Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Ashwini

1,717 views

Published on

doc

Published in: Business
  • Be the first to comment

Ashwini

  1. 1. SUMMER INTERNSHIP PROJECT REPORTShoppers Stop A Project Report Submitted In Partial Fulfillment of the Requirements For The Award of the Degree of POST GRADUATE DIPLOMA IN MANAGEMENT TO M.S.RAMAIAH INSTITUTE OF MANAGEMENT BY Bhabna 101217 PGDM (AIMA) 2010-2012Under the guidance of PROF. SWATI BASU GHOSEM.S.RAMAIAH INSTITUTE OFMANAGEMENT NEW BEL ROAD, BANGALORE-560054 STUDENT‟S DECLARATIONMSRIM ,BANGALORE Page 1
  2. 2. MSRIM ,BANGALORE Page 2
  3. 3. Table of contentsPART 1- Organizational studySummary of Indian Retail sector Industry over view The Indian retail industry Growth in organized retail List of retailers in India SWOT analysis CHAPTER II – COMPANY ANALYSIS Introduction: shopper‟s stop  Shopper‟s stop brands  Private Label brands  Partners of shopper‟s stop  Gift vouchers  Awards and recognitions  Organizational hierarchy  SWOT AnalysisCHAPTER III – DISCUSSION ON TRAINING  Roles and responsibilities  Discussion of work experience  Contribution to the organization CHAPTER IV – ANALYSIS OF TASK/RESEARCH UNDERTAKEN Need for the study Objective of the study Statement of research problem Scope of study in shoppers stopMSRIM ,BANGALORE Page 3
  4. 4. Research methodology Data Analysis and Interpretations Research Findings Recommendations Limitations Conclusion and BibliographyMSRIM ,BANGALORE Page 4
  5. 5. CHAPTER-1 INTRODUCTION TO THE INDUSTRYMSRIM ,BANGALORE Page 5
  6. 6. Summary of Indian Retail Sector  Industry overviewThe Indian retail sector is at an inflexion point, with changing demographics driving growthof organized retailing and driving growth in consumption. With changing demographic andeconomic profile of the Indian population, we believe that India expected to experienceaccelerated consumption over the next few years. Further, we believe that increase inconsumer spending would be driven by nuclearisation of families, increasing population ofworking women and new job opportunities in emerging service sectors such as IT enabledservices. With declining interest rates an average Indian is not averse to taking loans.Not only are the demographic factors becoming more favorable but also the growing mediapenetration is leading to a convergence of aspirations of various classes of consumers. Webelieve a larger number of households are adding to the consuming class with growth inincome levels. The number of households with income of over Rs. 45,000 per annum isexpected to grow from 58 million in 1999-2000 to 81 million by 2005-06 (source: themarketing white book 2003-04,brought out by business world).of this,56%(44.8 millionhouseholds)is expected to concentrated in urban India. This large base of households withgrowing disposable income is expected to drive demand for organized retail.The changes in demographics are changing consumption pattern in the country. Centralstatistical organization (CSO) estimated private final consumption of consumers in India atabout Rs.17,600 billion in FY04.of the total private consumption, retail sector accounted forapproximately 60% at Rs.8570(source: image retail).of this, food and beverages, apparel andconsumer durables are the top three categories of consumer spend and from 87% of the totalretail sales in India.MSRIM ,BANGALORE Page 6
  7. 7.  The Indian retail industryIndia has a large number of retail enterprises. With close to 12 million retail outlets in Indiahas one of the highest retail densities in the world. In terms of the structure, the industry isfragmented and predominantly consists of independent, owner-managed shops. The retailbusiness include verity number of traditional retail formats such as ”kirana” stores whichstock basic household necessities (including food products),street markets-regular marketsheld at fixed centers retailing food and general merchandise items, street vendors mobileretailers essentially selling perishable food items – fruits, vegetables etc and small nonspecialized retailers.  