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Product cover image for Auchan: International Expansion and Market Exit Dilemma

Auchan: International Expansion and Market Exit Dilemma

Julianne Sellin, Bertrand Guillotin

Product #:W31906
Supplier:Ivey/Temple
Discipline:General Management, International Business
Setting:France, Russia, Ukraine, United States, 2022
Details:Case (PDF) • 16 pages • 2023-05-19

Subjects:

GlobalizationEconomicsBusiness managementInternational businessManagement

Industries:

Goods, trade, and consumer services

Geography:

EuropeNorth AmericaFranceRussiaUkraineUnited States
Your Price:$10.54

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In March 2022, the chief executive officer (CEO) of Auchan Retail Group (Auchan), a top French retailer, faced a serious dilemma. As head of a €30 billion, privately held company, the CEO had to choose between staying the course and leaving Russia, one of Auchan’s top three markets, in the aftermath of the business turnaround and explosive geopolitical tensions that followed within two weeks of the Russian invasion of Ukraine. Public backlash had already forced more than 300 companies to exit or scale down their operations in this large emerging market. In this context, as he prepared for an interview with a popular French newspaper, the CEO had to decide how to best to address this dilemma: should Auchan follow the crowd or stay the course?

Learning Objectives

This case is suitable for undergraduate and graduate courses on marketing, global strategy, and management. It can also be used to address challenges and opportunities in decision-making under uncertainties and amid volatile geopolitical situations such as the backlash from the international community in response to the Russian invasion of Ukraine. By working through the case and assignment questions, students will have the opportunity to do the following:

  • Identify and understand the opportunities and challenges associated with a national retailer’s strategy at home and abroad.
  • Identify the resources necessary to execute a successful strategy over time.
  • Outline some of the realities associated with doing business in a large emerging market.
  • Describe the volatility associated with geopolitics and its impact on business.
  • Analyze the pros and cons associated with groupthink amid an international backlash.
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Case Study: Auchan: International Expansion and Market Exit Dilemma (English version) | Ivey Publishing