Question

Financial Analysis: Creating a cash-flow statement based on provided data. Financial Strategy: How Carrefour finances its growth, involving wholly owned, joint venture, and franchise stores. Store Mix and Implications: Understanding the financial pros and cons of each store type. Future Expansion: Deciding whether Carrefour should expand in France or elsewhere and adapting its financing strategy accordingly.

Answer 1

This answer explains how Carrefour finances its growth through wholly owned, joint venture, and franchise stores, and discusses the financial pros and cons of each store type. It also suggests that Carrefour should consider various factors before expanding and adjust its financing strategy accordingly.

Step-by-step explanation:

Carrefour, a large retail company, finances its growth through various methods such as wholly owned stores, joint ventures, and franchise stores. Wholly owned stores are owned and operated by Carrefour itself. This allows the company to have complete control over operations and profits. Joint ventures involve partnering with another company, sharing the investment and risks. Franchise stores are operated by independent owners who pay royalties to Carrefour.

The financial pros and cons of each store type vary. Wholly owned stores provide higher control but require more financial resources. Joint ventures share costs but may have conflicts of interest. Franchise stores have lower financial risk but less control.

In terms of future expansion, Carrefour should consider factors such as market demand, competition, and potential profitability. Their financing strategy should be adjusted accordingly, such as seeking external investments or borrowing funds.