The global strategy of french retailer Carrefour

The global strategy of french retailer Carrefour The last four decades has seen the French group Carrefour S.A. become Europes largest and the worlds second-largest retailer. The group presently operates the four major store format categories: hypermarkets, supermarkets, hard discount and also convenience stores. The Carrefour group presently operates more than 15,500 stores which are either company-operated or franchises. The group employs more than 475,000 people and generated sales (including VAT) of à ¢Ã¢â‚¬Å¡Ã‚ ¬96.2billion approx. during 2009 (Carrefour Group, 2010, p 1-2). Carrefour was incorporated in Paris by the Fournier and Deoffrey founder families during 1959. It launched its first supermarket during 1960 near a crossroads (Carrefour in French) followed by the first Carrefour hypermarket during 1963. Thereafter, the internationalisation of Carrefour began with the Belgian foray during 1969 (Ki, 2008, p 14-19). Analysis Background Carrefours success was primarily because of its involvement in creating hypermarkets across Western Europe. Carrefour pooled the American approach to supermarkets with the discount stores format by retailing non-food products along with self-service (Jung, 2006, p 1-3). Its hypermarkets success led Carrefour to establish the groups first store in UK and Italy. Its further expansion helped to establish markets in numerous other countries for instance Greece, Turkey, Mexico, China, Malaysia, Hong Kong and Indonesia during the 1970s and the 1980s (Ki, 2008, p 14-19). A ground-breaking entrant in countries exemplified by its Brazilian investment in 1975 and the Chinese entry in 1995, Carrefour presently operates in three major European, Latin American and Asian markets. Present in 34 countries internationally, more than 57 percent of the group turnover is generated from the European markets excluding France. The group perceives strong potential for added international growth in future, principally in large national markets for example China, Indonesia, Brazil, Poland and Turkey (Carrefour Group, 2010, p 1-2). Global Strategy Within France, the group faces an extremely competitive pricing environment. Its hypermarket sales have been declining for a while because of the increasingly popular discount stores. Carrefours hypermarket comparable turnover (including petrol) for the third quarter dropped 8%, with non-food comparable turnover falling 9.5% (Stych, 2010, p 1-2). Perhaps the one way its investors will be truly satisfied is if its French hypermarket division performs better, since it contributes approximately a quarter of Carrefours global sales (Stych, 2010, p 1-2). Unlike some other global retail players like Metro (globally the 3rd. largest) which have financially independent global operations, Carrefours overseas expansion is driven by funding from the French operations. Compared to the Metro Group, Carrefours globalisation policy appears indecisive at the moment. Only time will reveal if the pressure to dispose off its Asian and Latin American businesses proves too hard to resist (Stych, 2010, p 1-2). Carrefour is keenly committed to sponsoring local economic development wherever it is operating globally. Typically, in any country that it operates in, the Carrefour group is the largest private employer. Unsurprisingly, this is true for France, where the group originates from. The same also applies to countries such as Argentina, Brazil, Colombia, Greece and Italy. The group also strives to sustain local suppliers, with approximately 90 to 95% of its products sourced locally and based on the country of operations (Carrefour Group, 2010, p 1-2). Global markets priority France remains Carrefours recognised home market and also the groups key priority. The Group is taking initiative to reclaim its leadership within France. The aim is to produce growth, firstly through developing further its multi-format model, raising convergence and providing fresh momentum to its hard discount formats, followed by augmenting sales growth, price image and price competitiveness. The groups second priority includes Spain, Belgium and Italy Belgium which, including France, comprises Carrefours G4 countries. In these established European countries, suitable measures will be adopted to sustain growth (in Spain) or improve its performance in Italy and Belgium. Growth markets signify the groups third priority. It will focus its development resources for the most part on countries having stronger growth potential. The Groups progress in these regions will depend on various formats targeted at generating the customer base such as hypermarkets, cash and carry etc. (Carrefour Group, 2010, p 1-2) Successful globalisation Twelve years after incorporation, Carrefour began its internationalisation journey with its Belgian expansion. Its strategy depended on building the groups market share in each market by developing the kind of retailing most suitable to the local market and also by maximising the way the groups formats harmonised one another (ICEP, 2008, p 189-197 ). The companys self-branded products were commenced during the mid-1980s, thus highlighting Carrefours pursuit of in-store market shares. A succession of acquisitions and takeovers during the 1990s culminated in Carrefours 1999 affable takeover of Promodes, its main French competitor, thus crafting Europes largest food retailer (ICEP, 2008, p 189-197). It is seen that Carrefour is able to productively employ its capabilities and resources in creating a persistent competitive advantage with the right use of PESTEL and Ansoff Matrix methodologies to carry on catering to the unpredictable shoppers distinct and localised goods preferences and needs. The macro environment, largely represented as the PESTEL diagnostic framework, typifies the political, economic and societal factors along with the technological, environmental as also the legal factors. It assists in systematically examining and finding the impact of all these criteria on the organisations (Gray, 1999, p12) (Alfino, et al, 1998, p 17-23). The singular differentiator for Carrefours success in China has been its more ingrained adjustment to the local environment and in the appreciation of the local consumer behaviour and culture in terms of the societal and environmental factors in PESTELs framework (Gopalkrishnan, 2009, p 1-9). Further, Carrefour is more successful also because it considers China as a group of local or regional markets whereas Wal-mart considers it as a single large market; Carrefour also has decentralised sourcing and distribution unlike Wal-mart (Mahajan-Bansal, 2010, p 1). The Chinese favour fresh poultry and meat, hence local sourcing results in faster and smarter logistics rather than central sourcing of merchandise (Mahajan-Bansal, 2010, p 1). Another cause of the success of Carrefour is the decentralised organisational configuration, which permits it to continue the focus on local requirements and preferences. The corporate office in Paris is responsible for long-term strategy and policy. It also deals with financial and technical issues and offers advice when requested. It also offers intellectual capital and is responsible for new store locations and capital investments (Lal, et al, 2004, p 289-293). The Ansoff Matrix is a strategic marketing planning tool that connects a firms marketing strategy to its broad strategic direction. It presents four optional growth strategies as a matrix. These strategies look for growth through: (1) Market penetration by driving current products throughout their current market segments (2) Market development through developing new markets for current products (3) Product development