A Study On The Financial Performance Of Big Bazaar

Organization StudyAt

BIG BAZAAR MALLESWARAM BANGALORE

Submitted in Partial Fulfilment of the Requirements ofBangalore University for the Award of the Degree ofMASTER OF BUSINESS ADMINISTRATION

By

BIPROJIT DEYREG No: 13SKCMA161

Under the Guidance ofProf. VENKATRAMAN SUBRAMANIAN

EMPOWERING MINDS

AIMS(ACHARYA INSTITUTE OF MANAGEMENT AND SCIENCES)Peenya, Bangalore

2013 - 2015DECLARATION

I, BIPROJIT DEY, hereby declare that this Organisation Study Report titled A Study On The Financial Performance Of Big Bazaar is based on the original study conducted by me under the guidance of Prof. Venkatraman Subramanian.

This report has not been submitted earlier for the award of any other degree / diploma by Bangalore University or any other University.

Place: Bangalore Date: BIPROJIT DEY

CERTIFICATE

Certified that this organization Study Report titled A STUDY ON THE FINANCIAL PERFORMANCE OF BIG BAZAAR based on an original study conducted by BIPROJIT DEY of IIIrd Semester MBA under the guidance of Prof. VENKATRAMAN SUBRAMANIAN Professor MBA department.

This report is based on the original study undergone and has not formed the basis for the award of any other degree/diploma by Bangalore University or any other University.

Prof. Venkatraman Subramanian Dr. Kerron G ReddyProfessor MBA department CEO and PrincipalPlace: Bangalore Place: Bangalore Date: Date:Acknowledgement

An undertaking of work life - this is never an outcome of a single person; rather it bears the imprints of a number of people who directly or indirectly helped me in completing the present study. I would be failing in my duties if I don't say a word of thanks to all those who made my training period educative and pleasurable one. I am thankful to Big Bazaar, Malleshwaram for giving me an opportunity to do the internship in the company.

First of all, I am extremely grateful to Mr. Tarun Saha (Store Karta) for his guidance, encouragement and tutelage during the course of the internship despite his extremely busy schedule. My very special thanks to him for giving me the opportunity to do this project and for his support throughout as a mentor.

I must also thank my faculty guide Prof. Venkatraman Subramanian (Faculty, Acharya Institute of Management & Sciences) for his continuous support, mellow criticism and able directional guidance during the project.

I would also like to thank all the respondents for giving their precious time and relevant information and experience, I required, without which the Project would have been incomplete.

Finally I would like to thank all lecturers, friends and my family for their kind support and to all who have directly or indirectly helped me in preparing this project report. And at last I am thankful to all divine light and my parents, who kept my motivation and zest for knowledge always high through the tides of time.

Biprojit DeyDate:CHAPTER CONTENTS Page No.

CHAPTER 11.1 Introduction1.2 Industry Profile1.3 Company profile1.4 Products Profile1.5 Competitors Profile18213334

CHAPTER 2Organization Structure36

CHAPTER 3Functional Departments3.1 Human Resource Dpmt3.2 Customer Service Desk3.3 Administration

3.4 Logistics

3.5 Marketing Department

3.6 Sales Department39404041424343

CHATPER 4Ethical / Best Policies / Policies in the organisation45

CHAPTER 5SWOT Analysis48

CHAPTER 6McKinsay 7 Model Discussion51

CHAPTER 7Research Problem Study57

CHAPTER 8Findings, Suggestions & Conclusion70

CHAPTER 9Bibliography & Annexure74

Contents :

LIST OF FIGURES/CHARTS

SERIAL NO.FIGURES/ CHARTS NAME

Fig. 1Various Retail formats across value & lifestyle Segments

Fig. 2Future Group

Fig. 33B Model of Management

Fig. 4Formats of Retailing

Fig. 5Strategy used in Big Bazaar

Fig. 6Product Mix

Fig. 7Organization Structurei ) Zonalii) Big Bazaar

Fig. 8Functional Departments

Fig. 9Administrative Department

Fig. 10Core Values

Fig. 11Quality Policy

Fig. 12SWOT Analysis

Fig.13McKinsay Elements

Fig.14McKinsay 7s Model

Fig.15Organization Structure

Fig. 16Current Ratio, Liquid Ratio, Gross Profit Ratio, Net profit Ratio, Proprietors Fund, Earnings Per Share, Stock Velocity Ratio, Inventory Turnover Ratio, Interest Coverage Ratio, Degree of Operating Leverage, Fixed Asset

LIST OF TABLES

SERIAL NO.TABLE NAME

Tab. 1Future Group In Brief

Tab. 2Founder Board

Tab. 3Company Profile of Big Bazaar

Chapter 1

1.1 INTRODUCTION

Future Group understands the soul of Indian consumers. As one of Indias retail pioneers with multiple retail formats, Future Group connects a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering. Around 300 million customers walk into the stores each year and choose products and services supplied by Future Group's 30,000 small, medium and large entrepreneurs and manufacturers from across India. And this number is set to grow.Future Group employs 30,000 people directly from every section of our society. They source their supplies from enterprises across the country, creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth.Future Group believe in the Indian dream and have aligned our business practices to their larger objective of being a premier catalyst in Indias consumption-led growth story. Working towards this end, Future Group are ushering positive socio-economic changes in communities to help the Indian dream fly high and theSone Ki Chidiyasoar once again. This approach remains embedded in Future Group's ethos even as they rapidly expand their footprints deeper into India.Future Group makes every effort to delight its customers, tailoring store formats to changing Indian lifestyles and adapting products and services to their desires. Future Group operate some of Indias most popular retail formats. Across value and lifestyle segments, Future Group's multi-format retail strategy caters to the complete consumption needs of a wide cross-section of Indian consumers.

As modern retail drives fresh demand and consumption in new categories, Future Group's strategy is based on a deep understanding of Indian consumers, the products they want, and making these products available in every city, in every store format.

DIGITALConnecting the Youth of India

LIFESTYLEStyle for Every Occasion

HOMEBuilding Dreams in a New IndiaVALUEHelping India Save

FIG. 1: Various Retail FormatsFuture Group offers innovative offerings at affordable prices tailored to the needs of every Indian household. Pioneers in the Indias retail space, Future Group's formats are household names in more than 93 cities and 60 rural locations across the country Future Group's stores cover around 17 million square feet of retail space and attract around 300 million customers each year Pantaloon Retail (India) Limited focuses on the lifestyle retail segment led by the PantaloonsandCentralformats Future Value Retail focuses on the value retail segment through theBig Bazaar,Food BazaarandKBs Fair priceformats.

BRANDS KNOWLEDGE SERVICES RETAIL SHOPPING MALLS E-TAILING

FUTURE GROUP

LEISURE CAPITAL & ENTERTAINMENT

CONSUMER FINANCEINSURANCE

LEARNING & DEVELOPMENTMEDIAVENTURES LOGISTICS

Type Private

IndustryRetail

Founder(s)Mr.Kishore Biyani(MD & CEO)

HeadquartersMumbai,Maharashtra, India

ProductsDiscount,groceryandconvenience stores,cash and carry,hypermarkets, financial services

Employees35,000

DivisionsPantaloon Retail, Future Value Retail Limited

Websiteswww.futuregroup.inwww.futurebazaar.com

Tab. 1 : Future Group in Brief

Tab. 2 : Founder Board

Kishore Biyani

Group CEO, Future Group

Rakesh Biyani

Director, Future Group

Vijay BiyaniDirector, Future Group

Anil BiyaniDirector, Future Group

Sunil BiyaniDirector, Future Group

Fig. 2 : Future Group

Fig. 3 : 3B Model of Management

1.1.2 VISION

Future Group shall deliver everything, everywhere & every time for every customer in the most profitable manner

1.1.3 MISSION

We share the vision & believe that our customers & stakeholders shall be served only by creating & executing the future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving: delivery formats Creating retail reality. Making consumption affordable for all customer segments for classes & for masses. We shall infuse Indian brands with confidence & renewed ambition. We shall be: Efficient Cost conscious Committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility & united determination shall be the driving force to make us successful.