Growth in organized retailIn sharp contrast to the global retail sector, retailing in India-though large in terms of size it ishighly fragmented and unorganized. With close to 12 million retail outlets India has thelargest retail density in the world (source: CII Mc Kinsey Report titled „Retailing in India theemerging revolution‟)However, most of these retail outlets belong to the unorganized sector. The inability ofunorganized sector to offer a wide range of products along with artificially inflated costs dueto various factors have presented opportunities for growth in the organizes retail sectormigration from ungrouped to organized retail has been visible with economic development inmost economies. The Indian retail industry is evolving in line with changing customeraspirations across product groups, with modern products of retailing emerging. Organizedretail derives its advantages in generating operational efficiencies while simultaneouslycatering to rising consumer aspirations. Size drives economics on procurement and lowerslogistics and marketing costs while delivering better value to customers in terms of lowerprice, better quality, greater selection, improved service and in store ambience.MSRIM ,BANGALORE Page 7
  8. 8. LIST OF RETAILERS IN INDIAHere is a comprehensive list of retailers in India across various segments.HYPER MARKETS: Hyper City, Big Bazaar, Spencer, Star India Bazaar, Shop Rite.DEPARTMENT STORES: Shoppers Stop, Pantaloons, Lifestyle, Globus, Westsideand Central Mall.CONVENIENCE STORES: Trumart , Nilgiries ,Food World , Subhiksha , RelianceFresh, Trinetra , Spencer‟s daily and Spinach.SPECIALITY STORES: M.A.C, Titan, Tanishq, Bata.SPECIALTY FORMATS: Concept living room style spa and tangent.CONSUMER DURABLE CHAINS: Viveks, Tata Croma and Vijay SalesMSRIM ,BANGALORE Page 8
  9. 9. SWOT Analysis of Retail Sector: 1Strenghts:  Demographic favour.  increase in number of people in earnercategory.  Urbanization.  Low labor cost of skilled ones  Shopping convenience.  Changing consumer habits and lifestyles.  Plastic card revolution.  Greater availability of quality retail space.2 Weakness:  Policy related issues: i. lack of industry status for retail. ii. numerous licence,permits and registration requirement. iii. farmer and retailer unfriendly APMC act.  Limited consumer insight: i. lack of detailed region specific customer data. ii. less data on spending pattern.  inadequate human resources: i. lack of trained personnel at all level. ii. stringent employment and industry laws. iii. fragment approach to human resources.  Taxation hurdle: i. inconsistent octori and entry tax structure. ii. vat and multiple taxation issues. iii. large grey market presence.  Underdeveloped supply chain: i. underdeveloped logistics infrastructure. ii. absence of national cold chain networks. iii. lack of national distribution networks and hubs.  Lack of adequate utilities: i. lack of basic infrastructure like power, transport and communication creates difficulty in sustaining retail operations across the large geographical spread of country.MSRIM ,BANGALORE Page 9
  10. 10. 3.Opportunities:  Potential for investment.  Locational advantage.  Sectors with high growth potential.  Fastest growing formats.  Rural retail.  Wholesale trading.  Falling real estate cost.  E-retailing.  Retail franchising.4.Threats : Political issues. Social issues. Inflation. Nostalgia Lack of differentiation among the malls that are coming. Poor inventory turns and stock availability Measures.MSRIM ,BANGALORE Page 10
  11. 11. Major players in various formatsHYPER MARKET Big Bazaar, Spencers, Vishal Retail, Magnet, Star India Bazaar, Shop Rite.DEPARTMENT STORES Shoppers‟ Stop, Pantaloons, Pyramid Mega Store, Lifestyle, Globus, Westside. Central Mall. Trumart, Nilgiris, Food World, Subhishka,CONVENIENCE STORES Tirtenthra, Spencers Daily. Spinach.SPECIALITY STORES M.A.C, Titan, Bata, Tanishq,SPECIALITY FORMATS Archies, Depot, Landmark, Crossword, Planet MFOOD RETAILERS McDonald‟s, Pizza Hut, Pizza Cornier, BombayBlues, KFC, Dominos, Smokin JoesFURNITURE RETAILING Concept, Living Room, Style Spa, TangentCONSUMER DURABLE CHAINS Viveks, Croma, Vijay Sales, Sumaria, And SonyMony.MSRIM ,BANGALORE Page 11
  12. 12. CHAPTER-2 INTRODUCTION TO THE COMPANYMSRIM ,BANGALORE Page 12
