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The New organisation of Auchan France

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  1. Executive summary.
  2. Introduction.
  3. History of the company.
    1. Key figures about Auchan.
    2. Corporate culture.
  4. The reflections on a new organisation: A necessity.
    1. The method.
  5. The new organisation: Work in progress.
    1. The new geographical organisation.
    2. The regional headquarters.
    3. The 'operational director'.
    4. The new roles of the director of hypermarket.
    5. The reinforcement of synergy: a key factor of success.
  6. The application.
  7. Conclusions and recommendations.
  8. Bibliography.

Most of the biggest French firms are doing new organisations in order to save operating cost. It is directly linked with the fact that the growth of yearly turnover is very low (less than 2%). Indeed, there is a structural decline of the purchasing power. The companies have to find solutions to entice costumers into buying. The headquarters of Auchan have realized that the regional headquarters were too far from the reality of the hypermarket and the concerns of the directors of hypermarkets. The trend was the widening of the gap. The general and strategic decisions were taken by senior executives who had forgotten the daily concerns of hypermarkets in terms of costs, competitions, consumptions, relationships between the managers (shopwalkers, department managers, human resources manager?) and the employers (salesmen, technicians, labourers, cashiers?). The senior managers used to take decisions from their office in the regional headquarters without being aware of the case by case situations in hypermarkets.

[...] The new organisation: work in progress The new organisation has changed the global organisation on several stages, mainly geographical organisation and rework of the staff in the regional headquarters The new geographical organisation From the takeover on ?Dock de France? in 1996 to April 2005, Auchan France was divided into 9 regions. These regions were heterogeneous in terms of profitability, dynamism of the sales forces, the growth of the turnover, potential of customers and the sales surface of hypermarkets. The new organisation has foreseen a cutting up into 5 operational regions (see the appendix 3). [...]

[...] The reflections on a new organisation: a necessity The top managers of Auchan France, the president of board of directors, Arnaud Mulliez (the son of Gerard Mulliez), the vice-president Henri Matthias and Philippe Baroukh, the general manager of Auchan France noticed that Auchan France had lost his sense of simplicity and reactivity. Most of hypermarkets directors were agreed with this statement. The board of directors have decided to launch a wide reflection with the program ?Auchan 2010?. The main concerns are the organization and the simplification of Auchan France The method A small committee composed by members of the general direction and supervisory board have worked from the real needs of hypermarkets. [...]

[...] Transfer of supermarkets in Argentina New organization of Auchan France Key figures about Auchan Net sales excluding taxes in 2003: 28.7 billion Euro in comparison with 2002) France ( 62.4 Other European countries ( 32.7 Asia ( 4.1 America and Morocco ( 0.8 The staff: 165,000 employees (52,700 in France and 4,000 in Hungary) Hypermarkets ( 78.3 supermarkets 2 Corporate culture The project of Auchan is not being only a group of distribution of outlets; it is also to promote a brand whose mission is to improve the quality and the standard of living of its customers. [...]

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