Strategic Management and Leadership

This report discusses the strategic management and leadership aspects of Carrefour UAE, a major retail supermarket chain. It explores different approaches to strategic management, leadership styles, and strategic analysis techniques. The report also highlights the importance of understanding the external operational environment and implementing effective strategies.

Running head: STRATEGIC MANAGEMENT AND LEADERSHIP
Strategic Management and Leadership
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Table of Contents
Introduction................................................................................................................................3
Organisational overview............................................................................................................3
Approaches to strategic management.........................................................................................3
Leadership approaches in strategic management...................................................................4
Strategic analysis........................................................................................................................5
SWOT analysis.......................................................................................................................5
PESTLE analysis....................................................................................................................6
Porter’s five forces.................................................................................................................7
Porter’s generic strategy.........................................................................................................8
Value chain analysis...............................................................................................................8
Formulation of strategies............................................................................................................9
Strategic management options.................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................11

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Introduction
The report is prepared to discuss about the strategic management and leadership
aspects considering the business organisation named Carrefour in United Arab Emirates. It is
a major retail supermarket chain that is specialised in the delivery of good quality food items
that are fresh and healthy for catering the needs and preferences of people and ensure higher
client satisfaction and improved brand image too. The company delivers fresh food items and
groceries that are preferred by the customers and can be beneficial for enhancing the brand
image and name, furthermore ensure successful business functioning all throughout. The
topic also highlights the importance of various approaches to strategic management and
leadership along with the differentiation of role of process and leadership in terms of strategic
management at Carrefour, UAE (Carrefouruae.com 2019). There is need to understand the
external operational environment, which can assist the company to make strategic decisions
and at the same time, implement effective strategic approaches to various practical situations
through tactical responses to strategic management decisions too.
The concept of strategic planning is related to the management of consistent planning
along with the monitoring and analysis of various aspects needed to make the business
function and at the same time, accomplish the business goals and objectives with ease and
effectiveness. It can help in achieving long term success as well as allow for benefiting the
stakeholders in business, furthermore allow the top management to undertake initiatives and
manage formulation and implementation of strategies effectively too (Rothaermel 2015). The
management of organisational resources for achieving the goals and objectives, furthermore,
combine the various strategic components required to ensure smooth business functioning
and turn the strengths into creation of new scopes and opportunities. The concept of

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leadership is related to the way the organisational functions and processes are managed and
also focus on attaining long term goals and objectives by Carrefour UAE.
Organisational overview
Carrefour UAE is a multinational organisation within the global food retailing market
and has macerated a sustainable position of itself within the marketplace of UAE. The
company assessed both the internal and external market conditions properly to deliver the
best quality food items and other services to meet the needs of clients, furthermore ensure
higher level of customer satisfaction and achieve the desired sets of goals and objectives with
convenience. The company has been operating in United Arab Emirates and at Jordan and
has marketed the food products well in the different market segments to make sure that the
business sustains competitive advantage and created a positive brand image by reaching local
as well as global market segments much easily. The company consists of over 378,923
employees and the revenue has been over AED 80.975 billion. Due to its extended reach and
effective strategic management approaches and leadership techniques, Carrefour UAE has
maintained a sustainable position within the competitive business environment.
The mission of the company is to do the job well while the vision includes becoming
the benchmark in modern food retailing in different markets by offering the goods and
services at the best price in every stores all across the country.
Approaches to strategic management
The different approaches to strategic management are to be followed by everey
businesses and the same happens for Carrefour in UAE to achieve the desired outcomes in
the future. The strategic goals are set and diversification into the new markets have helped in
managing financial aspects properly, which not only improves the flow of cash, but also has
set the company apart from the competitors. With the setting of long term strategic goals and