  13. 13. INTRODUCTION:The foundation of Shopper‟s stop was laid on October 27, 1991 by the K. Raheja Corp.Group of companies. Being amongst India‟s biggest hospitality and real estate players, thegroup crossed yet another milestone with its lifestyle venture-Shopper‟s stop. From itsinception, shopper‟s stop has progressed from being a single brand shop to becoming afashion & lifestyle store for the family. Today, Shopper‟s Stop is a household name, knownfor its superior quality products, services and above all, for providing a complete shoppingexperience.With an immense amount of expertise and credibility, Shopper‟s Stop has become the highestbenchmark for the Indian retail industry. In fact, the company‟s continuing expansion plansaim to help shopper‟s stop meet the challenges of the retail industry in an even better mannerthan it does today.Shopper‟s stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS). The IGDS consists of 30 experiencedretailers from all over the world, which include established stores likeSelfridges(England),Karstadt(Germany), ShanghaiNo.1(China),Manor(Switzerland),to namea few.With an unparalleled assortment of the leading international and national brands in clothingfor men, and kids; accessories, fragrances, cosmetics, footwear; home furnishing and décorproducts, their aim is to provide shoppers a truly international shopping Destination.Experienced professional management; supported by world-class systems and practices; anda talented pool of associates with a shared passion for making every shopper visit amemorable one, has helped Shoppers Stop to grow from single store in 1991 to the largestchain of Department Stores in India today.Their unending pursuit to benchmark themselves with the best in the world is testified by thefact that Shoppers Stop is the only Indian member of the Intercontinental Group ofMSRIM ,BANGALORE Page 13
  14. 14. Departmental stores, which has the likes of Selfridges(U.K), Karstadt (Germany),Marks&Spencers(U.K), Matahari (Indonesia),Myers Grace Bros.(Australia) andRustan‟s(Philippines) among its members.BOARD OF DIRECTORS OF SHOPPER’S STOP Mr. Chandru L. Raheja, 69, is the Chairman and Non-ExecutiveDirector of our Company. He is a law graduate from Mumbai. Mr. Raheja has extensiveexperience with the real estate, hospitality and retail industries across India. Mr. Ravi C. Raheja, 38, is the Non-Executive Director of ourCompany. He is a management graduate from London Business School. Designated as theGroup President at the K. Raheja Corp, Mr. Raheja has over 18 years industry experiencewith special focus on the group‟s Real Estate & Retail arm.MSRIM ,BANGALORE Page 14
  15. 15. Mr. Neel Raheja, 36, is the Non-Executive Director of our Company.He is an alumnus of Harvard Business School, Masters in Commerce and Law Graduate fromMumbai University and has over 15 years of experience in real estate development,hospitality and retail. Mr. B. S. Nagesh, 51, is the Vice Chairman and Non-ExecutiveDirector of our Company. He holds a degree of Masters in Management Studies from theBenares Hindu University. He has been with our Company since its inception in 1991. Mr. Gulu L. Mirchandani, 67, is the Independent and Non-ExecutiveDirector of our Company. He is an alumnus of BITS, Pilani and holds a degree in BE(Mechanical). Mr. Mirchandani presently serves as the chairman and managing director ofMirc Electronics Limited.MSRIM ,BANGALORE Page 15
  16. 16. Mr. Shahzaad Dalal, 51, is the Independent and Non-Executive Directorof our Company. He is a Management Graduate from Northeast LouisianaUniversity (USA). He is the Vice Chairman of IL&FS Investment Managers Limited (IIML)one of India‟s leading Private Equity Fund Managers. Mr. Dalal brings to our board 30 yearsof financial markets and investment experience. While at IIML, Mr. Dalal has headed privateequity investments with an aggregate capitalization value in excess of $9.5 billion. Prior toIIML, Mr. Dalal served as the Chief Executive Officer of IL&FSs Asset ManagementStrategic Business Unit. Prior to that, Mr. Dalal was at the Industrial Credit and InvestmentCorporation of India ("ICICI"). Mr. Dalal is a member of the India CEO Forum, which isaffiliated with the IMA (International Market Assessment Group). Prof. Nitin J. Sanghavi, 61, is the Independent and Non-ExecutiveDirector of our Company. He holds Bachelor‟s in Science from Saurashtra University,Master‟s in Science and PhD in Retail Franchising from The University of Manchester. He isa professor of Retail Marketing and Strategy, Manchester Business School, The University ofManchester.MSRIM ,BANGALORE Page 16