through developing fresh products for its current markets and (4) Diversification through developing fresh products for fresh markets. The Ansoff Matrix was named after Igor Ansoff, its inventor and the father of strategic management and initially circulated in The Harvard business review in 1957 (Businessdictionary.com, 2010, p 1.2). Table 1: The Ansoff Matrix (Ansoff, 2010, p 1-2) The Table 1 above illustrates the four optional growth strategies (Ansoff, 2010, p 1-2). It is evident that Carrefour has successfully continued to implement the market and product diversification strategy by localizing its product and service offerings in most of the countries internationally within which it operates. It is also observed that it is able to continuously diversify into new markets based on the expertise gleaned from earlier international forays and localizing their offerings to suit the local requirements and preferences. Modes of entry The Carrefour group appears, through its choice of entry methods, to realise either the necessity or legal compulsion for a partner in nearly all international markets. Managerial control is typically sought after, and this is especially evident for Carrefour as well as for Delhaize, the Belgian retailer (Burt, et al, 2007, p 5-18). Carrefours conventional model of investment involves joint venturing and collaborating followed by either consolidation or divestment depending on whether the performance and market share grows or stagnates, states Burt (1994, p 391-410). Its merger with Promodes initiated broader variations of management control mechanisms leading to franchising and affiliation becoming more widespread than in the past. These mechanisms were actively followed in certain markets (Burt, et al, 2007, p 5-18). It is, however, noteworthy that its core hypermarket operations remain mainly a Carrefour led activity. Carrefour currently controls directly only 58 percent of the approximately 12,000 stores operating under the groups various fronts. Whilst 9 percent of its hypermarket network only is franchised, almost 93% of its convenience stores acquired from Promodes are franchised. Promodà ¨ss origins as a wholesaler are mirrored in the strength of this small store network as well as the management control mechanisms deployed (Burt, et al, 2007, p 5-18). During the subsequent few years post its Belgian expansion, it forayed into Spain and also brought the hypermarket format to Latin America during 1975. In Latin America, it adopted the self-funding model and restricted starting capital for one store and a half only. It only launched its second store once it was able to produce sufficient funds from the first stores operations. This discipline compelled Carrefour to continue experimenting at the first store until its success within the local market (Lal, et al, 2004, p 289-293). The entry and exit activities of three of the major European retail players, Carrefour, Delhaize and Ahold (Dutch), bears observation. Considering that there is a proliferation of individual markets, a possibly astonishing conclusion of the geographical mapping of businesses of these three groups is that, in none of these markets, do they compete directly (Burt, et al, 2007, p 5-18). One result of the recent reconsideration of the retailers market portfolios is the asset swops that are in effect now. Globalising retailers, including the ones that are comparatively new to globalisation have the prospect to obtain chains, stores or sites in other countries from other global retailers instead of local market operators (Burt, et al, 2007, p 5-18). Carrefours experience is that it pays to be the earliest to penetrate the foreign market and also that the entry mode should be via Greenfield operations (Lal, et al, 2004, p 289-293). But, in several foreign markets, there may not be a choice in this regard because of local market regulations and the entrant may be forced to follow a joint venture formula (Lal, et al, 2004, p 289-293). Some Countries exited Carrefour operates 42 stores in Thailand, counting 34 hypermarkets. It is the fifth largest organised food distribution retailer in Thailand with a 6% market share, à ¢Ã¢â‚¬Å¡Ã‚ ¬723m of net sales and EBITDA of à ¢Ã¢â‚¬Å¡Ã‚ ¬67m for the 12 months to 30 June 2010 (Carrefour, 2010, p 1-2). Big C, Groupe Casinos subsidiary, is Thailands second largest hypermarket operator, with 69 hypermarkets generating à ¢Ã¢â‚¬Å¡Ã‚ ¬ 1.7bn net sales over the same period (Carrefour, 2010, p 1-2). Carrefour has recently confirmed an agreement with Big C for the divestment, after 14 years, of its operations in Thailand with the deal valued à ¢Ã¢â‚¬Å¡Ã‚ ¬868million. This valuation amounts to 120% of the net sales of the business being sold with 13.0 x EBITDA multiple. The deal is anticipated to close during the first quarter of 2011 (Carrefour, 2010, p 1-2). Carrefours strategic sale of its operations in Thailand is to enable the group to direct its resources towards the markets where it can occupy or occupies a leadership position and can get the maximum return on its capital employed. The growth prospects for its Thai operations did not permit the Group to envision a leading position either within the medium or short term (Carrefour, 2010, p 1-2). On the back of its successful retail history, Carrefour on its own ventured into South Korea, a completely unknown territory, without a local partner. Due to this reason, it was unable to understand the market. Carrefour deployed most of its top management personnel for South Koreas from France which was not appreciated by the local employees (Khan, 2010, p 7-11). The company did not localise its stores and the products were not stocked as per the requirements and inclinations of Korean consumers. Though bulk purchases were proffered at economical prices, suitable research was not conducted. They did not realise that there were only a few customers that preferred bulk purchases. As such, during April 2006, Carrefour sold its South Korean operations for approximately $1.3billion (Khan, 2010, p 7-11). Carrefours departure from Russia is rather astonishing given that its first store in the country was launched just two quarters earlier. The reason given has been the influence from the key shareholders Bernard Arnault and Colony Capital. These are the same investors pressurising Carrefour to exit its business from the Asian and Latin American markets. These businesses are forecasted to be valued anywhere from $17billion to $20billion. Their sale could shore up Carrefours underperforming share price (Stych, 2010, p 1-2). Conclusions Carrefour has successfully evolved over five decades from being the largest retail player in France to becoming the largest in Europe and the second largest globally in terms of net sales. This has resulted largely from its successful European play and the further globalisation through Latin America and Asia. Its success stems from its relentless quest for localizing its product and service offerings to fulfil the needs and preferences of its local customers in each of the countries that it ventures into. The mode of entry has largely been through the greenfield and joint venture strategies subject to the local legal requirements. The management control has been largely with the parent Carrefour. Yet, there are lessons to be learnt from unsuccessful ventures in certain countries, though the overall strategy of targeting leadership positions wherever it operates has brought success. Due to shareholder pressures to exit Latin America and Asia, it will ultimately either need to aggressively maximise its operations in those countries or redirect their resources as needed in the larger interest of all the stakeholders.