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objectives, there is necessity of making tactical responses to strategic management decisions,
furthermore, ensure strategic decision making and maintain consistency in terms of debt
services and costs of overhead at certain level (Goetsch and Davis 2014). If the strategic goal
or objective helps in gaining good percentage of rate of return on investments, then the
company is going well and this has been the case for Carrefour. The retail company has made
sure to deliver food products and services at reasonable prices, without making any
compromise on the quality, which has helped in managing the brand properly and thus gained
greater brand exposure to raise awareness among the clients regarding their purchasing
behaviours (Hill, Jones and Schilling 2014). The approaches to marketing also include
various marketing strategies that are aimed at sending the right messages and information
about the products to its customers, furthermore, attract the target markets through online
selling to increase the profit margin consistently (Carrefouruae.com 2019.
Leadership approaches in strategic management
The strategic leadership style to management has facilitated the management of
human resources and made sure to keep the staffs motivated and encouraged for performing
to their potential. The strategic leadership approach facilitates influencing the business
decisions and at the same time, improves the organisation’s ability to gain long term success
and even manage god financial stability. The strategic leadership at the organisation could
also be beneficial for managing flexibility and focus on changing the plans and forecast
changes too, furthermore, empower the employees to make individual decisions (Griffin
2013). A good leadership team formation is also critical to the success of businesses and thus
there are various factors that contribute to the management of strategic implementation such
as the extensive networks, collaborative relationships, focused actions, processing of
information and data along with strategic goals too. As stated by Hill, Jones and Schilling
(2014), leadership plays a major role in the strategic management, because the

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implementation of right strategies requires efforts put by the team members, who are
managed by the organisational leader. The employees of Carrefour have individual roles and
responsibilities, that are needed to be cope up with and thus proper management of leadership
can be beneficial to delegate the roles and responsibilities properly too (Hill, Jones and
Schilling 2014).
On the other hand, Donate and de Pablo (2015) argued that to manage implementation
of strategies, policies and programs, the engagement of departments of the organisation is
necessary and the leadership plays a major role in the identification of these departments and
form an implementation group. The management department holds the responsibility of
managing a proper structure to determine the most suitable leaders, who could manage team
work, communication and accountability system too for ensuring accomplishment of business
goals and objectives within the allocated time frame (Donate and de Pablo 2015). While
implementing change procedures or new strategies, a sense of interest and urgency must be
created, which is the duty of the manager or leader of the organisation to explain the staffs
about the significance of implementation. The leadership skills are necessary for making the
employees understand about the significance of implementation, furthermore know about
how the company itself can be benefited. Johnston and Marshall (2013) argued that the
leadership aspects are important as well for monitoring the performances of organisational
members and place the monitoring system in the right place to ensure proper analyse and
interpretation of data and information required to make the changes implemented successful
and noteworthy (Johnston and Marshall 2013).
Another major leadership approach to management is to check the strategic
implementation phase consistently. To facilitate the human resources management, the
leadership has played a major role, which not only helped in integrating the customer

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management program to the sales department, but also has helped in assessing the
development needs of individuals. This could though be effective for management of sales
force and ensure regular acqusitions of consumer data and information and about their needs
and preferences that are needed to be met.
Strategic analysis
The strategic analysis is done to understand the external operational environment in
details for Carrefour UAE, which can assist in understanding the strategic priorities and make
effective business decisions (Birasnav 2014). The understanding of the external environment
will be possible with the help of SWOT analysis, PESTLE, Porter’s five forces analysis and
also by analysing the value chains of the organisation in UAE.
SWOT analysis
Strengths
 Strong brand name and positive
brand image contributes to the
management of quality consistency,
furthermore meet the demands in the
market
 Smooth flow of cash enhances
acqusitions and management of
resources required to expand into
newer projects
 Streamlined operations and
prominent supply chain management
 Establishment of a positive culture
Weaknesses
 Poor financial planning and lack of
investments done for the
management of new technologies
 Big gaps in the way products and
services are marketed and presence
of competitors further created issues,
which are considered as major
weaknesses.
 The structure of organisation is
suitable only for the implementation
of current business models and thus
often the project expansions scopes

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among the dealers and distributors
and strong investments done for
training and development sessions
 Strong base of suppliers and supply
chain networks
 Great market presence and string
brand image
 Multi format strategy hypermarkets
and
are hindered
 Carrefour has failed to manage
proper demand forecasting, which
has also been one of the major
causes of poor inventory
management and supply chains
(Morden 2016).
Opportunities
 The effective flow of cash can create
scopes and new opportunities to
make investments in various product
segments, which can easily expand
the wide range of products an
services’
 The taxation and environmental
policies can also be implemented to
open up new scopes and
opportunities, furthermore, ensure
gain a greater market share and
implement new technologies as well
 The lower rate of inflation is also
Threats
 The presence of competitors can be a
major threat to the business, which
can affect the profit level of the
organisation negatively
 The lack of skilled workforce
consisting of employees and poor
skills and knowledge further
contribute to the poor performance
of the organisation, which is also a
major threat
 The demands for certain highly
profitable food items are seasonal in
nature, which can also affect the

