Organisation Study Report on Reliance Retail Ltd.
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Transcript of Organisation Study Report on Reliance Retail Ltd.
An Organization Study
At
RELIANCE RETAIL LIMITED
BY
MOUNA CHENGAPPA K
1DS15MBA44
Submitted to
DAYANANDA SAGAR COLLEGE OF ENGINEERING
DEPARTMENT OF MANAGEMENT STUDIES
In the partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Mr. BRIJESH SINGH Mr. NAGENDRA KUMAR
Assistant Professor HR Manager
Department of Management Studies
Dayananda Sagar College Of Engineering
Kumarswamy Layout
Bangalore-560078
(Batch 2015-2017)
DECLARATION
I, MOUNA CHENGAPPA , bearing USN No. 1DS15MBA44 hereby Declare that the Organization
Study at RELIANCE RETAIL LIMITED is prepared and submitted to Department of Management
Studies, DSCE, affiliated to Visvesvaraya Technological University, Belgaum in Partial Fulfillment of
the University requirements for the Degree of Master of Business Administration .
I further Declare that this Organization Study is based on Original Study undertaken by me and has not
formed a basis for the award of any other Degree/Diploma of any other University/Institution.
PLACE: BENGALURU MOUNA CHENGAPPA K
DATE : 6th
Sep 2016 1DS15MBA44
ACKNOWLEDGEMENT
A project is an opportunity in a management student’s career where he can acquire invaluable
knowledge as to how an organization actually functions and the process of the work. The satisfaction
that accompanies the successful completion of any task would be incomplete without mentioning the
people who made it possible, whose able consistent guidance and encouragement crowned my efforts
with success.
Firstly, I would like to express my sincere thanks to our respected Principal, Dr. C P S Prakash,
Dayananda Sagar College of Engineering, Bangalore for giving me an opportunity to undertake this
internship. I thank our respected Head of the Department, Dr. K.G. Hemalatha, Department of
Management Studies, Dayananda Sagar College of Engineering, Bangalore, for motivating me to gain
the learning experience through this project.
I am grateful to my project guide Mr.Brijesh Singh, Professor, Department of Management Studies,
Dayananda Sagar College of Engineering, Bangalore, for his/her constant support and inspiration
throughout the project and for their encouragement, suggestions and guidance to complete this project
successfully.
I express my sincere and hearty thanks to Mr. Nagendra Kumar , HR Manager of Reliance Retail
Limited for his suggestion and encouragement given to pursue this project successfully.
I thank all the staff of MBA Department and the staff of Reliance Retail Limited, Bengaluru who
helped me to solve the problems that I faced during the development of this organization study report.
Last but not the least, I am grateful and thankful to my beloved Parents and all of my friends for their
moral support and suggestions and encouragements.
MOUNA CHENGAPPA K
1DS15MBA44
EXECUTIVE SUMMARY
In this organization study an attempt is made to analyze various dimensions of Reliance Retail Limited.
It includes areas such as organization structure, reporting relationship, organization standing in the
industry, financial analysis etc. The researcher gained experience in every department at Reliance Retail
Limited and learned about the company.
Reliance Retail Limited was founded in 2006 The company was established in Mumbai, India. It is the
second largest retailer in India. Its retail outlets offer foods, groceries, apparel and footwear, lifestyle and
home improvement products, electronic goods, and farm implements and inputs. The company’s outlets
also provide vegetables, fruits, and flowers.
The main objective of this study is to find out aspects related to organization structure ,staffing,
decision making etc related to Reliance Retail Limited.
Through the organization study I have gained good knowledge of the functioning of the organization
and its performance in a complex market environment.
TABLE OF CONTENTS
CHAPTER
NO.
TITLE PAGE
NO.
1 INTRODUCTION ABOUT THE ORGANIZATION 1-5
1.1 Company Overview 1
1.1.1 Reliance Industries Limited (RIL) 1
1.2 Business Division 2
1.2.1 Major Subsidiaries and Divisions 2
1.3 Reliance Retail 3
1.3.1 Vision, Mission and Values 4
1.4 Corporate Social Responsibility 5
2 INDUSTRY PROFILE 6-9
2.1 About Retail 6
2.2 Brief about the Indian Retail Industry 6
2.3 Growth of Retail Sector in India 7
2.4 Recent trends in Indian Retail Sector 7
2.5 Retailing Formats in India 8
3 ORGANIZATION IN DETAIL 10-43
3.1 General Information 10
3.1.2 Retail Mix-Reliance Fresh 11
3.2 Organization Structure & Organization Chart 12
3.2.1 Popular Profiles at Reliance Retail 13
3.3 Roles and Responsibilities of various Executives 15
3.3.1 The Top/Senior/Strategic Level 15
3.3.1.1 Board Of Directors 15
3.3.1.2 Managing Director 16
3.3.1.3 Retail Business Head 16
3.3.1.4 Projects Head 17
3.3.1.5 Operations Head 18
3.3.1.6 Risk Management Head 19
3.3.1.7 Marketing Head 20
3.3.2 The Managerial Level 21
3.3.3 The Executive/Entry Level 22
3.4 Process/Activities/Products/Services 23
3.4.1 Product Hierarchy In Retail Industry 23
3.4.1.1 The Top/Senior/Strategic Level 24
3.4.1.2 The Managerial Level 24
3.4.1.3 The Executive/Entry Level 24
3.4.2 Organized Food Retail Chain At Reliance 25
3.4.3 Farm To Fork 25
3.4.4 Supply Chain Models Of Reliance Retail 26
3.3.5 Wholesale Trading (WST) 27
3.3.5.1 Steps In WTS Model 27
3.5 Individual Departments And Its Structures
28
3.5.1 Store Operations 29
3.5.2 Marketing 30
3.5.3 Merchandising 31
3.5.4 Human Relations 32
3.5.5 Finance 32
3.5.6 Information Technology 33
3.6 Decision Making Process in each of the Departments 34
3.6.1 Store Operations 35
3.6.2 Marketing 37
3.6.3 Merchandising 37
3.6.4 Human Resources 38
3.6.5 Finance 39
3.6.6 Information Technology 39
3.6.7 Details Of The Strategies Used For Various Activities
40
3.6.1 Marketing Strategies 41
3.7 Details of the competitors and the Organization’s
present positions
43
3.7.1 Competitors of Reliance Retail 43
4 DETAILS OF FINANCIAL ANALYSIS WITH SUPPORT
OF BALANCE SHEET AND OTHER SUCH
DOCUMENTS
44-49
4.1 Balance Sheet As At 31st March, 2015 44
4.2 Statement of P&L for the Year 31st March, 2015 46
4.3 Ratio Analysis 47
4.3.1 Current Ratio 47
4.3.2 Quick Ratio 47
4.3.3 Proprietary Ratio 48
4.3.4 Return on capital employed 49
5 DETAILS OF SWOT ANALYSIS, MCKINNEY’S 7 S
MODEL AND PORTERS 5 FORCE MODEL
50-60
5.1 SWOT Analysis 50
5.2 Porter 5 Force Model 53
5.3 McKinsey’s 7S Model 57
6 FINDINGS AND RECOMMENDATIONS
61-62
6.1 Finding 61
6.2 Recommendations 62
7 CONCLUSIONS 63
8 LEARNING EXPERIENCE
64
9 BIBLIOGRAPHY 65
LIST OF TABLES
TABLE NO. TITLE PAGE NO.
3.1 Competitors 43
4.1 Balance Sheet 45
4.2 Profit and Loss 46
5.1 Porter 5 force Model 53
LIST OF FIGURES
FIGURE NO. TITLE PAGE NO.
3.1 Organization Chart 13
3.2 Managerial Levels 14
3.3 Product Mix 23
3.4 Farms to consumers in hygienic packs 25
3.5 Traditional model of retail reliance “farm to fork” 26
3.6 Supply chain models of reliance retail 27
3.7 Store Operations 29
3.8 Marketing 30
3.9 Merchandising 31
3.10 Human Resource 32
3.11 Finance 33
3.12 Information Technology 34
5.1 Porter 5 Force Model 54
5.2 McKinsey’s 7 S Model 57
CHAPTER 1
INTRODUCTION ABOUT THE ORGANIZATION
1.1 COMPANY OVERVIEW:
1.1.1 RELIANCE INDUSTRIES LIMITED (RIL):
The Reliance group, founded by Dhirubhai H Ambani (1932-2002), is India’s largest private sector
enterprise with businesses in the energy and materials value chain. Group’s annual turnover is in excess
of US$ 16.7 billion. Reliance Industries Limited, is the first and only private sector from India to feature
in 2005 Fortune Global 500 list of ‘World’s Largest Corporations’ and ranks among the world’s top 200
companies in terms of profit.
Starting with textiles in the late seventies, Reliance pursued a strategy of backward integration in
polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration
and production to be fully integrated along the materials and energy value chain.
Reliance enjoys leadership in its businesses, being the largest polyester yarn and fiber producer in the
world and among the top five to ten producers in the world in major petrochemical products. Major
Group Companies are Reliance Industries Limited, including its subsidiaries and Reliance Industrial
Infrastructure Limited.
Thereafter, Reliance is confident that these skills will have an unlimited market and therefore, offer a
great earning future prospect to these youngsters around the globe. Though the company's oil-related
operation forms the core of its business; it has diversified its operations in recent years. After severe
differences between the founder's two sons, Mukesh Ambani and Anil Ambani, the group was divided
between them in 2006. In September 2008, Reliance Industries was the only Indian firm featured in the
Forbes's list of "world's 100 most respected companies".
