Carrefour sales situation in 2011
Carrefour Group annual turnover fell 3.2 % in the first quarter of 2011 in Spain, to 3,269 million euros. By contrast, in the world increased by 3.9%, reaching 24.698 million euros.
The French distributor in Spain recognized that the environment is “difficult”, the same expression used to refer to the results in Western Europe where, in the first quarter, had a turnover fall of 4.7%.
Sales in Western Europe as a whole totaled 4.651 million euros. On the other hand, sales in Latin America grew strongly, with 11.6% increase, and Asia, achieving a total emerging countries sales of 8.212 million euros.
In France, Carrefour increased its sales by 1.8% to 9.283 million euros, but in Spain, the biggest drop in turnover affected the hypermarkets, with a 3.3% decline, to 1.999 million euros.The smaller decline in sales in Spain fell to hard discount activities, with a total of 1,064 million euros, 1.4% less than in the previous quarter.
The managing director of Carrefour, Lars Olofsson, said the group “recorded solid sales growth” and that this “confirms the dynamics observed in 2010.” He said the sales growth is due in large part to increases in Latin America and Asia, especially in Brazil and China and estimated that in Europe there are encouraging signs of improvement both in Belgium and Spain.
During the first three months of 2011 the group opened a total of 231 new stores, representing an area of 116,000 square meters. In late March, the group had a worldwide total of 15,960 establishments, mostly in Europe (5479 in France and 8330 in other countries), followed by 1396 in Latin America and 755 in Asia.
Source:
http://www.cincodias.com/articulo/empresas/caen-ingresos-carrefour-espana/20110414cdscdsemp_21/
Pablo Gonzalez
Finance 2011-2012
Comentarios desactivados en Carrefour sales situation in 2011 /
27 Nov 2011
por
Pablo Gonzalez Vina
MERME /
Managerial Skills:
I am very pleased to have participated in the matter of managerial skills. First of all I have to admit that much of my satisfaction with the matter is due to professor we have had during the course, Christopher John Metcalfe. Who knew how to transmit the knowledge and skills to develop in this important field for our future work.
The section devoted to presentations for me has been the most profitable, considering my difficulties in this area. This part of the course may have been the most useful that I will be in the short to medium term. Able to present one’s own idea, project or product is very important in the workplace. Currently we have to compete with many people very well prepared and very important element in developing and differentiate in the workplace is knowing how to transmit our ideas to others.
Besides the section on conflict resolution also I consider it´s very important for our present and future. Conflicts arise every day in every area of ours life, knowing how to deal with them is key to solving them.
We have learned to use two techniques to deal with conflict in terms of our priorities, win-win or win-lose. This is very important to me as how to resolve conflicts both in our personal lives and at work. Because if we can resolve conflicts that we face throughout our lives we will be happier in our personal lives and more efficient at work.
Comentarios desactivados en Managerial Skills: /
27 Nov 2011
por
Ruben Pardo Hernangomez
MERME /
Hypermarkets in Spain
Where is the success of a hypermarket? In making life easier for consumers, as they can satisfy all their routine shopping needs in just one trip!
I guess everybody has heard about Mercadona or Eroski; these hypermarkets are well established in Spain. The crisis has affected this sector less than other sectors, because they sell basic products and people can do without other products, but not without the basic ones. Their key is being effective and competitive and receiving the money from their clients “soon” while paying their suppliers “late”. This time difference between collection period and payment period allows hypermarkets to invest this money in finance assets and obtain revenues from these operations. These operations constitute a second line of business, completely different from the first line, which is selling their products. These financial investments may result very profitable.
After analyzing their annual reports, the main conclusions are:
– Mercadona has increased their sales by 6% compared with 2009 while Eroski has decreased their sales by 10%.
– The Liquidity Ratio is 0.97 in Mercadona and 2.02 in Eroski. Usually this ratio should be higher than 1, but as Mercadona receives cash from its clients immediately and doesn´t pay suppliers immediately, this is not a problem.
