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METRO CASH & CARRY
ACKNOWLEDGEMENT
We are very thankful to Allah Almighty who has given us the power and ability to think
and judge the matters and then to make use of the blessed abilities. Our most
respectable teacher Abdul Razaq Khan Deputy Medical Administrator Islamic
International Dental Hospital is the only source who directed us to apply our abilities in
the required direction.
 SR
 Topics
 1 Mission statement
 2 Vision Statement
 3 Introduction to Metro
 4 History of Metro
 5 Metro In Asia
 6 Metro In Pakistan
 7 Metro Own Brands
 8 What does Metro
Offer?
 9Core Values
 SR
 Topics
 10 Competitive
Advantage
 11 Core
Competencies
 12 Metro
Management Policy
 13 Segmentation,
Targeting,
Positioning
 14 PEST Analysis
 15 Internal
Environment
Analysis
 SR
 Topics
 17 Food Items
 18 Non Food Items
 19 Supply chain At
Metro
 20 Why Metro ?
 21 SWOT Analysis
 21 Organizational
Structure of Metro
 22 Competitive analysis
 23 Human Resource
 24 Strategy & Structure
 25 Matrix
Contents
Mission Statement
Metro is a Cash & Carry wholesaler for business and professionals.
Metro provides quality products and business solution at the lowest
possible prices
Vision Statement
Metro will dominate the cash & carry wholesale segment globally
through our unique business formula which improves the
competitiveness of our customers all over the world
Business Concept
The METRO Cash & Carry concept was unique when the first store
opened its doors to the German businesses in 1964: instead of
placing orders for the delivery of goods through multiple vendors,
customers selected their own purchases directly at a store in
Mülheim an der Ruhr, Germany, and took those goods with them.
Today, the company has grown to become the leading international
player in self-service wholesale, operating with around 700 outlets
in 30 countries. Much copied around the world, METRO Cash &
Carry is once again setting itself apart from its competitors.
The first step into Asia was taken when METRO Cash & Carry moved into
China in1996. Today the company is present in 5 Asian countries: China,
India, Japan, Pakistan and Vietnam. The METRO Cash & Carry business is
going to be further internationalized and expanded with the focus on
Eastern Europe and Asia. Already by today, more than 80 percent of the
staff is working outside of Germany. In many countries the company is on
of the major employers.
Metro In Pakistan :-
Metro cash & carry announced its operations in Pakistan in januray2006.
Since then it has established itself as a potential market leader in
wholesale. Under the supervision of Managing Director Mr.Givovanni
Soranzo, Metro cash & carry Pakistan has opened its first store in the city
of Lahore in October 2007.The company's country head office is also based
in Lahore and currently employs over 400 people in two offices. It has done
total investment of US $ 180 Million and plan to build &operate 10-15 cash
& carry stores in Pakistan. There are about 250-300 Employees per store
and the head office is at Multan
Road .METRO Cash & Carry is successfully operating 5 wholesale centers
in Pakistan i.e.
2 in Lahore, 1 in Karachi, Faisalabad & Islamabad respectively.
Strategy:-
The unique wholesale business-to-business model of METRO Cash & Carry ensures the
company future prosperity supported by two major strategic pillars: the development of
tomorrows METRO Cash &Carry by focusing on the major performance improvement
program Committed to Excellence" and the leading international growth of the wholesale
concept. The key to success is our flexible business concept which can be adapted to specific
national and local customer needs in any emerging country as well as
to the demanding value enhancing project on an international base. Overall, METRO Cash
& Carry forms part of the strategy of METRO GROUP, a major international player in trade
and retail. The holding, METRO AG, is listed on the stock market. More detailed information is
supplied by METRO GROUP Investor Relations.
Structure:-
With operations in 30 countries, 3 continents and 11 time zones, METRO Cash & Carry is the
most international player in the self-service wholesale sector.
