retail industry bb main

7/31/2019 Retail Industry Bb Main

1/24

1

INTRODUCTION ON

PLANNING FUNCTIONS OF MANAGEMENT

Planning means looking ahead and chalking out future courses of action tobe followed. It is a preparatory step. It is a systematic activity which determineswhen, how and who is going to perform a specific job. Planning is a detailedprogramme regarding future courses of action. It is rightly said Well plan is halfdone. Therefore planning takes into consideration available & prospectivehuman and physical resources of the organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic management functionwhich includes formulation of one or more detailed plans to achieve optimumbalance of needs or demands with the available resources.

According to Urwick, Planning is a mental predisposition to do things in orderlyway, to think before acting and to act in the light of facts rather than guesses.

Planning is deciding best alternative among others to perform differentmanagerial functions in order to achieve predetermined goals.

According to Koontz & ODonell, Planning is deciding in advance what to do,

how to do and who is to do it. Planning bridges the gap between where we are to,where we want to go. It makes possible things to occur which would nototherwise occur.

STEPS IN PLANNING FUNCTION

PLANNING FUNCTION OF MANAGEMENT INVOLVES FOLLOWINGSTEPS:-

1. ESTABLISHMENT OF OBJECTIVES

a. Planning requires a systematic approach.b. Planning starts with the setting of goals and objectives to be achieved.c. Objectives provide a rationale for undertaking various activities as well as

indicate direction of efforts.d. Moreover objectives focus the attention of managers on the end results to be

achieved.e. As a matter of fact, objectives provide nucleus to the planning process. Therefore,

objectives should be stated in a clear, precise and unambiguous language.Otherwise the activities undertaken are bound to be ineffective.

f. As far as possible, objectives should be stated in quantitative terms. For example,Number of men working, wages given, units produced, etc. But such an objective


2/24

2

cannot be stated in quantitative terms like performance of quality controlmanager, effectiveness of personnel manager.

g. Such goals should be specified in qualitative terms.h. Hence objectives should be practical, acceptable, workable and achievable.

2. ESTABLISHMENT OF PLANNING PREMISES

a. Planning premises are the assumptions about the lively shape of events in future.b. They serve as a basis of planning.c. Establishment of planning premises is concerned with determining where one

tends to deviate from the actual plans and causes of such deviations.d. It is to find out what obstacles are there in the way of business during the course

of operations.e. Establishment of planning premises is concerned to take such steps that avoids

these obstacles to a great extent.

f.

Planning premises may be internal or external. Internal includes capitalinvestment policy, management labour relations, philosophy of management, etc.Whereas external includes socio- economic, political and economical changes.

g. Internal premises are controllable whereas external are non- controllable.\

3. CHOICE OF ALTERNATIVE COURSE OF ACTION

a. When forecast are available and premises are established, a number of alternativecourse of actions have to be considered.

b. For this purpose, each and every alternative will be evaluated by weighing its pros

and cons in the light of resources available and requirements of the organization.c. The merits, demerits as well as the consequences of each alternative must beexamined before the choice is being made.

d. After objective and scientific evaluation, the best alternative is chosen.e. The planners should take help of various quantitative techniques to judge the

stability of an alternative.

4. FORMULATION OF DERIVATIVE PLANS

a. Derivative plans are the sub plans or secondary plans which help in theachievement of main plan.

b. Secondary plans will flow from the basic plan. These are meant to support andexpediate the achievement of basic plans.

c. These detail plans include policies, procedures, rules, programmes, budgets,schedules, etc. For example, if profit maximization is the main aim of the


3/24

3

enterprise, derivative plans will include sales maximization, productionmaximization, and cost minimization.

d. Derivative plans indicate time schedule and sequence of accomplishing varioustasks.

5. SECURING CO-OPERATION

a. After the plans have been determined, it is necessary rather advisable to takesubordinates or those who have to implement these plans into confidence.

b. The purposes behind taking them into confidence are :-1) Subordinates may feel motivated since they are involved in decision making

process.2) The organization may be able to get valuable suggestions and improvement in

formulation as well as implementation of plans.3) Also the employees will be more interested in the execution of these plans.