1.2 INDUSTRY PROFILEThe contracting global economy, advances in technology, a proliferationin the number of shopping channels, and an increasingly well-informed and mobile consumer base are altering the means, modes, and manner in which consumers shop.1.2.1 HISTORIES AND EVOLUTION OF RETAIL INDUSTRY:India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favourable demographic patterns.It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 22.5 billion by 2015 from the current size of US$ 18.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behaviour and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centres, and sprawling complexes which offer food, shopping, and entertainment all under the same roof.India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2015, India may have 600 new shopping centres.In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items.India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort.

1.2.2 RETAIL IN INDIA: HISTORICAL PERSPECTIVERetailing provides a crucial link between producers and consumers in a modern market economy. The performance of this sector has a strong influence on consumer welfare. Retailers not only provide consumers with a wide variety of products, but also a wide range of complementary services (such as assurance of product delivery), which can lead to more informed choice and greater convenience in shopping. They also provide producers with much needed information on consumers demand pattern. Productivity and efficiency in retail operations lowers price level and reduce distortions in the price structure. Through backward and forward linkage, performance of retailing services affects the performance of interlinked sectors such as tourism, recreational and cultural services, manufacturing of consumers goods agro-good producing industries etc.The present paper is an attempt to explore retailing in India in Historical perspective. Retailing is the largest private industry in India and second largest employer after agriculture. The sector contributes to around 10 per cent of GDP and 6-7 per cent of employment. With over 15 million retail outlets, India has the highest retail outlet density in the world. This sector witnessed significant development in the past 15 years from small-unorganized family-owned retail formats to organized retailing. Liberalization of the economy, rise in per capita income and growing consumerism has encourage larger business houses and manufactures to set up retail formats; real estate companies and venture capitalist are investing in retail infrastructure. Many foreign retailers have also entered the market through different routes such as wholesale cash-and-carry, local manufacturing, franchising, test marketing, etc. With the growth in organized retailing, unorganized retailers are fast changing their business models and implementing new technologies and modern accounting practices to face competition. The retailing sector in India has undergone significant transformation in the past 10 years. Traditionally, Indian retail sector has been characterized by the presence of a large number of small-unorganized retailers. However, in the past decade there has been development of organized retailing, which has encouraged large private sector player to invest in this sector. Many foreign players have also entered India through different routes such as test marketing, franchising, and wholesale cash-and-carry operation. With high GDP growth, increased consumerism and liberalization of the manufacturing sector, India is being portrayed as an attractive destination for foreign direct investment (FDI) in retailing. At present this is one of the few sectors, which has 51% FDI in multi-brand retail sector & 100% FDI in single brand. On one hand farmers will benefit from it but on the other hand small traders feel they will not be able to withstand the competition.In India, the retail sector is the 2nd largest employers after agriculture. In fact due to wide network of retailing in India it is known as nation of shopkeepers. There are about 12 millions retail outlet spread across India and the country has the highest density of shops in the world i.e. one shop for every 20 to 25 families or 11 retail shop for every 1000 persons. While, it is only four shops per 1000 in USA. Retailing in India provides employment to about 7% of total work force in the country and contributes about 14% to GDP of India. However the retailing sector in India is highly fragmented and consists predominantly of small, independent and owner managed shop.The Global Retail Development Index developed by A.T Kearney has ranked India first among the top 30 emerging markets in the world. A look at the landscape of most of the cities in India shows the rapid phase of change. This changes in reflection of the changes in the Indian consumers his lifestyle and his habits. Goldman Sachs has estimated that the Indian economic growth could actually exceed that of China by year 2015. It is believed that the country has the potential to deliver the fast growth over the next 50 years. It took 10 years for the first 2500 organized retail stores to emerge in India; the next 2500 could easily get added in the next 5 years. Formats new to the India market place have emerged rapidly over the past ten years. There is little doubt that retail in India is revelling up for an exciting phase ahead. 1.2.3 EVOLUTION OF RETAIL IN INDIA: The origins of retail are old as trade itself. Barter was the oldest form of trade. For centuries, most merchandise was sold in market place or by peddlers. Medieval markets were dependent on local sources for supplies of perishable food because Journey was far too slow to allow for long distance transportation. However, customer did travel considerable distance for specialty items. The peddler, who provided people with the basic goods and necessities that they could not be self sufficient in, followed one of the earliest forms of retail trade. Even in prehistoric time, the peddler travelled long distances to bring products to locations, which were in short supply. They could be termed as early entrepreneurs who saw the opportunity in serving the needs of the consumers at a profit. Later retailers opened small shops, stocking them with such produce. As towns and cities grew, these retail stores began stocking a mix of convenience merchandise, enabling the formation of high-street bazaars that become the hub retail activity in every city. 1.2.4 TRADITIONAL RETAIL FORMAT IN INDIA:It is important that for centuries now, India has been operating within her unique concept of retailing. Retailing in its initial period was witnessed at the weekly Haats or Gathering in a market place where vendors put on displays their produce. Off course this practice is still prevalent in many towns and cities in India: then the market saw the emergence of the Local banias and his neighbourhood Kirana shop. In fact these were the common local mummy-daddy or multipurpose departmental store located in the residential areas such shops stocked goods and multipurpose utility and were with the vision of providing convenience at the doorstep of the consumer.While barter would be considered to be the oldest form of retail trade, since Independence, retail in India has evolved to support the unique needs of our country, given its size and complexity. Haats, mandis and melas have been a part of India landscape. They will continue to be present in most part of the country and form an essential part of life and trade in various areas.1.2.5 EMERGENCE OF ORGANISED RETAIL IN INDIA:The emergence of first phase of organized retailing in India can be traced back when a shopping centre into existence in the year 1869 with Mumbai Crawford Market. After that, in the year 1874 Hogg market, popularly and better known as new market came into existence in Kolkata. This shopping centre was designed by an East Indian Railways Co. Architect R.R. Banya and was named after the then municipal commissioner of Kolkata, Sir Stuart Hogg. Earlier the Hogg market even had a garden with a beautiful fountain adding to its ambience and benches too for tired shoppers. Today, the New Market continues to be a premier shopping area in Kolkata despite a part of it being incinerated in late 1985. Its redbrick Gothic clock tower today bears testimony to the past Grandeur of this first shopping centre in India. Today from linen to cakes and fruits to fishes everything is available at the New Market Atta reasonable price and this has made the New Market sustain its popularity among the metro customers of Kolkata. The tenant mix of this first shopping centre is unique as it has a large number of 2000 stalls, which are organized in an order of merchandize. There are rows of stalls dealing with one particular line of Goods.A retail researcher by name Christine Furedy in 70s has observed in her article in the capital on 24th Dec. 1979 tracing the emergence of the New Market, thus The most complex retail business of late nineteenth century Kolkata, establishment which were to dominate the modern retail sector, were the departmental stores. Although everyone has closed its doors, many Calcuttians still remember the name or recognize their converted, subdivided building: Francis, Harrison and Hathaway; Hall and Anderson; the Army and Navy stores; white a way; laid low and Co. In their scope and outreach these shops rivalled those to be found in cities of the same size in Britain, Europe or the United States.The second phase of development of organized retailing can be traced back to the year 1931 when Bata shoe Co. took lead in opening its chain stores at various cities & towns. DCM and Raymonds followed it extensively.The earliest seed of the so-called specialty malls can be traced to shopkeepers who stocked goods of the same product category in a particular locality. If one were to go back to the early 80s, it can be said that organized retail, to a great extent was visible in the functioning of stores such as Akbar Ally in Mumbai and Nilgiris and Spencers in Chennai. These stores later evolved into multi-chain outlet and were the first to bring on the onset of organized retail in India.The evolution of PDS (Public Distribution System) of Grains in India having its origin in the rationing system introduced by the British during World War II was example of single largest retail chain in the country the canteen stores Department and the Post Offices in India are also among the largest network of outlets in the country, reaching populations across state boundaries. The Khadi and Village Industries (KVIC) was set during post Independence and today it has more than 7000 stores across the country.While Independence retail stores like Akbar Ally's, Viveks and Nallis have existed in India for a long time, Reliance, Garden Silk Mills, Madhura Garments, Arvind Mills etc. have set up show rooms for retail sale of their branded products.At present India is rapidly evolving in to an existing and Competitive market place with potential target consumers in both the rich and middle class segments. Manufacturer owned and retail chain stores are springing up in urban area to market consumer goods in a style similar to that of mall in more affluent countries. Even though big retail chains like Crossroad, Saga and Shoppers stop are concentrating on the upper segment and selling products at higher prices, some like A.V Birla Retails More, RPGs Spencers, Food World and Big Bazaars are tapping the huge middle class population. During the past two years, there has been tremendous amount of Interest in the Indian retail trade from global majors as well as over the years, International brands like McDonalds, Swarovski, Lacoste, Dominos, Pepsi, Benetton among a host of others have come in and thrived in India.

