Metro cash & carry management Project Semster 1 Mcom

1. Project Of Management :-
Group Members :-
SAADI SHERAZI
UMAIR MOHSIN
GHULAM GHOUS
AMIR ATAULLAH
AHMAD IDREES

2. ACKNOWLEDGEMENT :-
We are very thankful to Allah Almighty who has given us the
power and ability to think and judge the matters and then to
make use of the blessed abilities. Our most respectable teacher
Prof SAQIB MASUD is the only source who directed us to apply
our abilities in the required direction.
SR Topics
1 Mission statement
2 Vision Statement
3 Introduction to Metro
4 History of Metro
5 Metro In Asia
6 Metro In Pakistan
7 Metro Own Brands
8 What does Metro Offer?
9 Core Values
10 Competitive Advantage

3. 11 Core Competencies
12 Metro Management Policy
13 Segmentation, Targeting,Positioning
14 PEST Analysis
15 Internal Environment Analysis
16 Success of the Company
17 Food Items
18 Non Food Items
19 Supply chain At Metro
20 Why Metro ?
21 SWOT Analysis
21 Organizational Structure of Metro
22 Competitive analysis
23 Human Resource
24 Strategy & Structure
25 Conclusion

4. Mission Statement :-
Metro is a Cash & Carry wholesaler for business and professionals.
Metro provides quality products and business solution at the lowest possible prices
Vision Statement:-
Metro will dominate the cash & carry wholesale segment globally
through our unique business formula which improves the competitiveness of our customers
all over the world
Slogan:-
''Metro Hay to Sub Kuch hai''
Business Concept:-
The METRO Cash & Carry concept was unique when the first store opened its doors to the
German businesses in 1964: instead of placing orders for the delivery of goods through
multiple vendors, customers selectedtheir own purchases directly at a store in Mülheim an
der Ruhr, Germany, and took those goods with them. Today, the company has grown to
become the leading international player in self-service wholesale, operating with around
700 outlets in 30 countries. Much copied around the world, METRO Cash & Carry is once
again setting itself apart from its competitors.
Introduction of Metro :-
Metro cash & carry is a leading international company in self-service
Wholesale and operates more than 600outlets in 29countries.it is 3rd largest trader in
world,2nd largest in Europe and the Largest in Germany with a turnover of € 59.9 billion
In 2006.Metro is operating around 2378 locations in 29countries,with employees
numbering over 263000 At the operational level, the group's five sales divisions conduct
business independently in their respective markets. With over 100,000 employees
worldwide, the company achieved sales of € 31.7 billion in 2007.By generating almost 50 %
of the total sales, Metro Cash & carry is the top-selling sales brand of the Metro Group.
StoreFormats:-

5. In the METRO Cash & Carry wholesale stores, the focus on the special
needs and demands of professional customers, mainly from HORECA businesses, reflects
in the structure and the three different wholesale store formats: the Classic format (10,000
4,000m2).METRO Cash & Carry is always located at major traffic junctions with excellent
transport access and sufficient parking space. The opening times are adjusted to the
business hours of the customers.
History of Metro:-
The first metro cash & carry store was opened in Germany in 1964,the first
store abroad in 1971,Since then ,the concept has continuously proven to be robust and
important for successful operations in all kinds of market environments. Three different
store formats, , Junior ,ECO and Large allow choosing the best solution for a given
environment .They differ in store and assortment size. Lately, The Expansion into New
markets has been on eastern Europe and Asia, Using Mainly The Middle sized"Junior
"store Format METRO Cash & Carry is a leading international company in self-service
wholesale and operates more than 600 outlets in 29countries. With over 100,000 employees
worldwide, the company
achieved sales of € 31.7 billion in 2007. By generating almost 50
percent of the total sales, METRO Cash & Carry is the top-selling sales brand of the METRO
Group. Assortment and service of METRO
Cash & Carry’s unique business -to-business model are targeted only towards professional
customers such as hotels and restaurants as well as small and mid-sized retailers or
institutions. The company offers these special groups a high level of assortment competency
both in food and nonfood as well as attractive wholesale prices. An efficient and