6. FOLLOW UP/APPRAISAL OF PLANS

a. After choosing a particular course of action, it is put into action.b. After the selected plan is implemented, it is important to appraise its

effectiveness.c. This is done on the basis of feedback or information received from departments or

persons concerned.d. This enables the management to correct deviations or modify the plan.e. This step establishes a link between planning and controlling function.

f.

The follow up must go side by side the implementation of plans so that in the lightof observations made, future plans can be made more realistic.


4/24

4

RETAIL INDUSTRY: BIG BAZAAR

INTRODUCTION TO BIG BAZAAR

Big Bazaar is a chain of shopping malls in India currently with 31 outlets, ownedby the Pantaloon Group. The idea was pioneered by entrepreneur Kishore Biyani,the head of Pantaloon Retail India Ltd. The idea from the very beginning was tomake Big Bazaar very comfortable for the Indian customer. That wasKishorejis strength as a retailer. He had a lot of confidence in what he wasdoing, even though it defied conventional logic.

Big bazaar is not just another hypermarket. It caters to every need of your family.Where Big Bazaar scores over other stores is its value for money proposition forthe Indian customers. At Big Bazaar, you will definitely get the best products atthe best pricesthats what they guarantee. With the ever increasing array ofprivate labels, it has opened the doors into the world of fashion and generalmerchandise including home furnishings, utensils, crockery, cutlery, sports goods

and much more at prices that will surprise you. And this is just the beginning. BigBazaar plans to add much more to complete their customers shopping experience.If one looks at Indian bazaars, mandis, melas, they are environments created bytraders to give shoppers a sense of moment, of event, of place. They provide aninclusive environment where men and women from all castes, creeds and classescan come and shop at the same place. The founders of Big Bazaar were from the


5/24

5

beginning very clear that they had to reflect the look and feel of Indian bazaars attheir modern outlets, so that no customer would feel intimidated with thesurroundings.

In India most of us are not prepared for the consumerism that is setting inthis country. We underestimate how many people are going to fly and that s why

our airports get crowded. We underestimate how many people will speak on thephone for how many billions of minutes and therefore our cell phone networks arealways congested. But the minds responsible for the huge success of Big Bazaarhave captured and understood the force of consumerism that is unfolding.Big Bazaars all over India attract a few thousand customers on any regular day,and a lot more if they are offering something extra on each buy, which theynormally are! And the sales force at Big Bazaar along with the executives isprepared for them.

OBJECTIVE OF BIG BAZAAR

The central objective for earlier businesses of Big Bazaar w was to bring instability and consolidation. They were built to enforce order. However, in the newera where nothing remains constant, the dominant theme for businesses needs tobe speed and imagination.

The new macro-differentiator can be design. Design is helping companies to selldifferentiated experiences and solutions that connect with the consumersemotions. Its no longer about selling products and services alone. Nor is it justabout completing transactions. Every time a customer walks in, it is an

opportunity to build a relationship and invite the customer to become a part of thetransformational scenario. Design management is helping us position thecustomer at the center of every decision we take and also operate with trueentrepreneurial spirit.

TARGET CUSTOMERS

Big Bazaar targets higher and upper middle class customers because there hasbeen growth in Indian middle class that has so far been used to buying appareland groceries from small and cluttered neighborhood market shops is fastrealizing the joys of visiting malls that have redefined the freedom to shop and


6/24

6

entertain. Such malls are the new temples of leisure and weekend entertainment.Indias National Council for Applied Economic Research estimates that thenations middle class population currently comprises about 17 million households90 million people with annual earnings ranging between $4,500 (2,400) and$22,000 (11,736). An additional 287 million could be termed as aspirers or

those that hope to join the middle class in the near term. Rising incomes,particularly in the lower and middle-income households, are impacting retailgrowth in India as these groups tend to spend more on upgrading and diversifyingtheir lifestyles, eating out and moving on to processed and convenience foods.

