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Case Study of Metro Cash & Carry on Business Environment
 

Case Study of Metro Cash & Carry on Business Environment

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    Case Study of Metro Cash & Carry on Business Environment Case Study of Metro Cash & Carry on Business Environment Presentation Transcript

    • INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH METRO CASH & CARRY SUBMITTED BY- AISHWARYA PATERIYA AMIR NAQVI NIDA ZAINAB SIDDIQUI RENU SAINI TAMANNA SETHI SANDEEP PATEL
    • 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
    • What is Business Environment???Business Environment has two components:1. Internal Environment2. External Environment
    • 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 )
    •  Procurement: Metro group buying (MGB), group‟s Central purchasing entity. Source 90% of stock locally . Develop an efficient supply chain. Cold-storage facility.
    • Metro C&C Market Entry Evaluation Process,2006Source: Company Documents.
    • PEST ANALYSIS POLITICAL ENVIRONMENT CHINA RUSSIA INDIA China is a single-party  Political environment has  Long procedures to makestate become more stable. a governmental decision Governed bythe Communist Party of  Some measures have been  Political instabilityChina. 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
    • ECONOMICAL ENVIRONMENTCHINA RUSSIA INDIA Developing economy  Market-based and  Consumer Spending globally-integrated economy. increase Socialist plannedeconomy where the  Economic reforms in the  FDI Increasegovernment (one party) 1990s privatized mostcontrolled and owned all the industry.  Strong Economicmeans and methods of Growthproduction  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 largeplots.
    • SOCIAL ENVIRONMENTCHINA RUSSIA INDIA spirit of entrepreneurship Large number of its  Local Traders andin 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 Standardspersonal networks of missing due to that it wasinfluence, & central idea of not able to win the market  Fear among localChinese society. of russia. community resulted in protests.
    • TECHNOLOGICAL ENVIRONMENTCHINA RUSSIA INDIAPoor Logistic system. only 2.5% share of  No cold storage facilities modern groceryUse of centralized distribution  Delays in infrastructurewarehouse development Environment. The ineffciency of the Mandis brought out 40% of waste.
    • 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 theIndian Wholesale Distribution Formats,” Metro Cash & Carry Bangalore internal document, October 16, 2006, p. 5.
    • Valuable Suggestions for furtherImprovement are Always Welcomed, if any.