Fundamental management process of pantaloon retail limited
Fundamental Management Process of PANTALOON RETAIL LIMTEDSubmitted To: Submitted By:Prof K.C.Arora Gaurav Sharma Pantaloon Retail Limited Company Profile
Pantaloon Retail Limited, a leading retailer, is the flagship company of theFuture Group. Headquartered in Mumbai, the company operates through primarilythe Lifestyle and Value formats through multiple delivery mechanisms and linesof business - some of them being, fashion, food, general merchandise, home,leisure and entertainment, financial services, communications and wellness. The company has about 331 stores in over 40 cities across the country,constituting 5 million square feet of retail space. The company caters to theLifestyle segment through its 31 Pantaloons Stores and 4 Central Malls, as well asits other concepts. In Value retailing it is present through 51 Big Bazaarhypermarkets, 77 Food Bazaars and 5 Fashion Stations, and other delivery formats Company GoalsPantaloon Retail Ltd share the vision and belief that customers and stakeholdersshall be served only by creating and executing future scenarios in the consumptionspace leading to economic development.Pantaloon Retail Ltd will be the trendsetters in evolving delivery formats, creatingretail realty, making consumption affordable for all customer segments – forclasses and for masses.Pantaloon Retail Ltd shall infuse Indian brands with confidence and renewedambition.Pantaloon Retail Ltd shall be efficient, cost- conscious and committed to quality inwhatever they do.Pantaloon Retail Ltd shall ensure that positive attitude, sincerity, humility andunited determination shall be the driving force to make company successful.Pantaloon Retail Ltd inspires trust through innovative offerings, quality productsand affordable prices that help customers achieve a better quality of life every day.Pantaloon Retail Ltd’s manifesto encourages them to explore unexplored areas andwrite new rules to create new opportunities and successes with focus in striving for
glorious future gives strength and the ability to learn, unlearn and re-learn theability to evolve and increase shareholders wealth. Fundamental Management Processes1. Decision Making2. Planning3. Directing Operational Activities4. Controlling Decision Making
In 2006-07 Pantaloon Retail Ltd’s board of directors decided to expand theirbusiness as it was one of company’s many goals. They went ahead and decided toexpand brand availability at their stores and open new outlets. They decided to increase brand availability at their stores byadding life-style products and fashion products brands to their brand cataloguewith an approach to increase sales 25-30%.Pantaloon Retail Ltd also decided to increase its chain of stores by penetrating intotier 1 and tier 2 cities.Company’s management team had to decide how to reach to more consumers, howto expand and penetrate India’s big market. They had to decide the best way toexpand company’s operations by choosing among the best alternatives. PlanningPantaloon Retail Ltd’s top management decided to expand company’s business bybuilding new stores to penetrate new markets and increase brand catalogueavailable at stores to attract customers. To plan this management committee had meetings and came out with an idea tofulfill money requirement by filing IPO and generate RS 1200 crore.Now they planned about new brands to be added to existing stores and build newstores to expand business.Now the detailed planning phage began ie planning about brands, operations,facilities, employee requirements, cost management, utility management, pricingof products, these planning decisions were taken by management team.Pantaloon Retail Ltd management team had to plan for running the new stores aswell as existing stores, which require planning for Financial and operationalactivities.
With these ideas to expand the important issue was to increase the wealth ofshareholders. Directing Operational ActivitiesNow the money of almost 1200crore generated by IPO .After time new stores arebuilt and new brands were added to existing brand catalogue ,company had todecide how to direct operational activities, how much cash in hand require tofacilitate the new stores, to pay for maintenance ,supplies and other operations.Payroll, utility bills, maintenance charges, products requirements, Day to dayexpenses and other operational activities come under management process. By the direction of management team, all the requirements are fulfilledand money and manpower is allotted and direction of these activities on daily basiscomes under the management process. ControllingPantaloon Retail Ltd’s Management ensured that the company operates in theintended manner and achieves its goals. Pantaloon Retail Management Ltd andManagement Accountants worked side by side, in cross functional teams withmanagers from all areas of the company to perform accordingly Management Accountants provided valuable financial information shaping that asrelevant for decision making and controlling.
The new stores are built and started operating, now after some years managementteam processed that the company’s idea of sales growth and market expansion wasworking and it looked that management process achieved its goals of growth. Results of well managed and performed management process:The new brand catalogue benefitted the sales or market penetration strategysucceeds, these issues are considered under the process of controlling. PantaloonRetail Ltd, after 2 years of the strategic process of decision of adding new brandsto catalogue and expanding business, with plan to raise money by IPO and plannedoperational activities Pantaloon Retail Ltd found that the measures it took resultedin increasing business and Goal of 25% increase in sales achieved. The Management process determined thatthey achieved the target growth and their idea of expansion and the idea ofincreasing brand catalogue worked, by these successful decisions, planning,directing operations were worked in favor of Pantaloon retail and they were able tomeet the expectations, and achieved the goals.