TARGETING YOUNG WORKING CLASS

The large and growing young working population is a preferred customer segmentfor Big bazaar. These young people are early adopters of most modern productlines.The ongoing boom in sectors such as information technology and businessprocess outsourcing has created a clientele with high disposable income and aincreased demand for lifestyle merchandise such as watches, cosmetics andperfumes. This is a much-travelled and brand-savvy urban population.Interestingly, an estimated 40-50% of the Indian working womans salary isspent on apparel and footwear. Eating out, mobile phones and accessories makeup the other leading spending options. Big Bazaar specifically target young,working professionals, home makers who are primary decision maker.

VALUE FOR MONEY

All our lines of business are consumer centric and I believe that if we are to be inthe larger consumer space, we would need to keep changing, evolving andaccordingly be flexible in our business plans. Consumers are the sameeverywhere; we are only bound by our social systems. Their desires, greeds

and needs are similar. The value for money proposition is so ingrained in theIndian consumers mind that he needs to be shown true value all the time.Therefore, all our current and future businesses would necessarily have thecommon denominator as the consumer.All our alliances and relationships withmany company have been built, keeping the synergies of business and consumerofferings in mind


7/24

7

Is se sasta aur accha kahin nahi!

IMAGE

Nothing captures the sprit of Big Bazaar better than this one liner. It is a simplestatement and yet it positioned at the top of Indian customers mind. It shows that

big bazaar was built on the foundation of entrepreneurship and simplicity. Theybelieve in service and value for the customers. They consider that it is their onlyduty to keep customer in mind at every step, they go that extra mile and buydirectly from source in bulk so that they can get best rates by keeping the marginlowBig Bazaar is constantly on the lookout for finding new ways and means toimprove the current state of affairs. Thus, innovation is a very important aspect oftheir working strategy. The other very important philosophy is that of Indianness.All the concepts and formats as well as the way of doing things are very Indian.The way Big Bazaar is designed and the way the whole concept has developedreflects a sense of Indianness.

MERCHANDISE

Main objective of the store layout is to maximize the interface betweencustomers and merchandise It provides easy accessibility to the customers toview the offerings of the store. Layout of the store has been strategically designedin order to make effective use of merchandise and passage to draw customers

attention on stores offeringsBig Bazaar has a wide range of merchandise they have both branded andunbranded products like :Home lien items: Like bed sheets, pillow covers, carpets to kitchen utility itemslike steel utensils and crockery and other minor utility items required in a house


8/24

8

Electronic items: like refrigerator,T.V, vacuum cleaner , music system, vacuumcleaner, washing machine. Etc

Mobile Zone: A wide range of mobile phones and accessories is available atlowest possible price

Furniture: All kinds of furniture is available that one may require to decorate their

house. Star Sitara: In this section all kinds of cosmetic items are made available Opticians: In this section all brands oand types fashion glasses are available Men Ladies and kids wear: This section includes fashion and casusal wear for

men ladies and kids both branded and unbranded.

Foot wear: In this section footwear for men women and kids is made available.

Music: A wide collection of CDs DVDs is made available

Toys: All kinds of toys for children is available

Stationary: all kind of office stationery and stationery for school going kids isavailable

LOCATION

Big bazaar is located has 31 outlets in India , big bazaar locates itsoutlet near thecommercial area and residential complexs so that they can cover all their target

customers Eg : their outlet in phoenix mill , lowerparel mumbai , is located nearcommercial areas so that the working class people can drop in and shop household items after office hrs.On the other hand their outlets in sangle is a bit different from what we would seeat say , high street Phoenix in Mumbai. For instance isnt air conditioned:

instead, there are air coolers installed inside the store ,also there are manyshoppers there on days as an weekends . Unlike office going people in big cities ,people in smaller towns do not restrict their shopping to weekends .The choice of location of Big Bazaar in many ways captures the essence of whatthey were doing- they adapt themselves to the habits tastes and preferencesaccording to the location. One of the distinct feature of their location is that it is

easily accessible and they try to locate their outlet in such a location where theycan reach a large customer base.


