Describe about the report on one particular small-scale retail organization Retailers Private Limited that operates in the heart of Manchester, United Kingdom?
The modern business has witnessed a rapid growth among the small business sector. The demand for more small business enterprises are also increasing. There are several reasons that can be identified behind the rapid growth and expansion of this small-scale business firms. This report will throw light on one particular small-scale retail organization Retailers Private Limited that operates in the heart of Manchester, United Kingdom.
The organization Retailers Private Limited mainly deals with retail items of food and beverages. The organization was established in 2013. The total number of employees of the organization is around 24. The organization follows a simple structure of hierarchy. The chairperson, who is further followed by different levels of managers, occupies the top-level position. The different levels of managers include operational, financial, marketing and human resource managers. Among the rest 18 employees, 16 employees are sales executives and remaining two are office executives.
The major mission and vision of the organization Retailers Private Limited is to gain a level of competitive advantage and surpass its local competitors. Since, it is a small-scale business organization; therefore, its primary objective is to maximize its margin of sales and its profit more than its existing competitors do. This will further ensure the sustainability of the respective organization. Ensuring the respective sustainability is the long-term goal of the organization Retailers Private Limited. The strength and weakness of the organization can be analyzed with the help of strategic tools of management (Gronum et al. 2012).
The major strength of the organization lies in its quality of products and its respective pricing strategy. The organization has kept pricing strategy lower than its respective competitors in the market have. In addition to this, the organization is presently having a loyal base of customers who are repeatedly buying their products due to effective mode of customer service.
However, it can be also deduced that the respective organization has several amount of weaknesses. The organization Retailers Private Limited cannot carry a large-scale business due to lower amount of sources. In addition to this, it can be also deduced that the turnover of employees of the organization is also on the higher side. Therefore, it is very difficult for the organization to increase their total amount of human resources in an effective manner. The expansion of the organization cannot also take place due to ineffective amount of financial and capital resources of the respective management of Retailers Private Limited. The organization also lacks in terms of operational resources like implementation of software like E-CRM, etc. In addition to this, the organization also faces several external threats on behalf of technology up gradation. The economy of United Kingdom also plays an effective part over the performance of the organization (Cowling et al. 2012).
The competitive performance of the organization Retailers Private Limited can be analyzed with its existing retail competitors of the market. It can be deduced that the sales figures of the organization in its last financial year were only 50,000 pounds. On the other hand, its nearby retail competitor has engrossed a total sale amount of 100,000 pounds. This further infers that the sales figure of its major competitor is almost the double of the respective organization. In addition to this, the organization Retailers Private Limited has only 24 employees, while it’s nearly competitor Honors Retailers have employee strength of 40 employees. In addition to this, it can be also deduced that the liquidity ratio of the organization is 1:2. The industry average is around 1:1. This further suggests that the organization lacks in terms of liquidity. Retailers Private Limited has failed to meet u with their short-term and long-term debt obligations. This is the reason why, their current liabilities is higher than its assets. The profitability ratios of the organization Retailers Private Limited is also on the lower side. This is mainly because, the sales figures of the organization is low. This further infers that the labor efficiency and human resource efficiency of the retail organization is dull. This is a further result low production capability of Retailers Private Limited (Zortea-Johnston et al. 2012)
Retailers Private Limited can take more than a few steps to overcome their weaknesses in terms of its competitors. The organization has to opt for short-term sources of finance to increase its financial capabilities or financial resources. This will further help the organization to improve their liquidity ratios by meeting their short term and long-term debts of the organization. Apart from this, the management of the organization needs incorporate a proper structure and culture to improve the efficiency and productivity of the respective organization. In addition to this, it can be also inferred that the organization has to formulate several strategies to increase their sales and profit margin of the organization. In addition to this, the organization may also have to increase their product range and their total number of employees in an effective manner. In addition to this, it can be deduced that the organization can produce more units of their respective products at low costs. This will further increase the sales figures of the organization. Apart from this, the organization also requires to cut down their operational costs to increase their profit margin. The retailer Retailers Private Limited is required to work on their strengths to overcome their weakness in an effective manner. They can also diversify their products into the segment of non-food retail items like clothing and accessories (Ackermann, & Audretsch, 2013).