– The Rate of Return on Equity is 21.43 in Mercadona and 5.04 in Eroski. With these results we can see that the rate of return compared with equity of Mercadona is higher than the one of Eroski, which means that the management in Mercadona is better.
– The Financial Leverage is 1.51 in Mercadona and 0.85 in Eroski, which means that Eroski receives less financing from credit institutions than Mercadona.
What makes the difference of Mercadona? Mercadona claims to have a constant and sustainable growth; they reinvest their profits and use innovation as a factor in competitiveness. They are focused in the long term and increasing their productivity. Mercadona closed 2010 with shops in 46 Spanish provinces and 4.4 million households that trust them. Spain is in crisis, but Mercadona managed to create 1,500 new permanent employment positions. It´s contribution to Spanish GDP was 3,059 million euro and the net profit and EBITDA in 2010 were 47% and 38% higher than in 2009, respectively.
Comentarios desactivados en Hypermarkets in Spain /
27 Nov 2011
por
Maria Diez Maroto
MERME /
Managerial Skills = Human Skills. Ok. What are they used for?
For the past three weeks we have been studying some of the most basic skills that quite every 21st century-worker needs in order to perform during his entire career.
These skills were presenting, negotiating and leading other people. All they are needed in the interaction with other people and their importance consists in the rise of the productivity that can be achieved by the individual and/or by a team.
Next, I´m going to list the key points (in my opinion) of each skill:
- Presentations:
Basically, presenting consists in “moving” the people that are listening to you (audience) from the position they are now to the position you want them to get to. It would be something similar to leading, but in a shorter amount of time and a shorter interaction with them.
Regarding to that the most important thing that you need is to connect with them by being sincere about the topic, keeping a simple structure and text (because people assimilate that to effective people) and adapting the topic so that it sounds like a need for them and pushes them to make the change by their own (preferably to the point you want them to get to). And I think this is so because we all tend to listen and to do the things that someone tells us (based on their experience) and that had a good result in their lives applied on themselves.
- Negotiation
This one is a hard one, but just because I also think it is the most important one of the skills we´ve seen in class.
Normally people tend to think that negotiation is the same as confrontation (a very negative word in the main conception). But in the world we live we need to interact with others in order to obtain the things we can´t achieve by ourselves, so we will have to negotiate the manner we are going to collaborate with them.
In this case, for me, the principal words are attitude and know-how. Our attitude is the way we interpret the world we live in and how we react to those stimuli. And it should be always positive (without being a flower-power lover…). This is so because in the most cases the people we are going to need, is very probable to need us too, so we´ll be able to create a more valuable project by interacting than by doing it separated, so they´ll be also disposed to get to a fair deal. I also consider useful to know how to confront a negotiation scenario because on this will regard the outcome and the course of a negotiation for my/my part.
- Leadership
Finally, the last but not the least one. In my opinion this is the hardest one to achieve, because a leader is someone you want to follow and not someone you have to follow. And even if a good leader is someone who gets built through experience and hard work, personally I found very interesting the way you get to be a leader. It is not a charge you can develop in your company even if you are named to be the leader of a team because it is directly linked to your personality. You may be named leader but if you aren´t one already (even if just for your own) you will never be a leader for others. And being a leader for yourself means to have the total control and awareness of your own person and acts. This might sound very shaolin-like, but I really think it is the main point of this human skill.
As we have seen managerial skills are the same as human skills and their importance lies in the need we have to interact with others in our professional life in order to grow as professionals and as persons.
Comentarios desactivados en Managerial Skills = Human Skills. Ok. What are they used for? /
27 Nov 2011
por
Alexandru Nicolae Cosor
MERME /
Analysis of the Annual Report of the hypermarket Auchan
Auchan is a French brand, which started with a first store in France 50 years ago, in 1961. It had been for a large time the almost only hypermarket in Spain, or at least one of the biggest ones. Here it is known as Alcampo and when I´ve arrived to Spain, 12 years ago, I´ve been impressed of the dimension of one of their establishments.
