Project Of Management :-

Group Members :-

SAADI SHERAZI UMAIR MOHSIN GHULAM GHOUS AMIR ATAULLAH AHMAD IDREES

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

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

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 selected their 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.

Store Formats:- 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

16,000m2), the Junior format (7,000 9,000m2) and the Eco format (2,500 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

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

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

products. 

Aro: "Always a good deal"

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.

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. 

Horeca Select: "The professional kitchen line":-

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. Developed together 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. 

RIOBA: "The professional mix 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.  

Sigma products:-

Convenience - assortment solution with more than 600 products To keep your 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. 

  TARRINGTON HOUSE 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 partner for more than 20 million professional customers worldwide. It gives them a clear competitive advantage in their own markets. Professionals can purchase everything they need to run their

business: A restaurant owner, for example, can buy food like fish or vegetables as well as kitchen equipment and office supplies. METRO Cash & Carry offers an exceptionally wide range of high-quality products under one roof. Depending on the size and type of wholesale center, the assortment includes up to 20,000 items in the food range and 30,000 items in the nonfood sector. As the name implies, METRO Cash & Carry customers select their own items and take them with them to their

restaurants and shops. With this unique business-to-business concept, the company has grown to become a leading international player in self-service wholesale.

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

Great value for money

Metro says in its management policy:

1. Trust and Respect • Everybody's opinion counts • We treat every person the same way

2. Open Door Policy • We avoid organizational barriers • Two -way communication • We encourage change and sharing of ideas

3. Empowerment to Personal Responsibility • We allow people to take risks • We consider "making mistakes" as part of the game 4. Be a Role Model • We demonstrate commitment and enthusiasm 5. Setting Clear Personal Objectives and Tasks • We have implemented a management -by-objectives concept 6. Recognition and Reward • We consider honest and transparent feedback as a "must" • We reward high performance (not only with money) 7. Team Spirit • We encourage maximum team engagement and knowledge 8. Positive Working Environment • We guarantee a safe and healthy working environment • We encourage innovation and creativity 9. Corporate Social Responsibility • We are committed to the principles of 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

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 carryThe political instability is the major factor of low foreign investment in the Pakistan. Same is the case with Metro. The management always keep in 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 MetroThe 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

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 keep their 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 step and 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 system audit:-

Metro has huge inventory control and sales record system installed to control the inventory and the stores working but there are certain areas where the improvement can make system better. 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-stop shopping Efficient store concept designed for professional needs Advanced customer service Enhanced customers’ competitiveness Excellence in supply chain and quality management Strengthening of local suppliers Development of national infrastructure Career opportunities internationally transferable concept

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 (Walther Glass), Candles Cleaning items. Home Improvement/DIY (Do it Yourself) Lamp fixtures, lamps & bulbs (OSRAM, PHILIPS) Electrical items (BUSH) Bathroom & Sanitary (Faisal & ICL)

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.

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

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

Low cost possible prices Stock availability One-stop shop Extensive business house Quality guarantee Free parking After sales services Promotional activities Simple but comprehensive billing system Great value for money

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

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

Membership or subscription fees for cards

Shopping from Metro is much time consuming because the traveling and in store Visiting time.

Opportunities:

Growing market of cash 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 of Pakistan

High inflation rate in Pakistan

Instability of the Country

Competitive analysis:

There are many competitors of Metro 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 of such competitors has created a strong competitive environment in Faisalabad. Because all of them 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 of the 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 of Metro are wholesalers and restaurants so other stores 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 of customers.

Organizational Structure of Metro:

The Metro classifies itself as 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 of control 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 of debt vary company to company. When they purchase in huge bulk they got reasonable discount as compared to others. On other Metro is self services wholesaler, so they reduce their cost in customer services. But most of the companies send their own sale representative to Metro on their own stall to facilitate the customer purchasing the product

They have adopted market penetration strategy. They are now working hard to create more and more business. They are now investing more on their business retailer. 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 of their Task. The Monthly performance reports are prepared. After evaluation the hardworking employs are promoted as well as rewarded. Metro also have a teaching staff to train their existing and new staff. 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 of product. When shop lifter try to take any product without billing. The Automatic scanner on Exit gates are activated and detect the bar code (which is pasted or tagged on product). The shoplifters have to pay double of the price. Otherwise they are given in the custody of Police. Normally incentives are given to them on basis of their 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 of failures 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 of the cash and carry business in Pakistan.