Metro AG is a German international wholesale and retail company founded in 1964 that operates cash and carry wholesale stores, supermarkets, consumer electronics stores, and department stores across Europe, Asia, and Africa, generating over €31 billion in annual revenue. The document discusses Metro's operations model for its Metro Cash & Carry wholesale stores, entry into the Indian market, a PEST analysis of factors impacting operations in India, and recommendations for improving its Indian business. Metro Cash & Carry aims to provide bulk goods and supplies to business customers through a self-service wholesale store format.

1. Industry Retail
Founded 1964; Metro AG formed in 1996
Headquarter Düsseldorf, Germany
Area served Europe, Asia, Africa
Key people Eckhard Cordes (CEO and Chairman of the executive board), Jürgen
Kluge (Chairman of the supervisory board), Olaf Koch(CFO)
Services Supermarkets, hypermarkets, consumer electronics and appliance
retail, department stores
Revenue €31.6 billion (2012)
Employees 283,280 (average, 2010)
Divisions Metro Cash and Carry, Real, Media Market, Saturn, Galeria Kaufhof
Website www.metrogroup.de
Presence in India (2003) Bengaluru, Hyderabad, Mumbai, Punjab, MP, UP, Rajasthan, Delhi, Kolkata,
Gujarat
Cash And Carry
"From professionals for professionals,"

2. • As of 2007, METRO Cash & Carry has operations in the 29 countries.
• The group includes:
• METRO / Makro Cash & Carry, the world's market leader in cash and carry
• Real Hypermarkets and Extra supermarkets
• Media Market and Satum, Europe’s leader in consumer electronic
retailing
• Galeria Kaufhof, the system leader in the department store business.
operations internationally

3. THE METRO Cash & Carry 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.
• Based on self-service & bulk buying

4. Cont…
• Sold food and nonfood goods for immediate cash sales
• Clients transport their purchases themselves. Metro stores open
for 16hrs
• Issue a card to customer or an authorized person to buy
• Metro C & C was the 1st foreign C & C wholesaler to enter market

5. Source: Company Documents.

6. Market Entry Evaluation process
Country Screening
Regional Segmentation.
Knock-out criteria .
Country ranking.
Competition
Final country ranking
Management
Decision
Feasibility study process.
1. Desk
research
(if
positive
result)
2. Pre-
feasibilit
y study
(if
positive
result)
3. Full-
Feasibility
study
(If
positive
result)
New country opening
Source: Company Documents.

7. Political
• Long procedures to make a governmental decision
• Political instability
• Distinction between government and state
legislation
• Multiparty in different states destroys the
coordination
Economic
• Consumer Spending increases
• FDI Increase
• Strong Economic Growth
• Increased Land Prices
• Prices are 30-45% below the government prices
Social
• Local Traders and associations are opposing Metro
C&C
• Urban Immigration and Rising Living Standards
• Fear among local community resulted in protests
Technological
• No cold storage facilities
• Delays in infrastructure development Environment
• The inefficiency of the Mandis brought out 40% of
waste
PEST
(India)

9. 1. Best Prices
2. It's your Warehouse
3. Everything under One roof
4. Extended business hours
5. Quality guaranteed
6. Free parking
7. After sales Service
8. Offers at your fingertips
9. Clear and easy invoice
10. Great value for money
10 Advantages Here are the Top 10 reasons to partner with METRO

10. Recommendations
• Technological development in various areas are required for Indian
operations (Cold storage, logistics etc.)
• An effective forward and backward integration is must for the company
• Indianization is key to success