6. internationally conferrable concept ensures success in entering new markets.
Metro In Asia:-
The first step into Asia was taken when METRO Cash & Carry moved into China in1996.
Today the company is present in 5 Asian countries: China, India, Japan, Pakistan and
Vietnam. The METRO Cash & Carry business is going to be further internationalized and
expanded with the focus on Eastern Europe and Asia. Already by today, more than 80
percent of the staff is working outside of Germany. In many countries the company is on of
the major employers.
Metro In Pakistan :-
Metro cash & carry announced its operations in Pakistan in januray2006. Since then it has
established itself as a potential market leader in wholesale. Under the supervision of
Managing Director Mr.Givovanni Soranzo, Metro cash & carry Pakistan has opened its
first store in the city of Lahore in October 2007.The company's country head office is also
based in Lahore and currently employs over 400 people in two offices. It has done total
investment of US $ 180 Million and plan to build &operate 10-15 cash & carry stores in
Pakistan. There are about 250-300 Employees per store and the head office is at Multan

7. Road .METRO Cash & Carry is successfully operating 5 wholesale centers in Pakistan i.e.
2 in Lahore, 1 in Karachi, Faisalabad & Islamabad respectively.
Opening Dates:
Canal Bank Wholesale Centre, Lahore: October 30, 2007
Capital Wholesale Centre, Islamabad: April 03, 2008
Lyallpur Wholesale Centre, Faisalabad: January 14, 2009
Airport Wholesale Centre, Lahore: January 14, 2009
Strategy:-
The unique wholesale business-to-business model of METRO Cash & Carry
ensures the company future prosperity supported by two major strategic pillars: the
development of tomorrows METRO Cash &Carry by focusing on the major performance
improvement program Committed to Excellence" and the leading international growth of
the wholesale concept. The key to success is our flexible business concept which can be
adapted to specific national and local customer needs in any emerging country as well as
to the demanding value enhancing project on an international base. Overall, METRO Cash
& Carry forms part of the strategy of METRO GROUP, a major international player in
trade and retail. The holding, METRO AG, is listed on the stock market. More detailed
information is supplied by METRO GROUP Investor Relations.
Structure:-
With operations in 30 countries, 3 continents and 11 time zones, METRO
Cash & Carry is the most international player in the self-service wholesale sector.
Entrepreneurial thinking and a pioneering spirit is always an integral part of the virtues
of METRO Cash& Carry: we have been among the first international trading companies
in many countries such as China, India, Russia and Turkey. Thereby, METRO Cash &
Carry also supports the development of local trading infrastructures and modern supply
chains.CEO Olaf Koch, a member of the Management Board of METRO GROUP, takes
charge of METRO Cash& Carry entire business which operates an international network
of over 700 wholesale markets with a two-region management structure
Metro own Brands :-
METRO Cash & Carry's own brands are targeted towards offering customers an
attractive assortment of high quality products to suit their respective needs at an
excellent price. The own brand products have been developed in close collaboration
with customers and suppliers and are the result of thorough market analyses. The
brand offer ranges from the entry-level price segment through to the quality and
premium segments with the corresponding food and non-food

8. products.
Aro: "Always a gooddeal"
With over 400 food and 200 nonfood items, Aro offers a wide range of basic
products for all daily needs at a very favourable price. Aro stands for reliable
quality standards, convenient package sizes matching the various needs of our
professional customers, and for an optimal price-performance ratio.

9. Fine Food: "Value for money":-
Fine Food addresses professional food traders who want to offer their customers high-
quality products at a competitive price. With its dedicated product range featuring also
organic products and regional specialties in attractive packaging, Fine Food is the winning
brand on every trader's shelf.
H-Line: "Make your guests feel comfortable":-
With high-quality products, first-class design and an innovative range, H-Line offers tailor-
made solutions for all areas of guest contact in hotels, hostels and restaurants. From coffee
cream, cookies and juices to tableware, bed linen and towels – the world of H-Line
expresses quality and comfort, providing hospitality professionals with a consistent and
affordable high-class look throughout their businesses.

