Change Management: Carrefour Group

potpourri counseling crossway GroupBackground to the organization cross is a multinational society which has its retail stores approximately all over the world. In the recent quondam(prenominal) it has expanded the short letter in the Asian Market. In the year 1995, this familiarity had center of seven stores in Asia exclusively in year 2004, this total went up to 126 stores which was a large gain for the gild. One of the best features of the guild was that it was non affected by the sparing crisis that happened and this was the biggest reason that comp both came up with its plan in UAE. Carrefour is an infrastructure group and the accredited terra firma was the section which was very much affected by the economic downfall that the ph atomic number 53r had profuse capability to face the risk that it did non get affected (United Arab Emirates Carrefour expands its services in retail field).Carrefour is the second largest retail group in the wide-cut world. Carre four entered into UAE in the year 1995 and till now it has 11 big retail stores around UAE. And soon it forget be a celebrated hyper commercialize at Dubai Sports City at Emirates Road in Dubai. The telephoner provides as much as 6800 to 14000 sq m of argona for a hyper market place in UAE.CEO Jos-Luis Duran (Fortune Globe 500, 2007)Employees 456,295Address 26 Quai Michelet, Levallois-Perret 92695, France ( principal(prenominal) office)Phone 33-1-5563-3900Website www.carrefour.com register stray 32nd in the WorldSWOT AnalysisStrengths and Weaknesses (Internally COntrolled factors)StrengthsOne of the major strategic victores of the caller is that Carrefour has coaction with one of the most victorful infrastructure fraternity in the world, MAF of Abu Dhabi. This gives the comp either strength to the ships company to improve the internal built.The internal reason for the company to collaborate with MAF in UAE because of the restrictions that UAE government put on the foreig n companies to start up a billet in the sphere. In order to get the ease, this collaboration has occurred.As far as the industry average in the res publica in the field of very estate is seen, Carrefour is far above the industry average and the main reason is that it got unaffected at the time of economic crisis.The company is in a phase of a continuous success for the bygone fourteen years which is easily reflected in the fiscal ratios of the company which shows a continuous advance for the past both(prenominal)(prenominal)(prenominal)(prenominal)(prenominal)(prenominal) years.The human resource carry offment of the company is overly very strong and it shows the increasing give protrudement in the performance matrix of the company. This gives the internal support to the company especially in the case of recruitment surgical figure out.Companys standing at present is at the 32nd place which is really a remarkable success and strength for Carrefour and gives it a motiv ation to improve its ranking further.Due to the fact that most of the investments through by the company atomic number 18 huge, hence company darts a collaboration of government subsidiaries in UAE which continue any hindrance in the future.The trade department of the company is very exceedingly appreciated because of the fact that the company has a huge stain value all around the world and after the success of Hypermarket at Dubai Sports City it is going to be better and better.The financial department of the company and the interrogation and cultivation section atomic number 18 simultaneously doing a great job of understanding the financial situation of the sight living in UAE and consortly plan the investment. Hypermarket is the best suited for this purpose.WeaknessesThe collaboration with MAF is absolutely very laborsaving for Carrefour in UAE but along with the strengths in that respect be several(prenominal) frailnesses associated with this collaboration. Th e company does not h emeritus up full freedom to take the decisions and especially the financial decision. The only atomic number 18a where the company can take the 100 percent decision is the useable department but otherwisewise there would be several restrictions constitute by the collaborated companies.One of the biggest weakness can be that around three fourth of the total profit of the company is in the hands of MAF which means that the investment point of view is really weak because if any person would like to be the part of stakeholder of Carrefour, he would lay down to worry. on that point are several social furbish ups of the company like increasing Emiratization with in the company which means that there is a peculiar(prenominal) percentage that they have to give to the national employees. This may reduce the output of the company.It is true that economic crisis has not affected Carrefour but under the rules made by the government, there are several restrictions p osed on the company which peaks the company in its fast expansion.Opportunities and Threats (Externally COntrolled Factors)Opportunities at that place are several opportunities for the company to expand its business in UAE. The most of the essence(predicate) factor is its demography. The stopping point and social aspect of the country is absolutely support the advancement and enhancement of whatever the company is doing. thither are several malls and several other locations which are suiting the infrastructure of Carrefour.The financial crisis in 2008 had made the situation worst for the country in the real estate structure. There are several companies which are whitewash lagging because of that crisis. It gives a big opportunity for Carrefour to rapidly enhance the business so that there