Comparing John Stuart Mills The Subjection of Women and Florence Night

Comparing John Stuart Mill's The Subjection of Women and Florence Nightingale's Cassandra For thousands of years, women have struggled under the domination of men. In a great many societies around the world, men hold the power and women have to fight for their roles as equals in these patriarchal societies. Florence Nightingale wrote about such a society in her piece, Cassandra, and John Stuart Mill wrote further on the subject in his essay The Subjection of Women. These two pieces explore the same basic idea, but there are differences as well. While they both recognize its presence, Mill blames the subjection of women on custom, and Nightingale blames it on society. These appear to be different arguments, but they may be more similar than they seem. Mill’s and Nightingale’s work both have the main theme of men dominating over women. Mill introduces his work with, â€Å"the principle which regulates the existing social relations between the two sexes — the legal subordination of one sex to the other — is wrong in itself†¦and it ought to be replaced by a principle of perfect equality† (Mill 1156), letting the reader know his stance on the issue right away. Nightingale’s article also starts off with a strong statement in the form of a question. She wonders why women are given such useful gifts if utilizing them is socially unacceptable: â€Å"Why have women passion, intellect, moral activity...and a place in society where no one of the three can be exercised?† (Nightingale 1734). Although these works both have the same thread running through them, they place the blame for the occurrence in different places. In Mill’s essay, he places the blame for the suffrage of woman on custom. He says, â€Å"custom...affords i... ... sound like completely different arguments; however, they are both placing the blame on one relationship. Custom and society exist together in a dependent relationship. One cannot be without the other. Custom defines what society does, and society does what custom defines; therefore, this relationship is blamed for the subjection of women in these two pieces. They may appear to have different arguments, but they are really arguing the same thing. This enforces the ideas Mill and Nightingale convey in their work: two different things seemed to have been blamed, and yet, after further analysis, the blame ended up resting in the same place. We can conclude that the subjection of women is likely to rest on this particular relationship because both of their arguments boil down to it, and Mill’s and Nightingale’s essays are more similar than at first believed to be.

Quakerism in Jane Eyre :: Jane Eyre Essays

Quakerism in Jane Eyre    Quakerism is mentioned many times in Jane Eyre. Beyond the explicit descriptions of Quaker-like appearances or behaviors, many parts of Quaker lifestyle are also used in a less obvious manner in Jane Eyre. Quakerism would have been known in the Yorkshire moors where Charlotte Bronte grew up and near where Jane Eyre lived, especially since that is where the religion began (Moglen 19; Barbour and Frost 27). As a more moderate approach to denying the self than Evangelicalism, Quakerism seems to be embraced in the novel. Unlike Mr. Brocklehurst's or St. John River's philosophy (Bronte 95, 98; ch. 7), Quaker simplicity does not mean asceticism or forbidding earthly joys, though it does mean rejecting indulgence (Barbour and Frost 44). Jane frequently associates herself with the Quakers, more formally known as the Society of Friends, particularly in her clothing and manners. She says of herself, "I was myself in my usual Quaker trim, where there was nothing to retouch-all being too close and plain, braided locks included, to admit of disarrangement" (160; ch. 14). Later she says she is merely Mr. Rochester's "plain, Quakerish governess" (287; ch. 24). Simplicity is one of the Quaker's "testimonies," which included plain clothing of black, brown, or gray (Barbour and Frost 44). Jane wears black for her everyday outfit and her more formal dress is of gray (151; ch. 13). Even when Mr. Rochester insists on buying her new silk dresses, she persuades him to purchase only black and gray ones (296; ch. 24). Jane resembles the Quakers in more than what she tells us. Her childhood sympathies mirror Quaker teachings. From her earliest childhood, she sees her disposition as "passionate, but not vindictive," and not inherently bad, as Mrs. Reed does (64-5, 68-9; ch. 4, 267; ch. 21). The Quakers believe that babies "were born innocent and [that] children retained their innocence until they reached an age of reason" (Barbour and Frost 115). The taint from "original sin" is not embraced by Jane nor by Quaker doctrines. Furthermore, Jane sympathizes early on with the plight of slaves (43; ch. 1, 44, 46; ch. 2). Quakers think slavery is barbaric, cruel, and inhumane, and were one of the first religious sects to denounce it (Barbour and Frost 119). Part of Quaker education is to study the Bible and to learn how to "dress and speak plainly, to control one's temper, to accept moderation in outward desires, and to act with a becoming sobriety of manners" (Barbour and Frost 190, 115-6).