Entrepreneurial thinking and a pioneering spirit is always an integral part of the virtues of
METRO Cash& Carry: we have been among the first international trading companies in
many countries such as China, India, Russia and Turkey. Thereby, METRO Cash & Carry
also supports the development of local trading infrastructures and modern supply chains.CEO
Olaf Koch, a member of the Management Board of METRO GROUP, takes charge of METRO
Cash& Carry entire business which operates an international network of over 700 wholesale
markets with a two-region management structure
Metro own Brands :-
METRO Cash & Carry's own brands are targeted towards offering customers an attractive
assortment of high quality products to suit their respective needs at an excellent price. The
own brand products have been developed in close collaboration with customers and suppliers
and are the result of thorough market analyses. The brand offer ranges from the entry-level
price segment through to the quality and premium segments with the corresponding food and
PRODUCTS IN
PAKISTAN
1.Dairy Fresh Meat &
Poultry
2.Fruits & Vegetables
3.Apparel & Footwear
4.Bakery
5.Beverages
6.Coffee, Tea & Snacks
7.Deep Frozen &
Delicatessen
PRODUCTS IN
PAKISTAN
1.Detergents
2.Electronics & Appliances
3.Fresh Fish
4.Grocery world
5.Health & Wellness
6.Home
Textile/Décor/outdoor
7.Household
PRODUCTS IN
PAKISTAN
1.Hygiene, personal care
& Grooming
2.Imports world
3.Kids world
4.Office & Stationery
5.Sweets & Chocolates
6.Technology
7.DIY & Home
improvementThe Core Values :
Acknowledged first choice cash & carry wholesaler,
continuous focus on customer needs and satisfaction,
Commitment to ethical and environmental values, open
communication, innovative in all we do commitment to give
our customers more value for their money, Win -Win
partnership with our suppliers, Our Employees are our main
asset, Defined format adapted to local market needs,
sustained growth of shareholder value, strive for reliability
and transparency, Efficient and low cost operations
Competitive Advantage :-
The competitive advantage on which compete in the market
is the low Price with high leve l of quality at a same place
with convenience .Metro provides each and everything of
household use like food items, electronics, automobile parts
and much more at the same place and the major factor is the
low prices and they maintain the high quality level. And for
this purpose they directly deal with the companies for the
supply of their products so that the competitive advantage
can be enhanced more
Core Competencies :-
Lowest possible prices
stock availability
One-stop shop
Extensive business hours
Quality guarantee
Free Parking
After sales services
Promotional activities
Simple but comprehensive billing system
Great value for money
responsibility
Metro says in its
management policy:
1. Trust and Respect
• Everybody's opinion counts
• We treat every person the same way
2. Open Door Policy
• We avoid organizational barriers
• Two -way communication
• We encourage change and sharing
of ideas
3. Empowerment to Personal
Responsibility
• We allow people to take risks
• We consider" making mistakes" as
part of the game
4. Be a Role Model
• We demonstrate commitment and
enthusiasm
Metro says in its management
policy:
5. Setting Clear Personal Objectives and
Tasks
• We have implemented a management -
by-objectives concept
6. Recognition and Reward
• We consider honest and transparent
feedback as a "must"
• We reward high performance (not only
with money)
7. Team Spirit
• We encourage maximum team
engagement and knowledge
8. Positive Working Environment
• We guarantee a safe and healthy
working environment
• We encourage innovation and creativity
9. Corporate Social Responsibility
• We are committed to the principles of
social responsibility
Metro segmentation of customers is mainly concerned with the two factors Retailers ,and
Professionals of every sector and kind
Targeting:-
The targeting strategy of Metro cash & Carry depends upon the Segmentation Metro
carries the differentiated marker targeting strategy .They take the whole customers as a
market and carry out the marketing strategy same for the whole
Positioning:-
Positioning is as much important in formulating marketing strategy as designing a product.
Metro portrait the image of this cash and carry whole sale departmental store as the lower
prices with the high quality and availability of everything.
