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Ahold Supermarkets Featured

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Ahold Supermarkets


History

Ahold Royal Supermarkets has its headquarters in Amsterdam, Netherlands. It is among the largest international food service and retail grocery companies in the world. Ahold was established by the Heijin family in 1887 and was primarily a family-controlled business that has had its operations in Netherlands for more than one hundred years. It was until 1948 that the company went public and later underwent a complete transition in 1989 from being a family controlled business to becoming a firm that is controlled by a competent management team. This major transition resulted into a phenomenal and successful experience for the company. By 2001, the company’s profits and sales were at €1.1 billion and €66.6 billion respectively and were operating in more than 27 countries and running 5,155 stores. By this time, the company had employed almost a quarter of a million people. The company also had a market share of €30.6 billion and generated more than 1, 000% returns to its shareholders by November 2001.


Ahold in February 2003 suffered a major Meltdown and fortunes reverse. The company was in a disastrous state due to its strategy failure, litigation filings, and poor management of accounts and firing of professional management team members. The returns of shareholders were drastically lost. By 2004, the company b continued with its consolidation strategy and expanding to Spain, Poland and South American. In 2005, the company acquired 56 stores from Julius Meinl in Czech Republic and introduced the label of healthy foods for customers to choose (Fink, 2001).


Highlights

Ahold supermarkets are an international organization comprising of leading supermarket companies that are based in Europe and the United States. The company offers great value, appealing shop appearance and convenient shopping to its customers. Customers visiting Ahold supermarkets are provided with a wide range of healthy choices and a memorable shopping experience. The company enjoys being in the food business and committed to being the best and leader in the company it targets. The local brands of this company set it apart from its competitors. The companies of Ahold as a group do leverage consumer insight, knowledge and scale under which the company operates in an efficient, responsible and simple way.

The people do play a vital role in the success of Ahold supermarkets through establishing healthy and strong relationship with customers and the whole of community members at a local level. The company continuously focuses on innovation of store formats, services and products with the goal of establishing customer loyalty and achievement of a sustainable growth in profit of this company.


In the United States, Ahold supermarkets operate in New York, Pennsylvania, New Hampshire, West Virginia, Maryland Virginia, Connecticut, New Jersey, District of Columbia, Illinois, Delaware, Wisconsin, Rhode Island’s and Massachusetts. The company in Europe operates in Slovakia, Czech Republic, The Netherlands, Estonia, Latvia, Norway and Lithuania.

Ahold group comprises of companies in the United States and Europe. The US companies for Ahold are Gina-Landover, Stop and Shop, Martins Giant- Carlisle and Peapod. The European companies are Albert Heijin, Gal & Gall, Albert, Etos and Hypernova. Dick Boer is the CEO for Ahold group. His vision is to continue improving the competitiveness, control costs, gain new market share and drive sales of the company. This is by ensuring that the company performs among the top qualities of other food retail in the industry and to provide sustainable and attractive returns to the company’s shareholders (Press Release, 2012).


II. Business Imperative & the Benefits:

Press Release Report by Ahold for November 2012 provides highlights on how the company has managed to deliver its strategy. The company has witnessed positive progress in accelerating growth through the six-pillar strategy. It has also managed to establish multiple initiates in Europe and the United States that focus on driving identical growth of sales and offering customers with multi-channels sales. These strategies aim at expanding the company’s geographic reach (Ahold Press Release, 2012). The current cost saving program for Ahold Supermarkets has increased to €600 million. This means that the company is at a good position to deliver value to its customers and undertake investments so as to provide better offering to customers. The company has strategic and operational drivers that have benefits.

  1. Strategic or operational drivers
  2. Revenues and cost impacts
  3. Ahold moving headquarter
  4. Local Union impacts in the United States
  5. Strength
    1. Principles to prevent uncertainty in the market, ambiguity and disagreement between associates and stakeholders
    2. The ethical, social, cultural, and political issues that affect the company’s venture.
    3. Approach a new market

The company uses its six-pillar strategy for accelerating growth. The strategies focus on multi-format, multi-local, multichannel and culture. The six pillars are as follows.