The organization Retailers Private Limited is required to maintain their existing performance in an effective manner. The organization is required to implement all the modern form of operational systems within their internal business environment. However, before that, the organization is required to procure financial funds for their expansion in an effective manner. In addition to this, it can be also deduced that the organization Retailers Private Limited is required to have a long-term business goals in terms of their profits and sales figures. This can only be done if it opts for expansion and diversification of its business. With limited number of resources, it will be an uphill task for the organization Retailers Private Limited to opt for expansion with a limited amount of resources. This can only be done if the organization works on their strengths and improve the quality of their respective products. In addition to this, the organization also requires to implement effective operational resources like E-CRM to satisfy the needs and demands of the respective customers. The organization also requires attaining core competency and competitive advantage more than its competitors possess. In addition to this, it can be deduced that the organization can also take effective feedback from the customers to improve their performance in an effective manner. In addition to this, the organization Retailers Private Limited can increase their product width in order to maximize the present strengths in an effective manner.
There are more than a few areas of expansion that the organization Retailers Private Limited can cater to increase their strengths in an effective manner. This can be in the form of product width and product range expansion in an effective manner. In addition to this, it can be also deduced that it can be deduced that if the organization increases its product width by catering into the new segment in the non-food retail items, then they can easily cater a wide segment of consumers and it can expand in a big manner. In addition to this, it can be deduced that the organization Retailers Private Limited may expand its total among of financial and operational resources. This will further improve the current ratio and quick ratio of the organization. The organization can also improve its sales figures and profitability ratios by cutting down the total amount of variable costs in an effective manner (Torri, 2012).The organization can also work on its brand image and brand equity in the local competitive market. Due to this reason, it is of great essence of the organization to outperform its competitors in the market. There is a huge scope for the organization Retailers Private Limited to maximize its total number of employees by expanding its stores in some other different locality. In addition to this, Retailers Private Limited needs to divide its short term and long term mission and measure their respective variances. In addition to this, the organization can also improve its supply chain and inbound logistics activities. This will further help them to deliver a better service to their customers in an effective manner. In this way, it can be opined that that the organization has a huge scope of expansion to compete with its local competitors.
Retailers Private Limited has several plans and objectives. This can be further divided into short term and long term objectives and goals. The overall list and objectives of the organization can be further evaluated with the assessment of the following table:-
|
1. Maximizing the total amount of revenue by 20 percent from the last financial year 2. To maximize the amount of financial and operating resources 3. To expand its branches in other different cities of United Kingdom 4. To recruit more people as sales executives 5. To diversify their business into non-food retail items effectively |
Table 1: Total number of objectives and goals of the organization Retailers Private Limited
These are the primary objectives of the organization Retailers Private Limited that will further help the organization to surpass its local competitors. However, there are more than a few secondary objectives of the respective retail organization Retailers Private Limited. The secondary objectives and mission of the organization include improved of inbound logistics, supply and production management and redesigning its organization structure and organization culture. On the other hand, it is also important for the business organization to give a proper and effective service to the prospective customers. This can only be done if the organization can achieve its given objectives in an effective manner. In addition to this, the management of the organization Retailers Private Limited has redesigned its given objectives on the basis of the needs and requirements of the market (Stewart and Hitt, 2012).
There are more than a few objectives that the organization Retailers Private Limited has failed to attain in their short and long-run of operations. Apart from this, it can be further deduced that there are several objectives which the organization has also successfully achieved. This can be evaluated with the help of the following table:-
|
List of the given objectives |
Successful/ Failed to achieve |
|
Maximizing the total amount of revenue by 20 percent from the last financial year |
No |
|
To maximize the amount of financial and operating resources |
Yes |
|
To expand its branches in other different cities of United Kingdom |
No |
|
To recruit more people as sales executives |
No |
|
. To diversify their business into non-food retail items effectively |
Yes |
Table 2: Variances of the given objectives and goals of the organization Retailers Private Limited
It can be inferred that there are more than a few objectives that the organization Retailers Private Limited has failed to achieve. Therefore, the organization has to revise their plans to minimize the total number of variances of their given list of objectives (Rauch et al. 2005). It can be further inferred that the organization has to improve its production and operational efficiency in order to maximize the total production and selling units of the organization. It is deduced that if Retailers Private Limited is successful in maximizing its production and operational units, then they can effectively increase their total amount of sales. If the organization can improve its financial resources, then, they can utilize the total amount in the promotional activities. If the organization can carry out its activities based on effective word of mouth marketing, then its customer base will automatically increase. In addition to this, it can be also deduced that if the total amount of revenue and total amount of customer base increases, then the organization Retailers Private Limited can easily expand its brands effectively. In addition to this, the hierarchical structure of the organization is also required to be improved with the existing work culture of the management (Zhang, 2012).
