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Cartridge World Prepared for: Best in France 12 May 2009 Orla Liston I Richie Carroll I Jason Poulsen I Atsushi Saito I Olga Fedorova.

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Presentation on theme: "Cartridge World Prepared for: Best in France 12 May 2009 Orla Liston I Richie Carroll I Jason Poulsen I Atsushi Saito I Olga Fedorova."— Presentation transcript:

1 Cartridge World Prepared for: Best in France 12 May 2009 Orla Liston I Richie Carroll I Jason Poulsen I Atsushi Saito I Olga Fedorova

2 Closing French Benefits Constraints Cartridge World When did it come to France - Came to France in 2003, but originated in Australia in 1991. What's its business -Remanufacturing of ink and toner cartridges for consumer printing -Sale of compatible cartridges and printing accessories -Refill of empty ink cartridges for inkjet printers, laser printers, fax machines and photocopiers with top quality, brand-specific ink and toners. What are its key figures (world sales, French sales, profits, market share etc.) -It currently has close to 18% of the worldwide ink cartridge market (Revenue) -Sold nearly 60 million ink jet cartridges and 10 million laser cartridges in France in 2007. -Worlds fastest growing ink refilling retailer in the $60 billion printer cartridge industry Note: Only 22% of cartridges are refilled in Australia, 27% in the USA and 15% in the UK. Company

3 Closing French Benefits Constraints Company Products Company Senario1: Import and sell Senario2: Produce in France FC2: Store, Factory, Negotiation, Tax VC1 - VC2 = Transportation, and products are small Estimating FC2 and VC2 might be difficult Hidden cost

4 Closing French Benefits Constraints Company Products Company Dont produce products in France Import and resell Their cost – Fix cost: Store – Variable cost: Labor, Transportation, Cartridge parts

5 Closing French Benefits Constraints Clientele Who are the company's clients? -Consumers and SME Worldwide -+1600 stores in +45 countries What are their expectations? -Network of sites -Cater to local needs both in Australia and Internationally -Provide competitive prices on superior products How will a French presence help or hurt the company's ability to satisfy client demands? -Necessary to access French speaking clients -Provide more tailored service in France -France is one of the largest European markets Company

6 Closing French Benefits Constraints Why it Came to France Company approach to international growth -1600+ stores in more than 45 countries, with an average of 4 Cartridge World franchises being opened EACH WEEK! -French Federation of Franchises; 130+ stores in France. Where else did it consider? -It is currently growing hugely worldwide, so it has considered and located in many other countries apart from France. Why was France a key target location -Owner for Europe had worked in France and UK so was familiar with France and how business was done herevery comfortable move Company

7 Closing French Benefits Company Values What are the core values of the company? What values may not fit with perceived French values? Constraints Efficiency Integrity Pride Customer Satisfaction Customer Satisfaction Efficiency

8 Company Closing French Benefits Principle Constraints What are the principle constraints the company foresaw before coming to France? -Social Protection: very strong protective labor lawsprotects employees Very challenging to fire employees Easy to get in trouble for something if you dont know the system well -Higher Taxes -High Risk of Strike -Shorter Work Week: only 35 hours per week Constraints

9 Company Closing French Benefits Surprises? Did they discovery any others once they arrived? Not that bad because they are a franchisor that hires French people -The French understand their own system Mostly challenging for the executives -Top-down problem not bottom-up problem -Executives from American schools and American business style -Very to the point and dont like to waste time -Hard to find franchisors that can handle/understand American system -Management to hire people well-versed in both cultures/bilingual Constraints

10 Company Closing French Benefits Worst Constraints Which are the worst constraints? -35 Hour work week -Taxes are higher here How do these constraints differ with their other locations? Longer work hours in US and other Western cultures, similar to home country of Australia Constraints

11 Company Closing French Benefits Losses? Did the local subsidiary lose projects to other countries because of these constraints? - No; Cartridge World franchised all over Europe, over 1,600 stores in 45 countries -Franchisor, generally not hiring other non-French people to work in Francewith the exception of management above the franchisees and below the executives -Franchising in different nations makes a lot of sense Constraints

12 Company Closing French Benefits Adaptations Constraints What kinds of adaptations did/is the company making to its people management systems? -Try to deal with the differences -Hiring fully bilingual people -Hiring English speakers so as to help communication -Hiring those who can understand differences working in different countries, and between Europe and non European differences

13 Company Closing Constraints Key Benefits What are the key benefits of being in France? -High quality of infrastructures -High labor productivity per hour (as a % of the US level) -High quality of life in France -France is 5 th largest economy in the world -Location benefits for expanding throughout European market French Benefits

14 Company French Benefits Constraints General Advice What advice do you offer to other companies in this sector concerning use of France as a location? Closing Take time to think about things before starting Get very good consults (someone who is used to setting up companies in France Make a very detailed contract for the employees

15 Company French Benefits Constraints Wed Like to Thank Isabelle Eloy Finance Controller Closing

16 Company French Benefits Constraints Questions? Closing

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