ContentsTask 222.1 Produce an organizational audit for a given organization2SWOT Analysis:22.3 Carry out an environmental audit (PEST, BCG) for the chosen organization.3Micro environmental factor3Macro environmental factor4PEST Analysis4Boston Consulting Group Matrix62.3 Explain the significance of Stakeholder analysis.7Task 383.1Analyse and evaluate the appropriateness of alternative strategies relating to market entry, substantive growth, limited growth or retrenchment for the chosen organization8Organic growth Strategies:8Sustainable growth strategies:9Limited growth strategies:9Retrenchment Strategy:93.2 Select an appropriate future strategy for the chosen organization.9Task 4104.1 Assess and compare the roles and responsibilities of personnel who are charged with strategy implementation, with roles and responsibilities of relevant personnel in a competitive firm.104.2 Evaluate the estimated resource requirements for implementing the new strategy.114.3 Discuss SMART targets and timescales for achievement to monitor strategy implementation.12Bibliography13

The organization selected for this assignment is Metro Cash and Carry Pakistan. Metro Cash & Carry is a leading international company in a self-service whole sale and operates more than 600 outlets in 29 countries. It announced its operations in Pakistan in January 2006. Since then, it has established itself as a potential market leader in a wholesale.Task 22.1 Produce an organizational audit for a given organizationSWOT Analysis:Strength Its the largest whole selling market in Pakistan and has its their own chain of products The format they follow is according to the need of local market. Customer and employee satisfaction is their number priority. They work hard to maintain their reputation. They provide job opportunities to many people.Weaknesses One of the major success hindrance of the company is its lack of advertisements as it doesnt use media for its promotion Selling of Metro Cash and Carry foods has lessened because they are unable to fulfill the customers demand. It provides items on wholesale. Relatively poor security check and balance on some items.Opportunities Increasing demand of customer is a big opportunity for Metro Cash and Carry. Due to brand loyalty and trust they can open stores at various locations Improved or advanced technology helps the Metro Cash and Carry Company to create new products.Threats Population increase rate causes unemployment problem that might affect the number of potential customer. Political and economic instability Launch of other whole sale stores2.3 Carry out an environmental audit (PEST, BCG) for the chosen organization.

The factors that affect from outside of the organization are external environment factors. External environment factor is divided into micro environment and macro environment factors. Micro and macro environment factors of Metro Cash and Carry are given belowMicro environmental factor

1) Customers: Customer is the back bone of any organization. It can make or break a company. So the organization must meet the expectation of consumers. Quick delivery can help the organization to increase their consumer satisfaction level. So Metro Cash and Carry should provide quality products to its customers in order to attract and maintain customer level. 2) Employees: Employees are another important part. They can change the overall position of any organization. Metro Cash and Carry is always conscious about their existing employee skill, knowledge and individual performance. Thats why they have well trained and skill employees.3) Suppliers: Metro Cash and Carry ensures good relationship with suppliers. Suppliers supply raw materials to them which they need to carry out their business activities 4) Distributors: Distributor plays a vital role in business strategy plan. Metro Cash and Carry is always aware about their existing distributor activities. Sometimes they sell their product through distributors. 5) Competitors: Metro Cash and Carry is always conscious about their competitor. Their main competitor is Macro. Both of them observe each others activities very closely. And try to provide better quality products than the other.

Macro environmental factor

1) Technological factors: Technology plays an important part in the success of a company. It consists of the following things New manufacturing process. Industrial productivity Efficiency of infrastructure2) Legal factors: Every company follows and observes a specific set of rules. The laws practiced by Metro Cash and Carry includes Worker safety law Environment protection law Minimum wage lawOther macro environmental factors are explained in PEST analysisPEST Analysis

Political Environment Regulation of market competition Consumer protection legal frame Incentives programs to attract foreign investments General interest to societyThe political instability is the main reason behind low investments in Pakistan. Therefore the management of Metro analysis the political conditions of the country and then expands its markets The ineffectual increase in price of products with every new government is also a problem. People demand the same product at lower price which is difficult for Metro as prices change rapidly. Strikes and other activities also create hurdles in their business. Every Government announces its own set of rules which changes on yearly basis so the organization has to follow it,

Economic Environment Slowdown in economic growth Inflation increase Financial crisis Fluctuation in the price of EnergyInterest rate affects the profit and spending power of the company. Inflation is also another big problem as its rate is 9.3% yearly. Changing policies, devaluation of money and exchange rate is forcing the investors to stop investing in Pakistan. Due to unfair distribution, the person spending on luxuries is only possible through increase in money.

Social Climate Unemployment growing rate Redesigning Education No proper distribution of resourcesThe society and culture of Pakistan rarely accepts new innovations. So Metro Cash and Carry will take time to be understood by the people and creating sense of shopping from departmental stores. The people prefer buying on installments and credits. They prefer buying from a near grocery shop than from a huge supermarket.