1.2.6 RETAIL FORMATS IN INDIA:In India, at present, retailing activities are being carried through wide varieties of formats ranging from pheri wala in streets to Modernized Malls in Metro cities. However from study point of view these formats can easily classified into following three Groups.

Fig. 4 : Formats of Retailing

A) TRADITIONAL FORMATS :1. ITINERANT SALESMAN : It is a type of direct selling, which stated centuries ago. It is an example of door-to-door office-to-office delivery or marketing. Morning milk man and sabji wala are the most famous examples of this category. This type of format has been very popular throughout India in coping with daily needs. In rural areas this sales man use cycles, for carrying their stock for display of Goods. 2. HAATS : Haats are the unique examples of traditional malls in India. Just like Malls, different sellers sells different types of items along with the sale of vegetables, fruits, sweets, chart etc. Some entertainment arrangements are also made in available in these haats. There was tendency in rural as well as semi-urban area in India for visiting these haats with family members as a part of picnic cum purchasing programs. In fact Haats are periodic markets (generally organized once in week or fortnight at a particular place & time) that form a major part of the rural market system in India. In other words the term Haats refers to locations, which witness a public gathering of buyers and sellers at fixed time, and fixed locations. On account of organization of these haats these are called with the name of a particular day also such as Mangal Bazaar, Budh Bazaar etc. According to one estimate about 42,000 haats are organized in our country.3. MELAS : Melas are fairs & they can range from commodities fairs to religious fairs. Virtually every state in India has meals for which it is known. It is estimated that more than 2500 melas are held annually in the country. It is also estimated that the average outlets in every Mela would be more than 800 & the average sale per mela would be Rs. 143 lakhs. Nauchandi is an example of important annual mela in Meerut, at many places such as Gwalior, Aligarh, Bulendshahr annual exhibitions are organized. At government level, a number of fairs such as book fair, trade fair and specific commodity fair are organized by Trade Fair Authority of India. 4. MANDIS : Mandis are markets set up & regulated by state government for the sale of agricultural produce directly from farmers. At present the number of such markets stand at 7521. These mandis are playing significant role in providing better prices to farmers. B) ESTABLISHED FORMATS :1. KIOSKS : A kiosk is a small freestanding pavilion or stall often open on one or more sides and used for information sales and promotion. Generally a kiosks is placed in a shopping centre, a bus stand or near by the prospective customers.2. KIRANA SHOP & INDEPENDENT STORES : This is one of the important & popular established formats of retailing in India. These shops are usually shops with a very small area, stocking a limited range of products, varying from region to region according to the need of the clientele or the whims of the owners.These are low cost structures mostly owner operated, have reliable real estate & labours cost. Consumer familiarity that runs from generation to generation is one big advantage enjoyed by such Kirana Shops.It is worth mentioning that India retail sector has traditionally been structured around 3 small retail entities the grocer, the general store and the chemist. The grocer stocks non-packaged, unbranded/Generic commodities such as rice, floor, pulses, spices, salt etc. for sale. The Grocery Stores or Kirana shops located in neighbour-hood centres also sale branded & packaged fast moving consumer goods.The General store stocks only branded & packaged FMCGs. These are generally located prominently in the neighbourhood centre & residential areas. Chemists are a part of dispensing pharmaceutical. Products, sales branded FMCGs such as personal Carrier Products & health food. Alongside the three retail outfit, exist a large segment of smaller, unorganized players - paan, beedi stores which stock products in sachets, batteries, confectionary & soaps, bakery & confectioners, fruit juice/tea salts, ice-cream parlour, electrical, furniture & hardware stores.Kirana shops & independent small stores provide a wide variety of facilities to their customers, such as telephone order credit facilities, home delivery, customization on account of offerings & packaging & specific products produced on order in case of stock out. More importantly theyre available next door to offer personalized service. In this way their able to develop a strong relationship with their customer, who over a period of time, become extremely loyal.3. SUPER MARKETS/HYPER MARKETS : These are large (90,000 square feet plus) self-service stores selling a variety of products at discounted price. The best practice chains in this format are Carrefour (France) Wal-Mart (US). Supermarkets tend to be located in key residential markets and malls and offer competitive prices due to economics of scale in logistics and purchasing. The format is new to India and some important players in this field are Food World, Big Bazaar. Indian Super Market are smaller than others countries.4. DEPARTMENTAL STORES : These large stores primarily sell non-food items such as apparel, footwear household products. They stock multiple brands across product categories, though some of them focus as their own store labels. Departmental stores are found on high streets and as anchor shops of shopping malls. Some department stores chains are opened in India e.g. Shoppers stop, Westside and Ebony.5. SPECIALTY CHAINS : These outlets focus on a particular brand as product category, usually non-food items and are located on high streets and in shopping malls. The most famous specialty chains include Gap, Levis and Benetton.6. DISCOUNT STORE : It is a general merchandise retailer that offers a wide variety of merchandises limited service and low prices. Subhiksha and Margin free markets are operating in this format in India.7. WHOLESALE CASH AND CARRY : The wholesale cash and carry operation is defined as any trading outlets where goods are sold at the wholesale rate for retailers and business to buy. The transactions are only for the business purpose and not for personal consumption. Metro, cash and carry, Gmbh of Germany entered the India in this format.8. CONVENIENCE STORE : It is a retail business of less than 5,000 square feet with primary emphasis on providing the public a convenient location to quickly purchase an assortment of food, gasoline and other consumable products. They are usually open seven days a week for extended hours

