Finances. Case Study: Mercadona
Mercadona is a family owned Spanish supermarket company whose CEO is Juan Roig. In the Spanish share of total food retail space represents a 13.1% and is located in 15 Autonomous Communities with 1,338 supermarket stores.
Despite the economic recession Mercadona is growing and its next challenge is the leap into foreign markets such as the Italian, French and Portuguese. How can this be possible? Due to the implementation of the “Total Quality” approach.
This strategy arranges and prioritizes the interests of the company as follows: Customers, Workers, Suppliers, the Company and Capital. In consequence operations are designed and managed to fulfill its philosophy.
Accordingly, the company focuses on the long term and pays more attention to the impact of a decision on the customer, the employee, the supplier and the society before it thinks about the impact on profits. As an example with regard to customers, Mercadona offers a private brand with good quality products and low prices. Moreover the investment on workers, their training, fixed schedule and stability in the salaries shows up in better service for clients as the workers are more efficient, ready to help and advise the client knowing everything about the products.
In the last two years Mercadona decided to help its customers to save money enforcing its private brand and reducing the cost of its products, money that they obtained with a non publicity policy. Their motto SBP (Always Low Prices or in Spanish “Siempre precios bajos”) http://www.mercadona.es/corp/ing-html/spb.html.
As for the suppliers, which are more than 2000, Mercadona just has an average ratio of 63 days for paying its debts which is trying to improve each year.
The results of the recipe are clear: Mercadona is number one in the Spanish market shares increasing its sales by 6% compared to 2009. More than 4.4 million households shop every day at its hypermarkets in 2010 obtaining a benefit of 398 million euros, a value increased in 47% more than 2009 and 24% more than 2008.
The picture can show us several financial dates extracted from the Annual Report 2010.
For further information:
-Annual reports http://www.mercadona.es/corp/ing-html/noticias.html
Comentarios desactivados en Finances. Case Study: Mercadona /
28 Nov 2011
por
Laura Ambrós Atance
MIGMAmad /
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