could be better surveys in the future.Dubai Sports City itself is one of the best opportunities for Carrefour group because of royal crowd and enthusiasm.ThreatsOf course, if there are so many opportunities for the company in UAE, then threat have to be there. The biggest threat that the company go forth assay is huge competition in the market. However, it would be lesser because of economic crisis of 2008 but still companies like EMAAR give Carrefour a healthy competition in the country.That too, when the company is foreign found and its major shares are not owned by the company itself.Change denominationThis part of the projects deals with the distinguishable types of problems related to the identification of transfigures in the organizationIdentification of dissimilar kind of pitchs which can existIdentification for the reason for such(prenominal) metamorphosesIdentification of scopes and goals for such changesIdentification of present part of the changes and comparison with the future prospects word form of changesThis project deals with the part of the changes which have occurred in Carrefour with its collaboration with MAF in UAE to expand the business. T here are several kinds of changes which company has undergone in order to commit this partnership with MAF. Several types of changes which company has seen because of this collaboration are as followsChange in the working airwave in UAEChange in the policies of the companyChange in the human resource activities of the companyChanges in the process of executing of workChanges in the roles and responsibilities of employees of the companyChanges in the owner ship of the companyIn order to start for the working progress of Hypermarket in the Dubai Sports City, Carrefour went into collaboration with MAF which has brought about several changes in the organization and its working. This collaboration has affected the atmosphere of the entire organization. Being a French organization, Carrefour has absolutely a contrary culture and distinct atmosphere which prevails in the company but entering into UAE was an absolute change for the company.The change in the working process of the compan y is very high as it does not match to the working standards of Carrefour in other countries. There are several changes in the policies and processes and especially the ownership has a great effect because of such collaborationReason for changesThere are different reasons which have led to the growth of such changes in the organisational structure and its working process. The main of them all is ors collaboration with MAF. Entering into UAE for a foreign establish company is not an favourable job to do until unless company do not have any partner who is national of UAE and that too with a partnership of more than 50 percent shares of the company. Hence, company entered into the UAE market with its collaboration in MAF for making Hypermarket in the Dubai Sports City. Another reason for changes could be a sense of an easy capture to the market because of its collaboration with MAF because MAF is very well known Construction Company in UAE. Everyone in the country knows this company it would be very much beneficial for Carrefour to enter into business in UAE having collaborated with MAF.Changes in the scope of the companyCarrefour has undergone a change at the entire organisational level. There are some(prenominal) special areas where the company has seen a number of changes. These areas where company has seen a number of changes are as followsChanges in the types of employeesWorking process of the companyLevels of DepartmentsBusiness process unitsLevel of systemsAbove are the main areas which have undergone changes for Carrefour because of the collaboration with MAF. It was quite obvious for these areas to undergo changes because of the reason that there is a huge difference in the culture and the atmosphere of both the companies is but difference. One is a France establish company and another is a UAE based company.Goals for ChangesThere are several goals which have been identified to charge them with the changesCollaboration among Carrefour and MAFFor fu lfillment of law and order in UAETo benefit the name of MAF to seek the competitive advantageTo coiffe people of UAE know about the companyEnhance the businessWhere are you now?GAP AnalysisGAP Analysis basically deals with highlighting the difference between the utilise strategies and the expected strategies. There can be two different types of gap may be there, videlicet Knowledge Gap and strategical Gap. The exact meaning of Gap abbreviation is to analyze the difference between the present situations of the company and the future prospects of the company. At the starting, it is necessary to analyze the present condition of the company and in the next situation, the future condition of the company is taken care of. Present and the future condition of the company are necessary to analyze because it gives an indication about the performance of the company. There are different types of analysis takes place in the GAP Analysis of any company.Comparison of organizational performa nceComparison of marketing potential of the companyComparison of Business relationships of the companyComparison of operational activities of the companyThe following diagram shows the gap analysis of Carrefour.Fundamentals Applied for Changes (Kurt Lewin 3 step model)Unfreezing This corresponds for Carrefour to getting itself ready for desired changes that it going to get in by making collaboration with MAF in UAE.Changes This corresponds to present situation where the changes are being untaken by the company and making it happening for the customers and the faculty.Freezing This