C) CO-OPERATIVE SHOPS/GOVT. ORGANISATION :Cooperative stores in India are the result of the cooperative movement that can be traced to the Pre-independence period. They emerged as a reaction to the feudal system & attempted to place the fruit of labour in the hands of the producer himself to make him relevant. The Cooperative movement was strengthened after independent in Western India?A consumer cooperative is a retail institution owned by member customers. A consumer cooperative is generally formed either because of dissatisfied consumers who's needs are not fulfilled by the existing retailers or on account of initiative by enlightened consumer. D) MOTHER DAIRY, DELHI & FRUIT & VEGETABLE PROJECT, DELHI :Mother Dairy, Delhi & the fruit & vegetable project Delhi, set up by the National Dairy Development Board in 1974, 1986, respectively, were merged to form Mother Dairy Fruit & Vegetable Limited in April 2000.The new Company, a wholly owned subsidiary of NDDB, is involved in marketing & distribution of milk, milk products & horticulture produce. The companies dairy plant handles more than 1.3 million litres of milk daily & undertakes its marketing operations through 636 own milk shops & more than 6500 retail outlets in and around Delhi. Ice-creams market The company market horticulture produce in fresh, frozen & processed from under the brand named 'SAFAL' through a chain of 263 own fruit & vegetable shops & more than 20000 retail outlets in various parts of the country. Fresh produce from the producers is handled at the Companies modern processing facility in Delhi with an annual capacity of 120000 MT.A state of the art fruit processing plant, a 100% EOU, set up in 1996 at Mumbai, supplies quality products in the international market. The Companies unique distribution network of bulk vending booths, retail outlets & mobile units gives it a significant competitive advantage.It is worth mentioning that the consumer cooperative structure in the country has 4 tiers, with the National Cooperative Consumer Federation of India Ltd. (NCCF) at the national level. Thirty State Cooperative Consumers Organization are affiliated to the NCCF, the central/wholesale level there are 800 consumer cooperative stores. At the primary level, there are 21,903 primary stores. In the rural area there are about 44,418 village level Primary Agricultural Credit Societies & Marketing Societies undertaking the distribution of consumer goods along with their normal business. In the urban & semi-urban areas, the consumer cooperative societies are operating about 37,226 retail outlets to meet the requirement of the consumers.Established formats of retailing in India also include certain retail organizations initiated & promoted by Govt. They include Canteen stores, department, CCIE, KVIC and various cottage & Handicraft Emporium. The canteen store department has opened Canteen for Army persons & Govt. employees providing consumer goods at constitutional prices. It has about 3400 outlets throughout the country. E) PDS/FAIR PRICE SHOP :The PDS or Public Distribution System would easily emerge as the single largest retail chain existing in the country. The evolution of PDS of Grains in India has its origin in the rationing system introduce by the British during World War II. The system was started in 1939 in Bombay & Subsequently extended to other cities and towns. By the year 1946, as many as 771 cities/towns were covered. The system was abolished post war, however, on at attaining Independence India was forced to reintroduce it in 1950 in the face of renewed inflationary pressures in the economy.The system, however, continued to remain an essentially urban oriented activity. In fact, towards the end of the First 5-year plan (1956) the system was closing its relevance due to comfortable food grains availability. At this point in time, PDS was reintroduced and other essential commodities like sugar, cooking coal & kerosene oil were added to the commodity basket of PDS. There was also a rapid increase in the Ration shop and their number went up from 18000 in 1957 to 51000 in 1961. Thus, by the end of the second 5 year Plan, PDS had changed from the typical rationing system to a social safety system, making available food grains at a 'fair-price' so that access of household to food grain could be improved & such distribution could keep a check on the speculative tendencies in the market. The PDS has been functioning for more than 4 decades now and its greatest achievement lies in preventing famines in India. F) CONVENIENCE SHOPS :These shops are relatively small shops that are located near residential areas, are open for long house & 7 days a week and offer a limited line of convenience products like beverages, ready to eat snack (Pastry, Sandwiches) bread, eggs, milk, confectionary etc. These shops have been quite common throughout the country. G) SPECIALTY SHOPS :A Specialty shop is a retail shop displaying merchandise, which has narrow product line, specializing in a particular type of merchandise & offering, specialized service to customers. Generally these shops concentrate on a specific item such as Appeal, Jewellery, Fabric, Sporting Goods, and Furniture etc. Specialty shop can be sub classified by the degree of narrowness in their product line. E.g. a clothing stock would be a single line shop, a mens clothing shop would be limited time shop & a mens shirt store would be a super specialty shop. Such shop have always played significant role in relating of consumer durables throughout the country but particularly in urban & sub-urban areas.1.2.7 RURAL MALLS HAVE MADE A BEGINNING:Rural retailing is an important segment of the retail industry and it is only lately that companies are making investments in this area. ITC launched Chaupal Sagar, the first rural mall, with a variety of products and offering farmers tools to adapt to new technologies and methods of farming and selling their produce. The DCM Sriram Group has opened a Hariyali Bazaar, offering farm-related services and plans to increase their product line to a full-fledged grocery store. Godrej Group has opened Adhaar, a one-stop shop for farmers, focusing on farm related products. Escorts and Tata Chemicals are also in the process of setting up agri-stores targeting the rural market1.2.8 HYPERMARKETS:In commerce, a hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine shopping needs in one trip.It is often a very large establishment; hypermarkets offer a large variety of products such as appliances, clothing and groceries.The hypermarket appeared first in France at the beginning of the sixties as a synthesis of the main features of modern retailing. But in France, the decline of this retail format seems to have begun and Spain could follow quickly. In the same time, the German hard-discounters continue their invasion. According to the retail life cycle theory, this paper displays curves to demonstrate the evolution of this retail concept in France, Spain and Italy and tries to evoke some managerial and strategic issues. The retail wheel seems to go on turning!1.2.9 HISTORY OF HYPERMARKET:At the end of the 1950's and at the beginning of the 1960's, many French retailers came to United States to listen to Bernardo Trujillo, director of the International Management Systems Seminars. One of his arguments during his seminars on modern retailing was: No parking, no business. Most of these French retailers came back to France very enthusiastic. A new concept then was launched in the French market: the hypermarket.The hypermarket was defined as a retail concept with a floor space over 2,500 m2. Every kind of products was supposed to be sold through self-service techniques even though there are today exceptions. Despite several bank support refusals, the families Fournier, Badin, and Defforey, native from Switzerland, decided to open the first hypermarket. It was in the Southern Paris in 1963 under the name Carrefour. Its size was exactly 2,500 m2. This first hypermarket was immediately a big success.Ten years after, there were more than 250 hypermarkets in France. Today, there are more than 1,300 hypermarkets in this country. And the group Carrefour, composed of several chains, is now the second world largest retailer after Wal-Mart. This public company has more than 10,000 stores in the world today located in more than 30 countries. Carrefour began its internationalization process very early in the 1970's. The group is present of course in Europe but also in South and Central America, and in North Africa. In Asia, Carrefour is very successful in China and Thailand but not in Japan where they located only four hypermarkets at this time.

BIG BAZAAR

TypePublic

IndustryRetailing

Founded2001

HeadquartersMumbai,Maharashtra,India

ProductsHypermarket

Revenue11500crores(US$1.8billion) crores (in 2014) (Big Bazaar and Food Bazaar combined)

Employees36000 people

ParentFuture Group

Divisions214

Websitehttp://www.pantaloonretail.in/businesses/big-bazaar.html

1.3 COMPANY PROFILE

Tab. 3 : Company Profile of Big BazaarBig Bazaaris the largesthypermarketchain in India.As of June 2, 2014 there are 214 stores across 90 cities and towns in India covering around 16 million m2 of retail space. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.Big Bazaar stores are aimed at providing a local marketplace feel to the shoppers. They offer a wide variety of household items including retail apparels, food products, general merchandise, furniture, electronics, books, fast food, etc. Several stores also have leisure and entertainment sections. The hypermarket chain crossed the 100 store mark in 2008.

Future Bazaar is an online business venture of Future Group, which sells an assortment of products such as fashion, which includes merchandise for men and women, mobile accessories, mobile handsets and electronics like home theatres, video cameras, digital camera, LCD TVs, kitchen appliances and many more.

Discounts: Hafte ka sabse sasta din was introduced by the Big Bazaar, wherein extra and special discounts were offered on Wednesday every week, to attract the potential buyers into their store. Security check: At each exit of Big Bazaar, they use alarm systems or Electronic Article Surveillance system, which detects the products that has attached tags or not.

FUTURE GROUP ALSO OWNS

Central Hypermarket

Brand Factory

Pantaloons

e - ZONE

Hometown

futurebazaar.com

KB's Fair Price

.