1.2 BUSINESS DIVISION
The Reliance group companies mainly includes Reliance Industries Limited (includes main subsidiary
Reliance Retail Limited) and Reliance Industrial Infrastructure Limited
1.2.1 MAJOR SUBSIDIARIES AND DIVISIONS:
Reliance Industrial Infrastructure Limited (RIIL) is engaged in the business of setting
up/operating industrial infrastructure that involves leasing and providing services connected with
computer software and data processing.
Reliance Petroleum Limited (RPL) was created to exploit the emerging opportunities, creating
value in the refining sector worldwide. Currently RPL stands amalgamated with RIL.
Reliance Life Sciences is a research driven, biotechnology-led, life science organization that
participates in medical, plant and industrial biotechnological opportunities. Specifically, the
company specializes in pharmaceuticals, bio-pharmaceuticals, clinical research services, novel
therapeutics, bio-fuels and regenerative medicines and many more.
Reliance Logistics Limited is a single window company providing transportation, distribution,
warehousing, logistics and supply chain related products, supported by in-house state of the art
telemetric and telemetry solutions.
Reliance Clinical Research Services (RCRS), a contract research organization, and wholly
owned subsidiary of Reliance Life Sciences, specializes in the clinical research services industry.
Its clients are pharmaceuticals, medical device companies and biotechnology.
Reliance Solar aims to produce and retail solar energy systems primarily to remote and rural
areas and to bring about a ‘transformation in the quality of life’.
Relicord is a stem cell banking services owned by Reliance industries.
1.3 RELIANCE RETAIL
Reliance Retail Ltd. was founded in 2006 and it is the second largest retailer in India. Its retail outlets
offer foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods,
and farm implements and inputs. It also provides vegetables, fruits, and flowers. It focuses on consumer
goods and durables, energy, entertainment and leisure, health products, educational products and
services.
Headquarters : Mumbai, India
Industry : Retail
Type : Public Company
Status : Operating Subsidiary
Company Size : 10,001 or more employees
Number : 3,383 stores retail stores across 679 cities
Revenue : ₹216.12 billion
Operating Income: ₹5.08 billion
Major business divisions of Reliance Retail are as follows:
Reliance Fresh- A neighborhood concept
Reliance Super-A mini- mart concept
Reliance Mart- A hyper-mart concept
Reliance Market- A wholesale cash and carry concept
Reliance Digital- A consumer durables and information technology concept
Reliance Trends- An apparel & accessories concept
Reliance Footprints- A footwear concept
Reliance Wellness- A health, wellness and Beauty concept
Reliance iStore- An exclusive showroom for apple products concept
Reliance Jewels- A jewelers concept
Reliance TimeOut- A book, music and entertainment concept.
Reliance AutoZone- An automotive product & services concept
Reliance Living- A home ware, furniture, modular kitchen, furnishing concept.
1.3.1 VISION, MISSION AND VALUES
VISION:
Through sustainable measures, create value for the nation, enhance quality of life across the entire socio-
economic spectrum and help spearhead India as a global leader in the domains where we operate.
MISSION:
create value for all stakeholders
grow through innovation
lead in good governance practices
use sustainability to drive product and enhance operational efficiencies
ensure energy security of nation
foster rural prosperity
VALUES:
Our growth and success are based on ten core values of care citizenship fairness honesty integrity
purposefulness respect responsibility safety and trust.
1.4 CORPORATE SOCIAL RESPONSIBILITY
Reliance retail is focusing on profit as well to return a part of it to the general public. Following are
some of the measures taken by the company in accordance for benefiting the society:
Reliance Retail aims at recruiting people from the underprivileged community in society.
To secure best quality, Reliance Retail is specially sourcing fresh agricultural produce from a
large number of agriculturists from villages through Collection Centers. As a result, company
supply chain has directly linked to the poor farmers thus providing them a guaranteed market and
reduction of transportation cost, training them with best agricultural practices for the better yield. .
The company has embraced “farm to fork” model which means it is getting the products directly
from the agriculturists by offering them very sensible prices and thus no middlemen are involved.
They also provide information about the market price and which crop needs to be chosen so that
the farmers get good profit. Farmers are given with technical help and knowledge about quality of
seeds and composts.
CHAPTER 2
INDUSTRY PROFILE
2.1 ABOUT RETAIL
Retail Philosophy-“By the People for the People and of the People”
Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part
of an integrated system called the supply chain. A retailer purchases goods or products in large quantities
from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for
a profit.
Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery. In the
2000s, an increasing amount of retailing is done using online websites, electronic payment, and then
delivered via a courier or via other services.
The term "retailer" is also applied where a service provider services the needs of a large number of
individuals, such as for the public. Shops may be on residential streets, streets with few or no houses or
in a shopping mall.
Shopping generally refers to the act of buying products such as food and clothing, recreational activity.
Retail comes from the Old French word tailler, which means "to cut off, clip, pare, divide" in terms of
tailoring (1365). It was first recorded as a noun with the meaning of a "sale in small quantities" in 1433.
2.2 BRIEF ABOUT THE INDIAN RETAIL INDUSTRY:
The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the
country’s GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as
one of the most dynamic and fast paced industries with several players entering the market. But all of
them have not yet tasted success because of the heavy initial investments that are required to break even
with other companies and compete with them. The India Retail Industry is gradually inching its way
towards becoming the next boom industry.
The total idea and thought of shopping has experienced a consideration change in terms of format and
customer purchasing behavior. Modern retailing has entered into the Retail market in India as is
observed in the form of shopping centers, multi-storied malls and the large complexes that provides
shopping, food, entertainment and so on all under the single roof. The key factors in the growth of the
Retail sector in India are likely to be working young populations, urban families, emerging opportunities
in the services sector and so.
The growth pattern in organized retailing and in the consumption made by the people will follow a rising
graph helping the newer businessmen to enter the Indian Retail Industry.
2.3 GROWTH OF RETAIL SECTOR IN INDIA:
Retail, one of India’s largest industries, has presently emerged as one of the most dynamic and fast paced
industries of our times with several players entering the market. Accounting for over 10 percent of the
country’s GDP and around eight per cent of the employment retailing in India is gradually inching its
way toward becoming the next boom industry.
As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls
and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping
has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in
India
Another credible factor in the prospects of the retail sector in India is the increase in the young working
population. With this the retail sector in India is witnessing rejuvenation as traditional markets make way
for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores.
2.4 RECENT TRENDS IN INDIAN RETAIL SECTOR:
Retailing in India is witnessing a huge revamping exercise. India is rated the fifth most attractive
emerging retail market-a potential goldmine. Estimated to be US$ 200 billion, of which organized
retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion per a report by KPMG the annual
growth of department stores is estimated at 24%.
Also India is ranked second in a Global Retail Development Index of 30 developing countries. Multiple
drivers lead to consumption boom. These divers include favorable demographics, growth in income,
increasing population of women, and raising aspiration or value added goods.
Food and apparel retailing are the key drivers of growth. Organized retailing in India has been largely an
urban phenomenon with affluent classes and growing number of double-income households. The reasons
for high growth in these sectors range from differences in consumer buying behavior to cost of real estate
and taxation laws. Rural markets emerging as a huge opportunity for retailers are reflected in the share of
the rural market across most categories of consumption.
2.5 RETAILING FORMATS IN INDIA
Malls: These are the largest form of organized retailing which are located mainly in metro
cities ranging from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping
experience with an amalgamation of product, service and entertainment; all under a common
roof. Examples include Shoppers Stop, Westside, Pantaloons, and Max and so on.
Specialty Stores: Chains such as the Bangalore based Kids Kemp, RPG's Music World, the
Mumbai books retailer Crossword, and the Times Group's music chain Planet M, are focusing on
specific market segments and have established themselves strongly in their sectors.
Discount Stores: Discount stores or factory outlets, offer discounts on the MRP through
selling in bulk reaching economies of scale or excess stock left over at the season. The product
category can range from a variety of perishable to a variety of Non-perishable goods.
Department Stores: Departmental stores are the largest stores ranging from 20000-50000
sq. ft, catering to a variety of consumer needs. Further it is classified into localized departments
such as clothing, toys, home, groceries, etc.
Hyper marts/Supermarkets: These are large self service outlets, catering to varied
shopper needs are termed as Supermarkets. These are located in or near residential streets. These
stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can
further be classified into mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large
supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery
and personal sales, examples Big Bazaar, Reliance hyper mart, and so on.
Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near
residential areas. They stock a limited range of high-turnover convenience products and are
usually open for extended periods during the day, seven days a week. Prices are slightly higher
due to the convenience premium.
MBO’s: Multi Brand outlets, also known as Category Killers, offer several brands across a
single product category. These usually do well in busy market places and Metros.
CHAPTER 3
ORGANIZATION IN DETAIL
3.1 GENERAL INFORMATION:
Reliance Retail is not just the largest retailer in terms of revenues, but is also the biggest in most of the
categories it operates in. With 1,000 stores, Reliance Digital has become the largest consumer durables
and electronics retail chain in the country.
Reliance Digital Xpress Mini at more than 800 stores is now the largest mobile phone retail chain in the
country. Reliance Retail has a clear lead when it comes to cash and carry stores. Reliance operates more
than 90 such outlets called Reliance Market stores. Set up seven years ago, US-based Walmart runs 20
stores and Germany’s Metro, which had started more than 10 years ago, operates 17 outlets.
Reliance Market has 1.5 million registered members, with stores across India. Reliance is also the
biggest in department stores. The 200 stores of Reliance Trends sell 1, 50,000 garments daily, make it
the largest fashion retailer in the country.