History 1500-1800 Essay

Europe underwent several massive changes after the exploration of the Americas, the Columbian Exchange, the Renaissance, the Reformation, the Counter-Reformation, the Scientific Revolution, and several religious wars. Before these events, the Europeans lived under monarchies where religion and government were one in the same and world trade was non existent. These events ushered in early modern Europe and changed the continent forever. In the 1450s, rapid changes overtook Europe. Some of these changes were technological, involving advances in firearms and sailing, economic, involving the development of trade networks, and religious, leading to the exploration of the Americas. Before the exploration of the Americas, the farthest Europeans traveled was northwest toward Ireland. Europeans had always been followers of the sea, but the bold exploration into the Americas was their greatest achievement. Before these changes, ninety percent of Europeans were farmers living in small villages. There were food shortages due to war and low grain yields which produced a society that was prone to disease. There was a blend of desperation and ambition that lead the Europeans to the Americas. The Americas meant salvation and security from a war-torn and disease-ridden land. Early modern Europe was a world of inequalities. One quarter of all children died within the first year of life, peasants and craft workers made several hundred times less than aristocrats and nobles, and kings were weak and warrior lords ran small towns. The upper classes provided protection and land for the lower classes and homicide, rape, and robbery were commonplace. Most feared change because early modern Europe lacked order and security; order and security were so fragile that society clung to these things to keep their lives stable. The sudden deaths due to the Black Death, which began in 1347, restored the balance between resources and people. People realized that the more people died, the better wages were, prices were lower, and there was more land. When Christopher Columbus explored the Americas about 150 years after the outbreak of the Black Death, the Europeans that settled the Americas experienced the same problems. There was a shortage of food and land. In the Americas, Europe’s desperate and hopeful population believed that the New World would provide jobs, land, and wealth. Advances in technology made settling overseas attractive to those looking for power and wealth. More efficient ways of establishing credit and transferring money came along with world trade. (Davidson, Gienapp, Heyrman, Lytle, Stoff, 2006) The Columbian Exchange was both cultural and biological. The Columbian Exchange was the exchange of European products, such as livestock, food, and diseases, to the Americas and the exchange of the same products from the Americas to Europe. The Catholic church, horses, gunpowder, African slaves, and diseases were introduced to the Americas. The Americas introduced foods such as corn, peppers, pumpkins, turkeys, and tobacco to Europe. Products from Asia, such as grapes, coffee, sugar cane, rice, and olives were introduced to both Europe and the Americas courtesy of African slaves and European traders. (Harrison, 2006) The Columbian Exchange was extremely important to the changes in Europe. In the 1450s, Europeans wanted to study the world around them, including art. It was a new age in Europe that was dubbed the Renaissance. The Renaissance began in Italy and spread throughout Europe. This movement including not only studying old art, but influencing new artists. Master artists, such as Leonardo Da Vinci and Michelangelo, focused on realism rather than religious topics. (â€Å"The Dawn of a New Age†, 2005) Because artists focused less on religious topics, the Renaissance was not only about art, but also about religion. During the second decade of the sixteenth century, radical religious changes were taking place in Europe. The Roman Catholic church defined religion in Europe in the Middle Ages. The Catholic church was a hierarchy. Religious institutions in the Middle Ages were decentralized and local. The popes of the Catholic church grew more powerful, and by 1500, the Catholic church had land throughout Europe and collected taxes from church members. Parish priests neglected their duties while popes and bishops flaunted their wealth. Out of this came the Protestant Reformation. The Protestant Reformation began with Martin Luther. The Catholic church taught that one had to live a life of good works in order to achieve salvation, but the Bible said that salvation came by faith alone. Martin Luther, due to this notion, became critical of the church. He posted his infamous 95 theses attacking the Catholic hierarchy in 1517. (Davidson et al. , 2006) After Martin Luther’s attacks, the Catholic church proposed its own reforms. This was known as the Counter-Reformation. Some reforms encouraged society to return to ethical living, but others were only reactions to reformers’ criticisms. However, during this time, an important group known as the Jesuits was formed. This group was officially recognized by the Catholic church in the 1540s. â€Å"The Counter-Reformation†, 1996) The Scientific Revolution was the most influential of all the changes in Europe during this time. The Scientific Revolution changed European thought in every aspect of human life. For example, the view that the world functions like a machine was introduced at this time. Human knowledge was also separated into different sciences. (â€Å"The Scientific Revolution†, 1996) In short, the Scientific Revolution fine-tuned human thinking and got people to see the world differently. Many religious wars were also a part of the changes in European life. When referring to â€Å"religious wars†, ten different wars involving religion come to mind. These wars lasted from 1562 to 1598. Religion was the basis for the wars, however, it involved several other aspects of life. In people’s minds, religion was intertwined with society. Religious tolerance was non existent, therefore, new ideas led to destruction. (â€Å"The Wars of Religion†, 2004) All of these events happened for a reason. The Europeans were a desperate people; they longed for security and happiness. The entrance into the Americas was a welcome opportunity for a better life. The Renaissance and Scientific Revolution made individuals think about the world around them instead of only accepting what they were given or taught. The Reformation, Counter-Reformation, and religious wars expressed different ideas on religion, creating religious tolerance that the world has come to rely on today. Without all of these events, Europe would still be in the Middle Ages. The exploration of the Americas, the Columbian Exchange, the Renaissance, the Reformation, the Counter-Reformation, the Scientific Revolution, and the religious wars all helped to usher in modern Europe. Before these changes, Europe was a war-trodden and disease-ridden country plagued by poverty and intolerance. These important events helped to enlighten Europeans and gave them hope for a better life. All of these factors showed Europeans a different way of looking at the world and their role in their society. After these events, Europeans looked forward to wealth, security, and order. They had a greater understanding of what the world held and how it worked. People began thinking instead of just living.