1.3.1 HISTORY2001 to 2010 Big Bazaar was introduced by the Future Group in September 2001 with the opening of its first four stores in Kolkata, Indore, Bangalore and Hyderabad within a period of 22 days.Started byKishore Biyani, Big Bazaar was launched mainly as a fashion format selling apparel, cosmetics, accessories and general merchandise. Over the years, the retail chain has included in its portfolio a wide range of products and services, ranging from grocery to electronics.The current retail formats of the Future Group include Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar. According to Kishore Biyani, the inspiration behind this entire retail format was from Saravana Stores, a local store in T. Nagar, Chennai. Big Bazaar is popularly known as the Indian Wal-Mart today.In the second year of operations, Big Bazaar tied up with Indian banking giant ICICI Bank and launched the Big Bazaar ICICI Bank Card. In the same year, the first Food Bazaar store was also launched at High Street Phoenix mall in Mumbai, marking the retailers entry into dedicated food retail.In 2003, Big Bazaar made its foray into small towns and cities. The first store in this category was launched that year in Nagpur. The franchise also welcomed its 10 millionth customer at its new store in Gurgaon in the same year.Over the next two years, Big Bazaar consolidated its position in the Indian retail landscape. This phase of growth included the setting up of the Mumbai store in Lower Parel, which registered a record Rs 10 million turnover in a single day on Diwali-eve in 2004. In 2005, the first Big Bazaar Exchange Offer was launched, which has quickly gained popularity among customers.In 2006, further changes in loyalty marketing took place with the launch of the housewife-centric credit card, Shakti. Jewellery store Navaras was also launched that year within Big Bazaar stores which became the first store-in-store concept to be launched by the brand. Another dedicated retail format launched in 2006 is Furniture Bazaar.In 2007, Big Bazaar partnered with a shopping portal Futurebazaar.com and expanded its retail footprint to 50 stores.The following year, 2008, witnessed by far the fastest growth in terms of retail expansion for Big Bazaar, with the launch of the 101st store. Joining the league of Indias Super brands and voted among the top ten service brands in the country by the Pitch-IMRB international survey, Big Bazaar became much more than a household name. The year also saw the launch of the Monthly Bachat Bazaar (Monthly Budget Market) campaign, which provided significantly low prices and gave discounts on bulk purchases in the first week of the month.Over the next two years, Big Bazaar carved its own niche in modern retail and became the largest brand in the hypermarket format. Capturing one-third of the food and grocery market in modern retail, celebrity endorsements and tie-ups with other brands allowed it to enhance its retail footprint. In 2009, Big Bazaar won the CNBC Awaaz Consumer Awards for the third consecutive year. It was adjudged the Most Preferred Multi Brand Food & Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop.2010 to presentOn successful completion of 10 years in the Indian retail industry, in 2011, Big Bazaar came up a new logo with a new tag line: "Naye India Ka Bazaar. In 2012, Big Bazaar signed a multi-million dollar deal with Cognizant Technology Solutions for the development of an IT infrastructure, encompassing Future Groups entire network of stores, warehousing and data centers.Recently, Big Bazaar announced its plans to add more retail services to its portfolio such as grinding, de-seeding and cutting of fruits and vegetables.

1.3.2 OPERATIONS

Various formats and store conceptMost Big Bazaar outlets are multi-leveled stores and are located in stand-alone buildings in city centers as well as within shopping malls. These stores have more than 2,00,000 Stock Keeping Units (SKU) in a wide range of categories, led primarily by fashion and food products. The retail space of these stores in the metros range between 50,000 and 1,60,000 sq. ft. Since its launch in 2001 in metro cities like Kolkata, Bangalore and Hyderabad, Big Bazaar is the largest Hypermarket chain with presence in 90 cities and towns across the country

1.3.3 CSR ACTIVITIESAs a part of Future Group, Big Bazaar is involved in various social activities that include green initiatives for the community, blood donation camps, Diwali celebrations with orphanages, visits to orphanages and other NGOs helping underprivileged children. These activities usually involve all members of the management as well as staff of Big Bazaar. In September 2011, Future Group signed a strategic partnership with the Himachal Pradesh Government to directly source, market and promote the states products and services through its Big Bazaar stores under the brand Himachal. The aim of this partnership is to aid the development of various source-to-market initiatives to enhance livelihoods for more than 25,000 families in the state. Big Bazaar created a platform called Yatra to provide women of self-help groups across various towns and regions of Maharashtra and Gujarat the opportunity to market their wide assortment of indigenous food and non-food products. As part of the programme, women from over 30 regional self-help groups were invited, encouraged and helped to set up stalls to exhibit their products at Big Bazaar stores. Big Bazaar Mysore started offering a free wholesome meal to all its customers, who in return contribute Shraddha Anussar for a community cause. In other words, the customers donate any amount for the meal which would be used for a local, regional or topical cause.

1.3.4 SCHEMES & INNOVATIONS

The introduction of Sabse Sasta Din (Cheapest Day) in the year 2005 was a turning point for the Big Bazaar franchise. As part of this effort, the Republic Day holiday was used to ensure that consumers visited Big Bazaar outlets across the country in large numbers to get required household items at cheaper rates.Taking cue from this highly successful concept, another initiative was introduced, named the Purana do aur naya lo (give old and get new) scheme. In this scheme, consumers were asked to bring and sell old clothes, utensils and other household items in exchange of discount coupons. The concept proved to be a success yet again as people from across the country responded spontaneously, in spite of the different preconditions associated with it.The franchise further inaugurated the concept of Hafte ka sabse sasta din (Cheapest Day of the Week), wherein Wednesday was designated to be the day when special discounts were offered to consumers during a week. Wednesday Bazaar

The concept of Wednesday Bazaar was promoted as Hafte Ka Sabse Sasta Din (Cheapest Day of the Week). Initiated in January 2007, the idea behind this scheme was to draw customers to stores on Wednesdays, the day when consumer presence is usually less. According to the chain, the aim of the concept was to give homemakers the power to save the most.

Sabse Sasta Din

Big Bazaar introduced Sabse Sasta Din (Cheapest Day) with the intention of attaining a sales figure of Rs 26 crores in a single day. The concept became such a hit that the time period for the offer had to be increased from one day to three days in 2009 (January 24 to 26) and to five days in 2011 (January 22 to 26).

Maha Bachat

The concept of Maha Bachat (Mega Saving) was introduced in the year 2006 as a single day campaign with attractive promotional offers across the company outlets. Over the years, the concept has grown to become a six-day biannual campaign. During this campaign, attractive offers are given in all the value formats including Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar. The Great Exchange Offer

Introduced on February 12, 2009, The Great Exchange Offer allows customers to exchange their old goods for Big Bazaar coupons. The coupons can be redeemed later for buying brand new goods from Big Bazaar outlets across the nation.

1.3.5 ADVERTISING CAMPAIGNS & MARKETING INITIATIVES In view of the increasing competition in the retail market, Big Bazaar has introduced certain steps to keep itself updated and continue promoting the band.Advertising initiativesBig Bazaar has recently launched a 360-degree promotion drive covering the three prime media, television, print and social media, to mark the launch of the new logo. The entire media campaign was developed byMudra Communications as Big Bazaar celebrating April Utsav on 2013. They Offering Rs. 50 off on Rs. 500 or Rs. 100 off on Rs. 500 or Rs. 200 off on Rs. 500 coupon through missed call.

1.3.6 STRATEGY USED IN BIG BAZAAR 3-C TheoryAccording toKishore Biyani's 3-C theory, Change and Confidence among the entire population is leading to rise in Consumption, through better employment and income which in turn is creating value to the agricultural products across the country.Big Bazaar has divided India into three segments:1. India one: Consuming class which includes upper middle and lower middle class (14% of India's population).2. India two: Serving class which includes people like drivers, household helps, office peons, liftmen, washer men, etc. (55% of India's population) and3. India three: Struggling class (remaining 31% of India's population). Fig. 5 : Strategies Used in Big Bazaar

While Big Bazaar is targeted at the population across India one and India two segments, Aadhaar Wholesale is aimed at reaching the population in India three segment. With this,Group emerged as a retail destination for consumers across all classes in the Indian society.

1.3.7 FOUR PS OF BIG BAZAAR

PRODUCT MIX

Fig. 6 : Product Mix

PRICE MIX

Value Pricing (EDLP) Promotional Pricing Low Interest Financing Psychological Discounting Special Event Pricing Differentiated Pricing Time Pricing Bundling

PLACE MIX

Initially Identifies Future/Potential development areas. Acquire such areas at an early phase before the real estate value booms. Located at high traffic areas. Design to look crowded.

PROMOTION MIX

Saal Ke Sabse Sasta 3 Din Future Card(3%Discount) Advertising(Print ads, TV Ads, Radio) Brand Endorsement by M.S Dhoni Exchange Offer Weekend Discount Point of Purchase Promotion

1.4 PRODUCTS PROFILE

The product profile of Big Bazaar is as follows. They are dealing with various types of products and so they had divided them into various departments for the customers convenience.

The departments are: FOOD BAZAAR HOME CARE PRODUCTS HEAD TO TOE FIT & HEALTHY BOOKS & STATIONARIES APPARELS & GARMENTS MEN & WOMEN ACCESSORIES KIDS ACCESSORIES CROCKERY & PLASTIC ITEMS UTENSILS HOME DECORS HOME LINEN GIFTS BAGS & TRALLIES FURNITURES ELECTRONIC GOODS FOOT WEARS

1.5 COMPETITORS PROFILE

Big Bazaar faces competition from other retailers of similar products & services. These include stand alone stores in the organised & unauthorised sector, as well as other chain of stores including Department stores.It is because of this and the service and ambience that Big Bazaar believes have been able to create a differentiation in the mind of the customer vis-a-vis our competitors where similar products and Brands are available.