Rahejas-owned Shoppers Stop runs about 75 stores while Aditya Birla owned Pantaloons has more than
100 outlets. Its footwear chain, Reliance Footprint, operates 200 stores across 100 cities. As on March
31, 2015 it operated 2,621 stores across 200 cities, with 12.5 million square feet space.
While Future Group runs over 317 stores, Bharti Retail operates another 215. Reliance Industries had in
2013 given a five-year projection for growth in the number of employees in its retail operations. From
35,000, Reliance Retail aimed at growing the employee number to 1, 20,000 by 2018.
Reliance is also the biggest in department stores. There are currently 200 stores of Reliance Trends
that sell 1, 50,000 garments daily.
Reliance Retail has a clear lead when it comes to cash and carry stores. Currently, it operates 43
such outlets called Reliance Market stores.
Its footwear chain, Reliance Footprint, operates 200 stores across 100 cities. As on March 31, it
operated 2,621 stores in 200 cities.
3.1.2 RETAIL MIX-RELIANCE FRESH:
Reliance Fresh Limited was founded in 2006 by Mukesh Ambani. Reliance Fresh is the convenience
store format which forms part of the retail business of Reliance Industries of India. First Reliance Fresh
store opened in Hyderabad, where not only did the company said the stores main focus would be fresh
produce like fruits and vegetables at a much lower price, but also spoke at length about its “Farm to
Fork” theory.
The ideas the company spoke about were to source from farmers and sell directly to the consumers
removing middlemen out of the way. Reliance Fresh is the retail chain division of Reliance industries of
India and has entered into this segment by opening new retail stores in almost every metropolitan and
regional areas of India.
The company already has in excess of more than 720 Reliance Fresh outlets across the country. It is the
first retail venture of the group. A typical Reliance fresh store is approximately 3000-4000Square feet
and caters to a catchment area of 2-3 km.
Reliance Retail outlets sells fresh fruits and vegetables, staples, groceries, fresh juice bars, and dairy
products, and also sport a separate enclosure and supply chain for non-vegetarian products.
Reliance Fresh forge strong and lasting bond with millions of farmers and will transform the relationship
with customers to a new level. It offers unmatched affordability, quality, convenience, service and
choice. The company offers the widest range of fruits and vegetables at the best prices in neighborhood.
Also offers consistent high quality, unbeatable freshness and great services so that the customer knows
that the company is trustworthy.
Reliance Industries have invested Rs.3000 cores to expand the Reliance Fresh stores and the store
directly buys stock from the farmers to cut down on the wastage. The store works on the ‘Ranger
Format’ which means selling of fresh vegetables to the road sellers. Reliance Fresh, Reliance Mart,
Reliance Digital, Reliance Trends, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance
Timeout and Reliance Super are the various formats that Reliance has rolled out.
In addition, Reliance Retail has entered into an alliance with Apple for setting up a Chain of Apple
Specialty Stores branded as I Store, starting with Bangalore. There are more than 50 such stores
currently operational.
3.2 ORGANIZATION STRUCTURE & ORGANIZATION CHART
Reliance Retail organization is headed by Board of Directors. It follows an inverse pyramid structure; as
a result decisions are taken closest to the point of customer action. As customers are the prime factors the
sales executives are encouraged to think of them at the very first. They are empowered to run their
respective departments like ‘small business owners’.
A retail company is a company which is responsible for selling out products manufactured by a number
of manufacturing companies. The way the retail industry functions and works in today’s time and date
greatly vary from the way it used to work about a decade ago. There have been many changes in way of
shopping, tastes, preferences and also the store concept.
It is a kind of a company which sells products manufactured by other companies and is run with the help
of varied departments, employees and managers. A retail corporate entity has operations running both on
the retail outlets as well as behind the scenes.
In order to bring the products to the customers and handle everything that goes in between, a large
number of people ranked on the basis of hierarchy are needed. Within the retail industry or within retail
companies, there is a certain hierarchical structure that is followed where the persons with the most
responsibilities are at the top of the hierarchy where those with entry level duties lie at the bottom.
Figure.3.1 Organization Chart
3.2.1 POPULAR PROFILES AT RELIANCE RETAIL:
Mukesh Ambani : Chairman and Managing Director
Damodar Mall : Chief Executive Officer
Shawn Gray : Chief Operating Officer of Value Formats
Akaash Ambani : Director
Darshan Mehta : Head of Reliance Brands
Bijay Sahoo : President and Chief People Officer.
Board of Directors
Managing Director
Head Retail
Business
Head
Projects
Head
Operations
Head Risk
Management
Head
Marketing
Chief Finance
& Company
Head Human
Resource
Head Information
Technology
Figure: 3.2 Managerial Levels
Zonal Manager
Cluster Manager
Area Manager
Store Manager
Assistant Store Manager
Supervisor
Commercial Associate
Customer Service
Associate
3.3 ROLE AND RESPONSIBILITIES OF VARIOUS EXECUTIVES
3.3.1 THE TOP LEVEL
The topmost level of the retail company is the level where the main decisions are taken and where lies
the maximum power and decision making abilities. Those at the topmost level are responsible for the
strategic decisions that can help the company in gaining maximum profits.
CEO/Chairman/President
Chief Financial Officer
Chief Marketing Officer
Head/Country Head, HR
Brand Head
Sales Head
Head of finance department
Head of marketing departments
Head, Advertising and PR
3.3.1.1 BOARD OF DIRECTORS:
A Board of Directors is a body of elected or appointed members who jointly look after the activities of
an organization. Their activities are determined by the powers, duties, and responsibilities delegated to it
by an authority. There are 14 members in the Board of Directors of Reliance Group including Mukesh D
Ambani, the Chairman and the Managing director.
The Board of Directors of Reliance Limited shall exercise its powers and carry out its fiduciary duties
with a sense of objective judgment and independence in the best interests of the company. The Board of
Directors will also hire the Chief Executive Officer or General Manager of the business and assess the
overall direction and strategy of the business. Wherein, they are responsible for hiring all of the other
employees and looks after the day-to-day operations of the organization.
The major responsibilities of the Board of Directors includes
Recruiting, Supervising, Retaining, Evaluating and Compensating the Chief Executive Officer or
General Manager are the main roles of the Board of Directors.
They provide direction for the organization. They have the strategic functions which provide
vision, mission and goals of the organization.
They have the responsibility of developing a governance system for the business. The rules that
the board established must be policy based, to guide its own actions and the actions of the
manager.
The board monitors and controls the organization; they are in charge of the auditing process and
hire the auditors.
The board has the fiduciary responsibility to represent and protect the organizations asset and
member’s investment in the company.
3.3.1.2 MANAGING DIRECTOR:
Mukesh Ambani joined Reliance group in 1981 and became the Chairman and Managing Director in
2002. Under the leadership of Ambani, there sustained value creation over the past 10 years, which
bought a Turnover of 370%, Net Profit of 200%, Exports of 800%, Net Worth of 450% and Market Cap
of 250%. He is an iconic leader personifying extreme innovation, excellence and execution.
3.3.1.3 RETAIL BUSINESS HEAD:
Head Retail business managers are responsible for the day-to-day running of stores or departments. The
aim of any retail manager is to maximize profits while minimizing costs. Retail managers ensure
promotions are run accurately and to the company's standards. They make sure that staff is all working
towards the target for the day and that excellent customer care standards are met at all times.
The responsibilities are as follows
Managing and motivating a team to increase sales and ensure efficiency;
Managing stock levels and making key decisions about stock control;
Analyzing sales figures and forecasting future sales;
Organizing special promotions, displays and events;
Attending and chairing meetings;
Touring the sales floor regularly, talking to colleagues and customers and identifying or
resolving urgent issues;
Maintaining awareness of market trends in the retail industry, understanding forthcoming
customer initiatives and monitoring what local competitors are doing;
Initiating changes to improve the business, e.g. Revising opening hours to ensure the store can
compete effectively in the local market;
Developing business plan and sales strategy for the market that ensures attainment of company
revenue goals and profitability.
Price Negotiations and closing the deals.
Providing input to the Department Head on effectiveness of various advertising strategies,
seminar locations, brochures, videos, etc.
Attending trade shows and professionally representing Franchise India.
3.3.1.4 PROJECTS HEAD:
The Project Manager is responsible for delivering the project, with authority and responsibility from the
Project Board to run the project on a day-to-day basis. He is also responsible for the success or failure of
the project. He is involved with the planning, controlling and monitoring, and also managing and
directing the assigned project resources to best meet project objectives.
The reporting structure of Project Manager depends on organizational structure. He may report to a
Functional Manager or to a Program Manager. The Project manager has an important role in interfacing
between the project and the business area.
A project manager is a person who has the overall responsibility for the successful initiation, planning,
design, execution, monitoring, controlling and closure of a project.
The project manager must have a combination of skills including an ability to ask penetrating questions,
detect unstated assumptions and resolve conflicts, as well as more general management skills. Key
among a project manager's duties is the recognition that risk directly impacts the likelihood of success
and that this risk must be both formally and informally measured throughout the lifetime of a project.
The successful project manager is the one who focuses risk and uncertainty as their primary concern. A
good project manager can lessen risk significantly, often by adhering to a policy of open
communication, ensuring every significant participant has an opportunity to express opinions and
concerns.
Specific responsibilities of the project manager are
Planning and Defining Scope
Activity Planning and Sequencing
Resource Planning
Developing Schedules
Time Estimating
Cost Estimating
Developing a Budget
Documentation
Managing Risks and Issues
Monitoring and Reporting Progress
Team Leadership
Controlling Quality
3.3.1.5 OPERATIONS HEAD:
The role of Head of Retail Operations includes the following responsibilities:
To coordinate, oversee and deliver an annual operating plan.