1. Increasing customer loyalty; the company’s aim is to enable its business be the favorite place for its customers to shop. The company aims at making customers enjoy its brands and do most of shopping in Ahold stores. This is because consumers today have growing expectations and businesses have to provide a wide range of choices so as to meet the individual needs of customers. Ahold, therefore, has to work hard in understanding the customers so as to increase their loyalty through offering them the services and products they need as well as the value and quality needed. The company ensures that its customers enjoy a good shopping experience that is easy. It collects and uses data given by customers in gaining insights about the unique needs of customers and to improve its services and products. Ahold stores are located close to communities as a way of ensuring that it offers relevant services to the served communities (Hart,1995).

Employees at Ahold work towards establishing personal relationships with its customers so that they can come back for more helpful and friendly services (Ahold.com 2013).


2. Broadening offering; due to the fast changes in the world, the needs of customers is also changing at a rapid pace. The company does expect a lot from retailer’s every day such as more solutions, convenience and better value so as to help them save time. With the current technologies, consumers have unlimited choices on how to buy, what to buy and how much to pay. Ahold aims to broaden its offering by establishing online businesses, improving its assortment and developments formats for its stores as a way of offering customers with alternatives that meet their ever changing needs (Ahold. Com 2013). The strategy will enable Ahold to maintain its long term competitiveness.


3. Expanding Geographically

Ahold Supermarkets aim to expand its geographic reach through acquiring stores in the current markets that the company operates. The benefit of this strategy is that it will enable the company to improve and excel in its existing operation and to put the company at a desirable leverage point. The company is searching for new opportunities to move towards the adjust markets to areas it operates and apply the skills needed to build the company in new heights. The company aims to open more than 50 supermarkets in Belgium by the year 2016 (Ahold. Com 2013).


4. Simplicity

Another company strategy is simplicity of its operation so as to operate in a cost-competitive and efficient way (Jensen, 2004). The benefit of this strategy is that the company will manage to invest value to its customers. Ahold is in the process of leveraging its resources and capabilities and undertaking better systems and processes all through the company’s businesses. This program on cost saving is already in processes, and the company has increased its target from €350 million to €600 million by 2014. This strategy will also enable Ahold to continue creating value to its customers. The saving will open up the simplicity of processes that can be reinvested so that customers receive value through the successfully model of the business.


5. People performance

The businesses for Ahold are all about its people. The company has highly qualified employees who love their work. The company aims to provide its people with a desirable working environment that motivates them and have a good feeling to be passed to customers. The company keeps on developing and investing in its employees and hires new people with desirable skills (DeAngelo, & DeAngelo, 2000). This is with the aim of ensuring that its people have capabilities to share their abilities and to grow across the business. Ahold aims to continue building a diverse work force in terms of professional experiences and personal background of people so as to ensure customers are served in the best way (Coriolis Research, 2001). This way the company will become successful across borders and cultures. The provision of development opportunities, good work condition, recognition of performance and managerial support do create a motivating environment for employees and this will equate to high level of productivity. There is also mutual respect throughout the company (Coglianese, Healey, Keating, and Michael, 2004).


6. Responsible retailing

Responsible retailing is about the way the company runs its businesses, do what is right and live by its values. The company operates its food retailing by acknowledging the desires of the communities. The company believes that it has a unique opportunity and responsibility to impact positively to every person in touch with businesses. The company supports the well being and health of its communities, employees and customers. The company cares about the environment and sources its products responsibly (Chevalier, 2000).

The turnover for Ahold Supermarkets in the United States alone is more than $20bn, and this is equivalent to 60% of the whole of the company’s sales. The company has managed to establish its operations in countries like Eastern and South Europe and Latin America which are very profitable. The company in 2008 made great progress through its sustainable profitable growth strategy. It made a net sales of €25.7 billion, which is equivalent to an increase 0f 6.9% at a constant exchange rate. The operating income by this year had raised to revenues and cost impacts € 1.2 billion. By 2012, the company had managed to gain a market share despite the environmental challenges.


The sales for Ahold in 2012 were at € 7.6 billion which was up in constant exchange rate by 3.7%. The operating income had gone down by 3.7% to attain the €289 million figure. The company’s net income was at €139 million which had gone down by 45.9% and also incurred an expense of € 90 million in the tax charge of ICA. There was a 4.1% in the underlying operating margin of the company (Chevalier, 2005). There was a modest growth in sales, in the United States. It, however, reflected the declining price of retail inflation and a strong sales. The company has undertaken stringent control of costs as a way to ensure that it delivers a strong margin.