Pit Bulls Are Not Aggressive Essay

Just sit there for a second, close your eyes, and visualize this; a puppy no older than 5 months in the pouring rain, freezing, shivering, on your door step. You want to help but you don’t know exactly how to, you just watch almost in tears as this puppy stays there very gloom and soaking wet. You finally decide to take a leap of chance and help the puppy, you go outside and the puppy gently lifts his head toward you and you notice it’s a pit bull. He is so skinny, starved, and parched, with the only thing to drink being muddy rain water. You slowly move closer and pet him, he lays his head on your leg, so you pick him up gently in your arms and you take him inside. When you set him down you notice your arms are covered in blood, when you look down at him you see he has cuts on his legs, neck, and stomach. You start cleaning him up and cleaning his wounds there not deadly but they are heart breaking. He has no collar or tags, but you decide to keep him. You call him Bentley, and Bentley becomes your world, and if it wasn’t for you he would have never been saved. And if it wasn’t for him, you wouldn’t have the heart to believe that not all pit bulls are aggressive. When you see a Pit bull, what is the first thing that goes through your mind? For some, it is a sense of fear and for others it is the thought that this breed is misunderstood. Have you ever stopped and thought about if the Pit bull breed is really a vicious breed, or are they just misinterpreted due to the reputation that others have given them along with the many myths that are attached to them? What about the owners of these precious animals? Do you ever think that they are the reason that their Pit bull may be a vicious dog? Many times people speculate too much when it comes to the Pit bull breed. Instead of taking the time to learn about them, they would much rather allow the myths and things they hear through the media to set their mind that the Pit bull breed is a vicious breed. Many people do not know the history behind the Pit bull or where their reputation comes from. Too often this particular breed becomes a victim for something that they have no control over. It’s time to find the facts and finally make a decision based off of the facts that we find. Pit Bulls can be as gentle as any other breed of dog, but due to myths and lack of knowledge from people the Pit Bull breed has been ruined and stereotyped. American Pit Bull Terriers were first introduced during World War I and World War II. The job of the Pit Bull was to deliver messages back and forth across the battlefield. Pit Bulls were first bred to bait bulls and bears as a sport back in the late 19th and early 20th centuries, but soon became more commonly used as house pets due to their friendliness towards people. This indeed should open up your eyes to them not really being an aggressive breed simply because they became more commonly used as pets. Another fact about the history of the Pit Bull is the Pit Bull.

British Petroleum

Takeover refers to the purchase of one company by the other and technically deals with acquisition of a listed company by one or more companies which are at better financial and economic position than the company being acquired. BP is on verge of a takeover and the following paper presents analysis of the company. The company is British owned and it has branches in various countries around the globe.The institution is found in energy industry and its one of the biggest and most valued energy supply and distribution institution in the world. Theoretically the history of the company is very complicated as it’s very rich, varied and unique status. The following paper gives complete analysis of problems facing the company especially the one involved before and after the drastic oil spill in the Gulf of Mexico and consists of references to various journals, business literature, and scholarly literature materials.This paper describes the activities and discusses the conventional rea sons for a takeover, their advantages and disadvantages, and strategic considerations that can be made to prevent a possible takeover. Introduction British petroleum (BP) company is an international energy production and supply company with its head quarters London, United Kingdom. By margin BP is the 3rd largest energy company and the 4th biggest company in the world (Datamonitor , 2009, p, 45).The company has operated in the energy sector for many years and it has gained reputation of being trustworthy thus it has instilled consumer loyalty across the spectrum. This company has experienced rapid changes and advancements in science and technology and presents numerous challenges to the company in relation to personal safety and quality management and also it entails issues like production costs, intellectual ownership of properties and products, competition and monopolies.The company is public held and its shares are traded in major stock exchanges globally including the London sto ck exchange, New York Stock Exchange and other stock exchanges in major cities all over the world with the trading symbol BP (Coffee, et al, 2000, p 98). The organizational original mission was to provide consumers with the right assortment of products, at the right quantities and price, and to provide excellent customer service through trained representatives.The organization current mission is guided by key core values: excellent customer service, care for people, entrepreneurial spirit, respect for all, building strong relationships, doing the right thing, giving back to communities, and creating shareholder value (Weston,2000 ,p ,87). BP success is based on mutually beneficial partnerships with diverse and competitive suppliers, allowing the company to deliver a wide assortment of superior, yet low-cost products and services, combined with superb customer service, and focused towards increasing shareholder value.The company employs over 210,000 employees and tends to serve more than a 300 million customers worldwide (Van & Schroeder, 1984, p 29). With the current problems facing British Petroleum in the Gulf of Mexico following the deepwater rig explosion which was caused by what has been described as the worst US ecological disaster ever, the Company's share price has fallen steeply and according to some commentators this could trigger a takeover of the business by one of its big competitors such as EXXON MOBIL, SHELL or even PETROCHINA (FINANCIAL TIMES, 2010, p 34).The catastrophe has plunged the company’s stock price as well as its reputation, and public image following the catastrophe have led to speculation regarding the company takeover due to the fact that the company is experiencing financial problems, huge losses as a result of oil spill and poor handling and management of the oil spill (Armstrong, 2003, p, 23). The above mentioned issues have been viewed by many to have been caused by poor leadership and decision making techniques in regar d to the way the management handled the oil spill.With the current troubles facing British Petroleum (BP) in the Gulf of Mexico, there is possibility of acquisition or takeover and hence a research paper which tries to come up with the relevant information in trying to establish some of the major factors that have been influencing the anticipated takeover (Ansell & Park, 2003, p 47), Identification of Industry and possible takeover Competitors The company is found in the energy industry and mainly concentrates in oil exploration, supply, and distribution.The industry deals with all assortments of energy products including oil, wind, solar, hydro power and other related energy products and services. This industry is one of the most contended ones with many rivals who produce similar products and services . The top competitors of BP include EXXON MOBIL . SHELL and PETROCHINA; with SHELL being the strongest rival of BP (Maxwell , 2002, p, 29). The company