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Group Members :-
SAADI SHERAZI
UMAIR MOHSIN
GHULAM GHOUS
AMIR ATAULLAH
AHMAD IDREES
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
Prof SAQIB MASUD 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?
9 Core Values
10 Competitive Advantage
11 Core Competencies
12 Metro Management Policy
13 Segmentation, Targeting, Positioning
14 PEST Analysis
15 Internal Environment Analysis
16 Success of the Company
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 Conclusion
Mission Statement :-
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
Slogan:-
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 Mlheim 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.
Introduction of Metro :-
Store Formats:-
In the METRO Cash & Carry wholesale stores, the focus on the special
needs and demands of professional customers, mainly from HORECA businesses, reflects
in the structure and the three different wholesale store formats: the Classic format (10,000
16,000m2), the Junior format (7,000 9,000m2) and the Eco format (2,500
4,000m2).METRO Cash & Carry is always located at major traffic junctions with excellent
transport access and sufficient parking space. The opening times are adjusted to the
business hours of the customers.
History of Metro:-
The first metro cash & carry store was opened in Germany in 1964,the first
store abroad in 1971,Since then ,the concept has continuously proven to be robust and
important for successful operations in all kinds of market environments. Three different
store formats, , Junior ,ECO and Large allow choosing the best solution for a given
environment .They differ in store and assortment size. Lately, The Expansion into New
markets has been on eastern Europe and Asia, Using Mainly The Middle sized"Junior
"store Format METRO Cash & Carry is a leading international company in self-service
wholesale and operates more than 600 outlets in 29countries. With over 100,000 employees
worldwide, the company
percent of the total sales, METRO Cash & Carry is the top-selling sales brand of the METRO
Group. Assortment and service of METRO
Cash & Carrys unique business -to-business model are targeted only towards professional
customers such as hotels and restaurants as well as small and mid-sized retailers or
institutions. The company offers these special groups a high level of assortment competency
both in food and nonfood as well as attractive wholesale prices. An efficient and
internationally conferrable concept ensures success in entering new markets.
Metro In Asia:-
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.
Opening Dates:
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
RIOBA is our exclusive brand for bars and cafs. With premium- quality products and a
unique design, RIOBA offers complete business solutions from fresh coffee and cocktail
syrups to matching cups, glasses and napkins. The cherry on the cake certainly is the price
it is by far more attractive than other brands in this quality category.
SIGMA:-
SIGMA offers quality and functionality, whether it is packaging or posting, working
or organising, writing, printing or documenting, accounting or calculating. SIGMA
supports you in optimising your organization and driving your business day by
day.
Sigma products:-
Convenience - assortment solution with more than 600 products To keep your
business running you need reliable equipment. SIGMA provides you this solution in the
areas of office supplies, office technology and office furniture.
Tarrington House :-
Welcome to Tarrington House, METRO Cash & Carry's exclusive lifestyle brand for 'The
World at Home'. With our inspiring and living comfort ideas, living, cooking, dining and
relaxing becomes an extraordinary feeling.
TARRINGTON HOUSE PRODUCTS:-
The wide product range of Tarrington House will enrich your life in the following segments
business: A restaurant owner, for example, can buy food like fish or vegetables as well as kitchen
equipment and office supplies. METRO Cash & Carry offers an exceptionally wide range of high-quality
products under one roof. Depending on the size and type of wholesale center, the assortment
includes up to 20,000 items in the food range and 30,000 items in the nonfood sector. As the name
implies, METRO Cash & Carry customers select their own items and take them with them to their
restaurants and shops. With this unique business-to-business concept, the company has grown to
become a leading international player in self-service wholesale.
Competitive Advantage :-
The competitive advantage on which compete in the market is the low Price with high level
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 :-
PEST Analysis
Political Environment:
The following are the factors regarding the Pakistani
government which influences the workings of Metro Cash and carry
The political instability is the major factor of low foreign investment in the Pakistan.