corresponds to the final approval of the changed strategies by Carrefour.Present situation of the companyCarrefour is a widely known organization which operates in discordant countries. It sees different types of organizational culture wherever it starts its operation. This would happen in all the places and same in the case in performing operation in UAE. The culture of UAE is varied. Here, majority o f the population is expatriates, which means that in this country there are people from different parts of the world. This is one of the biggest problems that the company is facing. Actually, this is not a problem but it is a concern which is so important to be taken care of by the company.Another concern with Carrefour is the restrictions which are imposed by the culture and the local government of the country on the company. These restrictions stop the company from taking divers(a) decisions collectable to the fact that company has a major share property with MAF. The root of all such concerns of the company is the strict law which is followed in UAE and high number of expatriates approach shot in the country. But in another way, for business of Carrefour, this is profitable as well.There are some take exceptions associated with the present scenario of operational and all around shell outment of Carrefour in UAE. There are several restrictions posed by the government on the f oreign based companies to start up businesses in UAE. This is the biggest challenge that the company face and this needs to be soon addressed.Where do you want to be?Future render of the companyThis get out describe the state of the company after little time (at least 5 years after the collaboration between MAF and Carrefour). The future of the company is supposed to be more in favor of MAF rather than Carrefour. The main reason behind this is that the majority of the shares of the company are held by MAF which accounts for more than 50 percent ownership of the company which means that in case of profit to the company, there impart be more profit for MAF rather than Carrefour.The future prospects for the company in future are obviously growing as hypermarket in Dubai Sports City is one of the rare infrastructural demonstrateings which are there in the city. This makes this a special place for the local population and the tourist to roam around. But the only problem which the co mpany will have to face is that huge percentage of partnership is taken by MAF which means that huge percentage of profit will go to MAF. Another future prospect which can be facilitative in generating more profit is that there is no tax charged by the government which allows the company vex more revenues and earn more money.The organizational culture in the future will be more or what same as the company has its organizational culture in Dubai at present. The organizational culture would be very much diversified. Reason being there are people culmination from all over the world to this country. Around 80 percent of the total population of UAE comprises of expatriates. This means that staff in the organization will be of diversified culture.There are several steps which have to be through frequently by Carrefour. These steps are as followsCompany should well charm its collaboration with MAF so that it can easily operate in the countryCompany should think of expanding the busines s and should keep an eye on the total earnings so that it can generate maximum practicable profitCompany should hire people with in the country and also should call some of the higher(prenominal) authorities from some of the different branches of Carrefour so that it can sustain the culture of the company in the internal matters at least.Company should formulate the strategies jibe to the marketing potential in the country and consort to the diversified public of UAE but along with that company should also keep an eye on the laws, rules and regulations condition by UAE.Company should formulate the strategies with in the company in such a manner which would suspensor it to succeed in the plans and should help to generate more and more revenue.Readiness of the organization to undergo the changesThis is one of the best possible reasons which could account for change management in the company. Carrefour, being one of the biggest organizations in real estate and infrastructure entere d into the business for making hypermarket at Dubai Sports City by collaborating with MAF. There are several changes that company had to face in order to implement their business plan in the country. The biggest change that company had convey up with is the organizational culture in the country which is very much different from any other country in the world. There are several restrictions on the business activities imposed on the company by the local government of UAE. The company is ready to adopt these changes in order to generate profit. It might be possible that company do not suit with such an atmosphere of organizational culture but the company is ready to accept the changes because it knows that UAE gives the best possible prospect for their business.DeliverableTo learn whether the company is ready to adopt the changesImplementation Team LeaderBoard of DirectorsImplementation SponsorStrategic Management TeamPEOPLE READINESSAction RequiredWhenCompletedBusiness Unit / mathe matical product Group ActionsWere the contracts of business unit notified?YesWere these contracts briefly explained to the aggroup members?YesHas the priority of business management unit decline?YesTrainingHas the identification of training team done?YesHas the analysis of training been done?YesIs the Training knowledge Sheet available?YesHas the training provider been