Technological factors New technologies emerging Environment-friendly focus Automatization Safety & protection systemsMetro Cash and Carry uses high mechanisms to shift products from its one location to another. Automatic doors are installed on the entry and exit of the place .Customer cards are checked automatically for entry and surveillance cameras are installed everywhere in the location. Their use of machines is cranes and folk lifters(Sheikh) (Barbu, Lancu, Pistol, & Paraschiv, 2008)

Boston Consulting Group MatrixMETRO in LahoreWe analyzed the BCG matrix with respect to METRO cash and carry Lahore, We came to know it lies in the closure phase of inquiry stamps and starting phase of stars. It has almost secured that period which has the component of danger and risks. Presently after few months it will be in stars and producing tremendous overall revenues from it.METRO in IslamabadMETRO recently started its operations in Islamabad. According to the figure it is clear that a component of danger exist. The progress remains in question mark. Still there is an element of risk exist. Is No one can foresee the real comes about and eventual fate of this store in Islamabad.

2.3 Explain the significance of Stakeholder analysis.Importance of Stakeholder analysis: Stakeholders are paramount part of any company or organization and their analysis is compulsory in order to achieve the goals of organization. Following are the benefits of stakeholders They point out where the company is lacking and addresses issues Distribution of organization information becomes easy with the stakeholders involved as they know about each and every thing going on It helps in improving the organization brand image and reducing negativitiesIn short they can change the overall scenario of the organization.Metro Cash and Carry stakeholders: Metro Cash and Carry are maintaining both internal and external shareholders. Internal stakeholders are directly impact on their internal activities. On the other hand, external stakeholders are directly impact on their external activities.

Major stakeholders of Metro Cash and Carry include Employees: Metro Cash and Carry aims of attracting and retaining sufficient numbers of skilled and committed employees in accordance with the basic Human rights policy. They conduct many numerous career and development opportunities, training of employees and the promotion of diversity and fair working conditions. Customers: Nowadays customers expect many things from retailers. Therefore to meet the needs of its customers, Metro Cash and Carry frequently develops new initiative by improving shopping accessibility with a wide range of products and ideal services. The aim behind this is to find the best possible ways of meeting the individual expectations of its customers. Politics: As the economic factor plays an important part in the success of an organization, Metro Cash and Carry makes sure that the strategies they develop for their profit and revenue is less affected by political and economic conditions. Suppliers: Suppliers provide quality products to Metro Cash and Carry for their different needs. Metro keeps its suppliers updated with information concerning purchasing, marketing, logistics and data management. Task 33.1Analyse and evaluate the appropriateness of alternative strategies relating to market entry, substantive growth, limited growth or retrenchment for the chosen organizationOrganic growth Strategies: In this strategy the company uses its own resources to strengthen its position in the market. This includes the organizations revenue, public relations and quality of the services. It can be achieved by the following outlines described by Asnoff: Diffusion in Market selling more of its products to existing customers Expanding Market selling its products at a broader level, either at home or abroad Development in the Product increasing the product portfolio by selling new products or services to existing markets Diversification selling new products or services to new markets.This strategy is appropriate for our business as it will give more profit to this business. (Developing growth strategies to become a market leader)Sustainable growth strategies: Sustainable growth strategies are mainly constantly supported business activities. They try to focus on reduction policies and other internal activities. This kind of strategy isnt beneficial for Metro as it only focuses on internal and companys activities rather than focusing on both external and internal activities.Limited growth strategies: Limited growth strategies are one of the significant parts of overall business organization. Market Share Costs Complexity and Considerations are the main functions of business Limited growth strategies. Retrenchment Strategy: This is the strategy when a company tries to cut down its expenses. Turn around Strategies, Divestment Strategies and Liquidation Strategies are the main functions of retrenched strategy. This kind of strategy could be taken into consideration by Metro as the future of any business is unpredictable. But by observing current position of the company it doesnt need this strategy now.3.2 Select an appropriate future strategy for the chosen organization.Organic growth strategies are one of the strategies Metro Cash and Carry can use from the above mentioned strategies. With adopting this strategy it can easily maintain this growth rate process and achieve its goal:1) Revenue: Revenue is always beneficial for the development of an organization. It is normally generated by their sales of products. Sales can only improve if the customers are given quality product. Therefore the money of products sold should be used for improving the quality of the products as well as materials from the suppliers. They should also provide subsidy to its existing customers to increase target market2) Public relation: A public relation is important for improving economic procedures of a company. Therefore Metro should keep a close account on each stores requirement rather than focusing on country level requirement. They should also evaluate the demand of urban community to provide better services.3) Quality: Quality maintain is an integral part of every business organization. Otherwise they are not sustaining in the market. Metro should set up 25 people per store to continuously educate customers on the Metro values and business philosophy. They should also buy raw materials from good suppliers and not worry about its worth. In order to continue operating an organization will always require a regular throughout of materialsThe above defined strategy will help Metro Cash and Carry in future to improve quality of products and meet the satisfaction of each customer and store they have in Pakistan.Task 44.1 Assess and compare the roles and responsibilities of personnel who are charged with strategy implementation, with roles and responsibilities of relevant personnel in a competitive firm.

