Metro's Strategic Report: Global Entrepreneurship and UAE Market Entry

This report provides a detailed analysis of Metro's global business entrepreneurship, specifically its potential entry into the United Arab Emirates (UAE) market. It begins with an overview of Metro's domestic market performance, including its history, resources, organizational structure, and marketing strategies. The report then delves into a comprehensive analysis of the UAE market, examining its political, economic, and social aspects, as well as business information and cultural considerations. A market entry plan for Metro in the UAE is presented, outlining the chosen market entry mode and a risk assessment considering country, market, product, and commercial risks. Furthermore, the report addresses corporate social responsibility, human rights issues, financing options, and an export ability assessment. The conclusion highlights Metro's strategic priorities for future growth, including integrating acquisitions, improving customer experience, modernizing its distribution network, and leveraging technology to support its operations. The report emphasizes the importance of understanding the target market and mitigating risks for successful global expansion.

Running head: MARKETING
Global Entrepreneurship
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The aim of the report is to provide an insight into global business entrepreneurship in respect to
the largest food retailer of Canada that has a target market in United Arab Emirates (UAE). The
report commences with the performance of the company in the domestic market with a focus on
the company, history of performance, resources, organizational structure, domestic marketing
strategy and the export goals and objectives. The report then undertakes a detailed analysis of the
target market with the primary focus on the political, economic and the social highlights along
with business information. The report also puts forward a market entry plan for Metro in the
UAE along with the description of the market entry mode. The report also undertakes a risk
assessment of Metro in the target country based on the various criterions. The report further
portrays the corporate social responsibility and the human rights issues that the business faces
while operating in UAE. There are also discussions about whether Metro will have the right kind
of financing option for supporting the export plan followed by an assessment on risk ability.
It has been noted that Metro will continue to grow and initiate the export plans if it is able to
successfully execute its strategic priorities for coming years which implies the integration of the
Jean Coutu Group, growth of the sales while leveraging the cost, continuous improvement of the
customer experience in each banner, modernizing the distribution network and managing the
talent. The company will also initiate great amount of effort in the continuation of the work
involved in combining the pharmacy activities. The company will also emphasize on achieving
the synergies and deployment of the solutions based on the technology that is necessary for
supporting a unified chain of operation.

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Table of Contents
1. Domestic Market Performance....................................................................................................4
i. Company:......................................................................................................................................4
ii. Product or Service:......................................................................................................................4
iii. History of Performance:.............................................................................................................5
iv. Resources (human and financial):..............................................................................................6
v. Organizational Structure..............................................................................................................7
vi. Domestic Marketing Strategy:....................................................................................................7
vii. Export Objectives and Goals.....................................................................................................7
2. Target Market..............................................................................................................................8
i. Political Highlights:......................................................................................................................8
ii. Economic Highlights...................................................................................................................8
iii. Business Information:.................................................................................................................8
iv. Cultural Considerations:.............................................................................................................9
v. Travel Tips for Company Personnel............................................................................................9
vii. Canadian Trade Commissioner Services/support......................................................................9
3. Marketing Plan...........................................................................................................................10
i. Analysis of the Product or Services:...........................................................................................10
ii. Product/Service Modifications..................................................................................................10
iii. Competitive Analysis...............................................................................................................10

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4. Market Entry Mode:..................................................................................................................11
5. Risk Assessment:.......................................................................................................................11
i. Country Risks:............................................................................................................................11
ii. Market Risk:..............................................................................................................................13
iii. Product Risk:............................................................................................................................14
iv. Commercial Risk:.....................................................................................................................14
v. Barriers to Market Entry:...........................................................................................................15
vi. Barriers to Market Acceptance.................................................................................................15
6. Corporate Social Responsibility and Strategies:........................................................................16
i. Environmental Concerns and Trends.........................................................................................16
ii. Human Rights Issues.................................................................................................................16
iii. Unfair or Corrupt Business Practices.......................................................................................17
iv. Health, Safety and Labor Issues...............................................................................................17
7. Financing:..................................................................................................................................17
8. Export Ability Assessment:.......................................................................................................19
9. Conclusion:................................................................................................................................19
References:....................................................................................................................................20
Appendices :..................................................................................................................................20

