An Analysis of How Several EU Policies Influence the Operations of Carrefour - Term Paper Example

? An Analysis of How Several EU Policies Influence (Have Influenced) the Operations of Carrefour Contents Contents 2 Overview of the Company 3 The Policies of the European Union 3 Impact of European Union Policies over Carrefour 6 Conclusions 9 References 10 Overview of the Company The company taken for the evaluation purpose is Carrefour which serves as the leading retailer in international markets mainly specialising in the business pertaining to the retailing of grocery products. Carrefour Group stands second in regards to global retailing operations while it stands first as the leading grocery retailer in Europe. The retail company mainly operates based along four different formats like hypermarkets, supercentres, cash and carry operations and other discount store formats. Through these centres the company has spread up its operations based along 9,500 outlets whether managed by company or by franchises. Other than European countries the company has also spread its operations in areas belonging to Latin America and other Asian countries like China (Carrefour-a, n.d.). It is found that the maximum of the revenues of the firm is generated from its operation outside the European countries which is found to generate around 57 percent of the total revenue of the Carrefour group. The retail company also specialises in meeting the demands of both the internal and external set of consumers. Focusing on the internal aspects the company works in highly motivating and encouraging the staffs to take quality decisions and also enhances the knowledge base of the people through encouraging them to take part in group activities. Similarly focusing on the external consumer base the company works in generating quality products at affordable prices to the consumers. Carrefour also works in carving and enhancing the loyalty relationship with the consumer bases (Carrefour, 2009). Carrefour thus based in an European country the paper endeavours to evaluate the impacts of the policies formulated by the European Union on the operations and internal policies of the company. The Policies of the European Union Three significant areas are highlighted on which the European Commission has issued separate policies. In regards to bring about harmony in the economic and financial sector the European Union has generated the Euro currency which would tend to bring about unity in the trade and economic activities pertaining to the European Countries. The generation of Euro as the common currency of the European nations has helped the financial institutions belonging to such countries to effectively tackle the financial emergency emanating out of the event of the credit crunch. Moreover the issue of Euro has helped in reducing the cost of transferring or converting currencies while travelling from one European country to another. Similarly the uniformity brought in the price tags of the products helps in safeguarding the consumers from being cheated by the different retailers. Moreover the introduction of the Euro has helped in reducing the cost of money transfers among banks and financial institutions thus encouraging the consumers of such organisations to go about with the money transfers without subjecting to any hazard (Europa, 2011). The introduction of the Euro thus is found to bring about economic, social and political stability among the European nations. It helps in the extension of trade and commerce and thereby creates ample opportunities for jobs and employment. Retail consumerism has also gained newer dimensions owing to the introduction of Euro where the retail firms are bound to tag the prices of the products uniformly thus enhancing transparency (Agraa and Ardy, 2011, p.182). The second policy of the European Union which comes into light is regarding directions in order to sustain the hygiene and freshness of the food products for both humans and animals. Maintenance of high hygiene standards is being regulated for the several European nations through the introduction of such policies. Such proceedings of the European Union earn importance in regards to areas which require stringent actions to sustain food safety and quality. These areas are those where considerable amount of pesticides and colours are used to grow and maintain food. Similarly the legislations also target such areas concerning the packaging for the food products to be exported to different countries. This policy also aims to target whether the food products produced contain hygienic products or have a mixture of toxic substances which would render harm to the civilians (Cerutti, 2008, p.93). Publicising ingredients is statutorily maintained so as to render warnings to the consumers about the use and intake of such products. Moreover in addition to the publication of ingredients along the product packages the amount of vitamins and minerals ingrained in the products need to be rightly stated. It would help the consumers judge which products to purchase for sustaining a healthy and quality life. In addition to caring for human life the policies of the European Union also targets the welfare of the pets through the proper monitoring of food stuffs meant for such. Similarly specialist forces like veterinary experts are also incorporated by the European Union to safeguard the animals from any serious outbreak of any disease. The monitoring agencies of the European Union maintain strict vigilance over the quality of food produced such