International Business - F.D.I - Essay Example

Metro Group is a forward-looking, dynamic company with strong corporate and marketing strategies and focus on global expansion. It also invests in and utilises the latest technology to create efficiency and profitability in its divisions. Through its effective marketing and operative strategies as well as high investments, the Metro Group has managed to revive some of the traditional retail sectors in Germany that were facing a grim future. The Metro Group is the leading retailer in Germany and the fourth largest retailer in the world after Wal-Mart Inc.

, Carrefour SA and Ahold NV. In Europe, Metro is the second leading retailer after Carrefour. In Germany, Metro is the fifth largest food retailer. Its Praktiker division is the second leading DIY retailer in the country and Media-Saturn is the leading retailer in consumer durables in Germany. Metro is also the second largest department store retailer in the country. Metros Cash & Carry division and Media-Saturn are the most successful business concepts, and Metro has concentrated on their expansion both in Germany as well as in overseas markets.

Real hypermarkets and Praktiker DIY outlets are also utilised in Metros expansion to a lesser degree and found mainly in East European markets. To make the Group profitable Metro started a restructuring process in 1998, which is still continuing. In 1998, Metro AG remodelled the group structure as part of its shareholder value policy. Strategies were developed to focus on a core product and service portfolio, to optimise outlet potential and to globalise the group. To achieve this target, the group was remodelled, by divesting its marginal operations and strengthening core businesses through strategic takeovers.

Metro has merged procurement activities for all its divisions to create synergies through bulk buying. It is also participating in e-procurement through Internet auctions, which allows it to buy non-branded