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effective for bringing much better
stability in the market (Avolio and
Yammarino 2013)
 The development of market can
result in gaining better scopes and
opportunities to stay ahead of the
competitors, furthermore ensure
capturing a greater market share
along with better sales generation
and profit level too
organisation’s ability to attain the
goals easily
 The legislations and laws are
different for the different countries,
which is another major threat that
can let down the business
performance and thus might get
exposed to liability claims
considering the policy changes in
different market segments too
(Carrefouruae.com 2019).
PESTLE analysis
The political factors include the changing policies with the new Government,
Governmental impact on the global pressures put on the food retailing industry. The
regulatory techniques have also contributed to the management of diverse laws, rules and
regulations required to enter the various markets and how the business can operate within the
local as well as global marketplace. The income tax, service tax and sales tax are imposed by
the Government to ensure management of free business along with privatisation too.
The economy of the nation is a major contributing factor that has influenced the way
the organization enters the market and the industrial reform policies have further influenced

9STRATEGIC MANAGEMENT AND LEADERSHIP
the liberalisation of foreign capital. With the skilled workforce consisting of expert
employees and by making assessment of financial markets there would also be easy access to
liquidity in the equity market, furthermore raise the chances of the business to expand
internationally (David and David 2013). With the higher investments made by the
Government and regulatory bodies, the business could also improvise core infrastructures and
drive growth in the concerned sector, furthermore contribute largely to the growth in
economy of the nation too.
The demands for organic food products and awareness about the health and
wellbeing, new scopes and opportunities have opened up. The digitization of retail industry
has further improved the lives of clients and make them easily gain access to the products and
services both offline and online. The societal norms, rules, regulations and hierarchy might be
different and thus cerate complexities for the business to sustain in the home market. Thus, to
sustain globally, a new team should be formed for gaining knowledge about the societal
norms and ensure serving the clients well (Noe et al. 2017).
The technological advancements have certainly transformed the food retailing
industry and thus Carrefour has reached the maturity stage, which facilitated acquiring
greater market share and empowerment of supply chain partners too. The technological
implementations have reduced the life cycle of product and make the production process
easier and faster. It has also helped in marketing different kinds of products and services and
reduced the costs of operations to a certain extent (Eden and Ackermann 2013). The
technological factors are considered to ensure investing on research and development
activities along with meeting the demands an expectations of people in the different markets
segments.

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The legal factors include managing legal obligations and ensuring implementation of
legislations, laws and policies to maintain flexibility within the workplace. The health and
safety norms, rules and regulations could assist the company to maintain a workplace where
employees should be kept safe and provided with flexible working conditions for their good
health and wellbeing. The environmental laws are considered to become socially responsible
and contribute to the positive health of the environment while the Data Protection laws could
facilitate dealing with privacy issues and manage intellectual property rights, furthermore
prevent unauthorised access to confidential data and information related to the clients
(Carrefouruae.com 2019).
The environmental concerns include protecting the environment by reducing food
wastes and also using those to serve the purpose of managing renewable sources of energy.
Due to the industrialisation, there have been adverse effects on the environment such as
polluting the air, which gave rise to multiple health issues and thus due to pressure from the
environmental groups, Carrefour needs to maintain proper measures for reducing
environmental impact as well as ensure better management of waste control and disposal too
(Baker 2014).
Porter’s five forces
The five forces that often impact the way the business functions within the food
retailing industry are the threat of new entrants, threat of substitute products, bargaining
power of suppliers, buying behaviours of consumers and presence of rivalry in the business.
The threat of new entrants in the market is one of the major causes of sales decline as
new products with similar functionality are made available in the marketplace to draw in
more customers. The economies of scale is a daunting task to achieve within the food
retailing industry, though with the great brand image and presence in the market, the threat of