10. Horeca Select:"The professionalkitchenline":-
Horeca Select offers top-quality food and nonfood products catering to the daily needs of
professional chefs. Outstanding ingredients and carefully controlled production processes
ensure excellent quality and flavour. Developedtogether with professionals, all products of
the Horeca Select range guarantee top performance at a price which is considerably lower
than that of comparable brand products.

11. RIOBA: "The professionalmix for bars, cafés and hotels" :-
100% TASTE WITHOUT COMPROMISE
RIOBA is our exclusive brand for bars and cafés. With premium- quality products and a
unique design, RIOBA offers complete business solutions from fresh coffee and cocktail
syrups to matching cups, glasses and napkins. The cherry on the cake certainly is the price
– it is by far more attractive than other brands in this quality category.
SIGMA:-
SIGMA offers quality and functionality, whether it is packaging or posting, working
or organising, writing, printing or documenting, accounting or calculating. SIGMA
supports you in optimising your organization and driving your business – day by
day.

12. Sigma products:-
Convenience - assortment solution with more than 600 products To keepyour
business running you need reliable equipment. SIGMA provides you this solution in the
areas of office supplies, office technology and office furniture.
Tarrington House :-
Welcome to Tarrington House, METRO Cash & Carry's exclusive lifestyle brand for 'The
World at Home'. With our inspiring and living comfort ideas, living, cooking, dining and
relaxing becomes an extraordinary feeling.

13. TARRINGTONHOUSE PRODUCTS:-
The wide product range of Tarrington House will enrich your life in the following segments
What does METRO offer?
METRO Cash & Carry is a reliable partnerfor more than 20 millionprofessional customersworldwide.
It givesthem a clearcompetitive advantage in theirown markets. Professionalscan purchase
everythingtheyneedto run their
business:A restaurant owner, for example,canbuy food like fishor vegetablesaswell as kitchen
equipmentand office supplies.METROCash & Carry offersan exceptionallywide range of high-quality
products under one roof. Dependingonthe size and type of wholesale center,the assortment
includesup to 20,000 itemsin the foodrange and 30,000 itemsin the nonfoodsector. As the name
implies,METRO Cash & Carry customers selecttheirown itemsand take themwith them to their

14. restaurants and shops.Withthis unique business-to-businessconcept,the company has grown to
become a leadinginternational player in self-servicewholesale.
The Core Values :
 Acknowledged first choice cash & carry wholesaler
 continuous focus on customer needs and satisfaction
 Commitment to ethical and environmental values
 open communication
 innovative in all we do
 commitment to give our customers more value for their money
 Win -Win partnership with our suppliers
 Our Employees are our main asset
 Defined format adapted to local market needs
 sustained growth of shareholder value
 strive for reliability and transparency
 Efficient and low cost operations
Competitive Advantage :-
The competitive advantage on which compete in the market is the low Price with high level
of quality at a same place with convenience .Metro provides each and everything of
household use like food items, electronics, automobile parts and much more at the same
place and the major factor is the low prices and they maintain the high quality level. And
for this purpose they directly deal with the companies for the supply of their products so
that the competitive advantage can be enhanced more
Core Competencies :-
 Lowest possible prices
 stock availability
 One-stop shop
 Extensive business hours
 Quality gurantee
 Free Parking
 After sales services
 Promotional activites
 Simple but comprehensive billing system

