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Advisor(s)
Abstract(s)
This case study has been designed based on the Jerónimo Martins Group
situation between 2007 and 2011 with the objective of acting as a teaching supplement
in the study of companies’ international opportunities, market selection and the
internationalization decision process utilized to reach an optimal decision for a
company.
Jerónimo Martins was the main Portuguese group in the food retail and
wholesale industry, present in supermarkets, cash & carries and discount stores, and
operating in Poland and Portugal.
In 2011 Portugal was suffering the consequences of an economic recession,
while the Polish food retail market was starting to consolidate, with the Group’s Polish
operations representing more than half of Jerónimo Martins Group’s revenue. This
situation led the Group CEO, together with the Board of Directors, to decide to explore
new market and business opportunities to ensure the Group’s long-term growth. The
Group’s decision process took into account the Jerónimo Martins characteristics,
objectives, strengths and competences in order to define and compare new
opportunities. According to the Group’s strategy specialists, Brazil, Colombia and
Turkey were the final three countries chosen as the most promising markets: one of
them would fulfil the Group’s needs and hopefully ensure its balanced long-term future.
The Jerónimo Martins case was developed using information provided by the
Group and also by international economic institutions so as to provide students with the
most accurate information enabling them to solve the case.