To achieve sales growth and budgeted growth through developing winning strategies and people
development.
To assess the business and develop store business plans that support corporate retail initiatives,
and track the results.
To ensure operational activities meet with and integrate with organizational requirements for
quality management, health and safety, legal stipulations, environmental policies and general
care of duty.
To build effective partnerships with support departments to maximize overall performance of
retail division.
To monitor all reports and to compare results to store budget..
To monitor and drive store business plans.
3.3.1.6 RISK MANAGEMENT HEAD:
Risk managers advise organizations on any potential risks to the profitability or existence of the
company. They identify and assess threats, put plans in place for if things go wrong and decide how to
avoid, reduce or transfer risks.
Risk managers are responsible for managing the risk to the organization, its employees, customers,
reputation, assets and interests of stakeholders.
The responsibilities are:
To identify and quantify the organization’s exposures to accidental loss.
To adopt proper financial protection measures through risk transfer, risk avoidance, and risk
retention programs.
To design master insurance programs and self-insurance programs including the preparation of
underwriting specifications.
Securing and maintaining adequate insurance coverage at the most reasonable cost.
To determine the most cost-effective way to construct, refurbish, or improve the loss protection
system of any facility leased, rented, purchased, or constructed by company.
To develop and implement loss prevention programs.
To create and publish guidelines on the handling of all property and liability claims involving the
organization.
To issue bonds and certificates as necessary.
To establish Risk Management policies and procedures.
Establishing and quantifying the organization’s 'risk appetite', i.e. The level of risk they are
prepared to accept;
Prepare risk management and insurance budgets and allocate claim costs and premiums to
departments and divisions.
3.3.1.7 MARKETING HEAD:
Marketing managers are focused mainly on the practical application and management of an
organization's marketing operations. For marketing managers to be efficient and effective in performing
their functions, they should have excellent communication and analytical skills.
Marketing managers carry out market research to gain a clear understanding of what an organization's
customers really want. Marketing research enables these managers to identify new market opportunities,
helping the organization create a market niche for its products or services. Market research also involves
studying the organization's competitors so as to develop superior products and employ efficient
marketing techniques. Companies conduct market research using questionnaires, face-to-face interviews
or analyzing the buying habits of consumers.
Marketing managers are responsible for developing marketing strategies for their organizations.
These strategies outline clearly how an organization will promote its products and services to its
target market with an aim of increasing its sales volumes and maintaining a competitive edge
over its competitors.
The marketing manager performs the function of championing customer relationship
management in the organization and ensures that they offer excellent customer service to their
clients in order to build lasting relationships.
Marketing managers are in charge of the marketing department and therefore are responsible for
employees within their department. They assign duties and set targets for departmental staff. It is
also the function of marketing managers to perform periodic performance evaluations of the staff
working for them.
Marketing managers analyze market trends with an aim of identifying new markets for the
organization's products and services. Through studying the purchasing patterns of consumers,
they can identify the peak and off-peak demand periods for their products. Also through market
analysis and forecasting, they can develop strategies to ensure the organization remains
competitive.
Marketing planning should be at the core to any business and is usually presented in the form of
a written marketing plan based on the situation analysis, objectives, strategy, tactics, actions and
control.
An important element of the marketing manager's role which is often neglected is the process of
collecting and analyzing data on success. This can take the form of website hits, sales figures,
market share data, customer satisfaction or many other metrics and it's important to record and
track these as a core part of the marketing process.
3.3.2 THE MANAGERIAL LEVEL
The next level in a retail company or its hierarchy is that of the managers who handle the main
administrative duties of the company and see to it that everything is well managed, well-coordinated and
runs smoothly. The following are all the major job positions which fall under this category.
Brand Executive
Zonal/Regional Business Manager
Area Sales Manager
Manager, HR
Store Manager
General manager
Associate manager
Warehouse administrator
Inventory controller
Quality controller
Finance manager
Accounting manager
Logistics In-Charge
Merchandiser
3.3.3 THE EXECUTIVE/ENTRY LEVEL
The executive or entry level positions in a retail company are those positions which deal with customer
interactions, client communications, making sales, handling stores and following instructions of the
main decision makers. These individuals are the frontline executives whose job is to ensure making
maximum sales for maximum revenues. The following are the main job positions which fall under this
category of hierarchy.
Counter Sales Executive
Customer Care Associate/Executive
Assistant Merchandiser
Stock In-Charge
Sales Associate/Executive/Trainee
Warehouse manager
Inventory executive
Clerk
Accountant
Assistant accountant
Interns
trainees
Secretary
Transport manager
3.4 PROCESS/ACTIVITIES/PRODUCTS/SERVICES
Figure 3.3 Product Mix
3.4.1 PRODUCT HIERARCHY IN RETAIL INDUSTRY
The retail industry which has greatly emerged in last few decades has undergone certain transformations
with changes in tastes, preferences and shopping behavior of consumers. With the advent of technology,
the more advanced online retailing has also gained considerable prominence.
But, in this regard it must be noted that the product hierarchy in retail industry involves segregation of
the products into stock keeping units on the basis of product categories and segments.
The product hierarchy in retail industry also looks into activities of transportation of products and
inventory management depending on their respective product portfolio or line of business. Some
retailers may be merchandizing only lifestyle products like apparels whereas some may be
merchandizing products of personal care and staples, etc. These roles and responsibilities are clearly
distributed among certain hierarchies as follows:
3.4.1.1 THE TOP LEVEL
This level is involved in taking strategic decisions as to the products they would be offering according to
the company’s line of businesses. They also decide upon the target markets and location of the stores
that would help them in meeting customer needs profitably. In line with the company’s chain of
operations decides upon the products to be sold and assigns targets to the subsequent hierarchical level.
PRODUCT MIX OF RELIANCE FRESH
FRUITS &
VEGETABLES
STAPLE
STAPLE
STAPLES
BEVERAGE NON-FOOD, FMCG
3.4.1.2 THE MANAGERIAL LEVEL
This level communicates the targets assigned and allocates the same optimally to the retail outlets. They
also decide upon the strategies of order batching and inventorying of the products to be merchandized
and engage in team handling for better business growth.
3.4.1.3 THE EXECUTIVE/ENTRY LEVEL
The employees under this hierarchy are frontline executives who actually interact with and handle
customers and close sales. They are engaged in establishing better relationship with customers by
assisting them while they make a purchase decision and handle their complaints, if any. The job titles
under this hierarchy are:
Customer Care Associate/Executive
Counter Sales Executive
Stock In-Charge
Assistant Merchandiser
Sales Associate/Executive/Trainee
So basically, the product hierarchy in retail industry involves ensuring proper communication of the
right products in the right quantity along with customer assistance to the end consumer and providing
them a favorable shopping experience. The product hierarchy in retail industry carries out the activities
of delivering the right product basket to the end consumers profitably along with pre and post sale
assistance.
3.4.2 ORGANIZED FOOD RETAIL CHAIN AT RELIANCE:
Figure 3.4
Farms to consumers in hygienic packs
3.4.3 FARM TO FORK:
The Reliance retail company sources say it is setting aside Rs 50,000 crore to build its farm-to-fork
linkage. Reliance has drawn up plans for a presence in 784 towns and 6,000 (wholesale market) towns
with 1,600 rural business hubs to service these. It has already rolled out 177 Reliance Fresh stores across
major towns in 11 states. According to a company report, RIL is targeting a turnover of Rs 40,000 crore
in the next few years.
Figure 3.5 Traditional model of retail reliance “farm to fork”
3.4.4 SUPPLY CHAIN MODELS OF RELIANCE RETAIL
Reliance started its retail operations of Reliance Fresh stores with following supply chain model.
Procuring directly from the farmers and operating with moderate margin but mass selling was a key to
Reliance fresh operation for first few months. The following figure depicts the first Reliance fresh
model:
Figure 3.6.Supply chain models of reliance retail
3.3.5 WHOLESALE TRADING (WST):
Reliance formalized its second supply chain model to shift itself from grocery retailer to grocery
supplier by focusing and establishing itself in the market.
3.3.5.1 STEPS IN WTS MODEL:
Reliance has owned farms on contract basis for production of specific crop which is decided
after extensive research depending on soil conditions, climate conditions, return over costs
incurred.
In order to yield best possible results:
Different vegetables and fruits from such farms are collected through reliance own logistics
and brought to collection processing centers where quality check and other required
processing is done. In processing centers workers work wearing woolen trousers and bulky
jackets. A room kept at a constant 3oC, peeling and chopping vegetables, spinning them dry
and then heaping them in small plastic packets before placing them in plastic transport crates.
At the other end of the 5,000-sq-m warehouse, men unload crates of fruits from a truck
Farmers
Category
Farmers
Category
Farmers
Category
Collection
point/unit
Farmers Own Transportation Farmers Own Transportation
Reliance Fresh
Outlets
Reliance Fresh
Outlets
Reliance Fresh
Outlets
Processing
point/unit
Reliance own Logistics
Reliance own Logistics
RF RF
pulled up to a spotless loading dock. A quality-control expert samples every tenth crate and if
the fruits are good a team will make them ready for delivery within hours to Reliance fresh
stores around different places. If they are not, workers will inspect the entire shipment and
discard anything below standard.
Merchandise from these collection processing centers are collected and loaded for wholesale
market. As this merchandise is to be made available by 4 am in morning thus deliveries in
trucks are sent at time depending upon.
From markets where the trucks have been unloaded, roadside vendors and pull carters will
buy fruits and vegetables to supply in households.
In case still some vegetables and fruits are not sold reliance logistics own transportation
sends them to reliance fresh stores.