that in case of any doubt the entire batch for the products is cancelled (Europa-a, 2011). In the third case the policies of the European Union pertaining to the environment focus on sustaining the scarce resources of the earth. Moreover the policies also work in safeguarding the natural environment from the harmful emissions of greenhouse gases like carbon dioxide and others. European Union targets the reduction of felling of trees and aims to sustain the areas subject to depletion of forest resources. The policies also aim to check and reduce the emissions of greenhouse gases from several industries like cement and other manufacturing units. Policies of the European Union in regards to the caring for the environment also target in extending the use of renewable energy resources like those emanating from biomasses and other cryogenic materials. These strategic set of actions are taken by the European Union in order to sustain the large volumes of biodiversity ingrained into the natural environment of the earth. Further these policies would also restrict the business corporations from emitting such harmful gases as would disturb the natural climate of the earth. Separate legislations are being brought out to adequately care for the water and other environmental resources of the earth from getting depleted and polluted owing to the rise of harmful emissions. These set of practices thus helps in sustaining the balance of flora and fauna on the earth’s surface and thereby direct the business organisations operating based on natural resources to take proper care in sustaining the normal balance (Europa-b, 2011). Again it is found that decreased dependence on natural materials requires the business concerns to continuously innovate newer products and processes which would help in ensuring a healthy and greener environment. Moreover owing the business organisations through the use of renewable energy resources for running its operations focus on reduction of cost related to the business and operations and thereby help in enhancing the potential of the economy (Jordan, 2005, p.95). Impact of European Union Policies over Carrefour The policies of the European Union in relation to retail trade and commerce are found to signify that the retail companies must not take undue advantage of the use of Euro. Herein the policies state that Carrefour in its mode of operation should clearly imply the prices of the products both in terms of Euro and as well as local currencies to help the general people get a clear understanding of the prices. Moreover the European Commission also underlines that the stores should be ready to accept both the local currencies and as well as Euro in regards to the transactions conducted. Similarly the stores are also required by the European Union to clearly demonstrate to the consumers the pattern in which the conversion from Euro to local currencies and vice versa is conducted. Such activities would help in gaining the enhanced trust of the consumer bases and thereby augment the parameters of consumer loyalty towards the firm. However it is found that the company in order to bring about parity between the local currency and the newly introduced Euro is required to continually invest in large amounts. Such activities would thereby increase the cost of operations of the company in the international markets. Again the introduction of Euro has also impacted the relationship of the company with the supplier groups who also require the company in meeting its prices in terms of local currencies rather than in Euro. The company is also required to draft a specific plan for the harmonisation of the specific prices of the different products on account of the emergence of the Euro by the European Union (Bonton, Spahr and Tilli, 1998, p.100). In the second case, Carrefour being a leading grocery retailer was also required to strongly abide by the regulations and policies of the European Commission pertaining to the production and marketing of food products like vegetables, dairy and other meat products. In order to comply strictly with the food safety standards as levied by the European Union the retail companies like Carrefour are found to bring in a large number of internal regulations. These regulations would help in fostering the quality of the food products from being tarnished. Carrefour has largely restricted the use of pesticides in the production of products like green vegetables thus working to enhance the safety parameter of the products delivered to the consumers. The retail company has also modified the packaging policies to safeguard the quality and freshness of the product while being delivered to the consumer’s end. In that case the products like coffee beans are taken to be packed and delivered in uncut form so as to retain the freshness and quality. In this case large amount of investments are required to introduce such high grade technologies and processes to retain the quality and freshness of the products. Again the companies are also required to maintain quite a large number of documents relating to the process by which such products are manufactured and the quantity of pesticides used so as to make the legislations effective for practices. Carrefour thus was required to bring in larger modifications in its operational network to largely implement the policies framed by the European Union in regards to the food safety regime (Okello, Narrod and Roy, 2007, p.2). In regards to the environmental policies of the European Union the companies like Carrefour is