The second quarters of 2012 indicate that Ahold managed to attain increased sales by 3.9 in constant exchange rate that is equivalent to €7.7 billion sales. The operating income had gone up by 18.5% equivalent to €326 million. The net income for the company’s second quarter of 2012 was at €248 million also up by 24.6% (Cadbury Committee, 2012). The underlying margin was at 4.35%. The rise in revenue has mainly been attributed to price promotions in the United States, but impacted the margins for Royal Ahold retailer in Dutch that provides 60% of its revenue to the U.S (Wall Street journal, 2012).


The decision of a company locating its headquarters is not independent of a modern corporation evolution. This happens when companies shift from the unitary managerial management to multidimensional management as seen for the case of Ahold changing from a family business to a staff, managed organization. Ahold has further become an international business that aims to enter new global markets. Headquarters are viewed as attractors of businesses services and attract a pool of qualified labor. Headquarters relocated to metropolitan regions that have dramatic impacts such as good airport facilities, low average wages, low corporate taxes, same industry specializations, and areas with business services at a high (De Jager, 2005).

Ahold headquarters in Amsterdam undertakes its management and organizational activities in a different way as its subsidiary in the United States. Therefore, despite the prosperity and success of the company so far, there is the need to undertake further steps in ensuring that the subsidiary follows the regulations of the company and adheres to the formula. This calls for the need to establish a new management that will use new models to suit the United States rather than using the home grown models since they will not work in the new country. For instance, the incentive theme of a country may not effectively work in another due to differences in culture. The same is also applicable in marketing campaigns and differences in supplier schedule. Failure to establish such new models will lead to an Ahold being in a success trap.


For Ahold to be successful, it heads to place its headquarters in the United States that will see the use of home models but do not have to be exactly the same as the home country. This is because a different content and country requires new ways of doing things. The organization in its expansion strategy invests its finances and managerial attention (De Jong, and Röell, 2013). Expanding to many countries scatters the efforts and may lead subsidiaries to lack a long term critical mass. Therefore, it will be ideal for Ahold to establish it’s headquartering in the United States. Having the headquarters in Washington DC is a logical step in enabling the company is close to the region where the company’s businesses are generated.

Approximately 65% of US workforce for Ahold Company is represented by local Unions of the United Commercial and Food workers, but the visions o f Martins stores and Giant-Carlisle are not organized. Workers are against the active campaign of Giant-Carlisle in preventing workers from sharing equal fundamental rights that are enjoyed by other workers in Dutch and the United States. Workers feel that it does not make sense, and it’s fair for the same company not to provide equal rights to its employees. Ahold has to treat its workers fairly (UFCW, 2012).


Giant Carlisle store managers denied access to union representatives in accessing the workplace. The division of human resources of Giant Carlisle supports this practice and articulates this policy. This is clear that managers do not have knowledge of the Global Company of UN and seem to act independently of Ahold group policies on human resource management. The acts of the managers do have a significant impact to Ahold group as a whole. The conflicts between Ahold Executive Board policy and the labor relations practices of Giant Carlisle do undermine the corporate accountability effectiveness and mechanisms for Ahold. Ahold has to establish uniform practices and principles concerning respecting the fundamental human and labor rights of its employees that it promises to defend. Ahold has to be interested in the activities and human resources practices of Giant Carlisle.

Giant Carlisle has to be held responsible in adhering to corporate commitment and implementing the right actions and procedures at the divisional level. The company needs to ensure that workers in the United States just as the Dutch workforce enjoys their rights to collective bargaining and freedom of association. Ahold has to have a relevant management team in the United States to deals with issues that affect employees (UFCW, 2012).


III. Ahold strategy and competitive position

SWOT analysis

The growth strategy for Ahold has so far become successful. Seen from the increased revenue in various acquired chains. The motive for Ahold is ‘going global with a local face”. Ahold has a good approach in dealing with different nations and difference problems by use of different brands. The organization recognizes that similarities among nations may just be superficial. It also recognizes that global planning may not be difficult, but global execution is the challenge. The company has clarity in its format and operations (Bebchuk, 2009). Ahold has invested in e-commerce, new food products, whole sale and discount format. The company has an international experience and a strong domestic availability presence and recognition. Ahold has the resources to integrate acquisition.


Weaknesses

Ahold has no global brand, and this may hinder custom loyalty. The company‘s products can be confused with other products. It has a smaller scale than Wal-Mart. Ahold has not established its presences in Key markets in Europe Union, such as, Denmark, France, and Great Britain. The company uses a decentralization in decision making approach.