9/24

9

SERVICES

Big Bazaar provides a wide range of services to its customers like Trial rooms ,elevators, car parking , security, baggage counter , trolleys so that one could shopeasilyThey even provide them with after sale services in case of buying electronicitems. One of the major service provided by them is one stop shop as one couldget a whole range of items under one shop and at the most reasonable price. Theyalways have their outlets in such a location where it is easy to commute.They have also given major emphasis to convince for customers in which layouthas played a major role. The layout of the store is so effective that customers findtheir way out of what they want. Big Bazaar provides good employee service i.etheir salesmen are always redy to provide help. Employee service is oftenneglected as part of good retail marketing but customer and employee interactioncan be used as the significant tool for retail marketing.

DEPARTMENTAL MANAGERS

There are 28 departments in this store like Electronic dept, Depot dept, MobileBazaar, Star Sitaradept, Plastic, Utensils & Crockery (PUC) Dept, Ladies Dept,Mens Dept, Furniture Dept, Footwear Dept, Home Decor Dept etc. Each

department will be assigned with targets which have to be achieved within theassigned period that may be of daily, weekly, monthly and yearly. Eachdepartment has a Department Manager (DM) & Assist DM. Their job isconcerned mainly with sales. They look after customers orders delivery, post saleservice if any etc. All Dept managers, ADM, team members work undercoordination and cooperation.


10/24

10

FUNCTIONAL DEPARTMENTS PLANNING

.HUMAN RESOURCE DEPARTMENT

The HR department of Big Bazaar is very dynamic. Employees are the biggeststrength and asset of any organization and the HR dept realises this very well.This is very evident from the way the HR department handles all its employees.They take utmost care to select, train, motivate and retain all the employees. Theyhave continuous developmental programmes for all the employees. Currently BigBazaar Banashankri is employing 220 full time and 60 part time employees.There are two shifts for the employees. The first shift employees arrive at 10AMin the morning and leave at 7.30 in the evening, while the second shift employees

report at 12.30 in the afternoon and leave at the time of Store closing (10pm).

SOURCES OF RECRUITMENT THE FOLLOWING ARE THE MAIN SOURCESTHROUGH WHICH BIG BAZAAR RECRUITS ITS EMPLOYEES:-

1. CONSULTANCY SERVICES:

For top level management, employees are recruited through private consultants.They are usually appointed as Departmental Managers.

2. WALK-INS :-This is the main source through which Big Bazaar recruits its employees. Peopleseeking job usually themselves approach the HR department for job vacancy.Employees usually selected from this source are appointed at the entry level asteam members.

3. EMPLOYEE REFERRALS:This is the other main source through which employees are selected. Candidateswho have given their previous employer as referrals are first interviewed and fromtheir previous employer, opinion is taken about their behaviour and performance


11/24

11

in the job. If they receive a positive opinion from their previous employer they areselected

4. CAMPUS RECRUITMENT:

Young people bring new ideas and fresh enthusiasm. Therefore Big Bazaar visitssome of the reputed educational institutions to hire some of the most talented andpromising students as its employees.

Selection Procedure The following is the selection procedure that the HRdepartment practices to hire its employees

a) INTERVIEW:

For entry level jobs, the candidates are interviewed by a HR person. They are

asked a few basis questions about their education, previous work experience ifany, languages known etc. This is done to evaluate the candidates ability tocommunicate freely and also other skills.

b) PSYCHOMETRIC TESTS:

For higher and top level jobs, candidates are asked to answer a few questionswhich basically test their sharpness, analytical ability, ability to handle stress,presence of mind etc. This is done as Managers are required to work under stressall the time and still maintain a cool head to make some vital decisions.

c) GROUP DISCUSSION:

In campus recruitment students are involved in a Group Discussion, where theywill be given a topic on which the group has to deliberate, discuss and arrive at asolution or a decision which is accepted by the whole group. Along with the G Dthey are also given a written aptitude test. Finally a formal interview will beconducted to assess the overall skills of the student.