Internal Environmental Analysis Marketing Organization
Audit:-
The organizational structure of Metro is at this time consists only on hierarchy
structure and it could only allows the information either from top to bottom or up ward. It
travels step by step and the information takes too much time to reach up to the concerned
authorities. And up till then the effectiveness of information reduces. We can introduce the
organize structure which allows flowing the information in any direction and at any
level. it is much effective in sales department as any sales personnel come to know about
the customers' requirement and needs it can directly talk to marketing or consulting
manager to take quick and immediate action in order to capitalize the information
Marketing
Metro has huge inventory control and sales record system installed to control the inventory
and the stores working but there are certain areas where the improvement can make
system better. They can maintain an online sales and inventory system, through which the
customer place the order and he/she can get his/her desired products just visiting the store
without wasting time.
The success of the company is based on the following
principles:
Focus on professional customers
One-stop shopping
Efficient store concept designed for professional needs
Advanced customer service
Enhanced customers’ competitiveness
Excellence in supply chain and quality management
Strengthening of local suppliers
Development of national infrastructure
Career opportunities
Supply Chain At Metro
The supply chain management at Metro is the most important function in thier
business as their cost advantage is gained through this function .The following
diagram shows the supply chain function at Metro. Metro deals with local as well as
international suppliers, therefore it has to manage its supply chain function through
the coordination of local as well as foreign suppliers. They believe that ''Margins do
not come from increased Price to Customers, But by bringing Efficiency To the
Supply chain‘’ The supply chain process at Metro includes communication and order
placement with suppliers, the inventory management at Metro and also the
transportation of inventory
The supply chain management function helps the
organization to :
To improve forecast accuracy
To improve planning and scheduling capabilities
To reduce inventory levels
To increase asset utilization
To reduce manufacturing/replenishment lead-times and accelerated
supply chain response times
To enhance customer satisfaction through higher order fill rates
Human Resources:-
METRO Cash & Carry is a truly international employer: The Company
operates stores in 30 countries from Great Britain to China. The
responsible management of the international workforce is a main factor of
the company's long success story. The sustainable development and
training of talents, the integration of the demographic change as well as
diversity in the company's human resources structure a trademark of
METRO Cash & Carry.
10 good reasons why you should become a
customer of Metro:
Low cost possible prices
Stock availability
One-stop shop
Extensive business house
Quality guarantee
Free parking
After sales services
Promotional activities
Simple but comprehensive billing system
Great value for money
Strengths:
Metro has the Basic strength of low Prices with high quality.
Serving the customers with the wide variety of products
Covering all business solutions under one roof named Metro
Having the strong cash and carry business background
Best location for such kind of big store and also covering many areas
Efficiently using the place and excellent layout
Sufficient parking and safety and security measures ensure the quality in every
sector
Friendly And co-operative staff
Computerized data base system which helps both customer and Metro
Weaknesses
Less awareness in Pakistan regarding cash and carry business although location
for a big store is suitable but outside the city and not suit for all customers
No proper transportation for customers to carry their products far away
Limit of 3 persons on a single membership card
Membership or subscription fees for cards
Shopping from Metro is much time consuming because the traveling and in store
Visiting time
Opportunities:
Growing market of cash and carry
Expansion in major cities
On-line shopping is much better option to save time
Proper Metro owned convene facilities
Threats:
Upcoming stores like City Store, Medina Cash Carry, Punjab Cash & Carry- mart
and many others
Poor law and order situation of Pakistan
High inflation rate in Pakistan
Instability of the Country financial situation
Trade Laws and Taxes
Dollar rates
Competitive analysis:
There are many competitors of Metro and all of them are providing all
most same type of services so there is a tough competition. There
are many disadvantages that Metro has to face but the main issue
with Metro is that it is situated far away from the center of the city
while many of its competitors are situated in ideal places in potential
market so they are taking advantage of this and providing same
facilities as Metro provides. On the other hand Metro has the
advantage of low prices. The potential customers of Metro are
wholesalers and restaurants so other stores targeting the normal
grocery customer and competing Metro in this regard. But due to its low
prices it is also attractive for daily based customer. So it has a strong
position in regard of
customers having both types of customers.
