstraints
General Advice
What advice do you offer to other companies in this sector concerning use of France as a location?
Closing
Take time to think about things before starting Take time to think about things before starting
Get very good consults (someone who is used to setting up companies in France Get very good consults (someone who is used to setting up companies in France
Make a very detailed contract for the employeesMake a very detailed contract for the employees
CompanyCompany French BenefitsFrench BenefitsConstraintsConstraints
We’d Like to Thank
Isabelle EloyFinance Controller
Closing
CompanyCompany French BenefitsFrench BenefitsConstraintsConstraints
Questions?Closing