  17. 17. Mr. Deepak Ghaisas, 52, is the Independent and Non-ExecutiveDirector of our Company. He is a qualified Chartered Accountant, Cost Accountant andCompany Secretary. He leads strategy development, visioning and conceptualization ofbreakthrough business models for Gencoval Group, his new venture in Healthcare and BioTech Mr. Nirvik Singh, 46, is the Independent and Non-Executive Director of ourCompany. He is a post graduate from St. Xavier‟s College, Kolkata. Mr. Singh brings to ourboard his keen sense of marketing communications. Mr. Govind Shrikhande, 49, is the Managing Director of our Company. Heis a graduate of Technology from Veermata Jijabai Technological Institute (VJTI), Mumbai,and is a management graduate from Symbiosis Institute of Business Management, Pune. Mr.Shrikhande has been with our Company for more than ten years and has played a key role inour Company‟s growth from 7 stores in 2000 to 36 stores (including Home Stop) in the year2010.MSRIM ,BANGALORE Page 17
  18. 18. VISION OF THE SHOPPER’S STOP-To be a global retailer in India and maintain its No.1 position in the Indian market in theDepartment Store category. We will not take what is not ours. The obligation to dissent (against a viewpoint that is not acceptable). We will have an environment conducive to openness. We will believe in innovation. We will have an environment conducive to development. We will have the willingness to apologise and forgive. We will respect our customers rights. We will create an environment of trust. We shall be fair. We will be socially responsible.MISSION OF THE SHOPPER”S STOP“We will provide the “Best” value in terms of product and services and adopt “Best” processfor stakeholders, without compromise. There by matching global standards There by matching global standards of performanceSERVICE VISION STATEMEN“It’s magical; it’s comfortable it’s my store’We will create an environment which is unique and enjoyable for the customer andemployee.We will ensure that each stakeholder feels a sense of involvement satisfaction andcommitment to the organization as if it were His/hers own.MSRIM ,BANGALORE Page 18
  19. 19. VALUES OF SHOPPER’S STOPWe have established Shopper‟s Stop as a marketing phenomenon with our commitment tocustomer satisfaction and our deep sense of ethics and values.The following are the values that help us in achieving our mission and vision: An environment conducive to openness, innovation, an environment conducive to development, the willingness to apologies and/or forgive, respect for our customers rights, the value of trust and the value of fairness.SHOPPER’S STOP BRANDSWe ensure that 85% of our merchandise is branded, so that we can offer customers qualityand price assurance. In fact, if a brand does not meet customer expectations, it is quicklyphased out. Only 4% of brands that apply to Shoppers Stop are accepted.Quite naturally, only the best of national and international brands grace the shelves atShoppers Stop. Having said that, there are more than 150 brands from which to choose, allunder one roof. We are the leading retailer of all the brands we stock and the largest singleretailer for Levis Strauss, Pepe, Lee, Arrow, Zodiac, Reebok, Nike, Parker, Ray-Ban,Swatch, Chambor, Revlon, Lego and Mattel AND the launch pad for non-garment brandslike Walt Disney, Tencel and Elizabeth Arden.The list of brands continues. Colour Plus, Wrangler, Pierre Cardin, Lakme, Park Avenue,Benetton, Lee Cooper, Killer.Such is the preference for brands at Shoppers Stop that variousbrands are looking at developing exclusive lines for Shoppers Stop.PRIVATE LABEL BRANDSOur recently launched range of private label brands - Life, Kashish, Karrot and STOP! in thepremium classic, value classic and value fashion segments have a private label teamMSRIM ,BANGALORE Page 19
  20. 20. comprising of designers recruited from Indias premier fashion design institutes workingclosely with the merchandising, buying and marketing teams.PARTNERSLaunched as Indias premier retail chain for branded apparel and accessories, Shoppers Stophas systematically progressed from only branded apparel to private label garments to homefurnishings, and finally into books and music - all focused on our customers lifestylerequirements and aspirations.By way of acquisitions and tie-ups, Shoppers Stop strives to find partners that share its visionto provide the customers with the best of service. So, be it Food World to offer you theculinary delight, Planet M with music for your ears, Ritazza to help you rejuvenate as yousurrender yourself to the store or Crossword for the hungry minds, Shoppers Stop makes surethat you feel the experience while you shop.GIFT VOUCHERThey say its the thought that counts more than the gift. And yet, so much time is spent inchoosing the right gift. May we suggest a way to get it right without sparing a thought?Presenting the