Strategic implementation is important to a companys success. Everyone in the organization must be engaged in the strategic planning process to make the company successful. For the organic strategy to be successful in Metro Cash and carry following roles and responsibilities should be taken into consideration Communication: To carry out the strategy successfully it should be clearly communicated throughout the organization. Communicated strategy helps everyone to understand their responsibilities. From CEO to worker of the organization everyone should be informed of the proposed strategy. This would involve the employees of the organization Project teams: A project team with efficient members helps the organization to achieve the organizational goal and carry out the strategic plan effectively. A team helps in guiding the employees about their tasks and makes sure that they are completed on time. Identify team and their responsibilities: Putting wrong people in the team may destroy the project fully. So it is the managements duty to select the right person for the team and help them to understand their responsibilities. Benchmark targets:It is the managements duty to select the target of the organization and lead the project members according to it. In this way they will complete their goal on time and will get positive results.To make this strategy successful, Metro has to make sure that the quality material is supplied by the suppliers so that they produce quality products this would lead to customer satisfaction and increase in sales, thus generating revenue. Makro follows the same strategy for generating maximum revenue but loyalty wit Metro of customers is more which shows that the quality of their products and services is higher. We can also compete by arranging extensive promotion of low priced products and high quality products.

4.2 Evaluate the estimated resource requirements for implementing the new strategy.Successful allocation of resources depends on the proper allocation of resources. It helps the organization to make the best use of available resources and other assets. Finance, Human Resources, Materials and Time are most common and most important resources for every organization. A brief description of the resources of Metro Cash and Carry is given below Finance: Without financial support no one can run the business for a single day. Metro Cash and Carry makes effectively financing their project to make profit for short run and as well as long run and keep a fund to meet quick financial need. This would require bank loans for long term and revenues for short run. Revenue generated afterwards would be given to pay back the loan. Human Resources: Without proper human resources it is very difficult to run the business effectively. Metro Cash and Carry should hire and recruit right people to run their project smoothly. And in this way they will have minimum error. The people in this department will ensure that every tax is paid and budget is well maintained. Materials: A continuous success of any product or services depends on the high quality raw material. Metro Cash and Carry should ensure the quality of their raw materials. So that they can develop a brand loyalty and increase their target customers. They have to make sure that they buy materials from renowned suppliers. Time: Metro cash and carry should run their business by delivering the products and services at the right time. And complete their tasks on time as well as provide timely service to its customers. Time for the organize strategy cannot be defined because we are talking about the future.4.3 Discuss SMART targets and timescales for achievement to monitor strategy implementation.

Without knowing the targets and maintaining timescales no one can make effective use of their strategic plan. Effective implementation of strategic plan depends on these two factors. Now we are going to discuss about the Metro Cash and Carry SMART targets and timescales Specific: At this time Metro is using differentiation strategy. They can also come up with focus strategy for the retailers so that they think that Metro cares about them. They should be specific about what they want to achieve and what they want to provide Measure: Metro should evaluate the progress of the strategy and determine if they are moving towards the goal. For example, if they want to improve finances, then they should have a way of keeping track of income and expenses Achievable : Metro should develop objectives that are achievable easily using their own resources Timely: Metro Cash and Carry set a timescale for their activities to achieve thin their goal within the time limit.Without specific target no business can survive for long run. Metro Cash and Carry set specific target for their organization and lead the employees toward the targets and monitoring their performance. If Metro wants to achieve maximum customer attraction, it can do so by introducing low priced products and giving subsidies to old customer. In this way more people will be attracted in a less period of time. Similarly if they want to generate more revenue, they would have to analyze their product range and point out the products that arent getting enough sales and try improving them.

Bibliography

Barbu, L., Lancu, A., Pistol, C., & Paraschiv, S. (2008, November). Metro Cash and Carry. Retrieved June 2014, from Slide Share: http://www.slideshare.net/CristianPistol/metro-4728567Developing growth strategies to become a market leader. (n.d.). Retrieved June 2014, from Business Case Studies: http://businesscasestudies.co.uk/imi/developing-growth-strategies-to-become-a-market-leader/organic-growth.html#axzz36OxUmazKSheikh, U. (n.d.). Marketing Audit & 360 Marketing Campaign of Metro.www.metro.pk