Opportunities

Ahold has the ability to diversify its products and formats. It can introduce its presence in Asia and acquire major retailers in European Union.

Threats

Management is complicated especially in using home models to manage foreign businesses. The company faces a risk of failure in its joint venture. The position of Wal-Mart in the United States is a source of threat for Ahold U.S.

From the SWOT analysis, it is clear that Ahold need to improve on its weakness and maximize on its strengths. Ahold has to establish a global brand image just like that of Wal-mart so as to have its unique identity in the market. Having a brand image is essential for enhancing a company’s market share and to attract more shareholders to invest in the business. This way, Ahold will be at a better position of its expansion strategy of entering new potential markets in EU and Asia among other emerging markets (Waddock and Graves 2007). Using Ahold as the name for all stores and subsidiaries will enable this company to produce its own private brand labels and help the company in market penetration and expansion (Morck, 2012). Also having a common name will boost the development of a good relationship with customers and employees and even attract new ones. The company will be among the B2B businesses with a strong connection with suppliers and vendors (Demsetz, 2003).


The corporate strategy for Ahold is based on global exchange of skills and know-how and decentralized decision making. This strategy enables Rich Product Mix and Flexibility among the local retailers. There is also an n increase in local competitiveness. This is unlike the centralized strategy used by Carrefour and Wal-Mart that has a lot of advantages. These advantages include emphasis on the top-down form of control, strong decision making, fast and decisive execution, changes in the organization are done by a top visionary leader, low conflicts and risks leading to uniformity in all parts of the organization. There are also shared resources. Centralized decision making is, therefore, the recommended strategy for Ahold for this will enhance standardized procedures leading to cost saving.

The competitive position for Ahold is affected by aspects such as divestments that lead to the home market recovery and falling sales. In the competitive context Ahold is still behind when compared to other Global Players. The company heavily relies on mature developed markets, and this limits the growth of the company. The company has the opportunity of enhancing its USA resilient performances despite the stiff competition from rivals. The company has an n opportunity of acquiring supermarkets chain in the US has to be exploited (Vermeulen and Barkema, 2001). The company can also be the largest grocery retailer in Sweden and Netherlands since it has the capabilities and resources (Agrawal and Knoeber, 1996). It has to enhance its shares through restructuring especially in Czech Republic and Eastern Europe.

The opportunities that Ahold can exploit in terms of its channels are establishing hypermarkets and supermarkets in Europe in large shares and US in small shares. It can also come up with convenience stores in Sweden and Netherlands and mainly dwell on internet retailing for US and Netherlands as the Pioneer market.


IV. Use the data already collected about Ahold Supermarkets to address the followings:

When companies decide to expand beyond the home boundary, they have to have clear principles that will guide them in their expansion process. Establish ventures in foreign countries in a brash manner will automatically lead to failure (Monti and Yip, 2000). Therefore, Ahold has to use vital principles that are vital in guiding any business in its international expansion. The first principle is establishing the company’s based through the existing knowledge. This principle will guide Ahold to look for market in a country that closely resembles US and Netherlands such as Great Britain and France. The only new things about the venture according to this principle are the country. The company should not venture into new businesses while expanding to the new markets. Instead, it has to use familiar business. Since Ahold has experience with partnering, it can use a local partner of the host country.

Another guiding principle that can help Ahold is venturing into new markets through Greenfield and not acquisition. This will enable Ahold to exploit and transfer a competitive advantage (Progressive Grocer Staff.2009). The company should not focus so much on acquisition of companies especially those that require extensive exchange. The free field strategy will support learning from each other. Ahold can deal with unexpected risks by recognizing and identifying the source if risk. There is also need for Ahold managers to be careful when applying new home models in the new setting and test whether they work. The home-models that work have to be adopted.


The last principle is on ensuring that the pace of expansion matches with the capacity of the company to assimilate. This principle will guide Ahold in preventing the scattering of its expansion efforts as it’s expand to many countries at once. The company has to look into its capacity to expand. The company based on this principle has to view its subsidiaries as elements making a whole system, add them one by one and carefully assimilate them. Expansion has to be done in a rhythmic and constant pace. Following these principles will help Ahold no to withdraw from its operations, leading to a huge debt and impacting on the company’s survival. Failure of these ventures does pose conflicts, and disagreements with the shareholders and associates. Yet they can be prevented when guiding principles are established and strictly followed.