12/24

12

MOTIVATION

INDUCTION:

New employees selected will be given a 13 day induction and training program.They will be given information about the comp anys business, differentdepartments etc. They will be informed of their roles, duties and responsibilities.They will also be informed about the HR policies and rules of the company. Thenew employees will be on probation for a period of 6 months. After this periodthe HR period along with the department manager will review the performance ofthe employee. If the employees performance is good and encouraging, the

employees services will be confirmed.

COMPENSATION & REWARDS:

The employees are rewarded suitably with attractive pay packages. The salary ofan employee includes basic pay. HRA, special allowance, PF,ESI, Mediclaim etc.Annual bonus will be given at the time of Diwali. The employees and theirdependents are also entitled for medical treatment in recognised hospitals withcashless hospitalisation with whom the company has tie-ups. If a hospital is notrecognised, the amount spent by the employee will be reimbursed. Along withthese all the employees are given a card known as Employee Discount card


13/24

13

(EDC) through which they can buy any product at Big Bazaar at a specialdiscount of 20-30 %.

LEAVES AND OTHER RULES:

An employee during his probationary period is entitled for 7 days of leave. Aconfirmed employee is entitled for 30 days of leave in a year. There is only onetype of leave the employees can take which is known as All Purpose Leave(APL). All the employees will be given identity cards which they have to wearand also swipe while at the time of entering and leaving the Store.

PERFORMANCE APPRAISAL:

The HR department conducts performance appraisal of all the employeesannually in the month of April. Based on their performance increments will begiven in their pay. In addition to this if an employee achieves or exceeds the targetgiven to along with their team members will be provided with attractive cash andother incentives.

TRAINING & DEVELOPMENT:

Future group has its own training division for all its employees, known as FutureLearning & Development Limited (FLDL). All the employees are given training

for 20 days in a year spread over different periods. Gurukul which is a part ofFLDL gives training to all the employees on various skills like team work,dedication discipline improving customer service etc to make them moreknowledgeable and productive.


14/24

14

WORK CULTURE AT BIG BAZAAR

At Pantaloon Retail, Empowerment is what you acquire and Freedom atWork is what you get. We believe our most valuable assets are our People. Youngin spirit, adventurous in action, with an average age of 27 years, our skilled &qualified professionals work in an environment where change is the only constant.

Powered by the desire to create path-breaking practices and held togetherby values, work in this people intensive industry is driven by softer issues. In ourworld, making a difference to Customers lives is a Passion and performance is

the key that makes it possible. Out of the Box thinking has become a way of life

at Pantaloon Retail and living with the change, a habit. Leadership is a value thatis followed by one and all at Pantaloon Retail.

Leadership is the quality that motivates us to never stop learning,stretching to reach the next challenge, knowing that we will be rewarded along theway. In the quest of creating an Indian model of retailing, Pantaloon Retail hastaken initiatives to launch many retail formats that have come to serve as abenchmark in the industry. Believing in leadership has given us the optimism tochange and be successful at it. We do not predict the future, but create it.

At Pantaloon Retail you will get an opportunity to handle multiple

responsibilities, and therein, the grooming to play a larger role in the future. Workis a unique mix of preserving our core Indian values and yet providing customerswith a service, on par with international standards. At Pantaloon you will workwith some of the brightest people from different spheres of industry. We believeits a place where you can live your dreams and pursue a career that reflects your

skills and passions.


15/24

15

FINANCE DEPARTMENT

Finance Department Finance is the life blood of any business. The SouthZone Head office located at Jayanagar, performs most of the financial functionsand therefore the Finance department of Big Bazaar, Banashankri performs a fewbasic functions, such as preparing the Stores Income and ExpenditureStatement giving full particulars of all items. It also prepares the budget for

expenditure at various levels on different items.This department is also responsible for deciding and giving the weekly,

monthly and yearly sales targets and the margins for all the departmentsseparately. The Finance department is also responsible for collecting anddepositing the cash received in the companys bank account daily.