3.5 INDIVIDUAL DEPARTMENTS AND ITS STRUCTURES/ FUNCTIONS/
ACTIVITIES
A retail business hierarchy can be defined as the list of departments and the professionals, prevalent in
the retail business organizations. The larger retail businesses have more levels of hierarchy. The
structure is also dependent on the sales of the organization. With the increase in sales, more
professionals are required to handle the business and therefore more levels may be added in the existing
hierarchy.
In this particular article, we will discuss about the generalized structure of a retail business that consists
of different departments, with the chief executive officer or the president overseeing the operations of all
the departments.
3.5.1 STORE OPERATIONS:
The Store Operations departments are handled by the store managers. The major responsibility of this
department is to streamline various retail operations by integrating the business processes. The
department is comprised of task managers for task management and workforce manager for preparing
sales forecasts and taking corporate initiatives.
The department helps the retail business in the following ways:
It ensures the effective utilization of resources within the retail organization.
It gives priority to customer satisfaction by optimizing the business processes.
Figure.3.7 Store Operations
3.5.2 MARKETING
The ‘Marketing’ department is being handled by the marketing manager. The sole purpose of this
department is to develop and implement various retail sales and incentive programs, in order to attain
the organizational goals and increase the productivity. The essential functions of a marketing manager
are:
Developing and monitoring various businesses and marketing plans.
Developing various projects in order to foster the retail growth.
Recommending sources for the growth of retail channels.
Customer Help Representative
Store Manager
Merchandise Manager
Warehouse Manager
Inventory Manager
Sales Executive
Cashier
Sales Clerk
Store Operations
Figure 3.8.Marketing
3.5.3 MERCHANDISING
The ‘Merchandising’ department is one of the important levels of the retail business hierarchy. The sole
purpose of this department is to increase the sale of the products to the end customers and generate
revenues for the retail store.
The department is handled by the merchandising coordinator, who works in coordination with the store
operation professionals, sales and marketing professionals and associates, in order to increase the
profitability.
The major responsibilities of a merchandising coordinator or retail coordinator are:
Improving the visual standards of the products, as per the merchandising guidelines of the retail
business.
Developing various programs from time to time, for the impressive presentations of the products.
Marketing Manager
Sales Manager
Assistant Marketing Manager
Regional Manager
Area Manager
Advertising Manager
Publicity Manager
Marketing
Figure 3.9.Merchandising
3.5.4 HUMAN RELATIONS
The ‘Human Relations’ department plays a vital role in shaping the future of a retail business. The job
roles conducted by the department are:
Developing a healthy working culture and environment, in which the employees genuinely focus
on the customers.
Providing training in good business communication, to the employees.
Figure.3.10. Human Resource
Merchandising coordinator
Merchandise Manager
Warehouse Manager
Quality control Manager
Merchandising assistant
Buying Manager
Merchandising
Senior HR Manager
Junior HR Manager
Interviewer
Payroll Manager
Payroll Assistant
Recruiter
Human Resource
3.5.5 FINANCE
The ‘Finance’ department accounts for the following roles and responsibilities:
Creating records of purchase and sales.
Preparing balance sheets.
Preparing profit and loss accounts.
Calculating the salaries of the employees.
Figure.3.11.Finance
3.5.6 INFORMATION TECHNOLOGY
The ‘Information Technology’ department is another vital part of the retail business hierarchy. The job
roles of the department are as follows:
Managing the computerized payment systems.
Managing the online customer service systems.
Attending to all the technology issues arising within the retail business.
Finance Manager
Accounting Manager
Financial Analyst
Senior Accountant
Junior Accountant
Secretary
Clerk
Finance
Figure.3.12 Information Technology
3.6 DECISION MAKING PROCESS IN EACH OF THE DEPARTMENTS WITH
DATA FLOW
A retail company is a kind of a company which sells products manufactured by other companies and is
run with the help of varied departments, employees and managers. A retail corporate entity has
operations running both on the retail outlets as well as behind the scenes. In order to bring the products
to the customers and handle everything that goes in between, a large number of people ranked on the
basis of hierarchy are needed. Retail corporate hierarchy is the organization of employees working in a
retail corporate company and for your reference and help, a detailed structure is given below.
The retail industry consists of retail stores that offer a wide range of products to the customers all under
one roof. Similar to other organizations around the world, the retail industry also has its own
organizational structure to divide the responsibilities among the various working professionals as this
helps in carrying out the tasks easily and also maintain the daily records of the store. Below given are
the major job positions under retail industry management.
3.6.1 STORE OPERATIONS
The main aspect of any business from where it works is the store outlet. In order to handle the activities
as well as the working of the store outlet, a responsible manager is needed who is termed as the store
manager. It is his responsibility to streamline various retail operations by integrating the business
processes. The following are a few job positions which are found within this department.
IT Manager
Software Manager
Computer Engineer
Customer Care Manager
Customer Care Representative
Information
Technology
Store operations are that department which is responsible for administration of the store, management of
the premises and the day to day operations that are being carried out. Within this segment of a
departmental store, the following are the job positions or hierarchy.
Head Store Manager-Productive output and the smooth functioning of the stores depend on the
head store manager. The key role of the head store manager is to hire appropriate professionals
who can look after the daily specific tasks of the store. The person at the post is also the main
link between the employees and the area manager and solves the problems of the employees
regarding selling the items.
Training and managing the staff
Planning for stock management
Monitoring, coordinating and executing best strategies and plans for the store with the
objective of maximizing the sale.
Supervisors are the assistants to the store managers. They help the store managers in the overall
functioning of the store.
Assist the store manager in managing the store
Assist in handling the customer queries.
Maintain attendance record of the employees in the store.
Assistant Store Manager- An assistant store manager is the person next in charge to the store
manager and is responsible for maintaining and keeping a check on the activities taking place in
the store.
Checks the delivered goods for its quality, quantity, freshness and damage if any.
Customer service
Handles customer complaints
Manages the store in the absence of the store manager.
Merchandise manager
Warehouse manager
Inventory manager
Cashier
Sales clerk
Customer help representative-These forms the major bulk of the store employee population.
Assists the customers with the products
Arrange the stocks that arrives from the distribution center
Stock the products in a proper manner so that it is easy for the customers to select the product
they are looking for
Remove the spoilt and unwanted goods from the shelf
Billing
Remove the spoilt and unwanted goods from the shelf
Cashier-The cashier is the one who collects payments and hands over change to the customers.
He/she looks after the cash flow and keeps track of spending and earnings.
Sales Executives-The sales executives are the ones who ensure the sale of product or items and
hold top position in sale
Salesperson-a salesperson is responsible for helping out customers as far as selecting of
products is concerned.
3.6.2 MARKETING
The next most important department is the marketing department which handles everything related to
marketing and promotions of the products and of the store or retail company as a whole. Marketing is an
important arm of any departmental store and is that segment which deals with popularizing of products
so that they are sold effectively. Depending upon the size of the store, the marketing may either be a
separate department or may just have a couple of marketing experts.
There are many employees working in this department to properly fulfill all tasks related to marketing
and their hierarchy is given as follows:
Marketing manager
Sales manager
Assistant marketing manager
Regional manager
Area manager-The main responsibility of the area manager is to look after all the retail stores
under the same name in a particular area. He or she needs to maintain the record of all the retail
stores that fall under his or her area and present the records at the company corporate office or
the head office. The area manager also needs to deal with all purchase and sales issues of the
stores and the company. Also develop effective strategies and ensure that the stores are running
smoothly and are also achieving the desired sales target.
Advertising manager
Public Relations
Marketing head
Marketing executives
3.6.3 MERCHANDISING
When it comes to running a retail corporate entity, it is impossible to do it without having a separate
department for merchandising. The main purpose of this department is to increase the sale of the
products to the consumers and to generate revenues for the retail business. Merchandising is the
department which is responsible for purchase of products for the store. It includes inventory control,
planning and buying.
There are many job positions which lie within this department and these positions are also organized and
segregated In terms of a certain hierarchy. The following are some of these positions:
The major responsibilities of a merchandising coordinator or retail coordinator are:
Merchandising coordinator
Merchandise manager
Warehouse manager
Quality control managers
Merchandising assistant
Buying manager
3.6.4 HUMAN RESOURCES
Human resources are the most critical assets of any organization as the organization’s success lies in
their hands. Recruitment is an important part of an organization’s human resource planning and their
competitive strengths. Competent human resource at the right position in the organization is a vital
resource and can be a core competency or a strategic advantage of it.
The objective of recruitment process is to obtain the number and quality of employees that can be
selected in order to help the organization to achieve its goals and objectives. Recruitment acts as a link
between the employers and job seekers and ensures the placement of right candidate at the right place at
the right time.
The HR or Human Resources department is the one which is responsible for recruiting employees and
hiring managers at all positions. This is the department which deals with training and employee
recruitment. This department also takes care of distributing and deciding on salary figures and other
benefits. The following is a hierarchy within this department:
HR Manager
Interviewer
Payroll manager
Recruiter
3.6.5 FINANCE
The ‘Finance’ department is responsible for handling all the financial aspect of the retail corporate
business and the following is the hierarchy of job positions found within this department. A separate
finance department is often found to be a part of a departmental store and consists of accountants and
credit officers.
Finance manager
Accounting manager-The account manager in the Retail industry management hierarchy looks
after the accounts of the store. He/she needs to maintain all purchase and sales records and also
enter each and every transaction in a register and keep a track of the cash flow that is taking
place on a daily basis. All credit and debit matters are also maintained by the person at the post.
Financial analyst
Senior accountant- takes care of all the financial activities in the store.
Arrange for float cash in every cash counter before the store opens in the morning.
Maintain a track of transactions at every cash counter.