We are going to see its annual report for the year 2010, which I´ve picked up from this internet site (http://asp.zone-secure.net/v2/index.jsp?id=198/2213/14111&lng=en) and whose interesting parts are detailed in the lines bellow.
After working a little bit on the schedules above I´ve taken out the ratios that we can see and now I´m going to comment.
As we see the working capital is negative, the liquidity ratio is below 1 and the acid test is also very low, and all this is because it is the debt that the company has to afford with the suppliers. This isn´t a problem for the company because they collect the money which is debt to it by the clients (in only 3 or 4 days) and it has to pay the suppliers in just 86 or 87 days.
Alcampo also seems to be a very efficient company due to its assets turnover, for every 1 € invested they recover 1,57€ and the whole stock of the company has a rotation of 9 times per year (regarding to the inventory turnover ratio).
The return on equity which the company has is at 8,76%, which is a good ratio nowadays. The company has even taken down its financial leverage in comparative to the year 2009.
In my opinion the company is still a great competitor in the hypermarket sector and it has not yet said its last word even if other supermarkets try to robe them their clients they are doing well.
Comentarios desactivados en Analysis of the Annual Report of the hypermarket Auchan /
27 Nov 2011
por
Alexandru Nicolae Cosor
MERME /
Managerial Skills…WHY?
Once these lessons have come to an end, it’s time to recap and make known, firstly, WHY have been important for me, and finally in WHAT they are going to help me in the future.
Before starting this Master, I had very clear that the profesional field I would like to work and be involved in coming years is that of renewable energy.
It was in that moment when I finally had, and I already say it, perhaps prematurely only a month later, the good decision of choosing the MERME (Master in Renewable Energy and Energy Market). I say good decision, because thanks to subjects such as Managerial Skills, I realize that I’m coming true the question…Why this year at EOI. I wasn’t just looking for increasing my academic knowledge in the renewable area, also the development from the personal point of view and my skills to face up to challenges which are coming to me.
In the first part it was discussed the Effective Presentations issue, in which I noticed the importance of SIMPLICITY (Less is More), meanwhile, when you ponder too much a matter, sometimes happens that you get lost along the path. Set a clear goal, face it directly, and if you show it in that way, people (audience) will get you from the beginning.
This concept was vital for, in a second term, talk about Effective Negotiations, and how a positive, calm and nice way attitude is essential that these have a successful ending. Therefore, I’ve learnt how with character, confidence and positive energy you become a trusted negotiatior…
”It’s not neccesary to win every battle to win the war”
Finally, the last two weeks we got to know how is or should be the behaviour of a GREAT LEADER. Is here where makes its appearance on the scene the fact how to deal with people, and the importance of taking responsabilities (Accountability, Commitment) and set priorities, so that, through them to provide the enough motivation to your group.
“Confidence move mountains”,so…”Don’t fight the battle by yourself”
In conclusion, I would sum it up with the word we began the course…AWARENESS. We can’t apply all of this day by day if we are not conscious of what we are doing or we want to do, if we don’t know our own values and, therefore, we don’t BELIEVE in WHY all of it.
“People don’t buy what you do, they buy why you do it” Simon Sinek
Comentarios desactivados en Managerial Skills…WHY? /
27 Nov 2011
por
Alfonso Medal Rendal
MERME /
Stock reduction and store brands
Like any other sector, the good consumer industry is struggling to overcome the effects of the global financial crisis we’re facing. This situation looks like ending up in a more consolidated industry in which survivors will be fewer, bigger and stronger.
The fierce war of prices we have seen lately doesn’t seem to be close to an easy ending; in fact, it’s becoming increasingly stronger and looks like remaining until consumer pockets are filled again.
The pressure on cash flow has increased exponentially in the past few years which has made inventory management one of the key success drivers; keeping low inventory levels has become critical and has been approached in different ways: one way involves a reduction of the brands available at the stores (Mercadona’s approach), another one relies on a ”just in time” look like approach: which means, having in stock just what is needed for the following business day (safety stock excluded).