REVIEW OF PERFORMANCE:

The company crossed $1 billion turnover mark during the year underreview, having recorded a robust growth in both the topline as well as in bottomline. Income from operations went up from Rs.3236.74 Crores in FY06-07 toRs.5048.91 Crores in FY07-08, recording a growth of 55.98 percent.PBDIT stoodat Rs.464.29 Crores in FY07-08, an increase of 113 percent over the precedingyear.

PAT for FY07-08 was Rs.125.97 Crores. This amounts to an increase of111 percent over the preceding year as the Net Profit of Rs.119.99 Crores in

FY06-07 included an extraordinary income, of profit from sale of investments, ofRs.88.87 Crores. The Company increased its retail presence from around 5million square feet in 42 cities to approximately 8 million square feet in 63 citiesduring FY07-08.


16/24

16

MARKETING DEPARTMENT

Marketing concept is a customer orientation backed by integrated

marketing aimed at generating customer satisfaction as the key to satisfyingorganizational goals. For a firm in order to implement the marketing concept ithas to focus its attention on the consumer, ascertain his/her needs, discuss andwants before Every Brand appeals to individual customers in different ways.Good customer service is the life blood of any business. Good customer service isall about attending to existing and potential customers. This maintaining goodrelationship with the customers is the key to business success and hence theconcept relationship marketing.

Traditionally, marketers have located their target market segments,presented their offer, and made the sales. It's always been a single step process.Relationship marketing looks at customers and clients over a longer term. It takesinto account the lifetime value of a customer. Many experts think it costsanywhere from six to ten times as much, to find a new customer, than to sell to anexisting one. With those financial realities in mind, the approach makes somesense, and some real dollars. Relationship marketing is based on the idea thatpeople prefer to do business with people who they know and like. After all, it'seasier to buy from a friend, than from someone you've never heard of before. It's amatter of building trust.

It's said that people need to hear an offer at least seven times before they

buy. That concept certainly works against the single step marketing method. TheMarketing department is responsible for marketing of Big Bazaars productsthrough different media like TV, radio, newspapers, banners, placards etc. Themarketing department has to decide and identify the most effective medium toattract the customers to Big Bazaar thereby increasing the sales.

The department has to design creative and attractive advertisementsthrough which the companys products can be promoted to the customers. Thecompany has to visit different companies and has to enter in tie-ups for all itsadvertisement campaign. The marketing department also consists of anotherseparate department which is known as Visual Merchandising. Visual

merchandising is an art by which a retailer makes the store talk to its customers.The colours, signage, lights, look and feel, everything is taken into account. It isvery important to figure out what is the story, the picture, the idea that is beingsold to the customers.

Another concept that was incorporated in Big Bazaar from the beginningwas that of Category management as opposed to the brand merchandising

practice that is followed by many retailers. Category management is based on the


17/24

17

belief that a customer walks into a store looking for party shirt or a formal trouser,rather than a particular brand. Therefore the store is designed according to thecategories like mens formal wear, womens western wear or a casual wear,etc.

Within the organisation too, teams were divided according to thecategories that they managed, rather than the brands. Big Bazaar wanted to have acomplete bouquet of products in each category at different price-points, design,fabric, size and colour.

The objective was to create traffic drivers within the Store rather than

make brands compete with each other. Focussing on categories also helped toachieve a level of perfection within the specific segments. This department isresponsible for the attractive product arrangement in the Store with respect totheir nature. The basic function of this department is it divides the Store into somedepartments based on the nature of the product and also within the department it

decides how the products should be arranged keeping in mind the customers taste.It also arranges the products to attract the customers and also ensure easyavailability of products. Customers enjoying their shopping experience

SALES DEPARTMENT

This department is responsible for the collection of sales amount i.e., cashsales. There are in all 25 cash counters in the Store. There is a Head Cashier towhom all the cahiers report and submit the total sales amount collectedthroughout the day by the cashiers. In addition to cash all leading credit and debit


18/24

18

cards are accepted at no extra charge. Also Big Bazaar vouchers and Sodexhocoupons are also accepted.