Maintain the book of accounts.
Acts as an interface between the store and commercial department in the corporate office.
Secretary
Clerk
3.6.6 INFORMATION TECHNOLOGY
Every retail corporate large scale business also has a department for IT and this department handles all
technical aspects of the business.
IT Manager
Software manager
Computer engineer
Customer care manager
Customer care representatives
3.6 DETAILS OF THE STRATEGIES USED FOR VARIOUS ACTIVITIES
Every retail store operates under the goal of overcoming the other competition in the market to create
brand dominance or large profit. This is done by different sales techniques created and adopted by
retailers. Techniques include hiring staff which are deemed attractive by the target demographic. Other
techniques include store location, somewhere easily visible with lots of traffic. Also stores create custom
interior design to suit the stores personality and the target market.
Some of the largest retailers spend millions on a stores marketing technique to invite customers in to
spend their time and money. As consumers have grown from the days of wandering in and buying goods
or services just for the face value to being informed on products and how they are made companies
focus on the values of society such as being sustainable or being fair trade approved.
Conscious consumers are attracted by the stores morals of being righteous and thus creating a strong
brand image that stands out from the competition. Adding value to goods or services such as a free gift
or buy 1 get 1 free advertisements value to customers where as the store is gaining sales. Customer
service is the "sum of acts and elements that allow consumers to receive what they need or desire from
your retail establishment."
It is important for a sales associate to greet the customer and make himself available to help the
customer find whatever he needs. When a customer enters the store, it is important that the sales
associate does everything in his power to make the customer feel welcomed, important, and make sure
he leaves the store satisfied. Giving the customer full, undivided attention and helping him find what he
is looking for will contribute to the customer's satisfaction.
For retail store owners, it is extremely important to train yourself and your staff to provide excellent
customer service skills. By providing excellent customer service, you build a good relationship with the
customer and eventually will attract more new customers and turn them into regular customers. Looking
at long term perspectives, excellent customer skills give your retail business a good
ongoing reputation and competitive advantage.
3.6.1 MARKETING STRATEGIES
Mukesh Ambani, Chairman and Managing Director said: “Organized retail has the potential to trigger
socio-economic transformation on an unprecedented scale in our country and will bring about enormous
spin-off benefits to the Indian economy and its various constituents”. “The launch of Reliance Mart is
yet another step by Reliance Retail towards providing international shopping experience to all our
customers at unmatched affordability, guaranteed quality and choice of products and services.
It offers some unique services to the shoppers like tailoring, shoe repair, watch repair, a photo shop,
gifting services and laundry services all within the store under one roof and also it has its own bakery
shop serving “hot, off-the-oven” bread and bread products throughout the day and an ice-cream train for
the kids, and loose tea and pickle for the housewives. It will also sell fine jewelry and fashion jewelry as
part of its lifestyle section and also provides easy and attractive finance options, including zero per cent
financing for the purchases on select products.
Reliance Mart will continue to offer all its customers Reliance One, a common membership and loyalty
program across all its formats, which follows the philosophy of 'Earn Anywhere, Spend Anywhere’.
Reliance Mart will also house a health and wellness store providing pharmaceutical drugs and other
wellness products. For the shopper’s convenience, the store has a cafeteria providing quality food and
beverages for ready consumption, an ATM machine and a consumer service/membership desk to
provide the customer a truly international shopping experience.
The hypermarket also launched a host of Reliance’s own brands in select categories with superior
quality and affordable prices like “First Class”, “Network, Netplay, Team Spirit” and Sparsh in Men’s
and Women’s Formal / Casual and Ethnic wear, “DNM- X” in the jeans category for men and women,
“Panda” for kids clothing and “ Grip” in the luggage section. The footwear category will carry “Zig” in
formal wear. “Hi Attitude” for semi -formal, “Tosco” for party wear and “Monza” for the sports
enthusiast. There are many products that will be exclusively available in Reliance Mart stores only.
Marketing strategy is a method of focusing an organization's energies and resources on a course of
action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy
combines product development, promotion, distribution, pricing, relationship management and other
elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a
stated timeframe. Marketing strategy determines the choice of target market segments, positioning,
marketing mix, and allocation of resources. As the customer constitutes the source of a company's
revenue, marketing strategy is closely linked with sales.
Reliance Mart, with more than 61 check-out counters has for the first time in India introduced the
Mobile POS system for faster check outs. This is aimed at reducing customer wait-time. Keeping local
brands at the outlets is more profitable and also makes the supply chain more efficient. Being a bulk
purchaser, Reliance Mart can offer products at very low prices. Also taking into consideration the local
brands, the products at the outlets would be easily acceptable by the customers.
And there would be comparatively less efforts needed by the marketer to explain the product to the
customers. In some cases, few regional brands which are strongly liked by the consumers offer lower
margins than that offered by the national brands. It has to face a tough competition by big shopping
malls i.e. Big Bazaar, and the upcoming Wall Mart.
Advertisement & promotion: - Because of having very powerful brand image reliance mart don’t
invest on digital media promotion. They use on print media only for make customer aware about their
offers & loyalty programs. They distribute broachers at the entry of the store and sometimes in markets.
3.7 DETAILS OF THE COMPETITORS
3.7.1 COMPETITORS OF RELIANCE RETAIL
STORE
FORMAT
(CATEGORY)
(Reliance Group’s)
VENTURE
COMPETITION INDUSTRIAL IST
GROUP/FAMILY
Malls and
Hypermarkets
RELIANCEMART Pantaloons Retail
Pantaloons Factory
Outlets
Big Bazaar
Big Bazaar Best
Deals
Big Bazaar Express
BIYANI GROUP
Star India Bazaar TATA GROUP
Shopper’s Stop K. RAHEJA GROUP
Organized
‘Kirana’ or
grocery
supermarkets
RELIANCE FRESH
RELIANCE SUPER
RELIANCE
DELIGHT
Food Bazaar BIYANI GROUP
Food World RPG (Ram Prasad
Goenka) GROUP
Apparels and
fashion
accessories
RELIANCE
TRENDS
Brand Factory, Lee
Cooper
BIYANI GROUP
Trent Westside TATA GROUP
Consumer
Electronics
RELIANCE
DIGITAL
Croma Retail TATA GROUP
Books and
Music stores
RELIANCE
TIMEOUT
Landmark TATA GROUP
Jewels Reliance Jewels Tanishq Jewellery TATA GROUP
Table.3.1.Competitors
CHAPTER 4
DETAILS OF FINANCIAL ANALYSIS WITH SUPPORT OF
BALANCE SHEET
4.1 BALANCE SHEET AS AT 31ST MARCH, 2015
₹ crore
As per 31st March,
2015
₹ crore
As per 31st March,
2014
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital 4,989.54 4,989.54
Reserves and surplus 198.82 263.79
5,188.36 5,253.33
Non-current liabilities
Long-term borrowings 3.37 1,741.33
Other long-term liabilities 75.00 -
Long-term provisions 11.95 9.31
90.32 1,750.64
Current liabilities
Short-term borrowings 1,670.16 176.41
Trade payables 1,199.42 1,124.43
Other current liabilities 416.22 350.89
Short-term provisions 1.09 1.39
3,286.89 1,653.12
Total 8,565.57 8,657.09
ASSETS
Non-current assets
Fixed assets
Tangible assets 2,053.83 1,963.30
Intangible assets 0.36 0.49
Capital work-in-progress 423.16 387.71
2,477.35 2,351.50
Non-current investments 470.10 847.79
Deferred tax assets (net) 563.33 679.64
Long-term loans and advances 448.62 660.48
3,959.40 4,539.41
Current assets
Inventories 3,881.73 3,263.82
Trade receivables 210.81 156.86
Cash and bank balances 150.52 385.64
Short-term loans and advances 363.03 311.30
Other current assets 0.08 0.06
4,606.17 4,117.68
Total 8,565.57 8,657.09
Table.4.1.Balance Sheet
They have audited the accompanying financial statements of RELIANCE RETAIL LIMITED (formerly
Reliance Fresh Limited) which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit
and Loss and a summary of the significant accounting policies and other explanatory information. In our
opinion and to the best of the information and according to the explanations given, the aforesaid
financial statements give the information required by the Act in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India, of the state of
affairs of the Company and its profit for the year ended on that date.
4.2 STATEMENT OF PROFIT & LOSS AS ON 31ST MARCH, 2015
₹ crore
2014-2015
₹ crore
2013-2014
INCOME
Revenue from operations 16,111.61 12,694.47
Other income 57.39 187.45
Total revenue 16,169.00 12,881.92
EXPENDITURE
Cost of materials consumed 528.65 -
Purchases of stock-in-trade 12,857.17 11,503.02
Changes in inventories of
Finished goods, stock-in-trade
(481.36) (1,295.00)
Employee benefits expense 434.74 395.17
Finance costs 150.00 69.79
Depreciation and amortization
expense
303.10 186.64
Other expenses 1,977.40 1,626.45
Total expenses 15,769.70 12,486.07
Profit/ (loss) before tax 399.30 395.85
Tax expenses:
Deferred tax 126.82 123.78
Profit/ (loss) for the year 272.48 272.07
Table.4.2.Profit and Loss
4.3 RATIO ANALYSIS:
4.3.1 CURRENT RATIO:
Current Ratio= Current Assets/ Current Liabilities
As on 31st March, 2015
Current Ratio= 4606.17/3286.89= 1.40:1
Interpretation: From the above calculation the current ratio is 1.4: 1 which means for every one rupee
of current liabilities, there is 1.4 rupees of current assets. However the standard ratio is 2:1. Since the
current assets are only 1.4 the company has to make sure that the current asset raises to 2 to meet the
standard ratio.