Shoppers Stop Gift Voucher. It‟s much more than just a gift.It offers over 1,50,000 gift-wrapped alternatives. Its a selection from over 200 apparel andaccessory brands available in the country. It is this choice you gift when you choose topresent a Shoppers Stop Gift Voucher.It can be the finest way to say "Happy Diwali" to your employees or your business associates,the perfect festive gift that you have always wanted to give. Make the Shoppers Stop giftvoucher your way of saying “Happy Diwali” this festive season.Denominations: Rs 51/-, 101/-, 251/-, 501/-, 1001/-, 2001/- Companies can also have thesevouchers customized and personalized with the name and logo of their organizations as well.Validity: SS Gift Voucher is valid for one year from date of issue across the cities ofMumbai, Bangalore, Hyderabad, Jaipur, Delhi, Chennai, and Pune.MSRIM ,BANGALORE Page 20
  21. 21. FIRST CITIZEN’S CLUBYou get Reward Points every time you shop, exclusive offers ever so often, and updates onwhat you can look forward to at the store. Exclusive cash counters let you spend more timeshopping rather than waiting in a line. And you dont have to worry about parking any more.In keeping with our ethos in provide the customers with the best of service and making surethat you feel the experience while you shop, Shoppers Stop, Thane announces a partnershipwith Barista - for the complete shopping experience. Located on the 3rd Floor of ourcomplex, the world of Barista Coffee is your getaway from the daily grind. Sit back, relaxand surrender to the simple pleasures of coffee.As a company, Barista is passionate about coffee to the point of being almost fanatical, doingalmost everything they can to provide you with the finest coffee experience. At Barista, allthe coffees are made with top grade Arabica beans. They commission Brew Masters fromItaly to create their blends and use the best Italian machines to brew their coffees. They usethe espresso method to brew each cup, administering the delicate use of pressure to extractthe flavor and aromatic oils of each bean.Barista is for the coffee lover seeking a complete experience that combines intelligentpositioning with the right product mix and carefully designed cafes. In other words, an"experiential lifestyle brand".MSRIM ,BANGALORE Page 21
  22. 22. MILESTONE OF THE COMAPNYAWARDS AND RECOGNITIONSAccomplishments Shoppers stop in the only retailer from India to become a member of the prestigiousintercontinental group of departmental stores(IGDS).The IGDS consists of 30 experiencedretailers from all over the world, which include established stores likeSelfridges(England),Karstadt(Germany),Shanghai No-1 china, Manor (Switzerland),to namea few.Year 2010 1) Loyalty Summit Award:- Jan2010Shopper‟s stop was declared as the winner for customer &brand loyalty in the “retail sector” 2) Images fashion forum:-Jan2010 “Most admired large format national fashion retailer-outstanding achievement in consumer recognition and loyalty”-Shopper‟s stop “Most admired fashion retail professional of the year-Mr.Govind Shrikhande 3) Partner awards:- Gitanjali IFA most admired large format retailer of the year –Shopper‟s stop Gini & Jonny IFA most admired large format retailer of the year-Shopper‟s stop Triumph maximum consumer reach-Shopper‟s stopYear 2009 1) Images fashion forum:-Jan 2009 “Most admired fashion retail destination of the year”-Shopper‟s stop 2) Asia retail congress:-Feb 2009 “Retailer of the year-Fashion & Lifestyle”-Shopper‟s stop. “Retailer of the year-leisure”-crossword. 3) Coca cola golden spoon award:-Mar 2009MSRIM ,BANGALORE Page 22
  23. 23. “Most admired food retailer of the year ”&innovative retail concept”-Gourmet CITY. 4) Network computing EDGE and PC quest enterprise award:- “Automated replenishment software solution-Hyper city. “Best distribution centre management system”-Shopper‟s stop “B2C(E commerce)portal for shopper‟s stop” 5) Global C10 50:-Jan 2009 Mr.Arun Gupta included in global C10 50 by information week.(10 c10 from India included in top 50 c10 in the world). 6) VMRD retail design award:-July 2009 “Best visual merchandising” (store launch category)-shoppers stop 7) C10 100:-sep 2009 Hyper CITY for implementation of DCMS with gatekeeper margin-awarded to Mr.vaneeth purushatman. Shopper‟s stop for drishti-awarded to Mr.Arun Gupta. 