has a global presence and has assets in most areas of Africa especially central and western Africa, China and South American states like Venezuela and Uruguay, but the United States and Russia are its largest market.As mentioned earlier, BP is the third largest energy company in the world and the fourth largest company in the world (Kwon, 2008, p, 87). The possible competitor for the takeover has been indentified to be Exxon Mobil for the reason that the company is American owned and its operations and performance over the years have been above par compared to other rivals. Companies like Shell and Petro china though internationally recognized, their operations are not augmented like those of Exxon Mobil (Johnson, 2010, p 19). Description of the Organizational ProblemsDifferent organizations experience different problems depending on the nature of the organization, the economic situations, the political interruptions, and the human interference. Once these problems occur within a corporation, it tends to affects the organization core responsibility to extent of being unable to provide adequate and quality services to its clients and individuals relying on it. The occurrence of these problems can be a very damaging issue if they are hard to evaluate and solve (Kesler, 2008, p 49).With the British Petroleum (BP) company, there a number of issues and problems that has been constantly hounding it. Most of the organizations problems and causative agent for the possible takeover have possibly resulted from the oil spill in the Gulf of Mexico and lack of teamwork and capacity building in relation to the employees during the fixing of the oil cap to reduce massive leakage. Due to this, there have been reduced prices of the company’s stocks all over the world due to market fears of possible losses and public loss of confidence in the company.The increased failed management in the corporation resulting from the management poor skills in handling crisis has sometimes been leading its operation s to the wrong direction. The poor handling of the oil spill by the company executives is one good example of the management laxity and the probable cause of the proposed takeover . It must be agreed that BP has been faced with lack of skilled and effective managers offering effective managerial services thus leading it into poor leadership and decision making processes (Lochhead, 2009, p 67).As we have noted, most of the problems faced in this organization have been caused by the oil spill and ongoing economic recession, and others are related to inability of workers to work together. Since there was poor handling of the oil spill, the company has been in bad relationship with the neighboring community and it has not been able to fulfill its social responsibility function due to constant bickering and interference from the American government (Snell & Dean, 1992, p 50).In conclusion, the major issues contributing to the proposed takeover of BP is the matter of financial problems re lating from the management of the oil spill, whereby the company has spent billions of shillings in controlling the spill and eventually the company has been forced to sell some of its assets in Russia to cover the costs, and this has not been going well with majority of shareholders due to fact Russia is one of its biggest market. Lack of trust from consumers and American government is another factor that has led the company to opt selling its assets to its competitors (Maxwell, 2002, p 98).BP Proposed Takeover Definitively, takeover refers to purchase of one company by the other and technically deals with acquisition of listed company by one or more companies which are at better financial and economic position than the company being acquired. Takeover occurs in situations where a company wants to save itself from financial problems and also happens in situations where the company wants to secure limited market, channels of distribution, consumers and supplies.In any kind of organi zation, takeover or acquisition are quite significant since they play a major role towards the overall achievement of the given business or organization. This has to be done in a delicate manner that ensures all areas and aspects of the organization have been greatly considered. When the issue of takeover is being discussed about in a given business or any other kind of organization, it is very important to think of the manner in which the operation will be coordinated and thus employ the necessary personnel and practices which shall promote the performance of the organization .It is important to note that, without managing the human aspect and all other resources being utilized in the business, it may not be possible to achieve the goals and missions of the organization (Stern & Chew, 2003, p 90). One of the major reasons for British petroleum proposed takeover is as a result of the financial and social problems resulting from the oil spill in the gulf Mexico. From â€Å"NEWSWEEK Journal of 04. 06.2010, the spill has costed the company sums of money to the tune of over 19 billion dollars covering both the cost of cleanup and compensation to individuals affected and penalties to the American government. The performance of the company has dwindled in the recent days and in the first quarter of the year; the company has made losses amounting to over 20 billion dollars. Since corporate takeover entails two key types that include hostile and friendly takeover, BP takeover assumes that of hostile nature for the reason that the company is unwilling to engage in any dialogue relating to acquisition of its major assets.Hostile takeovers generally occur in situations where the board of directors is unwilling to relinquish its position and the company, while the company is performing way below par in terms of operations and financial management. This is the case with BP since the company CEO Tony Hayward has not viewed it has a possibility and has publicly stated that on a number of media outlets. A takeover in ensuring there is such form of safety can basically include a number of one or more different components within the totality of the institutionalized system.Such safety provisions include change in an organization and necessary management, safety policies, organizational procedures, and other emergency procedures and responses which have been put in place (Liu, 2006, p, 65). Advantages of BP takeover 1. One major advantage of BP proposed takeover is that once realized, the firm which was poorly managed prior to the acquisition will undergo valuable management and performance rectification due to changes that will occur in its management structure .The changes in corporate structure including modification and replacements of executives and senior staff will guarantee and repair the organization dented reputation. For the reason that the organization acquisition will involve a moderate debt to equity ratio, the company will also negotiate th e acquisition deal since it poses a controlling stake in the global market (Van & Schroeder, 2008, p, 20).The company goodwill in the world is very highly rated and possible acquisition of the company assets will entail the purchase of this valuable non- tangible asset hence provide opportunities for making more funds from the sale. 2. The company shareholders will also benefit from the returns emerging from the acquisition due to fact the company has a positive capital value attributed from large shareholder base ,assets and properties it owns in the world.With immense global presence, the BP buyout will promote employees and shareholder interests as maintaining the company effectiveness, efficiency and loyalty (Fox, et al, 2008, p, 87). The company benefits from strong market share and sound economic position hence even after the buyout, the company products will still remain favorable in the global market due to the consumer confidence established before the oil spill. 