15.  Great value for money
Metro says in its management policy:
 1. Trust and Respect
 • Everybody'sopinioncounts
 • We treat every person the same way
 2. Open Door Policy
 • We avoidorganizational barriers
 • Two-waycommunication
 • We encourage change and sharingof ideas
 3. Empowerment to Personal Responsibility
 • We allowpeople totake risks
 • We consider"makingmistakes"aspartof the game
 4. Be a Role Model
 • We demonstrate commitmentand enthusiasm
 5. Setting Clear Personal Objectives and Tasks
 • We have implementedamanagement -by-objectivesconcept
 6. Recognition and Reward
 • We considerhonestandtransparentfeedbackasa"must"
 • We rewardhighperformance (notonlywithmoney)
 7. Team Spirit
 • We encourage maximumteamengagementandknowledge
 8. Positive Working Environment
 • We guarantee a safe and healthyworkingenvironment
 • We encourage innovationandcreativity
 9. Corporate Social Responsibility
 • We are committedtothe principlesof social responsibility
Segmentation:-
Metro segmentation of customers is mainly concerned with the two
factors Retailers ,and Professionals of every sector and kind
Targeting:-
The targeting strategy of Metro cash & Carry depends upon the
Segmentation Metro carries the differentiated marker targeting strategy .They take
the whole customers as a market and carry out the marketing strategy same for the
whole
Positioning:-
Positioning is as much important in formulating marketing strategy as designing a
product. Metro portrait the image of this cash and carry whole sale departmental
store as the lower prices with the high quality and availability of everything at a

16. same place. You just visit it and you can get Everything what you can think to buy
PEST Analysis
Political Environment:
The following are the factors regarding the Pakistani
government which influences the workings of Metro Cash and carry
The political instability is the major factor of low foreign investment in the Pakistan.
Same is the case with Metro. The management always keepin mind the threat of
change in government. They analyzed several times before entering this country and
before doing further expansion in this market. Inauguration of Lahore branch was
conducted by Former Prime minister Shaukat Aziz and the new government can
create certain problems for Metro
The Tax rebates and certain other favours given by the previous government can be
set a side by the change in the government. The ineffective control of every
government regarding the prices of products and inflation creates certain problems
because customers demands product at the same and low price while in such
conditions prices changes rapidly .Any political activity regarding labor and
political matters strikes creates hurdles in the way of the METRO's success. The

17. rules nd policies govern by the government also changes by the change of the
authority and which have to follow by the organization and the problem is that it
changes on the yearly basis.
Economical :-
Control over economical environmental factor can provide opportunities to Metro
to enhance the profit level up. Proper calculation of money exchange and currency
rates can give the arbitrage profit to the Metro. They should keeptheir money in the
form of Euros. Because it is a European based organization and second thing is that
the value of euro is increasing on daily basis.
Sociao-Cultural Environment:-
The culture of Pakistan is at this time not too much favorable to the cash and carry
business so they have to come up with the certain marketing awareness campaigns
to force the retailers to think about the monthly purchases for the store with the
convenience and economics at a same place.
Technological Factors:
Metro cash and carry do not have any threat of technological
changes in 30 countries. They have state of art technology and hi-tech technology such as
RFID and real time inventory change etc. Pakistan in technology sector is quite far so
technological change won’t effect MCC in case of Pakistan. MCC is already using customer
card for entry and exit, they have cameras and wall through gates for security purposes, e-
tag on every possible valuable product and batch processing system. These activities
indicate that they are pioneer in Pakistan of introducing these kind of technologies.
Internal Environmental Analysis
Marketing Organization Audit:-
The organizational structure of Metro is at this time consists only on hierarchy
structure and it could only allows the information either from top to bottom or up
ward. It travels step by stepand the information takes too much time to reach up to
the concerned authorities. And up till then the effectiveness of information reduces.
We can introduce the organize structure which allows flowing the information in
any direction and at any level. it is much effective in sales department as any sales
personnel come to know about the customers' requirement and needs it can directly
talk to marketing or consulting manager to take quick and immediate action in
order to capitalize the information
Marketing systemaudit:-