A cashier at the time of opening his billing counter will be given anopening balance of Rs.1000. The cashier has to ensure that all the offers

applicable on respective products are given to the customer in his/ her bill. Also ifany free items are given on some purchases, it should be informed to the customerclearly. After the billing is done, the cashier has to pack the products neatly in aplastic cover according to the customers needs.

At the time of closing the billing counter, the cashier has to give astatement of cash, with all particulars of different denominations of cash, amountcollected through credit cards, amount collected in debit cards, amount collectedin Sodexho coupons & Big Bazaar vouchers and also amount collected throughCredit Notes. Wednesday Bazaar is a very important and popular event in BigBazaar. Every Wednesday fabulous offers and great discounts are given on most

of the products.

Customers arrive in large numbers as they realise that it is on Wednesdaythat products are offered at the lowest prices. Recently Big Bazaar Banashankricelebrated its 8th anniversary. Big Bazaar celebrated this occasion by having the8th anniversary sale from 12-16th July. Good discounts and offers were providedon products to celebrate this occasion along with the customers who were theprime reason for its success.

On Saturday and Sunday also the customer turnout is high, as it is on theweekends that most of the customers find time for shopping. They arrive alongwith their family to enjoy the shopping experience. Good discounts and offers arealso provided to attract more number of customers.

Retailing is not just about selling products it is about selling an idea.Why do people in shop when they are bored or depressed? It is not just becausethey have the money to buy, but because they want to go through an experience. Itis very crucial in retailing to make customers relate to every product that is beingsold, as well as the Stores environment.


19/24

19

SWOT ANALYSIS

A. Strengths: Better understanding of customers helping the company to serve them better. Vast range of products under one roof helping in attracting customer and their

family to shop together and enjoy the experience. Benefit of early entry into the retail industry. Diversified business operating all over India in various retail formats. Ability to get products from customers at discounted price due to the scale of

business.

B. Weaknesses: High cost of operation due to large fixed costs. Very thin margin. High attrition rate of employees

C. Opportunities: Lot of potential in the rural market. Can enter into production of various products due to its in depth understanding of

customers tastes and preferences. Can expand the business in smaller cities as there is a lot of opportunity.

D. Threats: High business risk involved.

Lot of competitors coming up to tap the market potential. Margin of business reducing all the time.


20/24

20

LOGISTICS

Logistics is a very important department of Big Bazaar. It is responsiblefor procuring the stock of all the products of the different departments. Thelogistics department receives the goods from the warehouse. The Warehouse ofBig Bazaar for the entire South zone is located at Hosakote, Karnataka.

The logistics department receives the stock of different goods and verifiesthe quantity and quality of the goods with the particulars given in the Goods

Received Statement which it receives along with the stock. Then it checks forany damage in the stock received. If there is no damage in the stock, afterrecording it in the Stock Inward Register despatches the goods to the respective

department taking the signature of the Departmental Manager.On the other hand if there is a damage in the goods or if the goods do not

match the details given in the Goods Received Statement, it enters in the StockOutward Register and sends it back to the warehouse along with a GoodsReturned Note giving full information regarding the reason for returning back thegoods and the defect or damage in the goods.

The logistics department receives two truck loads of stock every day. It isthe respective departmental Managers who place an order to the Zonal head officethrough e-mail for stock of goods when they feel that the stock has to bereplenished. The logistics department works in complete coordination with all theother departments to ensure that the stocks are received and maintained properly

continuously for the smooth functioning of Big Bazaar and avoid anyinconvenience to the customers


21/24

21

CUSTOMER SERVICE DESK (CSD)

As the name suggests this is the separate dept which mainly focuses oncustomer service like if a customer finds difficulty in finding any product, if thereare any customer complaints, they are also looked into, any customer assistanceetc. is also provided.