8) IRF 2009-Sep 2009 Most admired retailer of the year (customer relations)-Shopper‟s stop. 9) CMAI Awards:-Dec 2009 The advertising campaign of the year-retail: New logo launch campaign The brand of the year-Women‟s Indian ethnic wear-STOP The product innovator of the year:-IJEANSWEAR. The retail professional of the year Mr.Govind Shrikhande.Year 2008 1) Star retailer awards:-Nov 2008 “Department store of the year”-Shopper‟s stop. “Debutant retailer of the year”-Gourmet CITY. 2) Most admired fashion retail destination of the year “Most admired fashion retail destination of the year at the images fashion forum in January 08. 3) Word retail congress awards-Apr 2008 “Emerging market retailer of the year 2008”-Shopper‟s stop LTD. Mr.B.S.Nagesh has been included into the world retail hall of fame and is the first Indian to be bestowed with this honor.MSRIM ,BANGALORE Page 23
  24. 24. 4) CMAI Apex awards-july2008 Brand of the year-ladies ethnic wear-STOP Social award to Mr.Nagesh for being the first Indian retailer to be inducted into the world retail hall of fame. 5) CIO awards 2008 IDG India CIO magazine has recognized shoppers stop and Hyper CITY as a recipient of 2008 CIO 100 award. Shopper‟s stop also own the storage award 2008 6) Images retail forum-September2008 “Most admired retailer-Customer relations management”-Shopper‟s stopYear 2007 1. Retail Destination of the year Received retail destination of the year at the images fashion forum in Jan 07 2. Images retail awards-Sep 2007 Most admired retailer-Technology application-Shopper‟s stop Most admired retailer-retail design & visual merchandising-HypetCITY. 3. CMAI APEX awards-nov 2007 Received the following awards from the “clothing manufacturers association of India”(CMAI) for the year 2006-07 Retail professional of the year-Mr.B.S.Nagesh 4. Star retailer awards-Dec 2007 Star retailer awards-Dec 2007 “Department stores of the year”-Shopper‟s stop. Value retailer of the year-Hyper CITYYear-2006 1. Retailer of the yearMSRIM ,BANGALORE Page 24
  25. 25. “Retailer of the year” at the images India retail forum in September, 06. 2. Certificate of merit “Certificate of merit” from the council for fair business practicers (CFBP) for our contribution to the promotion of the code of conduct laid down by CFBP. 3. Best annual report and accounts for 2006 “Best annual report and accounts for 2006” by the institute of chartered accounts of India for the accounting practices adopted by shopper stop. 4. Amity corporate excellence award “Amity corporate excellence award” by the amity international business school 5. Baby kangaroo program. “Baby kangaroo program” recognized as one of the top innovative HR practices by Delhi management association with Erehwon innovation consulting in Nov, 06. 6. Intrepreniurship awards “Intrepreniurship Award” to Mr.Nagesh in the Enterprise seions award organized by DNA money in Nov, 06. 7. Visionary award “Visionary award” to Mr.Nagesh by ICFAI in Nov, 06. 8. Chain store of the year “Chain store of the year” at the CMAI APEX awards in Dec, 06. 9. Advertising campaign of the year “Advertising campaign of the year” at the CMAI APEX awards in Dec, 06. 10. Retail professional of the year “Retail professional of the year” to Mr.B.S.Nagesh at the CMAI Apex awards in Dec, 06. 11. Intelligent enterprise awards “Intelligent enterprise awards” for IT at the technology senate for the SSL Group companies in Dec, 06.Year-2005 1. CEO of the yearMSRIM ,BANGALORE Page 25
  26. 26. “CEO of the year” awarded to MR.B.S Nagesh in the 4th “Indira awards for marketing excellence” presented by the Indira Group of institutes in jan,05.The awards were judged by an independent jury which comprised of business leaders.CEO‟s and experts in the field of advertising &Marketing. 2. Most admired shopping destination of the year. “Most admired shopping destination of the year “award by images fashion forum, in Jan, 05. 3. India‟s Greatest Brand Builders “India‟s greatest brand builders “award to Mr.B.S.Nagesh (customer care associate.MD&CEO) by bhartiya vidyapeeth institute for management studies and research in Feb, 05. 4. Retail professional of the year. “Retail professional of the year” awards to Mr.B.S.Nagesh (customer care associate, MD&CEO) in the ICICI Retail excellence awards, in Feb, 05. 5. Loyalty program of the year “Loyalty program of the year “at the ICICI retail excellence awards in feb, 05. 6. Amity Global Corporate Excellence award “Amity Global Corporation Excellence award “at the 7th international business horizon in bush 2005 by the centre of international business, Amity business school, Noida in feb, 05. 7. Retail destination of the year “Retail Destination of the year “at the India retail forum in sep, 05. 8. Amity Global Corporate Excellence Award “Amity Global Corporate excellence award “at the 7th international business horizon inbush, 2005 by the centre of international business. Amity business school, Noida in Feb, 05. 9. Retailer of the year. “Retailer of the year” at the India retail summit in Nov, 05. 10. Retail professional of the year “Retail professional of the year” at the India retail summit in Nov, 05. 11. Advertising campaign of the year.MSRIM ,BANGALORE Page 26
