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Description of the negotiation parties (direct actors), including numbers that indicate their size, wealth, profitability, growth rate, etc. [10% of your grade]

In January 2010, the press lines specialized in the economics news announced a major joint venture between Carrefour, the second world bigger retail chain, and an Indian retail company named Pantaloon.
Carrefour is a French publiccompany founded in 1959, specialized in the large-scale retailing. Since 2009, the CEO of Carrefour is Lars Olofsson. In 2010, Carrefour employs 475 000 people around the world, had over 8 025 stores own by the retail chain and 15 663 franchisees stores. The wealth of the company represented 1.762.256.790 € (2.456.586.059.37 USD). For a five years average the gross margin is around 21.16%, theoperating margin is 3.46% and the net profit margin is 1.91%. For a five years average, the sales growth is evaluated at 3.46%. Finally, the negotiation has been conduct, for the Carrefour side, by Thierry Garnier, the director of international partnership.
Pantaloon is an Indian retailing company that is part of the Future Group Retail conglomerate. Future Group Retail, a Limited company, has beenfounded in 1994, and the large-scale retailing branch has been founded three years after. Kishore Biyani father is the CEO of Future Group Retail and the managing director of Pantaloon is Kishore Biyani son. Currently, Pantaloon employs 30.000 Indians, and is split in two major brands, Food Bazaar and Big Bazaar. Pantaloon Retain is the owner of 170 supermarkets Food Bazaar and 120 hypermarketsBig Bazaar. The wealth of Future Group represented 8.576.866.58 USD. For a five years average, the gross margin is evaluated at 23.61%, the operation margin is around 1.05% and the net profit is estimated at 0.36%. The growth rate, for a five years average, is evaluated at 63.74%. Finally, negotiation process, for the Pantaloon side, has been lead by Kishore Biyani son, Rakesh Biyani director ofFuture Group and Sammer SAIN CEO of Future capital holdings.

Description of each party's goals
Here, we can easily see that in terms of the size of the company, Carrefour is much larger that Pantaloon. However, Pantaloon is considered as a young company; they are in the retailing market only since thirteen years, compared to Carrefour which is in the industry for fifty-one years.Nevertheless, the growth rate of Pantaloon Retain is much higher than the one of Carrefour. We can deduce that the growth rate is one of the major incentives for Carrefour to enter the Indian retailing market which is estimated at 390 billion USD. Actually, the main goal of Carrefour, to do a joint venture with Pantaloon, was to penetrate the legally restrictive Indian market and thus to adapt to the legalstrained. Currently, the only way for a foreign retail company to enter in the Indian market is to partner with a local firm. As we can read on the Carrefour main web page: “Growth markets represent the Carrefour group's third priority. The Group will focus most of its development resources on countries with stronger growth potential. (Carrefour, 2009)”. They identify the “countries with strongergrowth potential” as India, China, Brazil and Russia. Moreover another central aim for Carrefour was to competed Wal-Mart and Tesco already establish in India. The first one is associated with Gharti, and the second with Tata Group. Finally, by partnering with a local firm, Carrefour reduced its investment risks abroad.
For Pantaloon, by teaming up with the second largest world retailer, enablethem to benefit of Carrefour’s international reputation, and in the same time increase Pantaloon standing in India. Pantaloon acquires a comparative advantage against competitors Indian, like Bharti and Tata Group already associate with foreign retailers.

Description of each party's realistic alternatives [10% of your grade]

Since we know that Carrefour is looking for a partner for...
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