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new entrants might be weaker. The differentiation of products is also high, which enables
creation of more scopes and opportunities for Carrefour to focus on the marketing techniques
such as promotional activities, advertising, etc (E. Dobbs 2014). Though the accessibility to
the networks for distribution of products might be easier, still with the positive brand image
and name, the company would likely sustain in the competitive marketplace with ease and
efficiency. The investment in research and development for facilitating the innovation and
allow the company to gain access to distribution channels required to overcome the threats
that might be faced in business.
Porter and Heppelmann (2014) stated that the threat of substitute products and
services is low because there are very few substitute products available in the market within
the food retailing industry where Carrefour operates. Due to the presence of very few
substitute products in the marketplace, Carrefour maintains consistent selling of products and
services at lower prices, without compromising on the quality of those, which makes it less
suitable for the consumers to switch on to some other substitute products available (Porter
and Heppelmann 2014). The company could further manage diversification of products to
ensure delivering better benefits and ensure meeting the demands and expectations of
customers in the marketplace with ease and efficiency.
The bargaining power of suppliers is moderate, because they have lesser control over
the prices set for the products and services by the company. The suppliers delivered raw
materials and resources that are standard and thus there are multiple options, which Carrefour
can switch on to, for influencing the process of production. Therefore, the supplier power is
moderate considering the industry within which the business operates (Iriyama, Kishore and
Talukdar 2016).

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Within the concerned industry, the buying power of customers is weak, because the
differentiation of products and services is high and thus the purchasers find it difficult to find
alternative products, due to which, the switching power is considerably lesser too. There has
been pressure for purchases at lower prices, which made the consumers more price sensitive
and thus the company has managed production consistently by making products and services
available at reasonable prices, which could be the turning point of the business to tackle this
kind of threat within the industry.
The presence of rivalry due to the competitor within the sector has been another major
threat that could reduce the sales generation and affect the profit level too. The food retailing
industry has been growing constantly, which makes it convenient for Carrefour to gain the
interest in capturing a wider market share, furthermore, decrease the prices in case the
demands get reduced (Brenes, Montoya and Ciravegna 2014). The need for larger
investments to manage the assets sand capital has also ensured implementation of diverse
strategies required to sustain within the competitive business environment.
Porter’s generic strategy
The generic strategies proposed by Michael Porter are cost leadership, focus and
differentiation. With the implementation of cost leadership strategy, Carrefour should aim to
survive in the competitive business environment and at the same time, focus on catering the
needs of consumers by delivering good quality products and services at reasonable prices.
Another generic strategy is the focus strategy to manage the niche markets by
narrowing the field of manufacturing and process of production. Due to the changing needs
of market, the company’s niche skills and knowledge could be affected and thereby, prevent
the ability of the organisation to switch to a new niche market (Tanwar 2013).

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According to Irani et al. (2018), the differentiation strategy should be implemented for
differentiating the products and services from the other products available in the market,
furthermore aim at managing business globally too. The differentiation of products should
further assist in bringing some uniqueness and allow the customers to understand the
differentiable features of the products, which might reduce the chances of switching to some
other brand and its products (Irani et al. 2018).
Value chain analysis
The analysis of value chin includes the assessment of primary activities and secondary
activities consisting of a large set of functions associated with the business management and
functioning. The primary activities include inbound logistics operations, operations, outbound
logistics, marketing and sales. The inbound logistics operations included Carrefour’s ability
to strengthen relationships with the suppliers and manage steady distribution and production
processes. The entire inbound logistics consist of the acqusitions of raw materials and using
those for the production process (Oraman 2014). While the business operations include
manufacturing, production and service operations along with packaging, testing the products
and focusing on reduced operational costs to ensure competitive edge over its competitors
and higher profit level.
The outbound logistics and operations include handling of materials, the way
Carrefour transported the materials and products and even the processing of orders,
warehousing and scheduling for gaining competitive advantage and accomplish the goals and
objectives of business. The outbound value chains are to be prioritised for delivering the
products and services timely to the end consumers. The marketing and sales have been
facilitated with the product differentiation, which has enabled selection of right channels of
distribution, both offline and online along with the implementation of marketing strategies for