  27. 27. “Advertising compaign of the year” in the CMAI APEX awards in Dec, 05. 12. Retail professional of the year “Retail professional of the year” in the CMAI APEX awards, in Dec05 Year-2004 1. Most favored retail destination of the year Images retail award for the “Most fevoured retail destination of the year”sep,04 2. Teachers achievement award “Teachers achievement award” to Mr.B.S.Nagesh (customer care associate, MD &CEO) for excellence in the field of business-Nov, 2004. 3. One of the top three retail organizations in India Retail Asia publishing and euromonitor international award for being ranked “one of the top three retail organizations in India”-oct 2004 4. Organization with innovative HR practices “Organization with innovative HR practices” award at the HR excellence award organized by mid-day, big break & Daks-Nov04 5. HR professional of the year “HR professional of the year” awarded to Mr. Vijay kashyap (vice president-HR) at the HR excellence awards organized by mid-day, big break &Dask-Nov04Year-2003 1. IT user award for best IT practices in retail category Shopper‟s stop was awarded the IT user award for best IT practices in retail category” for year03-04 2. CMAI bestowed upon shopper‟s stop, industry honors:MSRIM ,BANGALORE Page 27
  28. 28. CEO of the year-Retail Mr.B.S.Nagesh (2003-04) retailer of the year (03-04) retail outlet of the year-Delhi (2003) & Hyderabad (2004). 3. Best IT user In 2003 NASSCOM conferred upon shopper‟s stop the award for the “Best IT user” in the retail vertical 4. Lycro images fashion award Lycro images fashion award to shopper‟s stop for “Best Retail chain of the year” and Mr.B.S.Nagesh for retail professional of the year” in febYear-2002 1. CMAI award 2001-2002 Shopper‟s stop swept a majority of awards at the CMAI awards 2001-2002.The awards won include. 2. “CEO of the year” 3. “Retailer of the year”Year-2001 1. Annual award for excellence as top CEO for 2001 Mr.B.S.Nagesh won the “Annual award for excellence as top CEO for 2001” at the institute of marketing management.Year-2000 1. The most admired apparel retailer of the year 2000 Shopper‟s stop won “The most admired apparel retailer of the year 2000” award at the images fashion awards 2. Enterprenur of the year 2000 Mr.B.S.Nagesh was nominated for the Ernst & young. “Entrepreneurs of the year 2000”awardMSRIM ,BANGALORE Page 28
  29. 29. SHOPPER’S STOP PROFILEAn Indian retail sector major Shoppers Stop Limited (SS) opened its door in the year 1991,the foundation was made by K Raheja Corp and it was incorporated on 16th June 1997 as aprivate limited company. It started operations with the first store in suburban Mumbai and isnow a multi-channel retailer with 24 large format department stores and online presence.From its inception, Shoppers Stop has progressed from being a single brand shop tobecoming a Fashion & Lifestyle store for the family. Today, Shoppers Stop is a householdname, known for its superior quality products, services and above all, for providing acomplete shopping experience. It provides retail range of branded and own label apparel,footwear, perfumes, cosmetics, jewellery, leather products and accessories, home products,books, music and toys, operates in the cities of Mumbai, Delhi, Kolkata, Chennai, Bangalore,Hyderabad, Pune, Jaipur and Gurgaon. The first store was opened in the year 1991 atAndheri, a suburb in Mumbai, only with Menswear and the Ladies wear was introduced inthe year 1992. After a year, the company added Children & non apparels to its list in 1993.Loyalty Program titled First Citizen was launched by SS in the year 1994 and in 1995; thecompany had opened the second store in Bangalore. The status of the company was changedto deemed public limited company in December of the same incorporation year 1997. SS hadopened its third store in Hyderabad during the year 1998 and implemented JDA Retail