Post on 10-Nov-2015
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INTRODUCTION :
SUBMITTED BY-
AISHWARYA PATERIYAAMIR NAQVINIDA ZAINAB SIDDIQUIRENU SAINITAMANNA SETHISANDEEP PATELMETRO CASH & CARRY
INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH
COMPANY PROFILEType: PrivateFounded: 1964Headquarter: Dusseldorf, Germany.Business units: Real/Extra, Kaufhof, Media market, Metro C&CEmployees: 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 )
4Procurement: 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,2006Source: Company Documents.PEST ANALYSIS CHINA
China is asingle-party state Governed by theCommunist 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 ENVIRONMENTECONOMICAL ENVIRONMENTCHINA
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 pricesSOCIAL ENVIRONMENTCHINA
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 ENVIRONMENTCHINA
Poor Logistic system.
Use of centralized warehouse
RUSSIA
only 2.5% share of modern grocery distributionINDIA
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.