SUBMITTED BY-

AISHWARYA PATERIYAAMIR NAQVINIDA ZAINAB SIDDIQUIRENU SAINITAMANNA SETHISANDEEP PATEL

METRO CASH & CARRY

INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH

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 Environment

2. 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,2006

Source: Company Documents.

PEST ANALYSIS

CHINA

China is a single-party state  Governed by the Communist Party of China.

RUSSIA

Political environment has become more stable.

Some measures have been taken to reduce taxes, improve business environment.

Macroeconomic development trends and institutional reforms.

INDIA

Long procedures to make a governmental decision

Political instability

Distinction between government and state legislation

Multiparty in different states destroys the coordination

POLITICAL ENVIRONMENT

ECONOMICAL ENVIRONMENT

CHINA

Developing economy

Socialist planned economy where the government (one party) controlled and owned all the means and methods of production

Urbanization 40.5% in china

GDP 1,326 (Euro Billion)

Soaring land prices & increasing scarcity of large plots.

RUSSIA

 Market-based and globally-integrated economy.

 Economic reforms in the 1990s privatized most industry.

GDP 469(Euro billion).

Cost of logistics because of poor infrastructure.

Poor Growth Rate.

INDIA

Consumer Spending increase

FDI Increase

Strong Economic Growth

Increased Land Prices.

Prices are 30-45% below the government prices

SOCIAL ENVIRONMENT

CHINA

spirit of entrepreneurship in china

Literacy Rate 91%

Guanxi- ‘Wank’ informal personal networks of influence, & central idea of Chinese society.

RUSSIA

Large number of its population would decline as told by some projections.

Strong supply chain was missing due to that it was not able to win the market of russia.

INDIA

Local Traders and associations are opposing Metro C&C

Urban Immigration and Rising Living Standards

Fear among local community resulted in protests.

TECHNOLOGICAL ENVIRONMENT

CHINA

Poor Logistic system.

Use of centralized warehouse

RUSSIA

only 2.5% share of modern grocery distribution

INDIA

No cold storage facilities

Delays in infrastructure 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.

THANK YOU!

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