established?YesHas all the training details provided by the coordinator?Yes pull up stakes the criterions are according to the training rollout?YesSYSTEMS READINESSAction RequiredWhenCompleted nurture Communications engineering science (ICT)Have tools of audit been configured?YesContentAction RequiredWhenCompletedHave the procedure print?YesIs documentation for the procedure necessary?YesBusiness ApplicationDoes deliverable require software assistance?YesDoes the scattering require any support model?YesHave IT Business Unit been notified for support?YesParticulars of the changes (Road Map for Changes)The main o bjectives which are covered in this part of the plan areAlternative, methodologies, solutions and different ranges of actions and plans are considered especially or implementation of changeConsideration of risk involved in the implementation of planConsideration of make up to be estimated for the change to be implementedKotlers 8-Step Change ModelFollowing 8 steps will be utilize for making a road map for changes in Carrefour for its collaboration with MAFThere is a need to create urgencyFormation of a powerful collaboration which the company ahs already doneCompany has a perfect vision which can lead to changesCommunication will be done supporting this visionIt is necessary for the company to remove obstacles coming in between absolutely term profit will be madeChanges will be applied for any sectorThe entire organizational culture will experience the changesHow will you get there?There are several changes which will be ask by the organization to adopt the business sense accord ing to the culture in the countryThere are two types of strategies which will help the company to come up with the changes. These areRationalThis is quite natural that organizational structure of the company has to be changed. It requires changes according to the diversified culture of UAE.New system of workgroup and the human resource is necessary in the company so as to run the business properly in UAE. The main reason behind this is that this will be the first hypermarket in the country which means that the industry and painting for the company is going to be new. passing sophisticated system will be required by the company for the process because of the hugeness of the market exposure for the company in UAENon RationalThere will be change in the relationships as well. Carrefour needs to build good relationships with MAF and government of Dubai so as to get the best out of their business techniques in the country.The culture will accept the changes which will be made by Carrefo ur in UAE. Reason being these changes will be made according to the culture of UAE.Process ChangeIt is required for the company to have process change as well. Process change is necessary. If it would have been a brand of some eatables, clothes, then it would have required that process should have maintained as it is every where but this is an infrastructure company. The structure of the building, shops in the hypermarket and every thing else which is a part of process in the companys operational activities need to be changed according to the destination (change management). Hence all the processes of Carrefour need to be tell according to the need in Dubai Sports City. There are some important process changes required by the companyManagement processRecruitment processOperational processPeople ChangeIn order to make changes it might be possible that job roles of the people and their responsibilities change. The biggest problem with the people change result in the de recruitment of some very intelligent people from the company so as to follow the rules and regulations of the company.Roles and responsibilities of the employees will be affected because they will be enforced to follow different prospectKnowledge and training will be entirely different, especially it would required by the employee to learn Arabic in order to work at the ground levelWork practices will be entirely be different as a result of the change because these work practices would clearly adopt the culture of UAE.Third party relationships will also be built. This could be done mainly because of the relationships of MAF in the country. The relationships will be built with several agents of MAF. Carrefour will come in contact with these agent companies and will create third party relationships in the market.Information SharingDuring the change in the process of Carrefour, there is some information which needs to be shared among the partners of the business. Carrefour and MAF are the two organi zations who have collaborated to make hypermarket in Dubai Sports City. There is definite information which has been shared between the two organizations. These areFinancial Information (this needs to be very much critical because MAF has a huge sharing Hypermarket)Some parts of the operational informationThere are some policies of Carrefour which have changed due to the information sharing. These policies could bePolicies for the implementation of financial planPolicies for fixing up of pricesThere are several methods which are used for sharing information. These methods areDirect ConversationIn direct conversationThere are some processes needed in order to manage the knowledge about the project. These processes areKnowledge sharing processInternal Managerial ProcessCost of ChangeFinancial support is also needed to manage the changes. There are different types of cost which will be required in order to manage the organization. These costs are as followsCost of training the new emp loyees in the organizationCost of integration with MAF ( all the legal formalities are included in that)Opportunity cost will also be included. This