Same is the case with Metro. The management always keep in mind the threat of
change in government. They analyzed several times before entering this country and
before doing further expansion in this market. Inauguration of Lahore branch was
conducted by Former Prime minister Shaukat Aziz and the new government can
create certain problems for Metro
The Tax rebates and certain other favours given by the previous government can be
set a side by the change in the government. The ineffective control of every
government regarding the prices of products and inflation creates certain problems
because customers demands product at the same and low price while in such
conditions prices changes rapidly .Any political activity regarding labor and
political matters strikes creates hurdles in the way of the METRO's success. The
rules nd policies govern by the government also changes by the change of the
authority and which have to follow by the organization and the problem is that it
changes on the yearly basis.
Economical :-
Control over economical environmental factor can provide opportunities to Metro
to enhance the profit level up. Proper calculation of money exchange and currency
rates can give the arbitrage profit to the Metro. They should keep their money in the
form of Euros. Because it is a European based organization and second thing is that
the value of euro is increasing on daily basis.
Sociao-Cultural Environment:-
The culture of Pakistan is at this time not too much favorable to the cash and carry
business so they have to come up with the certain marketing awareness campaigns
to force the retailers to think about the monthly purchases for the store with the
convenience and economics at a same place.
Technological Factors:
Metro cash and carry do not have any threat of technological
changes in 30 countries. They have state of art technology and hi-tech technology such as
RFID and real time inventory change etc. Pakistan in technology sector is quite far so
technological change wont effect MCC in case of Pakistan. MCC is already using customer
card for entry and exit, they have cameras and wall through gates for security purposes, e-
tag on every possible valuable product and batch processing system. These activities
indicate that they are pioneer in Pakistan of introducing these kind of technologies.
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 process is as follows:
Strengths:
Metro has the Basic strength of low Prices with high quality.
Best location for such kind of big store and also covering many areas
Sufficient parking and safety and security measures ansure the quality in every
sector
Weaknesses
although location for a big store is suitable but outside the city and not suit for all
customers
Shopping from Metro is much time consuming because the traveling and in store Visiting time.
Opportunities:
Threats:
Competitive analysis:
There are many competitors of Metro in Faisalabad and in other cities respectively. But focusing on
Faisalabad there are Al -Fateh shopping store, SB store, Family Mart, City Mega Mart, E-Mart,
Bambino Mart and Rachana Departmental Store. Availability of such competitors has created a
strong competitive environment in Faisalabad. Because 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.
The hierarchy starts with store manager and there are Four Flour managers and each manager
controls 10 Departments and there are total 40 Departments. The proper authority and moderate
Spam of control make it possible to operate functions efficiently
Metros Management:
They have almost all famous companies with them. They directly purchase through companies in
very huge bulk quantity. They contract with companies and get best quality and quantity. On the
other hand the companies also save their cost, because companies put their stock in METRO at
once. And they purchase on debt, the terms of debt vary company to company. When they purchase
in huge bulk they got reasonable discount as compared to others. On other Metro is self services
wholesaler, so they reduce their cost in customer services. But most of the companies send their
own sale representative to Metro on their own stall to facilitate the customer purchasing the
product
They have adopted market penetration strategy. They are now working hard to create more and
more business. They are now investing more on their business retailer. The Metro is
accommodating divers workforce at their working area their trainings carried out to manage them
properly. They evaluate their employs on the basis of their Task. The Monthly performance reports
are prepared. After evaluation the hardworking employs are promoted as well as rewarded. Metro
also have a teaching staff to train their existing and new staff. The shop lifting is common all over
the world. Metro has created a strategy to minimize this loss. They place a tag or Sticker on every
single piece of product. When shop lifter try to take any product without billing. The Automatic
scanner on Exit gates are activated and detect the bar code (which is pasted or tagged on product).
The shoplifters have to pay double of the price. Otherwise they are given in the custody of Police.
Normally incentives are given to them on basis of their performance. The incentives in the form of
bonus are mostly given in Metro store. On quarterly Basis the performance is analyzed and
rewards are given to employees.
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.