There is also an Exchange Counter where if a customer is dissatisfied orwants to exchange the product he/ she has purchased for any reason , thecustomers can exchange them within 7 days of their purchase. When a customerbrings a product for exchange, the product is first received and checked if it isused or deliberately damaged or tampered with. If it is in an acceptable condition,then the customer is issued a Credit Note for that amount (products price).

The customer can then purchase any product for that amount or just takeback the money by encashing the credit note at a cash counter. If the customerbuys a product less than the amount in the credit note, the difference amount willbe returned to the customer and on the other hand if a customer buys a productmore than the amount in the credit note, the customer will be asked to pay thedifference amount.

This department is also responsible for announcing all the offers runningin the store on different products throughout the day. This dept also does giftwrapping for any product if the customer wants it at free of cost. The dept alsocollects customers opinion / feedback for continuous improvement in their

service. The ultimate aim of this department is to help and satisfy the customer inevery possible manner and makes the customers experience memorable.


22/24

22

ADMINISTRATION DEPARTMENT

The Administration department also has a separate section known asInformation Technology. This department is responsible for the maintenance of

all the systems of the Store, all billing machines their functioning networking withthe master machine etc. If there is any problem with the machine in anydepartment in the store, then this department comes into function. This deptintegrates all the systems in the store and properly maintains all of them.

The Store administration comes under the Store Manager. Its functions are

store maintenance, housekeeping, security etc. The store maintenance isconcerned with the proper running of the store in co-ordination with all thedepartments. It also has to ensure proper back up power supply in times ofpower cuts. The Housekeeping is concerned with keeping all the departments ofthe Store clean and neat all the time. Covers and other wastes should be properlycleaned and the floor is swept regularly to keep it clean. The Security section isconcerned with the security of the entire store. Security department keeps avigilant check on all the people entering and departing at the various entry andexit points in the store.

They also maintain all the registers like employees attendance register,stock register, visitors register etc. They check all customers bill before letting

them out of the store. They ensure orderliness in the store and prevent shrinkageor pilferage of goods to minimise the loss arising out of it. The housekeeping andsecurity are outside agencies employed by the store on a contract basis to takecare of the respective functions.


23/24

23

CONCLUSIONS

Big Bazaar is undoubtedly the number one retailer in India. It has built a

very emotional and cordial relationship with its customers. It is also veryintending to build long term relationship with all its stakeholders which is veryessential for a successful business venture. It is observed that the organisationhierarchy is professional as all the departmental Managers directly report to theStore Manager who in turn reports to the Zonal Head. Big Bazaar, with 25 yearsof experience in the field of weaving fabrics, is the leading Apparels and fashiondesign fabric company. There exist a healthy and positive relationship betweenemployees and managers. The employees accept their responsibilitieswholeheartedly, accept that it is their responsibility to carry out a part of theactivities of the company and they will be held accountable for the quality of theirwork .It is found that more than 60% of employees are of the age group of 20-35.

From this it reveals that company is having young and energetic workforce whoare very creative, enthusiastic and also very determined to grow in their careerand in turn helping the company to grow. Working environment is good and alsothe various facilities provided helps in motivating the employees. The company isreaching out to all the sections of the society as it is creating a hypermarket wherenot only the rich people shop but also the middle and the lower class customerscome to enjoy the whole shopping experience.


24/24

24

BIBLIOGRAPHY

BOOKS

Kishore Biyani (2007), It Happened In India (1st Edition), Rupa Publications. Stephen Covey (1994),The Seven Habits Of Highly Effective People (6thEdition), Simon & Schuster UK Ltd. Anthony Robbins (1992), Awaken The Giant Within You (1st Edition), Simon

& Schuster UK Ltd. Robbins, Stephen P. (2004), Organizational Behavior (10th Edition),

retail industry bb main

Documents