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targeting the right markets and draw in more customers too (Brenes, Montoya and Ciravegna
2014).
The secondary activities of the value chain include maintaining a good organisational
infrastructure to improve the quality management systems and at the same time, manage
financial aspects, accounting procedures, better financial planning and strategic management
too. The company needs to maintain a proper organisational infrastructure for positioning the
products and services and ensure attracting potential customers at present and in the future
too. The management of human resources is possible at Carrefour by analysing the costs of
selection and training, which has further contributed to the management of budget and
ensured keeping them motivated through intrinsic and extrinsic motivation, because they are
considered as important for supporting value chain activities (D. Banker, Mashruwala and
Tripathy 2014). The procurement of supply chain is another secondary activity that could
make Carrefour focus on management of raw materials and resources along with prioritising
on the areas to ensure value creation and cost effective measures too associated with the
differentiation of products and for managing streamlined business operations too.
Key trends
The key trends in the food retailing industry include higher demands for the organic
food items in United Arab Emirates, changing needs and requirements of consumers and
importance of healthy food items that can improve the health and wellbeing of people.
Formulation of strategies
The ANSOFF matrix is applied to understand the different aspects related to the formulation
of strategies such as market penetration, market development, product development and
diversification strategy (Teeratansirikool et al. 2013).

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As stated by Hussain et al. (2013), to penetrate the market, Carrefour could set lower
prices for the food items and thus a one stop place has been introduced for selling the
products, thus easing down the ability of consumers to gain access to the products and
services. The bundled pricing and promoting brand messages, furthermore, could facilitate
word of mouth promotion and act as viral marketing to reach potential customers with much
ease and effectiveness (Hussain et al. 2013).
The development of market would be possible with the management of online
platforms and by assessing the market conditions, based on which, the products and services
are delivered to the customers.
The product development strategy enabled Carrefour to introduce new products and
services and added some differentiable features too for ensuring product differentiation
properly and enhancing the diversity of product range too (Al-Bostanji 2015).
The diversification strategy also could be beneficial for Carrefour, though it requires
proper research and development activities along with assessment of market condition and
analysis of competitors. This should help in preventing customers switch to some other brand
and enable the company to reach wider audiences, both locally as well as globally.

16STRATEGIC MANAGEMENT AND LEADERSHIP
Figure: ANSOFF matrix for Carrefour (Al-Bostanji 2015)
Strategic management options
Differentiation approaches and strategies
To acquire cost advantages, Carrefour must make sure to analyse the cost structures
and cost drivers for the various activities, furthermore ensure management of value chains
properly and identify the opportunities to excel in terms of performance. This could also
ensure management of good production, good delivery and reduce the costs of operations all
across the value chain activities (Ahi and Searcy 2013).
Carrefour should implement the differentiation strategy to make sure that the business
responds quickly to the changing market conditions, furthermore, become flexible to the
needs and expectations of customers. The differentiation strategy also allowed the company
to prioritise on the specialisation of customers, products and also the geographic
specialisation to manage effective distribution of unique products and services along with
management of supplies in meeting the demands of people in the marketplace (Hilton and
Platt 2013). Within the food retailing industry, Carrefour focused more on introducing

17STRATEGIC MANAGEMENT AND LEADERSHIP
sustainable food items and organic food items too for creating awareness among people, who
are conscious about their health, furthermore should improve the health and wellbeing of the
environment too (Carrefouruae.com 2019).
In spite of a clear international strategy, Carrefour has focused on the market
resources for gaining a leadership position and acquire profitable growth and sustainability
too. The company could also prioritise on the innovative promotional approaches to facilitate
the implementation of marketing strategy, furthermore, ensure strengthening relationships
with the suppliers, shareholders, customers and other business (Golicic and Smith 2013). To
survive in the global competitive marketplace, Carrefour, UAE needs to maintain consistent
supplies from the local producers, especially the farmers, which can provide them with
benefits such as better prices as well as greater scopes and opportunities to improve the
quality of products and production process too. Carrefour’s focus on sustainability strategy
should further aim at sustainable production and manage production of healthy food items
that are preferred by many, thus, aim at improving the lives of people and contribute to the
higher profit attained and economic growth of the nation too (Marques Vieira et al. 2013).
Conclusion
The report was prepared with the consideration of business organisation named
Carrefour within the food retailing sector in UAE to shed light on the various approaches to
strategic management and leadership aspects in strategic management too. The understanding
of external environment with the help of PESTLE framework while the SWOT analysis and
Porter’s five forces assessment further helped in creating new opportunities of growth and
development in business. Lastly, focus had been on differentiation strategy, which could be a
reliable strategic management decision to sustain in the competitive marketplace with
convenience for Carrefour UAE.

18STRATEGIC MANAGEMENT AND LEADERSHIP
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