Organizational Structure of Metro
INTERNAL FACTOR EVALUATION MATRIX (IFE)
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Competitive Profile Matrix (CPM)
Conclusion:-
Summarizing on the whole we have analyze maximum points
which might be the resultants of failures and we have
suggested the methods to rectify them in order to be efficient in
every manner and hold its situation and be the market leader of
the cash and carry business in Pakistan
Strategic management case study

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Strategic management case study

  • 1. METRO CASH & CARRY
  • 2. ACKNOWLEDGEMENT We are very thankful to Allah Almighty who has given us the power and ability to think and judge the matters and then to make use of the blessed abilities. Our most respectable teacher Abdul Razaq Khan Deputy Medical Administrator Islamic International Dental Hospital is the only source who directed us to apply our abilities in the required direction.  SR  Topics  1 Mission statement  2 Vision Statement  3 Introduction to Metro  4 History of Metro  5 Metro In Asia  6 Metro In Pakistan  7 Metro Own Brands  8 What does Metro Offer?  9Core Values  SR  Topics  10 Competitive Advantage  11 Core Competencies  12 Metro Management Policy  13 Segmentation, Targeting, Positioning  14 PEST Analysis  15 Internal Environment Analysis  SR  Topics  17 Food Items  18 Non Food Items  19 Supply chain At Metro  20 Why Metro ?  21 SWOT Analysis  21 Organizational Structure of Metro  22 Competitive analysis  23 Human Resource  24 Strategy & Structure  25 Matrix Contents
  • 3. Mission Statement Metro is a Cash & Carry wholesaler for business and professionals. Metro provides quality products and business solution at the lowest possible prices Vision Statement Metro will dominate the cash & carry wholesale segment globally through our unique business formula which improves the competitiveness of our customers all over the world Business Concept The METRO Cash & Carry concept was unique when the first store opened its doors to the German businesses in 1964: instead of placing orders for the delivery of goods through multiple vendors, customers selected their own purchases directly at a store in Mülheim an der Ruhr, Germany, and took those goods with them. Today, the company has grown to become the leading international player in self-service wholesale, operating with around 700 outlets in 30 countries. Much copied around the world, METRO Cash & Carry is once again setting itself apart from its competitors.
  • 4. The first step into Asia was taken when METRO Cash & Carry moved into China in1996. Today the company is present in 5 Asian countries: China, India, Japan, Pakistan and Vietnam. The METRO Cash & Carry business is going to be further internationalized and expanded with the focus on Eastern Europe and Asia. Already by today, more than 80 percent of the staff is working outside of Germany. In many countries the company is on of the major employers. Metro In Pakistan :- Metro cash & carry announced its operations in Pakistan in januray2006. Since then it has established itself as a potential market leader in wholesale. Under the supervision of Managing Director Mr.Givovanni Soranzo, Metro cash & carry Pakistan has opened its first store in the city of Lahore in October 2007.The company's country head office is also based in Lahore and currently employs over 400 people in two offices. It has done total investment of US $ 180 Million and plan to build &operate 10-15 cash & carry stores in Pakistan. There are about 250-300 Employees per store and the head office is at Multan Road .METRO Cash & Carry is successfully operating 5 wholesale centers in Pakistan i.e. 2 in Lahore, 1 in Karachi, Faisalabad & Islamabad respectively.