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1. Domestic Market Performance
i. Company:
The Company chosen here is Metro which is a leading food and pharmacy retailer of
Canada and operates in provinces of Ontario and Quebec. It is considered third largest grocers of
Canada. The company has a net income of CAD $ 21.6 million and generate revenue of about
CAD$11402.8 million (metro.ca, 2019).
Figure 1: Diagrammatic Representation of Retail Network
Source: (metro.ca, 2019)
ii. Product or Service:

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The key products of the company are food and pharmacy. As far as the food is concerned,
the company has over 600 stores in Ontario and Quebec under the name Metro Plus, Food Basics
Adonis and Super C (metro.ca, 2019). On the other hand, there are 650 pharmacies which are
primary identified as Brunet, Jean Coutu, Food Basics and Metro Pharmacy.
iii. History of Performance:
This includes (metro.ca, 2019):
1947: Some of the grocers belonging to Lasalle Groceteria Ltd aimed at the formation of a
buying group that allowed them in offering consumer products at prices comparable to the
larger chain.
1956: Marked the establishment of Metro Grocery Group
1972: Marked the birth of the Metro Food Markets Ltd that finally gave birth to the
supermarket concept.
1986: Shareholders of Metro Richelieu United Grocery Group agreed unanimously in
converting the advances to share capital. The year also marked the entry of the retailer as
pharmaceutical distributor.
1987: Metro made major breakthrough in the discounted segment of the mafrket
1992: The Company acquired the rights and leases of close to 48 Steinberg Grocery
Markets.

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1999: The Company acquired Loeb banner having two warehouses in Ottawa and close to
41 supermarkets in the northeastern and the eastern Ontario.
2005: The Company acquired close to 100 percent shares of Great Atlantic & Pacific
Company of Canada for close to $1.7 billion.
2009: Metro in order to consolidate its position in the eastern Quebec, acquired close to
15 grocery stores of GP.
2011: The Company signed a partnership agreement with a well known food retailer in
Montreal, Marche Adonis, thereby specializing in Mediterranean, fresh and prepared
foods.
2014: In the year June 10, 2014, Metro entered into partnership agreement with the
Première Moisson Bakery.
2017: Metro made an announcement in entering into partnership with the MissFresh young
Montreal Company thereby specializing in the ready to cook meals.
2018: To meet the increasing consumer needs in pharmacy, health, beauty and food Metro
acquired Jean Coutu Group (PJC) Inc.
iv. Resources (human and financial):
The human resource team looks for innovative ways in improving the practices and
contributing to the employee engagement (metro.ca, 2019). The company always tries in
increasing the effectiveness of the organization and is considered outstanding at its ability in

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reacting to the unforeseen. Metro comprises of a team of 140 employees in Ontario and Quebec
who remains passionate about superiority in customer service and innovation.
As far as the financial resources are concerned the company has a total assets of
CAD$5061.5 million and a total equity of about CAD$2807.4 million (metro.ca, 2019).
v. Organizational Structure:
Metro group of companies have the capability of servicing one of the most challenging
and the complex distribution needs (Daft, 2015) Metro believes in few deeper relationships and
works towards growing the business through partnerships. The company has a flat organizational
structure that allowed fast and effective decision making and effective flow of entrepreneurial
energy.
vi. Domestic Marketing Strategy:
The brand promotes newer features through the digital ads, weekly newsletter, and social
media pages while executing relations influencer strategy. The company also created video
through YouTube for explaining its features
vii. Export Objectives and Goals:
Export Objectives includes (He, Brouthers & Filatotchev, 2013):
 Doubling the value of the exports
 Increasing number of medium and small sized exporters
 Expanding and promoting awareness of the global business opportunities

