Carrefour’s Successful Subsidiaries

One of the steps that Carrefour needs to take to ensure that their subsidiaries are successful, is understanding the tastes and preferences of their target customers. Therefore, the use of a polycentric approach to staffing is a key solution to dealing with the misunderstanding of the needs of their customers(Dorrenbacher and Geppert 605). The polycentric approach to staffing focuses on recruiting locals from the host countries to run the operations of the subsidiaries while the individuals from the foreign country only run key positions from the headquarters in their home country. Using this approach to staffing will ensure that Carrefour’s key managers receive advice on how to customize their services to meet the needs of the customers in the country they get into which will eventually give them a competitive advantage. Moreover, the use of managers and employees from the host country will reduce any chance of cultural misunderstandings since they are individuals who are already familiar with the expectations of their country.

The use of joint ventures is another solution available to Carrefour(Killing 53). Instead of opening new branches in foreign nations, Carrefour can approach already existing firms in those countries and partner with them. Using the joint venture approach is advantageous for Carrefour because it will access markets and distribution networks that are already established. Therefore, the use of joint ventures increases the capacity of the firm in a foreign country. Joint ventures will also minimize the risks and costs associated with opening branches in new countries because all the risks and costs will be shared with the partnering firm. The use of joint ventures will help Carrefour to deal with the challenge of heightened competition posed by already existing firms in foreign countries.

Works Cited

Dorrenbacher, Christoph and Mike Geppert. “Subsidiary staffing and initiative-taking in multinational corporations: A socio-political perspective.” Personnel Review (2010): 600-621. Web.

Killing, Peter. Strategies for joint venture success (RLE international business). New York: Routledge Publications, 2013. E-Book.