BUSINESS CASE ANALYSIS

Group 8
Risha Agarwal – PGP09224
Ritu Singh – PGP09225
Sagar Rastogi – PGP09226
Sagar Rathee – PGP09227
Sameet Ahzam Khan – PGP09228

Case Analysis Template:

Background Solution
Indroduction About Client Challenge e.g.
e.g. buyer e.g. industry, e.g. issues, Approach,
Results
persona, important reasons for client
target details the issue involvement
products etc. etc.

Fig. 1: Case Study – Analysis - Approach

Based on the Case Analysis Template:

Case: FOODWORLD – Design of MIS

1. Background and About client:

FoodWorld, a division of Spencer & Company, the retailing company under RPG
enterprise which was one the business houses in India. The company entered the
organized food retailing industry under the brand name of foodWorld. It was
launched in Chennai on May 9, 1996 and different stores eventually started operating
in Bangalore and Hyderabad.
The group had made an investment of 65 crores rupees in the foodWorld venture.
There are 19 FoodWorld outlets in Chennai, Bangalore & Hyderabad. Each retail
outlet broke even in the first few months because of the high operating startup costs,
but FoodWorld as a whole will need to establish at least 40 such units to breakeven.
In the established Retail Outlets there are more than 5000 SKUs, which are further
divided into 49 categories of shopping items and 270 sub-categories. Top 1000
SKUs accounts for 70% of the revenue. Branded non – perishables constitutes for
85% of the revenue. The items are placed in the bays. A bay with 6 shelves had
around 18 running feet which could accommodate 45 – 70 SKUs. No SKUs are to be
maintained in warehouses. The supply is done using indent process.

2. Challenges:
a. The high number of SKUs leading to difficulty in inventory management.
b. How to deal with non-availability of many products?
c. How to maintain the no. of checkout counters, staff assignments and till
assignment as per each type of customer (large/small volume, cash/credit)?
d. How to reduce Shrinkage?
e. How to increase turnover?
f. How to increase visibility of products?
g. How to increase size of the bill for different types of customers?
h. Keeping in account the location of the store.
3. Solutions:
a. The high number of SKUs that leads to unfulfilled targets can be controlled
by:
i. Analyzing the consumer behavior at each outlet and forecasting the
SKUs accordingly.
ii. Prioritizing only on those SKUs at each outlet, which would lead to
higher turnover.
b. Non Availability of many products
i. Better supply chain management.
ii. Create a network of local suppliers, who are available at a short
notice.
iii. Increasing the percentage of supplies directly to the stores.
c. Number of check out counters, and till assignment as per each type of
customer (large/small volume, cash/credit):
i. Introducing self check out counters.
ii. Classified counters based on quantity of products being purchased.
iii. Marked checkout for cash and online/card payments.
d. Shrinkage
i. Surveillance at Retail Outlet.
ii. Scanners at entry and exit points.
iii. Training security guards to cross check the bills.
iv. Building staff loyalty by means of appraisal.
e. Increase Turnover
i. Competitive pricing.
ii. Special discounts provided for perishable goods before a specific
period of expiry.
iii. Introducing monthly fairs comprising of fun evens and coupon
distribution.
iv. Points reward system for customers beyond a certain amount.
v. Short term coupon offers.
f. Increase visibility of the product:
i. Sample stalls for new products.
ii. Utilizing strategic display of the products.
iii. Placing staples at the end of the store to increase visibility of other
products.
g. Increase size of the bill for different customers:
i. Introducing mega packs and combo offers.
ii. Placing complementary as well as supplementary products together.
iii. Incentivize bulk purchases.
h. Ensuring locational benefits:
i. The location of the store should be chosen near residential societies
and social hubs.
ii. Providing delivery benefits for premium customers.

4. Results:
It seems there is a high scope for improvement in the store management,
provided the problems are carefully analyzed and concerned solutions are
undertaken.