Research and Market Entry Report for Austria Krystian Raymond
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- Executive Committee
- Dominique Boies - Executive Vice President and Chief Financial Officer
- Alain Brisebois - Executive Vice President and Chief Commercial Officer
- Christian Proulx - Senior Vice President, HR and Communications
- Luc Rodier - Executive Vice President, Retail
- Market Analysis
| The past two years have seen RONA Inc. grow as a company and organization as it looks towards the future and determines its positioning and business strategy. A new business plan introduced in 2012 “acknowledges the necessity of adapting the Corporation's value proposition to the new expectations and changing habits of consumers.” The senior management of RONA Inc. realize that the market is once again beginning to change and that the organization must adapt with it or risk being left behind in the long-term. [RON14]
Changes in the organization have begun from the top down, with eight new members on the Board of Directors, including the appointment of Robert Chevrier as Executive Chairman. Robert Sawyer is also replacing long-time leader Robert Dutton as President and CEO of the Corporation. Mr. Sawyer will focus on implementing reorganization measures to quicken the pace of business transformation and improve the Corporation's profitability. The major banners of RONA Inc. are to be reviewed and adjusted in order to better align with the target customer base. [RON14] The full list of directors can be found in appendix 1.1, along with a brief description of their professional duties. The executive management structure can be found in appendix 1.2. Executive CommitteeRobert Sawyer – President and CEO“In March 2013, Robert Sawyer was appointed President and CEO of RONA. Before joining RONA, Mr. Sawyer was Executive Vice President and Chief Operating Officer of Metro Inc. since 2009. Mr. Sawyer joined Metro Inc. in 1979, where he held various executive positions in retail operations and distribution over the past 30 years, including Executive Vice-President, Ontario Division from 2007 to 2009, Senior Vice-President, Quebec Division from 2005 to 2007, and Senior Vice-President – Retail for the Metro and Marché Richelieu banners from 1997 to 2005.”[RON14] Dominique Boies - Executive Vice President and Chief Financial Officer“Mr. Boies joined RONA in September 2011 as Executive Vice President and Chief Financial Officer. He is responsible for the Corporation’s financial orientation and oversees investor relations, accounting, financing, treasury, corporate development, information technologies and legal affairs. Prior to RONA, Dominique Boies was Senior Vice President Investments, Corporate Debt and Investment Funds groups within the Private Equity team after holding various positions during five years he spent at the Caisse de dépôt et placement du Québec. In addition, he was accountable for the strategic management of the private equity portfolio. Prior, Mr. Boies evolved for over 11 years at Royal Bank of Canada, where he held several high-ranking positions, including Vice President of Strategic Planning and General Manager within the Capital Markets group. Mr. Dominique Boies holds a Bachelor and a Master degree in finance from the Université du Québec à Montréal, which in 2002 awarded him a Prix Performance, one of five awarded each year by École des sciences de la gestion to alumnis who have distinguished themselves in their field.”[RON14] Alain Brisebois - Executive Vice President and Chief Commercial Officer“As Executive Vice President and Chief Commercial Officer since May 2013, Alain Brisebois is responsible for improving operational efficiency and synergy among the Corporation’s purchasing, merchandising, procurement and marketing activities. Prior to joining RONA, he worked at Alimentation Couche-Tard where he served as Vice President, Purchasing and Supply Chain, in 2008-2009, and then Senior Vice President of Operations until 2012. Until his latest appointment at RONA, Mr. Brisebois was Senior Vice President, Marketing and National Procurement. He has also held key positions at Metro Inc. between 1999 and 2008, including Senior Vice President for the Ontario division. Mr. Brisebois holds a bachelor’s degree in business administration from HEC Montréal.”[RON14] Christian Proulx - Senior Vice President, HR and Communications“Mr. Christian Proulx joined RONA in 2007 as Senior Vice President, People and Culture and is responsible for all activities related to this sector. Before joining RONA, Mr. Proulx held key positions in human resources across Canada and abroad including Vice President, Human Resources, at TELUS Québec and TELUS Partner Solutions. For the 14 years prior to that, he worked primarily as Vice President, Human Resources, for companies including BioChem Pharma, Shire Pharmaceuticals Group plc, ID Biomedical and GlaxoSmithkline. As a human resources generalist, he has successfully taken up the challenges involved in mergers and acquisitions, change management, organizational development, executive compensation, international recruiting and labour relations over the course of his career. Christian Proulx has a Bachelor’s degree in industrial relations from Université de Montréal.”