3. The BP issue will only involve acquisition of the company shares and assets, and this will entail the concept referred to as strategic takeover.This concept is advantageous to the company and the company acquiring it since the firm will select and buy assets that are favorable to them and they will be able to negotiate the right price for the products without full approval of the shareholder and other regulatory bodies. When it comes to the takeover process, the approach is mainly aimed in ensuring that any forms of weaknesses and strengths have been disclosed, and especially the ones which might have diverse impacts on the process and operations being carried out.For the reason that the company has huge amount of liabilities and increased level of debt, takeover by its competitors will reduce its taxable income hence leading to reduced tax payments. The company taking over BP will acquire both its assets and liabilities, thus the company will be saved the burden of paying and compensating the victims of the accidents and penalties to the American government.BP take over will promote efficiency gains since it will be able to eliminate corporate value destroying effects that emerge from excessive diversification hence it will be able to reduce the organization debt ratio and increase its equity portion (Dunning, J 2004, and p. 97). Disadvantages of the Takeover There are a number of problems which have to be noted with the BP proposed takeover. To begin with, the acquisition tests to be administered in establishing whether the company is profitable will be very inaccurate.This might end up resulting in cases where a very strong company is bought using false benchmarks or current situations without the evaluating the overall organizational position and performance (Mok & Tillaart, 1990, 76). If implemented as proposed, the organization corporate restructuring will greatly affect employees and its shareholders. The company will be forced to downsize its operations and c urrent workforce hence this will result to increased levels unemployment due to possibilities of employees being laid off.Large number of unemployed individuals will impact on the overall community hence hindering its economic development and opulence (Liu, 2006, p 58). BP has a global presence and sudden acquisition of its assets in some African and Asian countries will not be taken well since majority of people have an intimate touch with its products and trademark hence transfer of its assets to other organizations will affect its social standard and responsibility to the community (Roger, 2008, p ,36). Another issue is that many companies won’t agree the bid for BP takeover due to the fear of huge liabilities owned by the company from the oil spill.Most of BP shareholders are large multinational institutions in Britain like insurance and pension funds and the takeover of the company will critically affect the United Kingdom economy thus affecting lives of many Britons and other shareholders all over the world. Proposed bid from its rivals especially Exxon which is an American company will cause diplomatic problems between the US and Britain. Coming from bitter criticism from president obama, the cold ties will eventually increase if there is a takeover of BP by an American company (Peter & Paulson, 2009, p ,56).Another problem that is likely to happen if the event of the takeover the UK political establishment will lose public confidence for the reason that it does not support operations of the company and form this their would be a likelihood of political problems in Britain, this is because majority of Britons are shareholders . With controversial handling of the case by American leadership, possible takeover of the company by an American company will be seen as a planned agenda since in many occasions the politicians have said the company could have performed better if it was owned by Americans.Many critics of the proposed takeover argue that tra nsactions between BP and its competitors will harm and dent the long term competitiveness of the company (Kwon, 2008, p, 56). British Petroleum (BP): Strategic Plans BP as one of the most reputable companies in the world ,though affected with the oil spill ,it has been conducting a number of business as well as marketing strategies which come up with strategic plans aimed at future performances so that they can prevent future events from happening (Ransom, 2000,p ,76).With the recent oil spill crisis, the organization strategic plans involves restructuring of the management ,employment of competent staff and instilling of concepts of teamwork and working together to both employees and the management. The company productivity and performance have been drastically affected and the institution sales have reduced significantly leading to a drop in its share prices by more than 40 % (NEWSWEEK, 2010, p, 23) . The crisis has reduced its current customer base and at the same time it has red uced the company sales by more 35% .With this issue of underperformance in mind, the company so far is aimed at increasing the its social reputation and sales and at the very time being in a position of formulating major marketing strategies which are applicable and can help it reach all the customers around the world in which the corporation has been delivering its services (Sapienza & Grimm, 1997. p 87). The marketing strategy for the corporation that entails use of economies of scale and wide distribution networks, and the company is anticipating offering some of the lowest prices in the industry.Moreover, the company is promising to offer a low-price guarantee which will ultimately beat any competitor’s price or match their retail value (Dennet, 2009, p, 154). BP is trying to enlarge their customer base through various marketing venues that include Television advertisements which are aimed to increase brand awareness. Radio advertisements, Digital media (for example e-mai l subscriptions and the Internet) which will provide efficient ways to disseminate information, coupons, and free expert advice and product demonstrationsWithin the business, the strategic plan will be done by incorporating all stakeholders and engaging in appropriate decisions which will promote performance (Johnnson, 2010, p, 46). This proposed strategic marketing plan will entail analysis of the company’s strengths, their weaknesses, and measure the amounts of resources at disposal, and then come up with adequate strategic missions which ensure better performance (Madura, 2008, p, 45).When effected, such strategies will have long term effects and will make the company realize its goals within the stipulated time period. Effective leadership and decision making skills, and communication have also been emphasized as a key element towards realization from the oil spill catastrophe. Basically to avoid the proposed idea of takeover, it should be noted that, it is through proper coordination and employment of such long term strategic plans that the corporation will be able to emerge on top of its business operations (Armstrong, 2003, p 29).Recommended alternatives to avoid possible takeover The current oil spill crisis calls for innovative product and development especially in light of the growing negative publicity that is associated with environmental pollution and loss of jobs (Robbins, 2008, p, 76). Therefore, the option that should be pursued by BP is for them to implement and initiate strategic development and management strategies that will make them remain viable in the energy market.As BP proceeds into the future, they must be vigilant to avoid poor decision making processes which will hinder them in handling major crisis since catastrophes are some times inevitable (Laura & Torrington, 2005, p ,98). BP’s biggest risk exposure includes: unpredictable economic and political conditions, increased prices in fuel and other supplies, customer re tention, and relations with foreign