COMPETITORS OF BIG BAZAAR More Easy Day Lifestyle International Reliance Trend Wal-Mart Reliance Shoppers stop Vishal Mega Mart Local retailers Spencer's Reliance Fresh

CHAPTER 2

2.1 ORGANIZATION STRUCTURE

PRESIDENT

VICE PRECIDENT

CATEGORIYMANAGERHR MANAGEROPERATION HEADFINANCE MANADERMARKETING MANAGER

STORE MANAGERMAEKETING HEADFINANCE HEADCATEGORI HEADHR HEAD

Fig. 7 (i) : Zonal Organization Structure

STORE MANAGER

ASST STORE MANAGER

ADMINISTRATION

LOGISTICSCSDDEPT MANAGER

SALES MANAGERHR MANAGER

MARKETINGTEAM MEMBERS

SecurityMAINTANCE

ASST DM

CASHIERS

HOUSR KEEPING

TEAM LEADER

Fig. 7 (ii) : Organization Structure of Big Bazaar

Chapter 3

Functional Departments

Fig. 8 : Functional Department

3.1 Human Resource DepartmentThe HR department of Big Bazaar is very dynamic. Employees are the biggest Strength 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 tile employees. They have continuous developmental programmes for all the employees.Currently Big Bazaar Malleshwaram is employing 220 full time and 60 part time employees. There are two shifts for the employees. The first shift employees arrive at 9am in the morning and leave at 7.30 in the evening, while the second shift employees report at 1:30 and leave at the time of store closing which is 10pm.

3.2 Customer Service Desk (CSD)Every service industry today has a desk where customers can express their problems and get them resolved. Similarly in retail stores, the customer services desk acts as the face of the organization and listens to customers' problems and builds their trust on the organization. Thus it is important for all stores to have a customer service desk. Customers may approach the customer service desk (CSD) with various types of queries which may range from asking 'where the wash rooms are' to 'what is the telephone number of the CEO of the organisation: All such queries should be answered by the CSD with a smile on their face and an acceptable body language.

3.3 Administration

Safety is always a concern for any business specially safety of the customers and staff. Also, it is very essential that a store is well maintained, clean and tidy. The administration department is in charge of the security, housekeeping, packers and loaders. They handle the police interaction whenever required. Fig. 9 : Administration Department

The housekeeping staffs have to maintain cleanliness of the stores and the departments. They must make sure that cleaning of the floors is done from time to time during a day. The security manages the entry and exit of the customers, protection against theft at the stores, etc. Strict checking is done before a customer or employee enters the store and at the time they are leaving.Every product has a security tag that will prevent the customers from smuggling the product out of the stores without paying for it. There are 3 kinds of tags: hard tag, soft tag and string tag. These tags help to keep a track of the product and prevent theft.

3.4 Logistics

Logistics is considered to be the complete process involving planning, managing and controlling the flow of goods and services, information, real-time data and human resources from the point of origin to the point of destination. There is hardly any manufacturing or marketing activity that can be achieved without the support of an effective logistical department.The logistics process consists of the process of integration of several aspects such as material handling, warehousing, information, transportation, packaging and inventory. The primary duty of an effective logistics system is to ensure geographical repositioning of unfinished goods, and it is also concerned with the finished inventories of the organization being at the required place at the lowest possible cost.The various tasks performed by the department may be summarized as follows: Ensuring all the requirements of the customers are met on time in an efficient and safe manner. To coordinate with third party logistics (3PLs). To ensure that there is a safe and timely dispatch of goods. To draft plans, policies and procedures for successful implementation of logistics system. To ensure that the business goals of the organization are in synchronization with logistics system. To create and maintain customer support. To maintain coordination with vendors, service providers and transport carriers. To ensure that no fraud is committed. To ensure timely supply and reduce inventories.

3.5 Marketing Department

Marketing concept is a customer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organizational goals. For a firm in order to implement the marketing concept it has to focus its attention on the consumer, ascertain his/her needs, discuss and wants beforeEvery Brand appeals to individual customers in different ways. Good customer service is the life blood of any business. Good customer service is all about attending to existing and potential customers. This maintaining good relationship with the customers is the key to business success and hence the concept 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

3.6 Sales Department

This department is responsible for the collection of sales amount i.e., cash sales. There are in all 25 cash counters in the Store. There is a Head Cashier to whom all the cahiers report and submit the total sales amount collected throughout the by the cashiers. In addition to cash all leading credit and debit cards are accepted at no extra charge. Also Big Bazaar vouchers and Sodexho coupons are also accepted.

Chapter 4

ETHICAL/BEST PRACTICES/POLICIES IN THE ORGANIZATION

Fig. 10 : Core Values

1. INDIANNESS: Confidence in ourselves.

2. LEADERSHIP: To be leader both in business & thought.

3. RESPECT & HUMILITY: To respect every individual & be humble in our conduct.

4. INTROSPECTIVE: Leading to purposeful thinking.

5. OPENNESS: To be open to receptive to new ideas, knowledge & information.

6. VALUING & NATURING RELATIONSHIP: To build long term relationship.

7. SIMPLICITY & POSITIVITY: Simplicity & positivity in our thought, business & action.

8. ADAPTABILITY: To be flexible & adaptable to meet challenges.

9. FLOW: To respect & understand the universal laws of nature.

5.1.2 QUALITY POLICY:

Fig. 11 : Quality Policy

(A) PRICE GUARANTEE: In within 2 days of purchase if a customer finds a product of same brand or quality available at lesser price, the customer can bring it back within 10 days with the cash memo & we will show the price difference.

(B) QUALITY GUARANTEE: All products sold at Big Bazaar are guaranteed to be at a good price & of good quality.

(C) EXCHANGE GUARANTEE: The exchange of any product that have been bought from Big Bazaar & are not satisfied by the customer can be return back with the cash memo within 15 days from purchase.

Chapter 4

SWOT ANALYSIS

Fig. 12 : SWOT Analysis

STRENGTHS:

High brand equity. Better understanding of customers helping the company to serve them better. Vast range of products under one roof helping in aerating customer & their family. Diversified business operating all over India in various retail formats. Ability to get products from customers at the rate of discounted price due to the scale of business. Professional management. Good employee & employer relationship. Strong cultural ethics & values are followed. Provides loans for purchase of furniture & electronic products. Provides home delivery facilities to customers

WEAKNESSES:

High cost of operation due to large fixed cost. Specific items are not consistently available. Poor supply chain management & weak support infrastructure Unable to meet store opening targets. Unavailability of popular brand items with regard to clothing. Weak in technology.

OPPORTUNITIES:

Population of the country is growing where the scope of the market is kept on increasing for the retail sector. Can enter into the production of various products due to its in depth understanding of customers taste & preference. Growth in the income of the customers. Expand their business at global level. Provide quality services to the customers.

THREATS:

Lot of competitors coming up to tap the market potential. Shrinkage High business risk involved. Advancement of technology day by day.

CHAPTER 6

McKinsay Seven Model Discussion6.1 The Seven ElementsThe McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:

Hard ElementsSoft Elements

StrategyStructureSystemsShared ValuesSkillsStyleStaff

Fig. 13 : McKinsay Elements

"Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems."Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.The way the model is presented in Figure 6.2.6 below depicts the interdependency of the elements and indicates how a change in one affects all the others. Fig. 14 : McKinsay 7s Model

6.2 MC KINESEYS 7 S MODELThe 7 S Framework of Mc Kinsey is a model that describes 7 factors to organize a company in a holistic and effective way. Together these factors determine the way in which a retail store operates. Store Manager should take into account all seven factors, to be sure of successful implementation of strategy. Richard Pascal and Anthony Athos first mentioned the 7-S Framework in The Art of Japanese Management in 1981.