opportunity cost will be based on the opportunity of the organization to build up a hypermarket in any other countryThere are different modes of financial support available with the company. These areBorrowing the money from an external sourceIssues shares in the share marketInvestment by the company itselfSelling the fixed assets of the companyRisk AssessmentDuring the implementation process, it is highly possible that company will be affected by several risks. It is very much necessary that these risks are to be eliminated in order to carry out the work in a smooth-spoken manner. Risks that might be involved with the implementation of the project are as followsChange could lead to dumbfound lossespreparation may not be effectiveScope for change may not be thereIt is necessary to minimize the risks as well and hence following steps c ould be taken.In order to keep the project very much viable for the changes. It is necessary that changes are done with proper planning and keeping in view the culture with the country. For example in UAE, there is a diversified culture and hence accordingly changes should be implementedIt could be possible that planning may not work well and hence alternatives should be made so that if one plan fails, company immediately can apply the other oneIn the case when changes are not sufficient by the country and its people then obviously company should keep going with the old policies and old culture.Risk Assessment MatrixChange could lead to incur lossesLikelihoodConsequencesInsignificant tiddlerModerateMajor harmfulAlmost certainLikelyPossibleUnlikelyRarePlanning may not be effectiveLikelihoodConsequencesInsignificantMinorModerateMajorCatastrophicAlmost certainLikelyPossibleUnlikelyRareScope for change may not be thereLikelihoodConsequencesInsignificantMinorModerateMajorCatastrophicAlm ost certainLikelyPossibleUnlikelyRareRisk Assessment TableRiskno figure ofoccurrenceRiskDescriptionLowMediumHighMitigationaction taken citation of commencement determine1Change could lead to incur lossesCommunication Planmake31 August, 20104Planning may not be effectivePeriodic canvassmake31 August, 20102Scope for change may not be therePeriodic ReviewMade31 August, 2010Change Approach (Developing a Critique)Main objectives of this section areThis section finds out the stakeholder of the company and their role in the companyWhat are the barriers that come in between the growthRoles and responsibilities of change management teamStakeholder AnalysisStakeholder is the one on whose stake the company is running. There are different stakeholders of Carrefour in UAE.Strategic management teamProject leaderMangersEmployeesCustomerThe below stakeholder profit will give an indication about the role and the responsibilities of these stakeholder in the working of the company. There are differe nt types of roles and responsibilities described by the below pyramid like driving, active participation, advocacy, willingness and understanding.Resistance to changeIt is necessary that every individual working in the company is resistance to change. It is required by the organizational growth and its survival. There are some important reasons which lead to resistance among the employees of the organizationThis could the feedback given by the employeesThis could be several inputs given by the supervisor of the companyThis could be results of the auditSeveral decisions taken on the issues of various teamsResistance Assessment Survey is taken into care for resolving all the issues related to change. This survey is connect in the appendicesChange Management TeamChange Management Team is vital for the organization of various activities regarding progress of change in the company. For Carrefour, a committee is formed which analysis the effect of changes which have occurred due to colla boration with MAF in UAE (Majid Al Futtaim Hypermarkets ). There are several roles and responsibilities of this committee which are there for them in order to make the change management not liable for the company. Some of the important decisions taken by the change management team of the company are as followsChange management team performs gap analysis between the present and future reduce of the company. The present trend of the company is researched and the future trend of the company are estimated which means that company a possible gap between the two trends is study by the company so that it can give suggestion for the changes to take placeIt works for create mentally the project plan of the companyIt works for the resistance management plan of the companyIt works for implementation of changesIt see the results of the changes which are implemented on the company and accordingly give the suggestions and the review about the researchIt works on upgrading the action plans and the change management plan if any flaw is found in the plan (How to write an action plan)Strategies for ImplementationThere are several strategies implemented for the implementation of the change plan of the company. These strategies are as followsAction Plan Action Plan helps in analyzing the overall work of the company. The main objective of this is the change management plan and all measures are taken on the footing of percentage of the completed planCommunication Plan Communication Plan is one of the most important plans of the company because it works for establishing communication between one team member to any other team member of the companyCommunication PlanAudienceKey CommunicationDelivery MediumDateLength of session(if applicable)LocationLeaders of each team, Managers of each DepartmentAction Plan unhomogeneous meeting, e-mails,etc.31st August 2010N/AHOAgents (senders)Operational manager, project