Business ethics involves the study of decisions, activities, and situations in businesses where wrong and right issues are addressed (Stanwick and Stanwick, 2009, p. 5). Ethics as been a highly important concept in the business environment since the 20th century. Ethics impacts of different social groups, such as enhancing public security, customer awareness and political manipulation. These issues of ethics call upon organizations to take responsibility in establishing fair solutions in governing the conduct of its people, business, and the ethical strategy to guide the organization. Such a strategy will help Ahold it taking the right actions and avoiding the violation o f the accepted principles.


Many ethical dilemmas and issues in the international business do originate from the fact that economic developments, law, political systems and culture vary significantly from one country to another (Colin 2002). This means that what is viewed as a normal practice is one country may not be the case with another country. A multinational company like Ahold has to work in an environment that goes beyond the national cultures and borders (Kotecha, Ashish, Leibowitz, and MacKenzie, 2008).

Managers of Ahold will have to be very sensitive to the arising differences and have to choose the best ethical actions in the varying circumstances since the variations in societies across the world pose potential for ethical challenges (Easterbrook, 2000). The common ethical issues in the international business setting comprise of employment practices, environmental regulations, human rights, moral obligation, and corruption. The ethical issues arise due to differences in legal systems, economic development, culture and political systems. Ahold is currently faced with the challenge of ensuring equal fundamental rights to its employees in its U.S subsidiary.


This means that Ahold should not take for granted employee’s rights such as freedom of association, freedom of assembly, freedom from political repression, freedom of speech and freedom of movement. The environment is another unethical issue that international companies have to consider in preventing air pollution, water and land pollution. Social responsibility is about the need for business people to consider the economic actions as results of social consequences while undertaking business decisions (Friedman, 2001). They should be guided by the presumption that every decision they make should have good social and economic consequences.

Ahold due to its scandal in 2003 has come to be referred to as the Enron of Netherlands. This is a scandal that can be prevented when the company establishes strong procedures and policies on ethical practices and decisions.


Cultural relativism is another vital aspect that business people in multinational companies like Ahold should understand. This concept is based on the belief that ethics goes beyond cultural reflections since all ethical principles are determined by a culture (Ferris, Jagannathan, and Pritchard, 2003). Ahold has to adopt the ethics of culture in the new business environments that it is operating. The implicitly of cultural relativism is that it rejects the idea of universal notions on morality across different culture, but instead argues that there are some universal notions that are common across cultures. For instance, a company getting into a country that uses slaves, the company should fight this practice since slavery is an immoral act across cultures.


V. Last Step:

a) Change the current module of Ahold Supermarkets

Ahold has a successful growth strategy that focuses mainly in the United States and has the objective of becoming the largest supermarket chain in the East Coast region. The company has managed to expand to places like New York New England New Jersey, Tennessee and the East Coast among other places (McRoskey, 2008). These expansion strategies have results to great operating profits, sales, financial ratios and assets for Ahold. The main reasons for success in the current US strategy are plenty. First is that there was a locally concentrated retail grocery market in US, but very fractured nationally. The dart group, which is a private store chain, attempted the consolidation via Acquisition before the Ahold’s initiative.

However, Ahold was in a better position in capitalizing the conditions of the market due to the situation of Dart group of lacking cash to expand and renovate and the low competition. Ahold managed to purchases all the shops, stop and shop markets and national supermarket owned by LBO. The approach used by Ahold is one that focuses on the use of pragmatic sequences in acquisition, emphasis on backroom efficiencies and maintaining the local structures. This approach well suited the market at that time (Vermeulen and Barkema, 2001). Through the successful acquisition and growth strategy, hold managed to trades publicly with Giant food in 1998 and bought 173 stores located in Virginia, Delaware, Maryland and Pennsylvania among other states. The market at this time was well responding to Ahold market strategy of growth. By 1999, the company was faced with potential concentration in the market and this became a major setback for the company (Drake, 2008). The growth strategy was affected by the large presence of Wal-mart and other strong companies (Progressive Grocer Staff, 2009).