6.3 McKinseys 7s frame work with reference to organization.STRATEGYThe business strategy of Big Bazaar Retail has been to capture the entire consumption space of the Indian consumers. The company has moved from one retail business to another, keeping in pace with the changing needs and aspirations of the Indian consumer. The company which primarily started as a garment retailing company has moved into multiple businesses on the backdrop of the endless opportunities being provided by the growing Indian economy.The company has adopted a strategy of catalyzing consumption and not just capturing it. The company follows a strategy of discovering new customers, new markets, new geographies and new business possibilities.

STRUCTUREStructure is the organizational structure or the hierarchy of the organization that comprises of the authority, responsibility and relationships in the firm. This function of framework is concerned with direction of the delegation of authority, organizational structure whether flat or tall and the degree of centralization or decentralization.

Fig. 15 : Organization StructureSYSTEMConsidering this scale of expansion, technology plays a significant facilitating role. The introduction of SAP in 2005-06 and its roll out during the year positively impacted the business. Big Bazaar has initiated the process of Auto Replenishments Systems, thus improving operational efficiencies and productivity. The company has also rationalized nearly 250 vendors through better vendor management in terms of potential to expand, and for inclusion and up gradation to the online B2B platform.STAFFBig Bazaar has been successful in keeping its workforce of 25000 highly satisfied and motivated. The company has an attrition rate of 8.12%, much below industry levels.Big Bazaar would not have been able to expand and have the same level of success without hiring and taking care of quality employees. Some of Pantaloon human resource activities include employee advancement, employee recruitment on college universities, and employee training and development. Additionally, while most firms in retail facing talent crunch. Big Bazaar has tied up with various college and institutes to ensure it has fresh supply of talent at its disposal. Close to 46% of the employees in the organization are women and the average age within the organization is 27 years.The company has a adopted a policy of collaborating on joint degree programs with 15 management schools, design institutes and institutes of higher learning in areas like food business, supply chain management, design experience management etc. This Seekho programme for the external and internal candidates ensures a steady stream of mid-level, well trained retail professionals every year. The companys Gurukool programme provides the front-end employees an opportunity to imbibe the companys values and a sense of ownership to the company.SKILLSPantaloon by tying with various management institutes in India has ensured that it has sufficient inflow of managerial skill required. In addition to that the human resource department undertakes various training and development programs to ensure that the employees have the necessary skills to discharge their responsibilities. Also another area where Pantaloon scores over its competitors is its bargaining skills. It has been able to ensure higher margins for itself from the suppliers. Also the supply chain skills of the company are among the best in the Indian retail sector. The company carefully rationalizes its vendors. For instance, Pantaloon buys its dry staples directly from millers for its Food Bazaars; it is now experimenting with contract farming, too, to lower its cost structure.

STYLEAt Pantaloon, empowerment and freedom of work is clearly apparent. This can be seen with various category managers at each store level being empowered with taking all decisions with respect to their departments from deciding inventory levels to placing replenishment orders. Out of the Box thinking has become a way of life at Pantaloon and living with the change, a habit. Such a culture in necessary to go in line with the organizational strategy of exploiting changing consumer aspirations. In the quest of creating an Indian model of retailing, Pantaloon has taken initiatives to launch many retail formats that have come to serve as a benchmark in the industry. The management is very dynamic and does not focus or focus of predicting future but rather believes in creating the future.SHARED VALUES The Future group as the name suggests believes in exploring areas yet unexplored. Writing rules yet unwritten as well as creating new opportunities have been the building blocks of its success. The group does not believe in waiting for the future to unfold itself rather it believes in creating future scenarios. The group does not just spots trend but also creates them.While doing all these, the following core values are shared and transpires among everyone in the organization Indianness: confidence in ourselves. Leadership: to be a leader, both in thought and business. Respect & Humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: to build long term relationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: to be flexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws of nature.

Research Problem Study

CHAPTER 7

1) Current Ratio:

YEARCurrent RatioMEAN ()Std. Deviation

2009-102.16

2.9

1.05

2010-112.10

2011-123.62

2012-133.60

2013-143.02

Fig. 16 (a) Current Ratio

Inference : From the above table it is inferred that the Current ratio status records the maximum for the financial year 2011-12 and it records the least for the financial year 2010-2011.The current ratio status revolves around the computed mean value (2.9) for the financial years 2009-10 and 2010-11.2) Liquid RatioYEARXMEAN ()Std. Deviation

2009-100.94556

0.69

0.5209

2010-110.3154

2011-120.975

2012-130.9699

2013-140.2685

Fig. 16 (b) Liquid RatioInference : From the above table it is inferred that the Liquid Ratio status records the maximum for the financial year 2011-12 and it records the least for the financial year 2013-14.The liquid ratio status revolves around the computed mean value ( 0.69) for the financial years 2009-10 and 2012-13.

3) Gross Profit:YEARXMEAN ()Std. Deviation

2009-103.49

3.158

0.8170

2010-113.71

2011-122.88

2012-132.28

2013-143.43

Fig. 16 (c) Gross ProfitInference : From the above table it is inferred that the Gross Profit status records the maximum for the financial year 10-11 and it records the least for the financial year 2012-2013.The Gross Profit status revolves around the computed mean value (3.158) for the financial years 2009-10 and 2013-14.

4) Net Profit:YEARXMEAN ()Std. Deviation

2009-100.0340

0.01474

0.04324

2010-110.0381

2011-120.0281

2012-130.0043

2013-140.0308

Fig. 16 (d) Net ProfitInference : From the above table it is inferred that the Net Profit status records the maximum for the financial year 10-11 and it records the least for the financial year 2012-2013.The Net Profit status revolves around the computed mean value (0.01474) for the financial year 2011-12.

5) Proprietor Fund

YEARXMEAN ()Std. Deviation

2009-100.018

0.2966

0.5429

2010-110.015

2011-120.30

2012-130.94

2013-140.21

Fig. 16 (e) Proprietor Fund

Inference : From the above table it is inferred that the Proprietor Fund status records the maximum for the financial year 2012-13 and it records the least for the financial year 2010-2011.The Proprietor Fund status revolves around the computed mean value (0.2966) for the financial years 2011-12 and 2013-14.6) Earnings Per Share:

YEARXMEAN ()Std. Deviation

2009-100.71

0.424

0.4902

2010-110.47

2011-120.80

2012-130.02

2013-140.12

Fig. 16 (f) Earnings Per ShareInference : From the above table it is inferred that the Earnings Per Share status records the maximum for the financial year 2011-12 and it records the least for the financial year 2012-2013.The Earnings Per Share status revolves around the computed mean value (0.424) for the financial year 2010-11.7) Stock Velocity Ratio:YEARXMEAN ()Std. Deviation

2009-104.56

5.258

5.8204

2010-112.27

2011-123.26

2012-1312.47

2013-143.73

Fig. 16 (g) Stock Velocity RatioInference : From the above table it is inferred that the Stock Velocity Ratio status records the maximum for the financial year 2012-13 and it records the least for the financial year 2010-2011.The Stock Velocity Ratio status revolves around the computed mean value (5.258) for the financial year 2009-10.

8) Inventory Turnover Ratio

YEARXMEAN ()Std. Deviation

2009-100.2141

0.2603

0.1893

2010-110.43

2011-120.3062

2012-130.0826

2013-140.2689

Fig. 16 (h) Inventory Turnover RatioInference : From the above table it is inferred that the Inventory Turnover Ratio status records the maximum for the financial year 2010-11 and it records the least for the financial year 2012-2013.The Inventory Turnover Ratio status revolves around the computed mean value (0.2603) for the financial year 2013-14.9) Interest Coverage Ratio

YEARXMEAN ()Std. Deviation

2009-100.74

0.432

0.4491

2010-110.61

2011-120.62

2012-130.18

2013-140.01

Fig. 16 (i) Interest Coverage RatioInference : From the above table it is inferred that the Interest Coverage Ratio status records the maximum for the financial year 2011-12 and it records the least for the financial year 2010-2011.The Interest Coverage Ratio status revolves around the computed mean value (0.432) for the financial years 2010-11 and 2011-12.10) Degree of Operating Leverage

YEARXMEAN ()Std. Deviation

2009-102.32

1.97

1.1951

2010-111.60

2011-123.27

2012-131.54

2013-141.12

Fig. 16 (j) Degree of Operating LeverageInference : From the above table it is inferred that the Degree of Operating Leverage status records the maximum for the financial year 2011-12 and it records the least for the financial year 2013-2014.The Degree of Operating Leverage status revolves around the computed mean value (1.97) for the financial year 2010-1111) Degree of Financial Leverage

