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Research Details

Grupo Pao de Acucar

Abstract

At the end of 2011, one of the largest food retailers in Brazil, Grupo Pão de Açúcar, or GPA (a subsidiary of Companhia Brasileira De Distribuição, or CBD), was reviewing its accounts payable terms with suppliers in search of additional value. Manager of analytics Maria Cristina Santos was examining the trade credit terms GPA had with Oalem Ltda, a family-owned melon grower located in northeastern Brazil. Oalem, like most small family businesses, was financed with bank loans and equity that was held predominantly by the family. The case examines how accounts payable (trade credit) terms should be set or negotiated between a large retailer and a small supplier, especially when the bargaining power between the two may not be equal. The case demonstrates that trade credit terms can be as important as the terms of more traditional forms of financing.

Type

Case

Author(s)

Mitchell A. Petersen, Rajiv Chopra, Alex Williamson

Date Published

06/12/2018

Citations

Petersen, A. Mitchell, Rajiv Chopra, and Alex Williamson. Grupo Pao de Acucar. Case 5-312-508 (KEL744).

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