  • 5. Strategy:- The unique wholesale business-to-business model of METRO Cash & Carry ensures the company future prosperity supported by two major strategic pillars: the development of tomorrows METRO Cash &Carry by focusing on the major performance improvement program Committed to Excellence" and the leading international growth of the wholesale concept. The key to success is our flexible business concept which can be adapted to specific national and local customer needs in any emerging country as well as to the demanding value enhancing project on an international base. Overall, METRO Cash & Carry forms part of the strategy of METRO GROUP, a major international player in trade and retail. The holding, METRO AG, is listed on the stock market. More detailed information is supplied by METRO GROUP Investor Relations. Structure:- With operations in 30 countries, 3 continents and 11 time zones, METRO Cash & Carry is the most international player in the self-service wholesale sector. Entrepreneurial thinking and a pioneering spirit is always an integral part of the virtues of METRO Cash& Carry: we have been among the first international trading companies in many countries such as China, India, Russia and Turkey. Thereby, METRO Cash & Carry also supports the development of local trading infrastructures and modern supply chains.CEO Olaf Koch, a member of the Management Board of METRO GROUP, takes charge of METRO Cash& Carry entire business which operates an international network of over 700 wholesale markets with a two-region management structure Metro own Brands :- METRO Cash & Carry's own brands are targeted towards offering customers an attractive assortment of high quality products to suit their respective needs at an excellent price. The own brand products have been developed in close collaboration with customers and suppliers and are the result of thorough market analyses. The brand offer ranges from the entry-level price segment through to the quality and premium segments with the corresponding food and
  • 6. PRODUCTS IN PAKISTAN 1.Dairy Fresh Meat & Poultry 2.Fruits & Vegetables 3.Apparel & Footwear 4.Bakery 5.Beverages 6.Coffee, Tea & Snacks 7.Deep Frozen & Delicatessen PRODUCTS IN PAKISTAN 1.Detergents 2.Electronics & Appliances 3.Fresh Fish 4.Grocery world 5.Health & Wellness 6.Home Textile/Décor/outdoor 7.Household PRODUCTS IN PAKISTAN 1.Hygiene, personal care & Grooming 2.Imports world 3.Kids world 4.Office & Stationery 5.Sweets & Chocolates 6.Technology 7.DIY & Home improvementThe Core Values : Acknowledged first choice cash & carry wholesaler, continuous focus on customer needs and satisfaction, Commitment to ethical and environmental values, open communication, innovative in all we do commitment to give our customers more value for their money, Win -Win partnership with our suppliers, Our Employees are our main asset, Defined format adapted to local market needs, sustained growth of shareholder value, strive for reliability and transparency, Efficient and low cost operations
  • 7. Competitive Advantage :- The competitive advantage on which compete in the market is the low Price with high leve l of quality at a same place with convenience .Metro provides each and everything of household use like food items, electronics, automobile parts and much more at the same place and the major factor is the low prices and they maintain the high quality level. And for this purpose they directly deal with the companies for the supply of their products so that the competitive advantage can be enhanced more Core Competencies :- Lowest possible prices stock availability One-stop shop Extensive business hours Quality guarantee Free Parking After sales services Promotional activities Simple but comprehensive billing system Great value for money responsibility
  • 8. Metro says in its management policy: 1. Trust and Respect • Everybody's opinion counts • We treat every person the same way 2. Open Door Policy • We avoid organizational barriers • Two -way communication • We encourage change and sharing of ideas 3. Empowerment to Personal Responsibility • We allow people to take risks • We consider" making mistakes" as part of the game 4. Be a Role Model • We demonstrate commitment and enthusiasm Metro says in its management policy: 5. Setting Clear Personal Objectives and Tasks • We have implemented a management - by-objectives concept 6. Recognition and Reward • We consider honest and transparent feedback as a "must" • We reward high performance (not only with money) 7. Team Spirit • We encourage maximum team engagement and knowledge 8. Positive Working Environment • We guarantee a safe and healthy working environment • We encourage innovation and creativity 9. Corporate Social Responsibility • We are committed to the principles of social responsibility
  • 9. Metro segmentation of customers is mainly concerned with the two factors Retailers ,and Professionals of every sector and kind Targeting:- The targeting strategy of Metro cash & Carry depends upon the Segmentation Metro carries the differentiated marker targeting strategy .They take the whole customers as a market and carry out the marketing strategy same for the whole Positioning:- Positioning is as much important in formulating marketing strategy as designing a product. Metro portrait the image of this cash and carry whole sale departmental store as the lower prices with the high quality and availability of everything. Internal Environmental Analysis Marketing Organization Audit:- The organizational structure of Metro is at this time consists only on hierarchy structure and it could only allows the information either from top to bottom or up ward. It travels step by step and the information takes too much time to reach up to the concerned authorities. And up till then the effectiveness of information reduces. We can introduce the organize structure which allows flowing the information in any direction and at any level. it is much effective in sales department as any sales personnel come to know about the customers' requirement and needs it can directly talk to marketing or consulting manager to take quick and immediate action in order to capitalize the information Marketing Metro has huge inventory control and sales record system installed to control the inventory and the stores working but there are certain areas where the improvement can make system better. They can maintain an online sales and inventory system, through which the customer place the order and he/she can get his/her desired products just visiting the store without wasting time.