YEARXMEAN ()Std. Deviation

2009-100.36

0.856

0.6418

2010-111.46

2011-121.05

2012-130.96

2013-140.45

Fig. 16 (k) Degree of Financial LeverageInference : From the above table it is inferred that the Degree of Financial Leverage status records the maximum for the financial year 2010-11 and it records the least for the financial year 2009-2010.The Degree of Financial Leverage status revolves around the computed mean value (0.856) for the financial year 2012-13.12) Fixed Assets

YEARXMEAN ()Std. Deviation

2009-104.32

2.804

1.5049

2010-112.21

2011-123.19

2012-131.49

2013-142.81

Fig. 16 (l) Fixed AssetsInference : From the above table it is inferred that the Fixed Assets status records the maximum for the financial year 2009-10 and it records the least for the financial year 2012-2013.The Fixed Assets status revolves around the computed mean value ( 2.804) for the financial year 2013-14

CHAPTER 8

FindingsFrom the above table it is inferred that the Current ratio status records the maximum for the financial year 2011-12 and it records the least for the financial year 2010-2011. From the above table it is inferred that the Liquid Ratio status records the maximum for the financial year 2011-12 and it records the least for the financial year 2013-14. From the above table it is inferred that the Gross Profit status records the maximum for the financial year 10-11 and it records the least for the financial year 2012-2013. From the above table it is inferred that the Net Profit status records the maximum for the financial year 10-11 and it records the least for the financial year 2012-2013. From the above table it is inferred that the Proprietor Fund status records the maximum for the financial year 2012-13 and it records the least for the financial year 2010-2011. From the above table it is inferred that the Earnings Per Share status records the maximum for the financial year 2011-12 and it records the least for the financial year 2012-2013. From the above table it is inferred that the Stock Velocity Ratio status records the maximum for the financial year 2012-13 and it records the least for the financial year 2010-2011. From the above table it is inferred that the Inventory Turnover Ratio status records the maximum for the financial year 2010-11 and it records the least for the financial year 2012-2013. From the above table it is inferred that the Interest Coverage Ratio status records the maximum for the financial year 2011-12 and it records the least for the financial year 2010-2011. From the above table it is inferred that the Degree of Operating Leverage status records the maximum for the financial year 2011-12 and it records the least for the financial year 2013-2014. From the above table it is inferred that the Degree of Financial Leverage status records the maximum for the financial year 2010-11 and it records the least for the financial year 2009-2010. From the above table it is inferred that the Fixed Assets status records the maximum for the financial year 2009-10 and it records the least for the financial year 2012-2013.Apart from the financial findings Big Bazaar is undoubtedly number one retailer in India. It has build very emotional & cordial relationship with its customers. They are also intending to build long term relationship with all its stakeholders which is very essential for successful business venture. In order to attract customer they should provide good parking facility Cleanliness and hygienic environment is also the major concern for big bazaar. Management needs to be focus on it. Store layout should also be developed in an efficient manner so that customer can get things easily. According to research I found that most of the people were affected & attracted with offers and schemes. So, Big Bazaar should employ those people who are well trained to provide information to customer regarding new things to enhance its customer services. Consumer choose malls to shop because they all want variety and brands. According to customers it is economical as compared to other places. We can also say that location, variety conveniences and economical products are not the only thing which attract the customer but good customer service is one of the crucial factor that attract customers.

Suggestions Advertising is the basic and most prominent tool to increase the awareness of product. So, Big Bazaar should use this tool to increase their share in the market. Retail business is successful only when they have a good customer services. Customer loyalty can only be gain by providing good or satisfied services to the customers. Most respondents take on the spot decision of buying different products because of the various attractive products displays. So pretty combination with good services should be done to retain customers. Quality play a major role because most respondent said that they want a quality product and thats also the one of the reason for most of the respondents sticking to particular brand. Should follow more of high low pricing rather than everyday low pricing . There should be a proper assortment of various product categories. Proper training should be provided to the customer so that they can deal with customer efficiently. Quality in product should be reach up to mark.

ConclusionBig bazaar is a major shopping complex for todays customers. It is a place where customers find variety of products at a reasonable price. Big bazaar has a good reputation of itself in the market. It has positioned itself in the market as a discounted store. It holds a huge customer base. The majority of customers belong to middle class family. The youth generation also likes shopping and moving around big bazaar. Volume sales always take place in big bazaar. Impulse buying behaviour of customers comes in to play most of the times in big bazaar.Big bazaar is a hypermarket store where varieties of products are being sold on different product category. It has emerged as a hub of shopping specially for middle class people. Different types of products starting from a baby food to pizzas all are available under one roof. In Delhi it is the middle class people who mostly do marketing from big bazaar. Even most of the people do their monthly shopping from big bazaar. People not only visit big bazaar to do shopping but also visit for outing purpose as it provides a very nice ambience to its customers.As people go to malls they just tend to move around big bazaar whether it is for shopping purpose or for outing purpose. Grocery, apparels and food items are the products which are demanded most by the customers of Northern part of India in big bazaar. The major drawback of big bazaar is that it lacks in providing enough parking space for its customers. This may discourage the customers to come to big bazaar and shop as they face difficulty in parking their vehicles. Even though some customers say that they dont feel problem in parking their vehicle, it is because of the parking space available to them by the mall.

CHAPTER 9

BIBLIOGRAPHY

References:1. The Nielsen Company, Global Online Survey Q3, 2010, Global Private Label Report: The Rise of the Value-Conscious Shopper, nielsenwire, March 4, 2011, http://blog.nielsen.com/nielsenwire/ consumer/global-private-label-report-the- rise-of-the-value-conscious-shopper/2. Recession, Recovery and Store Brands: What Consumers are Saying Now, PLMA Consumer Research Report, Private Label Manufacturers Association, 20103. Scott-Thomas, Caroline, Private label market set to double, says Rabobank, March 28, 2011 http://www.foodnavigator- usa.com/Financial-Industry/Private-label- market-set-to-double-says-Rabobank4. Experts weigh up the marketing benefits of Waitrose and Boot tie-up, Joe Thomas, marketingmagazine.co.uk, September 29 2009,http://www.brandrepublic.com/ news/941645/Experts-weigh-marketing- benefits-Waitrose-Boot-tie-up5. Store brands vs. name brands, Consumer Reports magazine: October 2010, http:// www.consumerreports.org/cro/magazine- archive/2010/October/shopping/store- brands-vs.-name-brands/overview/index.htm6. Private label gets a quality reputation, causing consumers to change their buying habits, Mintel International Press Release, January 2011, http://www.mintel.com/ press-centre/press-releases/653/private- label-gets-a-quality-reputation-causing- consumers-to-change-their-buying-habits7. Wal-mart Shifts Private LabelStrategy, Store Brands Decisions, September 21, 2010, http://www. storebrandsdecisions.com/news/2010/09/21/ Wal-Mart-shifts-private-label-strategy-8. http://news.starbucks.com/ article_print.cfm?article_id=239. Concentrated Laundry Detergents Become Latest Trend in Green Retail Packaging, Sustainable Is Good, September 6, 2007, http://www.sustainableisgood.com/ blog/2007/09/concentrated-la.html10. Kraft to Boost Spending on Core Brands, New Products, E.J. Schultz, Advertising Age, February 22, 2011

Books :1. Kishore Biyani (2007), It Happened In India (1" Edition), Rupa Publications.2. Stephen Covey (1994), the Seven Habits of Highly Effective People (6' Edition), Simon & Schuster UK Ltd.3. Anthony Robbins (1992), Awaken the Giant within You (1 " Edition), Simon & Schuster UK Ltd.4. Robbins, Stephen P. (2004), Organizational Behaviour (10th Edition),

Web Sites :www.pantaloonretail.comwww.futuregroup.inwww.futurebazaar.comwww.futurebrand.co.inwww.fch.inwww.futuregenerali.inwww.fldl.inwww.futuresupplychains.comwww.futuremedia.in

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