4MW1 Team name Management Organization Rho kyung jin Jeon sung chan Gu seong won Kim wan ji Sin ji hoon AnalysisCulture Environment / Content “We are value creating company” Introduction Step 1 Step 3 Step 2 Step 4 Strategy Effectiveness Analysis EMART VISION1. Introduction 1 Number of locations 11,462 in 27 countries Revenue us $ 485.651 billion ( K orea GDP 1,449.494 billion) Net income us $ 16.363billion Number of employees 2.2million Who can beat the walmart ? 1 -1 Introduction1. Introduction 1 W almart sign is falling down We should know this organization. 1 -1 Introduction Number of locations 174 in 2 countries Revenue us $ 9.8billion Net income us $ 284.9million Number of employees 28 thousand This relatively small organization beat W almart .(although win is limited in K orea ) - This organization is1. Introduction 1 1993 2004 2006 2010 2013 Opened First hypermarket in Korea Acquired Wall-Mart Korea Launched Emart Mobile Service Launched Online Shopping Mall Opened first Emart ts Services 2. E-mart’s Environment and Culture2 2-1 E-mart’s basic process 2. E-mart’s Environment and Culture2 2-1 Domain of E-mart stores 2. E-mart’s Environment and Culture Basically They are running Domestic stores. It has been 10 years. E-mart run stores in China. Now days, E-mart expand their business To South-East Asia2 2. E-mart’s Environment and Culture 2-2 Element of Task environment Factor2 2-2 Task environment Factor : Relation With a Customers They want to a lower price, High quality convenient. Economy of scale makes consistently customer satisfaction 2. E-mart’s Environment and Culture2 2-2 Task environment Factor : Suppliers 2. E-mart’s Environment and Culture Relationship With Suppliers is important to make profit. Volume Price. They need a huge volume of products from suppliers. E-mart corporation is Biggest store in Korea. They can buy products from suppliers, Cheap lot Fast Accurate. A fast turnover of stocks is also important factor of retail shop. E-mart have a G car, want to buy a large volume of things one time (buy bundles) Rather than small volume of things many times.2 Taste sample. Korean all the people, like free. E-mart serve many taste sample. p eople try a sample. a nd make them decision to b uying the product. 2-4 Culture E-mart 2. E-mart’s Environment and Culture3 3-1 Porter’s competitive strategy 3. Strategy Effectiveness3 3-1 Porter’s competitive strategy 3. Strategy Effectiveness3 3-1 Porter’s competitive strategy 3. Strategy Effectiveness3 3-1 Porter’s competitive strategy Competitor : Home plus Cost-leadership 3. Strategy Effectiveness3 3-1 Porter’s competitive strategy Competitor : Special stores Differentiation 3. Strategy Effectiveness3 3-2 Miles Snow strategy typology 3. Strategy Effectiveness3 3-2 Miles Snow strategy typology E-mart is Pioneer leader of hypermarket field. And the 1 st hypermarket in Korea E-mart has 2 x guarantee ,freshness guarantee policy E-mart has lowest price 3. Strategy Effectiveness3 3-2 Miles Snowtiveness3-4 E-mart’s strategies 2. Store focused on customer Build an efficient system to quickly display Store match the body shape of the Korean people 『 Korean style mart strategy 』 - Products on display at eye level and tailored to the average height of Koreans -Products such as vegetables on display as non-packaging → consumer can check status of product 3 - To pursue Low Cost Operation 3. Strategy Effectiveness3-4 E-mart’s strategies 3. Operating system Distribution center Universalization of Bar-code, Introduced the EDI system at first What is EDI(Electronic Data Interchange) system? - Partners will share the orders and various additional information at online Building up the distribution centers throughout the country to take nationwide distribution network. 3 - To pursue Low Cost Operation 3. Strategy Effectiveness3-4 E-mart’s strategies 4. PB products based on brand power What is PB product? Develops a variety of own brands Make competitiveness of PB product by reflecting theeal form of human resource and creative strategies. 3-5 Evaluate strategies and culture - How desirable to mission, vision and operating goals4 . Analysis 4 4-1 What kind of structure of the Emart ? Mutidivisional structure ✔ Advantage Disadvantage 1. Increased organizational effectiveness 2 . Increased control 3 . Suited to fast change in unstable environment 4. Profitable growth 1. Coordination problems between divisions 2. Communication problems 3 . Bureaucratic costs4 . Analysis 4 4-2 Why does Emart use this structure ? Contingency factors ✔ Size Technology Culture Environment4 . Analysis 4 4-2 Why does Emart use this structure ? Size : Emart has increased number of employees compared to other company.4 . Analysis 4 4-2 Why does Emart use this structure ? Technology : Emart has diverse technology in retail industry4 . Analysis 4 4-2 Why does Emart use this structure ? Culture : Emart has decentralized structure employees have more liberty In aspect of casual attire, gives women emp}