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Appendix 5-Internal Analysis, Value Chain

Human resource management: One head office deals with the many stores, have managers dealing with the individual stores.

Process development: Having automated supply systems, computerised distribution centres and having effective links between the stores, distribution centres and suppliers.

Purchasing: Low production costs, produces are mass produced and ordered in bulk.

Product

High quality products at low prices including brand names.

Supply:

Constant communication with suppliers ensuring stocks are replenished efficiently.

Operations

Focuses on the EDLP model delivering low prices all the time.

Distribution:

Fast knowledge about stock levels, with the good communication link between the stores, distribution centres and suppliers

Marketing and Sales:

More value for less, have promotion of low prices everyday.

Expand via M/A of local stores, speedily opening up new stores to gain economies of scale.

Internationalisation:

Carrefour carries out a pre-investigation of location and purchasing power. They are centralized in big cities.

The organisation is very experienced in developing country markets and culturally sensitive to local conditions. They provide a hypermarket with fresh food that attracts local consumers' attention.

Keep strategic alliances via JVs with local suppliers, stressing mass sales and low delivery cost.

Carrefour Empowerment

Empowerment, store-centred;

Carrefour