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 Positioning Metro as the global ready market.
The goal remains in construction of business environment that helps in the creation of the
quality jobs, economic stability and the greater prosperity through cultivation of the base
industry that remains aligned with the growing globalized market.
2. Target Market
The target country of Metro is UAE (United Arab Emirates).
i. Political Highlights:
 UAE represents a federation of 7 Emirates that have their governmental organizations
allowing flexible management across country (Bodolica & Spraggon, 2014).
 The country faces occasional political conflicts with the neighboring countries on the
ownership of oil reserves.
 The country maintains healthier trade relations with various countries across globe
ii. Economic Highlights
 UAE has higher GDP per capita
 The country also has a lower unemployment rate
 The country also have the highest foreign direct investment in region
iii. Business Information:
UAE is the federation of seven emirates with each of the emirates contributing to the
progress of the nation thereby putting across exciting opportunities for the investors. This makes
UAE a booming economy with limitless business opportunities. Besides, the currency of the

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country which is known as Dirham is not only freely convertible but secure (Al-Ansaari, Bederr,
& Chen, 2015). The country imposes no restrictions on the capital repatriation and the profit
transfer. Further, the country has lower import duties and competitive labor cost. The country
does not impose any personal or corporate taxes and has thirty two treaties on bilateral
investment and 61 double taxation agreements along with ensuring a lower financial risk. The
country also offers a pleasant, safe and stable working ambience.
iv. Cultural Considerations:
Islam represents official religion and has a key role in shaping the culture of the society.
UAE represents a liberal country with tolerance of other beliefs and cultures (Kazmi, Naaranoja,
& Worlin, 2014)
v. Travel Tips for Company Personnel
UAE represents a Muslim country with very different customs and laws compared to
Canada (Bardot, 2013). It is therefore necessary for the company personnel to respect the total
traditions, laws, customs and religion of the country.
vii. Canadian Trade Commissioner Services/support
Their mandate remains promoted towards the economic interest of Canada in UAE and
provide support to the Canadian companies that have chosen the target market for their services,
products or technology (Al-Hubaishi, Ahmad & Hussain, 2017). In other words, they provide
practical advance and on ground intelligence on UAE market.

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3. Marketing Plan
i. Analysis of the Product or Services:
The product ranges offered by the Company include:
 Selection: This offers close to 2500 products that remains in line with the market trends
and compared quite favorable to the national brands.
 Irresistible: This brings in the best by attaching pleasure, quality and distinction at heart
of the product.
 Godiva: This are chocolates that represents an outstanding gift for pleasing someone
 Hemisphere Wines: This represents exclusive wines from the prestigious territories
 Premiere Moisson: This represents fresh bread, exquisite pastries and delicious
charcuterie.
ii. Product/Service Modifications
Metro planned to re-launch the private label by replacing the existing product range
Equality, Master Choice and Irresistible along other two newer names. The company that
acquired A&P Canada over a year ago aimed at strengthening the in house brands and thereby
getting rid of the duplications thereby reducing the number of items to 2500(16). Further, the
company also plans in dropping private label discount in Quebec.
iii. Competitive Analysis
 Global presence of the competitors

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 Consumers are not accustomed in buying different categories under single roof
 Discounted brands might be perceived as having a lower quality.
4. Market Entry Mode:
The foreign firms seem to have established themselves in most of the sectors in the UAE
market therefore , Metro which is planning to make an entry into the market should have local
agent or sponsor otherwise the firm will remain limited to the ownership position of minority
(Shenkar, Luo & Chi, 2014). Therefore, searching for right distributor or local agent can act as
the critical first steps towards the success.
UAE has been a regional hub for trade that supported intense business activity on a
global scale and is a place where most American firms face stronger competition from the other
multinationals. There have been various successful American firms that rely on the qualitative
and technological advantages for competing with the foreign competition.
5. Risk Assessment:
i. Country Risks:
a. Political: Although political upheaval sweeps through Arab World, UAE and Qatar
remains unaffected. The per capita income of Qatar and UAE thus remains one of the highest
across the world (Zahlan, 2016). The highest per capita income also accounts to the smaller
populations and the smaller amount of the gas and the oil wealth. Empowered by the political
protest, political activist and intellectuals in UAE became less censored and more vocal towards
their reform. But there have been little signs of any rallies that have triggered unrest. As the