As on 31st March, 2014
Current Ratio= 4117/1653.12= 2.49:1
Interpretation: From the above calculation the current ratio is 2.49: 1 which means for every one rupee
of current liabilities, there is 2.49 rupees of current assets. However the standard ratio is 2:1. Since the
current asset is 2.49 which is greater than the standard ratio, the company’s current assets and liabilities
is at an ideal position.
Since the previous year’s current ratio is lesser than the preceding previous years ratio, we can get to
know that there is a declining trend in the current ratio and the company has to take measures to prevent
the declining trend.
4.3.2 QUICK RATIO
Quick Ratio=Quick Assets/Quick Liabilities
Quick Ratio= Current Assets-Stock-Prepaid Expenses/Current Liabilities- Bank O/d
As on 31st March, 2015
Quick Ratio= (4606.17-3881.73-0) / (3286.89-0) = 0.22:1
Interpretation: The quick ratio calculated is 0.22:1 which means for every one rupee of quick liabilities
there is only 0.22 rupees of quick assets. However the ideal ratio is 1:1 and the company has to ensure
that it reaches its ideal level.
As on 31st March, 2014
Quick Ratio= (4117.68-3263.82-0) / (1653.12-0) = 0.52:1
Interpretation: The quick ratio calculated is 0.52:1 which means for every one rupee of quick liabilities
there is only 0.52 rupees of quick assets. However the ideal ratio is 1:1 and the company has to ensure
that it reaches its ideal level.
4.3.3 PROPRIETARY RATIO:
Proprietary ratio=Shareholders Fund/Total Assets
As on 31st March, 2015
Proprietary ratio=5188.36/8565.57=.60:1
Interpretation: The proprietary ratio means the ratio between the insider’s funds to the total assets of
the company. The ratio is calculated as 0.60:1 that means in every one rupee of assets employed 60
paisa belongs to the insiders.
As on 31st March, 2014
Proprietary ratio=5253.33/8657.09= 0.60:1
Interpretation: The proprietary ratio means the ratio between the insider’s funds to the total assets of
the company. The ratio is calculated as 0.60:1 that means in every one rupee of assets employed 60
paisa belongs to the insiders.
4.3.4 RETURN ON CAPITAL EMPLOYED:
Return on Capital Employed=Earnings before Interest and Tax/Capital Employed
Capital Employed= Total assets-Current Liabilities
As on 31st March, 2015
Return on Capital Employed= 399.30/ (8565.67-3286.89) = 7.564%
Interpretation: The above ratio indicates the percentage of profit earned on the capital employed to
earn profit. Here in this company the return on capital employed is 7.564%. This means that the
company earns 7.56 rupees before interest and tax for every 100 rupees employed in the company.
As on 31st March, 2014
Return on Capital Employed =395.85/ (8657.1653.12) = 5.65%
Interpretation: The above ratio indicates the percentage of profit earned on the capital employed to
earn profit. Here in this company the return on capital employed is 5.65%. This means that the company
earns 5.65 rupees before interest and tax for every 100 rupees employed in the company.
CHAPTER 5
DETAILS OF SWOT ANALYSIS, MCKINNEY’S 7 S MODEL AND
PORTERS 5 FORCE MODEL
5.1 SWOT ANALYSIS
Reliance industries which always looking for new business opportunities just started a new era
with its introduction of new concept stores named Reliance Retail. Reliance Retail is very different
from what modern retail has offered in India so far and with this reliance is planning to establish strong
retail network in India in food and farm sector.
STRENGTHS: Reliance is the first into enter into this unorganized sector of vegetables and fruits.
According to them its intentions to have100% farm fresh foods in their new retail stores. In fact, over
60 per cent of the floor space has been dedicated to fresh fruits and vegetables, the rest to other food
products like staples, spices, bakery, etc. But reliance has decided not to add any bar soap or toothpaste
and detergent in its shelves. So by using this strategy they are positioning themselves different from
other players of the industries like Food world, Big Bazaar and Nilgiris. Most of the staples are under
its own private label brand — ‘Reliance Select’. There is a 500g channa dal pack priced at Rs 28, a
500g urad dal pack for Rs 39, all under Reliance’s own brand. Excepting a few packets of Nestle’s
Maggi, or MTR’s masalas or Pepsi’s Lays chips, there is very little shelf space given to the big brand
owners in the country and the reason being private labels offer far better profit margin to the retailer
than branded products of FMCG companies.
High brand equity.
The company is well established and has very good GOODWILL
State of the art infrastructure.
A vast variety of products under one roof.
Maximum percent of footfalls converted in sales.
It offers a family shopping experience, where entire family can visit together.
Benefit of early entry into the retail industry.
Huge investment capacity.
Biggest value retail chain in India.
Available facilities such as online booking & delivery of goods.
WEAKNESS: This is definitely an interesting business venture but it may miss out on the opportunity
to capture a greater share of the customer’s wallet. For customers, too, this could be irksome, as they
would have to visit another store to pick up essentials. Reliance could easily fix this problem by adding
a few small counters for some basic non-food products. According to their official this format is not
final one they are accepting the new changes which are required to attract the large number of
customers.
Long lines at billing counters which are time consuming.
High cost of operations due to large fixed costs.
Unable to meet store opening targets on time.
Falling revenue per sq ft.
Overcrowded during offers and peak seasons.
Many branded products are still missing from Reliance’s line of products.
High attrition rate of employees.
OPPORTUNITIES: Reliance wants to build a high-profitability business and food is, perhaps, the best
venture to start. That is because the Indian food supply chain is grossly inefficient. There are several
intermediaries, each of whom adds his own profit margin to the cost. Besides, there is huge wastage in
transit. This offers potential for savings and profits. To reduce the cost and increase the profit it has
been sourcing out its requirements from the farmers. The supply chain already has been backed by few
hundred farmers the number is estimated to touch million in next five years. The main aim of the
reliance is to eliminate the intermediaries in the sector and reduce the cost. Smaller stores have two
advantages. They bring down the cost of real estate (and increase profits). It is easier to find space for
small convenience stores in a quiet neighborhood than for supermarkets in high streets.
Lot of potential in the rural market and can also expand the business in smaller towns.
The brand can also start online stores for selling its merchandise as an effective medium for
selling.
They can enter into production of various products due to their understanding of customer’s
taste and preferences.
Organised retail is expected to garner about 16-18 % of the total retail market in the next 5
years.
Increasing mall culture in India.
Improving in store experiences according to evolving customer preferences.
THREATS: Reliance expects consumers to visit the store at least twice a week for their top-up
groceries. Each store will have an investment of Rs 50 lakh to Rs 60 lakh. Unlike global retailers who
operate on thin margins, Reliance Retail is looking at a fairly high-margin business model. Deliberately
stopped short of being a full-fledged supermarket rather, it has limited itself to a food and grocery
convenience store. They also have a threat from the existing supermarkets which provides all the
services to its customers. For Example Food world and Nilgiris also provides food and beverages with
other personal care products. These convince are not existed in the present Reliance retail stores.
Competition from other value retail chains such as Shoprite, Big Bazaar and D mart.
Unorganized retail also appears to be a threat to Reliance’s business.
Changing Government policies.
International players looking to foray into the market.
High business risk involved and margin of business reducing all the time.
Increasing number of online retail sites.
5.2 PORTER 5 FORCE MODEL
5 Forces Analysis
Rivalry among the
competitor
• Big Bazaar, Aditya Birla Group , Star Bazaar,
Pantaloons and Walmart, etc
Threat of entrants • FDI policy not favorable for international players.
• Domestic conglomerates looking to start retail
chains.
• International players looking to foray India.
Bargaining power of
supplier
• The bargaining power of suppliers varies depending
upon the target segment.
• The unorganized sector has a dominant position.
• There are few players who have a slight edge over
others on account of being established players and
enjoying brand distinction.
Bargaining power of
buyers
• Consumers are price sensitive.
• Availability of more choice.
Threat of substitutes • Unorganized retail
Table.5.1.Porter 5 force Model
Figure.5.1 Porter 5 Force Model
Threat of New entrants
This danger is at greatest now as it is going to further make things troublesome for Reliance Fresh.
One trend that started over a decade ago has been a decreasing number of independent retailers. Walk
through any mall and you'll notice that a majority of them are chain stores. While the barriers to start
up a store are not impossible to overcome, the ability to establish favorable supply contracts, leases
and be competitive is becoming virtually impossible. Their vertical structure and centralized buying
gives chain stores a competitive advantage over independent retailers.
Bargaining power of buyers
This is the pressure a customer can place on a business. If there are few buyers then they are able to
dictate the terms with increasing access to technology. Bargaining power of buyers is moderate
because of the size and concentration of major retailers. To reduce power and you retain customers,
retailers seek to differentiate products and create strong brands. Individual private customers have a
relatively low bargaining power in front of large retail chains, however, their power is greater for
small retailers, who are less organized. A contract with a large retailer such as Wal-Mart can make
or break a small supplier. In the retail industry, suppliers tend to have very little power.
Competitive
Rivalry
Bargaining
power of
suppliers
Threat of
substitute
products
Bargaining
power of
Buyers
Threat of new
Entrants
Bargaining power of suppliers
A company to manufacture its products requires raw material, labor etc. This creates a buyer
supplier relationship in an industry. If there are few suppliers providing material essential to make a
product then they can set the price high to capture more profit. Again due to increase in number of
players in organized retail sector bargaining power of suppliers is also on the rise as they have
many options where they can negotiate their prices. Individually, customers have very little
bargaining power with retail stores. It is very difficult to bargain with the clerk at Safeway for a
better price on grapes. But as a whole, if customers demand high-quality products at bargain prices,
it helps keep retailers honest.