[RON14] Luc Rodier - Executive Vice President, Retail“Mr. Rodier was appointed Executive Vice President, Retail in December 2011. In this role he leads RONA’s overall retail activities by region for RONA’s affiliated dealers and corporate and franchise stores across Canada. His responsibilities include RONA’s regional retail teams along with sales and support, customer experience and market development for contractor and professional sales. Luc Rodier joined RONA in 2005 as Quebec District Manager for RONA and Réno-Dépôt stores and, in 2008; he became Senior Director of the Adrenaline Project. In 2010, Mr. Rodier was appointed Ontario Regional Vice President and in 2011, he was appointed Vice President of Retail for Western Canada. Before joining RONA, he worked over eight years as Director of sales development – Canada, Europe and Asia for one of RONA’s main suppliers. Mr. Rodier has a bachelor’s degree from the School of Management of Université du Québec à Montréal.”[RON14] Market AnalysisPolitical and Regulatory System “Austria has been a member of the European Union since 1995. It is bordered by eight countries: Germany and the Czech Republic to the north, Switzerland and Liechtenstein to the west, Slovakia and Hungary to the east, and Slovenia and Italy to the south (see map in appendix 1.3) With the exception of Switzerland and Liechtenstein, all other countries in the region are members of the EU. [CIA13] The advantages of having close economic ties with the other 26 other European Union countries is a huge advantage for Austria as having a common set of regulations is essential for the transport of goods over borders and through member countries. Free trade agreements between member states also ensures no unnecessary tariffs or taxes are levied against products that are vital to RONA’s success in the new market.”[Ray13]
Austria’s government has been a democratic republic since 1920 with the formation of the country’s Federal Constitution. The government follows a parliamentary system, with nine states represented by 183 seats in the lower house of parliament, the Nationalrat. The nine states are Burgenland, Carinthia, Lower Austria, Upper Austria, Salzburg, Styria, Tyrol, Vorarlberg and Vienna. The Nationalrat house seats are determined by a general election every five years, or after the lower house is dissolved. The head of state, the Federal President, is elected by popular vote, while the chairman of the government, the Federal Chancellor, is appointed by the President. [CIA13] All Austrian citizens 16 years of age or older are eligible to vote in general elections. The voting age was reduced in 2007 from 18 years of age in an attempt to offset the high proportion of the population over 65 years old.[Pat08] Austria is a member of the International Center for the Settlement of Investment Disputes (ICSID), which facilitates dispute resolution and arbitration among international investors. With 157 members of the UN signed as members, it offers a generally-accepted framework of international dispute resolution that serves to mitigate non-commercial risks to investors and encourage international investment. Member countries are bound to enforce rulings that result from arbitration and tribunals in accordance with its 1966 Convention on the Settlement of Investment Disputes between States and Nationals of Other States.[Eur143]  Austria is also a member of World Intellectual Property Organization (WIPO), which serves to “encourage creative activity [and] to promote the protection of intellectual property throughout the world."[Wor14] The WIPO is one of 17 specialized agencies within the UN and as such includes 186 members of the United Nations as members. Through 26 treaties relating to intellectual and industrial property protection, the WIPO seeks to create a harmonized legal framework that allows companies to protect their property in an international context, reducing some of the risks of international trade.
The legal system within Austria is based in civil law and is based upon fundamental principles of Roman law. The court system divided into two sections: tribunals related to public law (constitutional law, asylum law, and administrative law) and ordinary courts, which deal with private matters such as criminal and civil law as well as aspects of competition law. “Case law may be considered persuasive in private law cases, though it is not binding. The highest court of the public law jursidiction is the Verfassungsgerichthof [VfGH, Constitutional Court]; the highest court of ordinary jurisdiction is the Oberster Gerichtshof [OGH, Supreme Court].”[Uni14] The majority of private law is regulated in a comprehensive civil law code titled the Allgemeine Buergerliche Gesetzbuch (ABGB). The ABGB would be used in most cases relating to commercial code however it does not cover labour and employment laws. The Labour Constitution Act of 1974 provides the basis for employment standards within Austria, covering issues such as collective bargaining, minimum wage, organizational rights of employees, etc. As over 80% of the population work under collective bargaining agreements, these contracts often provide the basis for standards and obligations within an employment relationship.[Dim09]
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