18. Metro has huge inventory control and sales record systeminstalled to control the
inventory and the stores working but there are certain areas where the
improvement can make systembetter. They can maintain an onnline sales and
inventory system, through which the customer place the order and he/she can get
his/her desired products just visiting the store without wasting time. Store staff can
pack the entire luggage and just hand over to him/her just by making payment/IT
will not only attract the several segments of our potential customers who do not visit
just due to the time constraints. And also facilitate the customer by providing
him/her the complete record of her/her purchasing from which he/she can identify
that for this month he/she what to buy.
The success of the company is based on the following principles:
 Focus on professional customers
 One-stopshopping
 Efficientstore concept designedforprofessional needs
 Advanced customerservice
 Enhanced customers’competitiveness
 Excellence insupplychain and quality management
 Strengtheningof local suppliers
 Developmentofnational infrastructure
 Career opportunities
 internationallytransferable concept

20.  Meat
 Fresh Fish & Seafood
 Fruits & Vegetables
 Edible Groceries, Canned Goods and Bakery
 Sweets and Confectionary
 General Grocery
 Tobacco and Beverages
 Detergents
 Cosmetics & Toiletries
 Non Food
 Office Equipment Media , Radio & Accessories Home Electronics/House Hold
Household Goods
 Pots & Pans (Tefal, Sonex, Majestic, Prestige)
 Tableware (Luminarc, Clayworks)
 Glass (Pasabache, Bormioli Rocco, Toyonasic, Ocean
 Cutlery & Cutting Tools (Cocktail, Kiwi)
 Kitchen Utensils & Serving Articles (Fackleman).
 The range also include decoration products (WaltherGlass),
 Candles
 Cleaning items. Home Improvement/DIY (Do it Yourself)
 Lamp fixtures, lamps & bulbs (OSRAM, PHILIPS)
 Electrical items (BUSH) Bathroom & Sanitary (Faisal & ICL)

21.  Flooring (Krono Flooring)
 Paints and painting accessories (ICI, Master Paints)
 General use and specialized hand tools (Stanley)
 Power tools (BOSCH, Black & Decker)
 Generators (Honda) and operating equipment.DIY also offers a wide range of car
interior and exterior equipment, car care solutions (MOTHERS, COSMIC) and good
quality tyres at low rates (GOODYEAR,NEXEN).Home Textile/Home Decoration
 Ladies wear/Men’s wear/Children’s wear/Shoes/Luggage
 Sports & Seasonal
Supply Chain At Metro:-
The supply chain management at Metro is the most important function in thier business as
their cost advantage is gained through this function .The following diagram shows the
supply chain function at Metro.
Metro deals with local as well as international suppliers, therefore it has to manage its
supply chain function through the coordination of local as well as foreign suppliers.

22. They believe that
''Margins do not come from increased Price to Customers, But by bringing Efficiency To
the Supply chain''
The supply chain process at Metro includes communication and order placement with
suppliers, the inventory management at Metro and also the transportation of inventory.
The supply chain management process is as follows:
The supply chain management function helps the organization to :
 To improve forecast accuracy
 To improve planning and scheduling capabilities
 To reduce inventory levels
 To increase asset utilization
 To reduce manufacturing/replenishment lead-times and accelerated supply chain
response times
 To enhance customer satisfaction through higher order fill rates

23. Human Resources:-
METRO Cash & Carry is a truly international employer: The
Company operates stores in 30 countries from Great Britain to China. The responsible
management of the international workforce is a main factor of the company's long
success story. The sustainable development and training of talents, the integration of
the demographic change as well as diversity in the company's human resources
structure a trademark of METRO Cash & Carry.
10 good reasons why you should become a customer of Metro
 Lowcost possible prices
 Stock availability
 One-stop shop
 Extensive business house
 Quality guarantee
 Free parking
 After salesservices
 Promotional activities
 Simple but comprehensive billingsystem
 Great value for money

24.  SWOT Analysis of Metro:
Strengths:
Metro has the Basic strength of low Prices with high quality.
 Serving the customers with the wide variety of products
 Covering all business solutions under one roof named Metro
 Having the strong cash and carry business background
 Best location for such kind of big store and also covering many areas
 Efficiently using the place and excellent layout
 Sufficient parking and safety and security measures ansure the quality in every
sector
 Friendly And co-operative staff

