1. INSTITUTE OF PROFESSIONAL EDUCATION
AND RESEARCH
METRO CASH & CARRY
SUBMITTED BY-
AISHWARYA PATERIYA
AMIR NAQVI
NIDA ZAINAB SIDDIQUI
RENU SAINI
TAMANNA SETHI
SANDEEP PATEL

2. COMPANY PROFILE
• Type: Private
• Founded: 1964
• Headquarter: Dusseldorf, Germany.
• Business units: Real/Extra, Kaufhof, Media market, Metro C&C
• Employees: More than 1,20,000.
• Countries operating: 30

3. What is Business Environment???
Business Environment has two components:
1. Internal Environment
2. External Environment

4. THE METRO C&C MODEL:
 Wholesale business: Business customers and institution
such as Hotels, Restaurants, Bars, Cafes, General or
specialized food and non food retailer.
 Valid business registration.
 Format of stores:
 Classic (10,000 to 16,000 sqm)
 Junior (7,000 to 9,000 sqm )
 ECO (2,500 to 4,000 sqm )

5.  Procurement: Metro group buying (MGB), group‟s
Central purchasing entity.
 Source 90% of stock locally .
 Develop an efficient supply chain.
 Cold-storage facility.

6. Metro C&C Market Entry Evaluation Process,2006
Source: Company Documents.

7. PEST ANALYSIS
POLITICAL ENVIRONMENT
CHINA RUSSIA INDIA
 China is a single-party  Political environment has  Long procedures to make
state become more stable. a governmental decision
 Governed by
the Communist Party of  Some measures have been  Political instability
China. taken to reduce taxes,
improve business  Distinction between
environment. government and state
legislation
 Macroeconomic
development trends and  Multiparty in different
institutional reforms. states destroys the
coordination

8. ECONOMICAL ENVIRONMENT
CHINA RUSSIA INDIA
 Developing economy  Market-based and  Consumer Spending
globally-integrated economy. increase
 Socialist planned
economy where the  Economic reforms in the  FDI Increase
government (one party) 1990s privatized most
controlled and owned all the industry.  Strong Economic
means and methods of Growth
production  GDP 469(Euro billion).
 Increased Land
 Urbanization 40.5% in  Cost of logistics because Prices.
china of poor infrastructure.
 Prices are 30-45% below
 GDP 1,326 (Euro Billion)  Poor Growth Rate. the government prices
 Soaring land prices &
increasing scarcity of large
plots.

9. SOCIAL ENVIRONMENT
CHINA RUSSIA INDIA
 spirit of entrepreneurship Large number of its  Local Traders and
in china population would decline associations are opposing
as told by some Metro C&C
 Literacy Rate 91% projections.
 Urban Immigration and
 Guanxi- „Wank‟ informal Strong supply chain was Rising Living Standards
personal networks of missing due to that it was
influence, & central idea of not able to win the market  Fear among local
Chinese society. of russia. community resulted in
protests.

10. TECHNOLOGICAL ENVIRONMENT
CHINA RUSSIA INDIA
Poor Logistic system. only 2.5% share of  No cold storage facilities
modern grocery
Use of centralized distribution  Delays in infrastructure
warehouse development Environment.
The ineffciency of the
Mandis brought out 40% of
waste.

11. Cost and Wastage for Tomato Distribution in India,
Traditional and Modern Supply Chains.
Source: S. Ranghunath and D. Ashok, “Significance of Cash and Carry Model for Small and Medium Businesses in the
Indian Wholesale Distribution Formats,” Metro Cash & Carry Bangalore internal document, October 16, 2006, p. 5.

12. Valuable Suggestions for further
Improvement are Always Welcomed, if any.