Competitive rivalry within the industry
This describes the competition between the existing firms in an industry. Greater the competitive
rivalry (companies providing equally good products or services) lesser are the profit margin. With
entry of foreign players it would make the competition even more intense. Competition is increased
by equal size and power of dominant retailers who are pushing to increase the market share. The
trend of extinction of small retailers through acquisitions, mergers alliances and high cost has also
made
the competition high. Among leading group there are More, Big Baazar and Pantaloon that are
dominating the large markets of retail sector in India.
Threat of substitute products
The tendency in retail is not to specialize in one good or service, but to deal in a wide range of
products and services. This means that what one store offers you will likely find at another store.
Retailers offering products that are unique have a distinct or absolute advantage over their
competitors.
Conclusion:
The model of porter led to following conclusion about threat of new entrants, bargaining power of
suppliers, bargaining power of customer, the rivalry between existing firms on retail market in
Romanian and threat from substitute product. In the retail sector barriers to entry are relatively high.
Consumer bargaining power is moderate because size and concentration of major retailers. There are
many threats on the retail market penetration of large discount stores. E-retailing is also threat to stable
trade retailers. Rivalry among existing firms in retail market in Romanian is enhanced by equal size and
power of dominant retailers who pressured to increase their market share.
The trend of extinction small retailers through acquisitions, mergers or alliances and high cost to exist
this market.
5.3 McKINSEY’S 7 S MODEL
Managers need to take account of all seven of the factors to be sure of successful implementation of a
strategy. They're all interdependent, so if the manager fail to pay proper attention to one of them, it can
bring the others crashing down. It explains 7 factors to organize a company in a complete and best way.
It suggests that there are various factors that influence an organization’s ability to change. Since the
variables are intertwined, important progress cannot be made in single area unless progress is made in
other areas too. The seven elements are distinguished as Hard S and Soft S. The 3 Hard S elements are
feasible and are easy to identify. The 3 Hard S can be seen in strategy statements, organizational charts
and other organization documentations. The 4 Soft S’s however, are hardly feasible.
Figure.5.2.McKinsey’s 7S Model
STRUCTURE: Structure refers to the structure of the organization. It refers to the durable
organizational arrangements and relationship. It is the skeleton of the whole organization.
Reliance Retail Limited has simple, economic and reasonable organization pattern. They have
formal relationship among various positions and activities.
STRATEGY SYSTEM
SKILLS STYLE
STAFF
SHARED
VALUE
STRUCTURE
STRATEGY: Strategy is a choice of direction and action, the company adopts to achieve its
goals in a competitive situation. Any statements completely of functional strategy which the
company is wishing to share are improvements in existing products. Introduction of effective
replacements without compromising on quality.
Always keep the customers’ needs in mind and constantly innovate.
Execute flawlessly and with speed.
Sustain and strengthen the group’s spirit of entrepreneurship—taking ownership and
accountability for their actions.
SYSTEM: System tells which the main systems that run an organization are. In Reliance Retail
Limited there are Financial, HR, Marketing, Merchandising, Information Technology,
Operations which are controlled by the directors and executives. Each system has their own
working process and set of rules to work on. Each and every employee’s follow these rules and
instructions and operate accordingly.
Growth opportunities to expand leadership capabilities.
Opportunities to develop and hone leadership and functional capabilities.
An entrepreneurial environment where people can pursue their dreams.
Competitive compensation.
Rewards & Recognitions programs that identifies the skilled and talented individuals.
SKILLS: Employee’s skill in an Organization is unique and it can be due to their experience in
the work place. It depends upon the kind of people in the organization, management style,
Organization structure, and the external environment. The employees of Reliance Retail Limited
have different skill related to their work. The skills of employees have developed over a period
of time.
Committed to excellence in quality.
To meet the upcoming business challenges.
It is this skill and initiative of our workforce that sets us apart from our peers in today’s
knowledge-driven economy.
STYLE: Decision-making is centralized with the head office. Authority is given to an executive
to take decision in day-to-day minor matters & other urgent matter, it depends on the authority &
responsibility conferred on every individual & thus it is distributed based on designation &
position held. In important matters, meetings are held to take opinions of top management &
various department managers & the decisions are taken & implemented.
The company always gives preference to the employees. The pride of the company lies in the
idea of accepting challenges.
It offers the most inspiring workplace with best technology and people.
STAFF: As any employer, Reliance follow ethical employment standards wherever it operates
with a goal in Mind; it completes its complete legal obligation in terms of payments of
employees and benefits practices. The company provides training for job for everyone for which
they are employed. Career advancement related to performance and experience.
SHARED VALUE: Values refer to the institutional standards of behavior that strengthens
commitment to the vision, and guide strategy formulation and action. The company has
embraced an extended role of trusteeship that reaches beyond the assets shown in the balance
sheet to include societal belongings. Customer satisfaction, ethical conduct, commitment to total
quality, Innovation and creativity, trust and team spirit are the heart of company’s value system.
They value the trust of partners and always priorities their decisions.
They give more importance to the human capital and look for their well being and growth.
They always think in terms of customer satisfactions.
Excellent execution is their motto.
They involve in corporate social responsibilities and help the welfare of the society.
CHAPTER 6
FINDINGS AND RECOMMENDATIONS
6.1 FINDING
Majority customers like to purchase all goods from Reliance fresh.
Customers like one stops shopping.
Local market till today is the first choice of customer.
Advertisement is the biggest way to attracting the customer.
Promotion scheme not so easy to understand for customer.
Most of customer is not fully satisfied with store.
Shortages of skilled workers.
High attrition rate will lead to more untrained staff, lack of knowledge and may decrease service
quality affecting sales.
Employee Loyalty towards the organization.
Company is trying to get more customers for its business
Different product categories in the store.
Employee’s behavior.
Additional services like home delivery or parking facilities.
Product availability.
Freshness of products.
Store’s own brand popularity.
Employees working in reliance fresh stores are found satisfied with their work but not very satisfied
which means there is a need to take further steps to make them more satisfied with their work.
Several competition and programs are also organized to entertain the store employee.
6.2 RECOMMENDATIONS
More promotion scheme should be used to penetrate the market.
It can reduce the waiting time of customers at billing counters and improve the in store
customer experience by opening more counters and keeping them always functional with
adequate staff.
The company can utilize its capacity to the maximum by bring in more innovation.
The company can spend both money and man power on advertising.
Company should also improve in building up the strong marketing strategy in order to improve
the distribution channels and could be able to increase the.
Marketing and Production department should work effectively and can make the company to
earn more profit by cost cutting.
The management should design training and development programmers and identify the skill or
knowledge.
Company should get into more aggressive marketing to gain the more order in the market.
Skilled employees should be higher because mostly customers are young.
Service of store should be providing in such way which full the need of the customer.
Absence of many branded products may give the competitors a huge edge.
Selling goods at a lesser price will help them to overcome the threat of local retailers where the
goods are priced higher.
Brand awareness and loyalty is high due to which many people buy goods from Reliance
in the supermarket category this may suppress the threat of other competitors
High brand equity and huge investment capacity can help them to enter rural markets and smaller
towns.
CHAPTER 7
CONCLUSIONS
As Reliance expanding its operation every quarter so, trained manpower is the challenge for the
company. The training in Reliance has given me a good exposure on how the Retail industry works
overall. HR in retail is a support function but choosing the appropriate human resource is most vital to
increase sales and profit.
A congenial work atmosphere, support learning, training facilities and a good pay structure are some of
the effective retention practices that can be followed by the organization. Apart from that, it can be
concluded that Reliance Retail takes utmost care of all the employees in the stores and always works for
the improving the overall efficiency.
Under the present circumstances, a good work atmosphere, training facilities and high pay structure are
some of the effective retention practices followed by the retail sector which is found in Reliance as well.
The study indicates that the positive aspect is that the company insist on good labor relation and works
for good harmony within the organization. More than earning profit the organization focuses various
other aspects which are very needed for the survival of the competition in the market. Retail industry is
an upcoming industry and provides great opportunity in the near future. The organization has best
commuting system in order to communicate the organization's short term goals to the employees
regularly. The company provides best care and facilities for its employees.
CHAPTER 8
LEARNING EXPERIENCE
On the first day of Internship a brief Introduction about the organization was given by the HR manager.
The researcher started the project under the guidance of Mr. Nagendra Kumar who is the HR Manager at
Reliance Retail Limited. The researcher was given an opportunity to refer to the organizations records,
where in got to know about the documentation procedures involved in that work and gained a fair idea
of the functions in that company. The organization study carried at Reliance Retail Limited helped me to
aware profile, structure, departments and their functions, process and work flow as well the financial
status along the competitors details.
It was an amazing experience visiting Reliance stores where the researcher got opportunity to interact
with the store managers and get first hand information about the whole functioning of the store and also
a lot about Retail industry at large. The experience got from the Internship is very useful and the
researcher got explored to the new product-line, people, strategies, working style, culture, policies, and
the style of managing company’s profile. The exposure got in ‘Reliance Retail Value Format” was
tremendous and so believed that it will definitely help the researcher in the future career.
BIBLIOGRAPHY
Websites:
www.ril.com
www.economictimes.com
www.financialexpress.com
www.ibef.com
www.premium-papers.com/post/retail
www.ehow.com/pricing-strategy
www.businessknowhow.com/marketing
www.slideshare.net
www.business-standard.com
www.va-interactive.com/inbusiness/editorial/sales
Student Papers:
Reliance Fresh: Refreshing Business Strategy. Submitted by Erum Khan, Sahil Gupta, Mayank Badkul