Poor supplier and partner system
As we came to the conclusion, that one of the main disadvantages was the poor system of Russian suppliers and partners. The partners, that knew the environment of Russian business in this field, so they could gain more advantages and be more trustworthy in terms of rrelationshipswithotherplayersofthemarket.
Carrefour witnessed a continuous decline in its profit margins.
The group's operating profit margin declined to 3.1% in 2008 as compared to 4.0% and 4.2% in 2007 and 2006, respectively. Similarly, Carrefour's net profit margin decline to 1.4% in 2008 from 2.9% in 2006. Although the decline in profit margins is partly attributed to certain external andinternal factors, a continuous drop in profit margin is certainly a cause of concern for the group. A continuous decline inprofit margins will invariably affect Carrefour's financial position.
Low understanding the ways of doing business in Russia
This weakness comes out from the first one. The company did not hire local managers so it faced the problem with lack of qualified people who are aware with the local business practices and laws. That famous example, when Carrefour did not got the permission to sell alcohol and suffered huge losses, proves this statement.
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