  • 10. The success of the company is based on the following principles: Focus on professional customers One-stop shopping Efficient store concept designed for professional needs Advanced customer service Enhanced customers’ competitiveness Excellence in supply chain and quality management Strengthening of local suppliers Development of national infrastructure Career opportunities
  • 11. Supply Chain At Metro The supply chain management at Metro is the most important function in thier business as their cost advantage is gained through this function .The following diagram shows the supply chain function at Metro. Metro deals with local as well as international suppliers, therefore it has to manage its supply chain function through the coordination of local as well as foreign suppliers. They believe that ''Margins do not come from increased Price to Customers, But by bringing Efficiency To the Supply chain‘’ The supply chain process at Metro includes communication and order placement with suppliers, the inventory management at Metro and also the transportation of inventory
  • 12. The supply chain management function helps the organization to : To improve forecast accuracy To improve planning and scheduling capabilities To reduce inventory levels To increase asset utilization To reduce manufacturing/replenishment lead-times and accelerated supply chain response times To enhance customer satisfaction through higher order fill rates Human Resources:- METRO Cash & Carry is a truly international employer: The Company operates stores in 30 countries from Great Britain to China. The responsible management of the international workforce is a main factor of the company's long success story. The sustainable development and training of talents, the integration of the demographic change as well as diversity in the company's human resources structure a trademark of METRO Cash & Carry.
  • 13. 10 good reasons why you should become a customer of Metro: Low cost possible prices Stock availability One-stop shop Extensive business house Quality guarantee Free parking After sales services Promotional activities Simple but comprehensive billing system Great value for money
  • 14.
  • 15. Strengths: Metro has the Basic strength of low Prices with high quality. Serving the customers with the wide variety of products Covering all business solutions under one roof named Metro Having the strong cash and carry business background Best location for such kind of big store and also covering many areas Efficiently using the place and excellent layout Sufficient parking and safety and security measures ensure the quality in every sector Friendly And co-operative staff Computerized data base system which helps both customer and Metro Weaknesses Less awareness in Pakistan regarding cash and carry business although location for a big store is suitable but outside the city and not suit for all customers No proper transportation for customers to carry their products far away Limit of 3 persons on a single membership card Membership or subscription fees for cards Shopping from Metro is much time consuming because the traveling and in store Visiting time
  • 16. Opportunities: Growing market of cash and carry Expansion in major cities On-line shopping is much better option to save time Proper Metro owned convene facilities Threats: Upcoming stores like City Store, Medina Cash Carry, Punjab Cash & Carry- mart and many others Poor law and order situation of Pakistan High inflation rate in Pakistan Instability of the Country financial situation Trade Laws and Taxes Dollar rates
  • 17. Competitive analysis: There are many competitors of Metro and all of them are providing all most same type of services so there is a tough competition. There are many disadvantages that Metro has to face but the main issue with Metro is that it is situated far away from the center of the city while many of its competitors are situated in ideal places in potential market so they are taking advantage of this and providing same facilities as Metro provides. On the other hand Metro has the advantage of low prices. The potential customers of Metro are wholesalers and restaurants so other stores targeting the normal grocery customer and competing Metro in this regard. But due to its low prices it is also attractive for daily based customer. So it has a strong position in regard of customers having both types of customers.
  • 21. Competitive Profile Matrix (CPM) Conclusion:- Summarizing on the whole we have analyze maximum points which might be the resultants of failures and we have suggested the methods to rectify them in order to be efficient in every manner and hold its situation and be the market leader of the cash and carry business in Pakistan