25.  Computerized data base system which helps both customer and Metro
Weaknesses
 Less awareness in Pakistan regarding cash and carry business
 although location for a big store is suitable but outside the city and not suit for all
customers
 No proper transportation for customers to carry their products far away.
 Limit of 3 persons on a single membership card
 Membershipor subscriptionfeesforcards
 Shoppingfrom Metro is much time consumingbecause the travelingand in store Visitingtime.
Opportunities:
 Growing market ofcash and carry
 Expansion in major cities
 Onnline shopping is much better option to save time
 Proper Metro owned convene facilities
Threats:
 Upcoming stores like Wal- mart and many others
 Poor law and order situation ofPakistan
 High inflation rate in Pakistan
 Instability of the Country
Competitive analysis:
There are many competitors ofMetro in Faisalabad and in other cities respectively. But focusing on
Faisalabad there are Al -Fateh shopping store, SB store, Family Mart, City Mega Mart, E-Mart,
Bambino Mart and Rachana Departmental Store. Availability ofsuch competitors has created a
strong competitive environment in Faisalabad. Because all ofthem are providing all most same type
of services so there is a tough competition. There are many disadvantages that Metro has to face
but the main issue with Metro is that it is situated far away from the center ofthe city while many
of its competitors are situated in ideal places in potential market so they are taking advantage of
this and providing same facilities as Metro provides. On the other hand Metro has the advantage of
low prices. The potential customers ofMetro are wholesalers and restaurants so other stores

26. targeting the normal grocery customer and competing Metro in this regard. But due to its low
prices it is also attractive for daily based customer. So it has a strong position in regard of
customers having both types ofcustomers.
Organizational Structure of Metro:
The Metro classifies itselfas business to business wholesaler. They are following vertical
organizational structure with proper hierarchy. At each level the authority and span of control is
predefined.
The hierarchy starts with store manager and there are Four Flour managers and each manager
controls 10 Departments and there are total 40 Departments. The proper authority and moderate
Spam ofcontrol make it possible to operate functions efficiently
Metro’s Management:
They have almost all famous companies with them. They directly purchase through companies in
very huge bulk quantity. They contract with companies and get best quality and quantity. On the
other hand the companies also save their cost, because companies put their stock in METRO at
once. And they purchase on debt,the terms ofdebt vary company to company. When they purchase
in huge bulk they got reasonable discount as compared to others. On other Metro is selfservices
wholesaler, so they reduce their cost in customer services.But most ofthe companies send their

27. own sale representative to Metro on their own stall to facilitate the customer purchasing the
product
They have adopted market penetration strategy. They are nowworking hard to create more and
more business. They are nowinvesting more on their businessretailer. The Metro is
accommodating divers workforce at their working area their trainings carried out to manage them
properly. They evaluate their employs on the basis oftheir Task. The Monthly performance reports
are prepared. After evaluation the hardworking employs are promoted as well as rewarded. Metro
also have a teaching staffto train their existing and newstaff. The shop lifting is common all over
the world. Metro has created a strategy to minimize this loss. They place a tag or Sticker on every
single piece ofproduct. When shop lifter try to take any product without billing. The Automatic
scanner on Exit gates are activated and detectthe bar code (which is pasted or tagged on product).
The shoplifters have to pay double ofthe price. Otherwise they are given in the custody ofPolice.
Normally incentives are given to them on basis oftheir performance. The incentives in the form of
bonus are mostly given in Metro store. On quarterly Basis the performance is analyzed and
rewards are given to employees.
Conclusion:-
Summarizing on the whole we have analyze maximum points which might be
the resultants offailures and we have suggested the methods to rectify them in order to be efficient
in every manner and hold its situation and be the market leader ofthe cash and carry business in
Pakistan.