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

INTRODUCTION ABOUT

THE ORGANISATION

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.

INDUSTRY PROFILE

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.

ORGANIZATION IN DETAIL

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

DETAILS OF FINANCIAL

ANALYSIS

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.

DETAILS OF SWOT

ANALYSIS, McKinney’s 7s

MODEL AND Porters 5

FORCE MODEL

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.

FINDINGS AND

RECOMMENDATIONS

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.

CONCLUSIONS

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.

LEARNING EXPERIENCE

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