Despite the success of Ahold growth strategy to the United States, the company needs change its view by penetrating into other markets in France, Europe, Germany and UK (Perkins, 2001, and Wrigley, 2002). Filling in the European gap through its expansion strategy will enable the company be among the top retailers in European terms of sales (Faccio, and Lang, 2002). Therefore, Ahold has to expand its European operations. Ahold, in its effort to enhance its opportunities by looking into the developing worlds in Latin America and Asia, did not recognize the changes in the environment compared to US and Europe. In its entry to Brazil in 1999 and Asia such as Singapore, Malaysia, Thailand and China, Ahold did not have a clear strategy (McRoskey, 2008).

This is especially because of the fact that Asia is a highly fragmented and the largest international market with food sales undertaking place outside supermarkets. This led to the failure of Ahold growth strategy in Asia. The failure is also attributed to the large market share owned by Carrefour in Asia. Ahold had to withdraw from Singapore and China markets after three years and has never thought to return (Kotecha, Leibowitz, and MacKenzie, 2008).


Ahold then turned to Latin America through a series of joint ventures in Nicaragua, Coast Rica, Guatemala, Salvador, Chile, Paraguay and Argentina in 2002 (Monti, and Yip, 2002). These extensive and sudden acquisitions differed from the systematic approach strategy used by Ahold in the past of using pragmatic sequences in consolidation and acquisition. The strategy did not also work in the purchase of Argentina. The company further suffered from intense competition especially by Carrefour (Economist Staff, 2009). Carrefour was very profitable and twice the size of Ahold in South America. This diversification of efforts caused a decline in revenues.

The economic downturn for the company forced the food retailer company to cut down costs and identify a thrilling trend. There is a need for Ahold to position itself by taking advantage of the rapid costs-consciousness shift among consumers. Ahold group should not overhaul its operations radically or undertake a new change due to panic. Such changes would challenge the company’s cash flow and would lead to an overhaul reaction as analysts in the industry attempt to recover from economic challenges (Drake, 2008). Ahold has to change its consumer activity and equity evaluation, but the changes do not have to be made radically in its business strategy. The currently used strategy focuses on adapting the changes of circumstances and efficiency. Therefore, the company can be served well by following the strategic proposal that are in existence. Ahold can maximize on its strengths by establishing a strong brand image for Albert Heijin, Gall and Gall, and Etos (De Jager, 1997).


Ahold also has to reposition its investment program so as to have an improvement in its margins and sales. The company can also improve its market trends and costs saving since are it’s in a good financial performances and position when compared to her peers in the grocery sector (Chee, 2008).

Ahold next new market will be in the UK after Germany. This is because customers in the United Kingdom will be attracted to the principle of customer wellness and nutrition offered by Ahold. This is because Ahold can manage to provide the desirable lifestyle choices needed by consumers by having greater insight on what customers think about their health. Ahold group is in a position to provide nutritional education on how to improve heath reduce obesity and effects on economic status on food choices in the UK.

As a food retailer, Ahold group can manage to provide convenience stores so as to drive its growth. This is because the British consumers are searching for better value for money and less food waste (Dial, and Murphy, 2005). Convenience stores will mainly be located in areas which are not served by large supermarkets such as Wm Morrison, J Sainsbury, Asda and Tesco which are the big four grocery stores. Ahold can further invest in other channels such as health, supermarkets and hypermarkets so as to gain competitiveness in the new market.


Conclusion

This paper has presented the strategies that have triggered the success of Ahold, the Dutch multinational retailer. The paper has presented the six pillars of Ahold group that has contributed to major success of the company. These six pillars include an increase of customer loyalty and driving sales growth, offering store formats and expanding online business, geographic expansions, leveraging capabilities, focus on the people and responsible retailing. Despite the success of the growth strategy used by Ahold group based on acquisitions, the company has incurred major losses for its shareholders.


The failures in acquisitions and mergers are according to Jensen’s view (2004) that high equity values do place great pressure to the management in sustaining the levels of growth and management is faced with discretion through poor acquisitions whenever they value growth more than the value of shareholders (DiGeorgio, 2002).

Its the success of Ahold management through the investor relation program that it managed to maintain the stock price of the company and at the same time placed pressure in the growth objective on the part of the management. Though the strategy to expand to the US was successful, Ahold was required to change is strategy mainly because of the US anti-trust ruling and the increased competition that was available internationally especially in the grocery sector of the business. The poor corporate governance is the main reason for the collapse of Ahold international expansion strategy (De Jong, DeJong, Mertens, Wasley, 2013). The lesson learned for Ahold is that it has to take seriously the management ability in maintaining and obtaining control.


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