required to sustain large environmental resources from getting depleted. The company is required to train the employees both in the company outlets and also the sourcing staff in regards to procurement of wood products. The wood products need to be procured from such areas in which the environmental resources are sustained in an effective manner. Moreover the company along with its supplier networks are also required to maintain documents as to the number of trees which are felled for the production of furniture products. Carrefour in this regard is found to maintain a charter in collaboration with local NGOs to sustain the environmental resources. Moreover the company conducts audits pertaining to environmental domain through conducting internal visits through such sites from which raw materials are sourced. Maintaining of continuous inspection both by internal and external auditors helps the company to enhance its directives and principles in abiding by the European Union policies framed in regards to the environment. The company to enhance its actions in regards to safeguarding the natural resources has earned active partnership with world bodies like WWF through which the company further works in sustaining the level of natural resources in the sourcing regions (Europa-c, n.d., 7-8). The above practices of Carrefour in regards to creating transparency in the price parameter through publication of prices both in Euro and other local currencies, catering for the sustenance of quality and hygiene of the different food products and also in working towards the sustainability of environment resources aim in directly fulfilling the policies and standards issued by the European Union. Thus Carrefour in regards to fulfilment of the three policies of the European Union also calls for government support in regards to its trade and operations in the European countries. Conclusions European Union is the highest authoritative unit working to bring about legislations and policies aiming at proper functioning of the business organisations and other profit and non-profit bodies. It thereby caters to the development of both the economy and society of the different nations. The paper in this connection underlies three main policies of the European Union. It evaluates the policies pertaining to monitoring the price standards of the products of retail and other manufacturing concerns, legislations and policies aimed at restoring and sustaining the quality of life of the individuals through intake of the right quality and quantity of food both vegetarian and others, and finally the policy directions of the body aimed at safeguarding the natural environment resources like trees and water. In this connection the paper tends to evaluate the performance standards of a business organisation working in Europe and belonging to the retail industry. Carrefour is the largest business organisation operating as a grocery retail firm in the European region. This concern evaluated on the basis of the above underlined policies reflect that it aims to help the consumers get an understanding of price standards based in Euro and local currencies. Similarly, Carrefour is also observed to take special care in sustaining the nourishing quality of the different food products procured by the supplier communities. The business organisation works to provide the best quality of food products natural or otherwise through efforts made in sustaining the freshness and quality of such products. Care is also maintained to help in rendering proper packaging to the products which would help in sustaining the freshness. Further the business organisation also works in taking care of the trees and other environmental resources which are required for its operations in production of furniture. The company maintains an internal and external audit team which clearly investigates in such matters and thereby renders strict control. Thus through the above means the business concern strictly tends to abide by the policies and legislations framed by the European Union. References Carrefour. (2009). Our Strategy. [Online]. Available At: http://www.carrefour.com/cdc/group/our-strategy/. [Accessed on November 8, 2011]. Carrefour-a. (No date). Our Group. [Online]. Available At: http://www.carrefour.com/cdc/group/our-group/. [Accessed on November 8, 2011]. Europa. (2011). Economic and Monetary Affairs. [Online]. Available At: http://europa.eu/pol/emu/index_en.htm. [Accessed on November 8, 2011]. Agraa, A., and Ardy, B. (2011). The European Union: Economics and Policies. Cambridge University Press. Europa-a. (2011). Food Safety. [Online]. Available At: http://europa.eu/pol/food/index_en.htm. [Accessed on November 8, 2011]. Cerutti, F. (2008). The search for a European identity: values, policies and legitimacy of the European Union. Routledge. Europa-b. (2011). Environment. [Online]. Available At: http://europa.eu/pol/env/index_en.htm. [Accessed on November 8, 2011]. Jordan, A. (2005). Environmental policy in the European Union. Earthscan. Bonton, R., Spahr, W., and Tillr, R. (1998). European Retailers Brace for Slow Shift to the Euro. Billboard. Vol. 110, No. 38. Okello, J., Narrod, C., and Roy, D. (2007). Food Safety Requirements in African Green Bean Exports and Their Impact on Small Farmers. Intl Food Policy Res Inst. Europa-c. (No date). Integrated Product Policy (IPP) pilot project: report on a tropical wood garden chair. [Pdf]. Available At: http://ec.europa.eu/environment/ipp/pdf/final_report.pdf. [Accessed on November 8, 2011]. Read More