Risk Managment Carrefour

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Company Choice3
1.Determine whether this firm had a serious set-back and/or drop in earnings over the last 10 years by reading its annual reports, press clippings and other information sources. Explain what happened. If nothing negative has happened, describe what makes this company so successful3

2.Create a balanced score card for this company; the information doesn’t have to be factual right: it is your view on the company5
3.Fill out all four “dimensions” with at least five critical success factors of which three factors are risk management related7
4.Develop an appendix next to the BSC describing the rational for the CSF chosen, and how they fit (1) the company’s mission and strategy, (2) how to measure them, (3) what is the critical level on which to act, and (4) how to act8

4.1Financial targets8
4.2 Clients target8
4.3 Business process target9
4.4 Organizational / HR targets9

Company Choice
I decide to talk about Carrefour; French group's retail sector. In 2009, the second global group of the industry in terms of sales behind Wal-Mart. Founded in 1959 in Annecy, it is present in Europe, South America and Asia, as well as in other areas of the world in the form of local partnership. In 1999, the company merged with the French group Promodès, one of its main competitors, and thus became the number one European supermarkets.

The Carrefour Group has published a 2008 turnover of 87 billion euros HT. In late 2008, it had 8,006 stores and 15,430 under banners (including franchisees and partners). In 2007 it employed more than 490,000 employees worldwide, including 140,000 in France, making it the largest private employer in France and the ninth world. 1. Determine whether this firm had a serious set-back and/or drop in earnings over the last 10 years by reading its annual reports, press clippings and other information sources. Explain what happened. If nothing negative has happened, describe what makes this company so successful

The following table indicates Orange total revenues and EBIT from 2002 to 2009:

Turnover

The 2007 turnover of 82.1 billion Euros before taxes was as follows: 45.8% in France, 37.5% in the rest of Europe, 10% American and 6.7% Asia. It is these last two areas who believe most strongly over the year (respectively +38% and +17.3% in sales HT). At the end of 2007, sales by type of store are as follows: hypermarkets (60%), supermarkets (17.4%), hard discount stores (9.2%), other (13.4%). The share of hypermarkets increases by one in a year, at the expense of other activities. The operating margin in 2007 the group's activities is 4% of sales against 4.1% in 2007 (against 5.7% in 2006 to rival Tesco, one of the most profitable). In 2009, Carrefour announced a net profit to 327 million Euros, a fall of 74, 2%, which is partly non-recurring charges of 1.07 billion Euros. Turnover was down 1% to 87.38 billion Euros. In the first half, Carrefour had recorded its first net loss for years (- 58 million). "The 2009 goals have been achieved and the foundations of tomorrow's Carrefour are now in place," said in a statement Mr Olofsson. Carrefour does not provide profit forecasts for 2010. "It's too early in the year, January was pretty good, but visibility remains very uncertain," said Chief Financial Officer Pierre Bouchut. The group should give an indication "at a meeting to be held in May or June," he said. Carrefour announced in late 2010 under the first-half net income of 82 million Euros against a net loss of 58 million Euros a year earlier. Its net income totaled 67 million Euros against a loss of 48 million Euros a year earlier. For the first six months of the year, operating profit before non-recurring items amounted to 1.096 billion Euros, up 7.6%, in line with expectations of the group. The group's "strong sales growth of 6% at current exchange rates (+1.8% at constant exchange rates excluding petrol and calendar effect) was...
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