Several times, this stock reduction means some customers won’t be able to find the products they’re looking for at the stores. If we take as true the believing that 1 out of 3 times a customer who doesn’t find a certain product will buy a substitutive product; 1 out of 3 will look for it in a different store; and 1 out of 3 won’t buy anything, we will surely come up with the conclusion that there is a high risk of customer satisfaction and business reduction. Nevertheless the competitive advantage provided by available cash flow enables lower prices not possible otherwise. Keeping a good balance in both, price and selection, can be the difference between succeed or failure.
Another clear conclusion is that high quality-low price store brands are a must for any company which wants to succeed in this industry; bringing both, customer loyalty and stable source of income. The combination between stock reduction and own quality and store brands seems to be a constant for the supermarkets overcoming these tough years.
Companies such as Mercadona (the agreed absolute winner of the industry since the financial crisis started back in 2009) have shown how to win in this environment with drastic measures and a well-defined strategy: market leader brand (sometimes top follower too) + store brand for each line of product on their shelves, and nothing else.
We don’t know how this and other successful companies will deal with the economic recovery expected and how they will readapt their strategy, but for now, that is the way to go.
Comentarios desactivados en Stock reduction and store brands /
27 Nov 2011
por
Alberto Rengel Bueno
MERME /
Managerial skills feedback
After a few feedbacks from Chris and once we have finished the managerial skills course it´s time to give Chris our own feedbacks of it.
Along these weeks he has taught us many things about how to make a presentation, how to reach a good agreement in a negotiation or how to become a good leader.
We have learned for example that giving presentations we must be clear and concise and go directly to the point, focusing in three or four main ideas to move our audience from the point A (where they are) to the point B (where we want they’ll be). Also that in negotiations the best is to create value (increasing the pie) to have more things to distribute between the negotiating parties. And that if you want to be a great leader the most important thing is to focus on your team people and to try to make them feel comfortable.
Of course all of these things are important but somehow they are things that we have already known, therefore the most important thing of this course has been the way of giving it and how to explain these things. Always in simple and clear terms (such as we must do in presentations), providing a wealth of examples, and the most important of all by making that classes very entertaining and reaching the goal that nobody get bored in them.
All of this knowledge obviously will serve us in the future and in our future careers, when we will have to give a presentation, to do a negotiation or to lead a group of people, but if I had to stand out one thing of this course would be the way their classes have been taught, as i said before, these have been very dynamic and participatory. There has been some Monday morning in which Chris said us that we were like zombies, but he has always been able to encourage our participation with group activities, individual questions and allowing us to give our own opinion. In my particular case I’m a little shy and I don’t speak very much, but the fact that the class were so participative has done I have involved into this dynamic and participate a little more.
So I think that although Chris has taught us many things we have also taught something to him through our participation and different opinions.
Thank you Chris!!!
1 comentario /
27 Nov 2011
por
Alberto Rengel Bueno
MERME /
Managerial Skills
I just finished my first course about managerial skills and I hope it would not be the last one, because our managerial skills is something we can and we must always improve. I have to say that most of the times I have studied a course (until know) I sometimes had the feeling that I would never use that things in my life; they were only useful for the exam. This time I had the feeling that I could use the knowledge to improve both my personal and professional life.
Let´s face the truth, it is always difficult to pay attention in a class for more than 1 consecutive hour. Managerial skills was a course easy to follow and to pay attention to, maybe because of the benefit it has for us.
What have I learned from this course? Obviously I have to say everything! But one the most important benefits for me has been realizing many of the mistakes I always do.
Effective presentations: I always knew it was important to keep the slides simple and to use visual aids, but I never thought that the audience should see a benefit for them. Every time I was making a presentation I was just trying to say as much as possible from my work in the time I was given, without thinking about a point B and without thinking if I was capturing someone´s attention or not. I also looked wherever I wanted, because I was more interested in being comfortable than in the audience. Of course, my structures always had thousands of key points and it was impossible to find a general conclusion about anything. I think now I can improve a lot my presentations and show the audience that they are important and that my presentations are important for them.
