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Banking Case

Essay by   •  December 8, 2011  •  Essay  •  762 Words (4 Pages)  •  1,537 Views

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Mission statement of Europa is: "To become the favorite shopping destination of its customers through superior customer service and attractive prices"

Weather these statements have any impact on the organizational culture and its workings is highly debatable especially in the case of Europa. The owners had the vision of setting up a chain of retail outlets, it has been in operation for over 25 years now but even then Europa has failed to set up the second outlet. This primarily comes down to the fact that the organization's strategic policies and decision making was not aligned with the vision of the organization, a fact prevalent in small businesses operating in the country. Also, Europa's mission statement claims that it will become the favorite shopping destination of its customers; this too has not been achieved as it is no different from any other retail outlet.

Business Model

Metro and Europa are both operating in the extremely dynamic retail industry. But both operate comparatively at very different business models.

Metro, a subsidiary of the German Metro Group started its operations in Pakistan in November 2007 when it opened its first store at Thokar Niaz Baig. At that time, the local supply chain had multiple levels; suppliers, wholesalers, medium traders, small traders, retailers and then consumers. By the time the product reached the consumer, the prices went up considerably. Metro aimed at acting as an intermediary between suppliers and retailers. Metro official website states its presence as a benefit to its customers: "For them the Metro Cash & Carry distribution network promises much greater efficiency than the multilayered supply chain. They can purchase goods more flexibly and at more favorable prices, compared to traditional procurement sources. This enables Metro Cash & Carry to strengthen the competitiveness of its professional customers." (See Appendix B)

Interestingly, Metro has altered the basic chain of distribution conventionally being used in Pakistan. Previously, the distribution channel for goods was longer and led to inefficiencies. The products were transferred from the producers to the large wholesalers who in turn sold it to numerous medium traders. The story does not end here; the product was then sold to uncountable small traders through whom the product reached the retailers, where it was finally purchased by the end customers. Now, however, the situation has significantly improved. After entering the market, Metro has removed excessive layers of intermediaries from the distribution channel leading to greater margins being explored, inefficiencies being removed and speedier transactions being made possible. Metro considers itself as a 'Cash and Carry' business, and is striving for excellence in line with its mission which is to be the wholesaler for business and professionals

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