countries. In order to be prepared and least effected, BP must develop strategies that will allow them to remain profitable in an unsteady market.Suggestions would be for BP to remain current on the risks of oil spill and aware of the current and future relations with foreign countries. Another suggestion would be for BP to try and negotiate compensations and government penalties. (Brodie, 2010, p 78). BP has been one of today’s most respected corporations in the history of the world because it has the highest degree of business culture as well as ethics. Generally, this organization has been able to create highly rated performance when it comes to organizational effectiveness.The creation of more and more new management groups can be a good approach which can enable handling of the key problems which have been faced within the company and its eventual operations (Sorrow, 2009, p, 89). Also, there should be the presence of a dynamic and div erse workforce which can effectively ensure that this company is able to perform better within all its key operations because different ideas shall end up being brought together from people with development experience backgrounds thus improving its performance drastically.Another important thing that can lead to a great deal effectiveness at the BP shall be in the use of newer forms of technology thus being able to come up with better and intelligent products and services which can enhance all means product and social development thus increasing the customer base for the company (Robbins, 2008. p 56). If they are able to do so, they will be able to avoid risks resulting from takeovers.BP must devise strategies to offset problems resulting from ineffective management and lack of teamwork in part of employees to avoid occurrence of similar problems which have been recorded to be detrimental in its history of existence (Jeffrey & Bratton, 2001, p, 59). The rapid advancement of technolo gy along with the growth of robotics provides many opportunities for BP.If the company continues to focus on and improve their performance management, they have every bit of potential to gain a competitive edge in the industry . Social trends are moving towards a holistic and humble approach in all areas of life, BP does not want to get caught playing catch-up to its competitors. By following this strategy, BP will have the opportunity to gain revenue and increase market share regardless of the recent crisis (Auerbach & Alan, 1991, p 36). ConclusionTakeover is a very important approach which has to be keenly considered by BP so as to improve their performance by engaging all the individuals in the organization in acting and working in a manner which shall guarantee better performance with the organization This process is what holds the key towards the future performance of the business or organization and making it possible for it to achieve its goals within the stated time period. In that case, while adopting these patterns, managers should be aware of the functions and the tasks which have to done and achieved during the management process (Fox & Marcus.2008, p, 34). Generally after takeover, there are no winners or losers. In this kind environment, people normally appreciate and accept as true that thinking and decisions making are better when done cooperatively and individuals are able to show professionalism and discipline in workplaces ,and provide essential considerations that can help the work environment run efficiently. Also if a problem emerge or arise in the workplaces, employees should not hesitate to talk up on the issue. Individuals and organizations should understand what takeover means so that they can be guided by it and function diligently.Similarly workers and employers should be turned on by the strategy so that they can tap resources and establish a successful business entity. In conclusion we can say that takeover is a very important con cept in business and it encourages competition in the global market and promote common respect for each market leaders opinions and capabilities, Promoting takeovers in a firm is creating a good work culture that values collaboration (Brodie, 2010, p ,98). Bibliography Auerbach, Alan J. 1991. Corporate Takeovers: Causes and Consequences. Chicago: University of Chicago Press. Ansell, S. , & Park, J. 2003. ‘BP Tech Trends.’ Education Week, 22(35), 43. Retrieved from Academic Search Complete database.

The McLaren SLR Essay Example | Topics and Well Written Essays - 1000 words

The McLaren SLR - Essay Example So let us take a look at the McLaren SLR including it’s body, motor, brakes and saftey measures. The engine capacity of McLaren SLR is 5.5 liter. It operates with two spark plugs per cylinder to increase the power of the ignition during combustion (Mercedes-Benz SLR McLaren, n.d.). It consists of Sensotronic brake system or electrohydraulic brake system. It should be noted that in conventional brake system, the driver is responsible for producing brake pressure whereas in Sensotronic brake system a brake fluid supplies the brake pressure. Moreover, the brake disc of this car is manufactured from carbon-ceramic. In conventional cars, brake discs are manufactured from steel. Carbon fiber reinforced plastics (CFRP) is used for the construction of the body of this car. Even though light weighted, this materials provides enough strength to the car so that the driver may not feel any jerking or any other lightweight related problems while driving this vehicle fast. This car requires only 3.4 seconds to attain a speed of 100 km/h. Moreover it can cross 210 km/h mark within 11.2 seconds. Even though this car weighs around 2 tons, its fuel economy is very good. McLaren Edition (2011), Stirling Moss (2009), Roadster 722 S (2009), 722 GT (2007) Roadster (2007) and 722 Edition (2006) are some of the models of cars introduced by McLaren SLR. In the latest models of McLaren SLR, innovative technologies are used with respect to suspension, breaking system, aerodynamics, interior and exterior systems. â€Å"The key modifications to the engine, which improve power by 15kW to 500kW (680hp) and add 10Nm for a total of 830Nm of torque† (McLaren 722 GT: Race Car Modifications, 2007) The latest McLaren SLR engine is capable of delivering high power and efficient torque. Modern technologies such as screw type compressor help McLaren SLR engine to deliver high performance standards. This high performing V8 engine takes only 10.6 seconds to cross the 200km/h mark and 28.8 seconds to cross the 300km/h mark. Moreover, McLaren SLR can be driven at the top speed of 334km/h. The V8 engine is mounted on a slope position with the help of a strong aluminum frame. Features such as Water-type charge-air cooling, dry sump lubrication and catalytic converters help this car to deliver the goods. Moreover, it has the ability to deliver torque of over 600 Newtonmetres, at 2000 rpm. The maximum available torque of this engine is 780 Newtonmetres at 3250 rpm (2003>2009 Mercedes-Benz SLR McLaren, 2012). For efficient cylinder charging, Mercedes-Benz SLR McLaren has a mechanical compressor and some aluminum rotors. These equipment are Teflon coated to avoid friction losses. As mentioned earlier, Sensotronic brake system is incorporated in this car to provide additional safety. This brake system has the ability to calculate optimum brake pressure needed while the car is moving at high speeds. Various sensors are attached to the wheels of this car to calculate the speed of each wheel and apply the pressure needed to stop it. The coordination of Sensotronic brake system with Electronic Stability Program (ESP) is done beautifully in this car. It should be noted that it is difficult to achieve such effective coordination of these two entities in high performing sports cars. However, the McLaren engineers succeeded in blending these two systems without compromising on the safety systems of the car. Dynamic handling and