The organization Retailers Private Limited is required to implement a proper an effectively action plan to redesign the changes within the organization. The given action plan for the organization is required to be SMART. This further suggests that the organization needs to have a specific plan in terms of increase of sales and customer base. This can be done with effective customer service and increase of production efficiency of the organization. The organization can measure the change of the given changes. In addition to this, it can be also deduced that the given action plan for Retailers Private Limited is achievable in comparison with its respective competitors of the market. This is also realistic in terms of local market competitors of retail market of United Kingdom (Stokes and Wilson, 2010). The total time period of the given objective of the organization can be estimated as 18 months. The given objective of the action plan for Retailers Private Limited can be effectively managed and implemented with full utilization of total amount of resources. If the resources can be utilized and procured, then expansion and promotion activities can be carried out by the small-scale organization. This can be further implemented with the below project management plan:-
|
Total Activities |
1-3 months |
3-5 months |
5-8 months |
8-15 months |
15-18 months |
|
Total allocation of resources and planning and coordinating of the organization |
|
||||
|
Expansion of products and branches |
|
||||
|
Extensive promotion of the products |
|
||||
|
Carrying out the operational activities to increase sales and customer base of the organization |
|
||||
|
Measurement and monitoring of the variances of the given objectives |
|
Table 3: Time table of the respective action plan of the organization
The above discussed changes will have an extremely positive effect on the small-scale firm Retailers Private Limited. In addition to this, if the total amount of financial and operational resources of the organization increases in a respective manner, then, the firm can utilize those resources in their promotional activities in an effective manner. In addition to this, it can be also deduced that if the total amount of promotional activities increases, then the sales figures and customer base will automatically improve effectively. Apart from this, it can be inferred that the organizational structure and culture of the organization will automatically improve. The firm Retailers Private Limited will also surpass its local competitor retailers by attaining a level of competitive advantage effectively. This will further enhance the brand equity of Retailers Private Limited (Bridge & O’Neill, 2012).
The process of change management is of great essence for Retailers Private Limited. This is mainly because, if the top-level management of the organization could not mange the respective changes, then, they cannot sustain in the long-run. In addition to this, it can be also inferred that that organization Retailers Private Limited needs to communicate with all the stakeholders of the organization to manage the respective changes. If they can use effective communication tools, then they can effectively manage the process of change management in comparison to its current local competitors. An effective change management model is required to be implementing by the respective organization. This can be through the process of unfreeze-change-refreeze. This can be further infers that if the organization can easily unfreeze the previous changes and implements the respective changes in an effective manner, then the change management process can be effectively managed by the management of Retailers Private Limited. This can be further inferred that proper internal and external communication tools in their internal and external business environment. In addition to this, it can be also deduced that there are several activities of the organization that can go wrong. For this reason, it is important for the respective business organization Retailers Private Limited to have a contingency plan to minimize the risk variances of the action plans of the objectives of the research. For example, if the sales of the organization do not go up by the respective percentage, then, the organization needs to keep a secondary plan to increase the sales or cost cutting of the various operational activities. The given contingency plan of the organization will further help the management of Retailers Private Limited to manage the overall variances of the change management system. This will further improve the sustainability of the small-scale retail firm (Quinn et al. 2013)
There are more than a few monitoring tools to monitor the respective business organization. These can be further inferred that these monitoring tools are in the form of financial statement analysis, primary data collection from the customers, management by objectives and comparison with the respective competitors. This will further help the organization to identify their respective variances in their internal and external activities of their respective organizations. The given tools of performance monitoring can further help the organization to take proper steps in order to minimize the variances in an effective manner (Kotler and Armstrong, 2006).
As a business consultant, the learner has redesigned the structure and operating activities of the small-scale firm Retailers Private Limited. The given action plan will be of great essence for the sustainability of the organization. This plan also has a contingency plan that will help the organization to minimize the different types of market and business risks. With the help of this, the small-scale firm Retailers Private Limited will effectively achieve their given strategic business goals.
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