INSTITUTE OF PROFESSIONAL EDUCATION AND

RESEARCH

METRO CASH & CARRY

SUBMITTED BYAISHWARYA 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 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), groups

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
POLITICAL

ENVIRONMENT

CHINA

RUSSIA

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

Political environment has

become more stable.

Long procedures to make

a governmental decision

Some measures have been

taken to reduce taxes,
improve business
environment.

Political instability

Macroeconomic
development trends and
institutional reforms.

INDIA

Distinction between
government and state
legislation
Multiparty in different
states destroys the
coordination

ECONOMICAL ENVIRONMENT
CHINA

RUSSIA

Developing economy

Consumer Spending
Market-based and
globally-integrated economy. increase

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.

Economic reforms in the

1990s privatized most
industry.
GDP 469(Euro billion).
Cost of logistics because
of poor infrastructure.
Poor Growth Rate.

INDIA

FDI Increase
Strong Economic
Growth
Increased Land
Prices.
Prices are 30-45% below
the government prices

SOCIAL ENVIRONMENT
CHINA

RUSSIA

INDIA

spirit of entrepreneurship
in china

Local Traders and

associations are opposing
Metro C&C

Literacy Rate 91%

Large number of its

population would decline
as told by some
projections.

Guanxi- Wank informal

personal networks of
influence, & central idea of
Chinese society.

Strong supply chain was

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

Urban Immigration and

Rising Living Standards
Fear among local
community resulted in
protests.

TECHNOLOGICAL ENVIRONMENT
CHINA

RUSSIA

INDIA

Poor Logistic system.

only 2.5% share of

modern grocery
distribution

No cold storage facilities

Use of centralized
warehouse

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 the
Indian Wholesale Distribution Formats, Metro Cash & Carry Bangalore internal document, October 16, 2006, p. 5.

Valuable Suggestions for further

Improvement are Always Welcomed, if any.

THANK YOU!