Negotiations: I am always avoiding conflicts, so it looks like I am a soft negotiator. After this course I want to change that behavior and reach at least a compromise next time I am negotiating. I also have learned how important is to be polite when negotiating, not that I am rude, but I would have never thought about saying “I am not sure if I understood your point” instead of a simple “what?” I have always been more interested in showing my points than in the others points of view. This is one things that I find useful also for my daily life.
Leadership: last but not least, I am not a leader, at least right now… Now that I know how a good leader should act maybe I will try it. Maybe the most important benefit I got from this part is to keep always in mind how to congratulate people for their achievements instead of punishing them for their mistakes: that encourages everybody to work better! Also time management is really important. From a long time I started realizing this, but some years ago every time that I got a lot of things to do I was very stressed and I couldn´t manage my time. In the end, I was not able to finish everything and also I was not enjoying at all. Important lesson, there´s always time for everything.
Comentarios desactivados en Managerial Skills /
27 Nov 2011
por
Maria Diez Maroto
MERME /
DIA is the Mercadona of the stock market: double benefit of competitors
Between 2010 and 2013 expected to increase its gross profit by 14% compared to 7% of industry average. In two years estimated increase in number of establishments from 6375-8000.
On November 5 the company served four months of its coming-out stock market and is a value that conveys good feelings.
On the one hand, the company is portrayed as a defensive, since opening its shares have fallen 5.5%, compared to 20.5% in the same period gives its selective principal, IGBM. The analysts frown, and have improved its rating, moving from a buy and its price target from 3.8 to 3.93 euros.
Benefit Vs Debt
DIA is implementing a business plan with an expected cumulative growth of its gross operating profit (EBITDA) between 2010 and 2013 from 13%, estimates the company itself and a 13.77%, according to the average bank following this investment-value so that if in 2010 its EBITDA was 477 million euros in 2013 it will reach 617 million, compared to 7.30 on average expect growth in the distribution sector.
His debt is its Achilles heel, as in 2009 closed with a net cash position amounting to EUR 7.2 million but its ambitious restructuring plan has caused DIA debt incurred, so that in 2011 their loads financing are expected to amount to 589 million euros. The question is, what is the secret of DIA? To answer we must look at their business model and strategic plan.
Business Model
His way of business is based on three pillars. A wide range of products with its own image, whose value has become more attractive in the current context of economic stagnation and decline in consumer income. Sales of private label products account for approximately half of the total in Portugal and Spain, while in emerging countries ranges from 10% in China and 35% in Brazil.
The restructuring of its business model is one of its pillars. DIA operates its business through two models. One is known as Self Management, which is its traditional pattern of activity, where the ownership and operation of the establishment lies with the company. This format, which applies in more than 67% of its stores, used in areas with strong sales potential and is flexible enough to change the business and personnel management.
His other form of business is the franchise, which has strengthened in recent times and it is expected that by 2013 reaches 40% of all establishments, from the current 32.5%. Finally, the company has a large operational efficiency in logistics, to be flexible enough torque to the needs of its customers with two types of formats: Market and Maxi DIA DIA.
This has led to a company that last year, according to the company, turnover of 9,600 million euros thanks to its activity in 6375 has spread establishments in Spain, Portugal, France, Argentina, Brazil, Turkey and China.
Future Plans
For the next year’s DIA aims to consolidate its presence in emerging, high potential for growth, thanks to a significant investment, boosting hopes to finance the cash flows obtained in mature markets of Spain and Portugal.
Its international expansion is based on the number of establishments increased to 8,000 in 2013. In addition, DIA is implementing a plan to transform his antique shops in modern’s shops adequate for the new necessities of consumers.
Full article:
Comentarios desactivados en DIA is the Mercadona of the stock market: double benefit of competitors /
27 Nov 2011
por
Ruben Pardo Hernangomez
MERME /
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