Metro Cash & Carry

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Metro Cash & Carry

  1. 1. METRO CASH & CARRY Team project by: Iuliana Barbu Aurelian Iancu Cristian Pistol Tiffin University EMBA Stefan Paraschiv November 2008
  2. 2. SUMMARY <ul><li>Metro Group – overview </li></ul><ul><li>Metro C&C Romania </li></ul><ul><li>Main Business Principles </li></ul><ul><li>PEST Analysis </li></ul><ul><li>SWOT Analysis </li></ul><ul><li>Recommendations </li></ul><ul><li>Q&A </li></ul>
  3. 3. Metro Cash & Carry <ul><li>Part of Metro Group : Metro/Makro, real,-, Media Markt, Saturn, Galeria Kaufhof </li></ul><ul><li>First store opened in 1964 in Germany </li></ul><ul><li>1968 : Expansion of business operations beyond the national border </li></ul>
  4. 4. Metro Cash & Carry - worldwide <ul><li>Locations 623 </li></ul><ul><li>Number of countries 29 </li></ul><ul><li>Sales 31.7 bn € in 2007 </li></ul><ul><li>Total selling space 4.9 mn sqm </li></ul><ul><li>Employees: 103,915 </li></ul><ul><li>Articles, food assortment ca. 20,000 </li></ul><ul><li>Articles, nonfood assortment ca. 30,000 </li></ul>
  5. 5. Metro Cash & Carry Romania <ul><li>Est. 1996 </li></ul><ul><li>24 stores by end of 2008 </li></ul><ul><li>Employees: 7,000 in 2007 </li></ul><ul><li>Sales € 1,590 bn in 2007 </li></ul><ul><li>Rank 4 in top 100 Romanian companies </li></ul><ul><li>Total selling space 158,000 sqm </li></ul><ul><li>17.500 items food and non-food </li></ul>
  6. 6. Metro Cash & Carry – main business principles <ul><li>Focused on professional customers (e.g.: Metro Expo) </li></ul><ul><li>Efficient store concept designed for professional needs </li></ul><ul><li>One-stop shopping </li></ul><ul><li>Advanced customer service </li></ul><ul><li>Enhanced customers’ competitiveness </li></ul><ul><li>Excellence in supply chain and quality management </li></ul><ul><li>Strengthening of local suppliers </li></ul><ul><li>Development of national infrastructures </li></ul><ul><li>Career opportunities </li></ul><ul><li>Internationally transferable concept </li></ul>
  7. 7. Political Environment <ul><li>Regulation of market competition </li></ul><ul><li>Consumer protection legal frame </li></ul><ul><li>Incentives programs to attract foreign investments </li></ul><ul><li>General interest to society </li></ul><ul><li>Upcoming elections </li></ul>
  8. 8. Economical Environment <ul><li>Slow down in economical growth </li></ul><ul><li>Inflation increase </li></ul><ul><li>Financial crisis </li></ul><ul><li>Energy fluctuating prices </li></ul><ul><li>Globalization </li></ul>
  9. 9. Social Climate <ul><li>Unemployment growing rate </li></ul><ul><li>Strikes and protests </li></ul><ul><li>“Bring-back” labor force from abroad </li></ul><ul><li>Educational system redesign </li></ul>
  10. 10. Technological factors <ul><li>New technologies emerging </li></ul><ul><li>Environment-friendly focus </li></ul><ul><li>Automatization </li></ul><ul><li>Safety & protection systems </li></ul>
  11. 11. SWOT Analysis <ul><li>Strengths </li></ul><ul><li>First on the market </li></ul><ul><li>Corporate strategy & culture </li></ul><ul><li>Store concept & own brands </li></ul><ul><li>One stop shopping </li></ul><ul><li>Supply chain </li></ul><ul><li>Weaknesses </li></ul><ul><li>Poor HR management </li></ul><ul><li>Matrix organizational structure </li></ul><ul><li>Slow reaction to market changes </li></ul><ul><li>Opportunities </li></ul><ul><li>EU accession </li></ul><ul><li>Economical growth </li></ul><ul><li>HO.RE.CA development </li></ul><ul><li>Threats </li></ul><ul><li>Market competition </li></ul><ul><li>International “crisis” </li></ul><ul><li>Lack of professionals </li></ul>
  12. 12. Suggestions & Recommendations <ul><li>HR Management </li></ul><ul><li>People-oriented approach vs. task-oriented </li></ul><ul><li>Motivational schemes </li></ul><ul><li>Retention and Development programs </li></ul><ul><li>Efficient recruiting </li></ul>
  13. 13. Suggestions & Recommendations <ul><li>Matrix Organizational Structure </li></ul><ul><li>Clear functional structure </li></ul><ul><li>Reinforcement of procedures between Depts. </li></ul><ul><li>Vertical communication channels </li></ul>
  14. 14. Suggestions & Recommendations <ul><li>Reaction to change </li></ul><ul><li>Customer Oriented </li></ul><ul><li>Flexibility to adapt </li></ul><ul><li>See all issues as opportunities </li></ul><ul><li>Strong partnerships with suppliers </li></ul><ul><li>Efficient Information Systems </li></ul><ul><li>Cautious development policy </li></ul>
  15. 15. Questions <ul><li>If you have no questions, thank you!!!! </li></ul>

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