ERP(a global leader in retail ERP packages) in the year 1999. Also during the same year of 1999,the companys fourth & fifth stores in Jaipur & Delhi were opened. During the year 2000, thecompany opened its sixth & seventh store at Chennai & Chembur, Mumbai and also in thesame year 2000, SS had acquired Crossword, Indias leading retail book chain. The eight &ninth store in Pune & Bandra and tenth store in Kandivli, Mumbai were opened by thecompany in 2001 and 2002 respectively. SSs status was further converted to a full-fledgedpublic limited company on 6th October 2003. The eleventh, twelfth & thirteenth store inMulund (Mumbai), Gurgaon and Kolkata were unlocked by the company in the 2003 itself.During the year 2004, SS had opened its fourteen, fifteen & sixteenth store in Malad -Mumbai, Kolkata & Bangalore. In 2005, SS had opened its seventeen, eighteen, nineteen &twentieth store in Pune, Juhu - Mumbai, Bangalore & Ghaziabad. Also in the same year ofMSRIM ,BANGALORE Page 29
  30. 30. 2005, the company had launched M.A.C & Homestop, a home store. Mothercare in India andF & B outlets Brio & Desi Cafe were launched by the company during the period of 2006. SSmade its release of twenty first (Mumbai) and twenty second store in Lucknow in theidentical year of 2006 and also acquired 45% of Time zone India. The Company had openedits 22nd Store at Noida in May 2007. During the same year 2007, the company had signedJoint Venture (JV) (50:50) with the Nuance Group for Airport Retailing and also inked theMemorandum of Understanding (MoU) with the Home Retail Group of UK to enter into afranchise arrangement for the Argos formats of catalogue & internet retailing. In March 2008,SS kicks its operation Kolkata, aggregating the 24 shops. The Company honored withEmerging Market Retailer of the Year 2008 in April of the year 2008. In same April of thesame year 2008, SS had unveiled its new logo and introduced the new expression of thebrand. SS bagged Department Store of the Year award in November of the year 2008 for itsreputation in the industry.Shopper‟s Stop Ltd. (Shoppers Stop) is engaged in operating departmental stores. Thecompany offers branded and private label, products including apparel, footwear, perfumes,cosmetics, jewellery, leather products, accessories, home products, books, music and toys.Shopper‟s Stop offers these products through various store formats including Shoppers Stop,HomeStop, Crossword, Mothercare, HyperCITY, GourmetClTY, Nuance and Timezone. Thecompany operates about 27 Shoppers Stop stores, 22 Mothercare stores, 51 Crossword storesand four HomeStop stores. The company operates principally in India and is headquartered inMumbai, IndiaGROWTH AND PRESENT STATUS OF SHOPPERS STOP INTHE INDUSTRY;The large format store Shoppers Stop‟s feels same-store sales in the current fiscal year willgrow between 8 to 9 per cent. Last year, the retail chain owned by the K Raheja Group,registered same-store sales growth of 17 per cent. Same-store sales are a statistic used inretail industry analysis. It compares sales of stores that have been open for a year or more.This statistic allows investors to determine what portion of new sales has come from salesMSRIM ,BANGALORE Page 30
  31. 31. growth and what portion from the opening of new stores. This analysis is important because,although new stores are good, a saturation point -- where future sales growth is determined bysame store sales growth -- eventually occurs.Shoppers Stop plans to open eight to nine stores at an investment of Rs 75 to Rs 80 croresand expects to open three to four Hypercity stores at an investment of Rs 25 crores in thecurrent fiscal. It is also looking at raisingprices of private labels by 10 to 12 per cent fromJuly 1 due to pressure from rising raw material costs.FUTURE OF SHOPPERS STOP IN THE INDUSTRYShoppers‟ Stop aims to position itself as a global retailer. The company intends to bring theworld‟s best retail technology, retail practices and sales to India. Currently, they are adding 4to 5 new stores every yearMSRIM ,BANGALORE Page 31
  32. 32. ORGANISATIONAL HIERARCHY OF SHOPPERS STOPLIMITED; UNIT HEAD ROM DM HR HEAD RBI HEAD TRAINEES CCA ADMIN HEAD MAINTENANCE HEAD HEAD VM HEAD MARKETING HEAD CASH HEAD SECURITY HEADMSRIM ,BANGALORE Page 32
  33. 33. Designations: 1. Unit Head: Topmost authority in the unit responsible for the entire store activities, decision-making, etc. Reports to different heads like B&M, Operations, etc. at SO. 2. ROM: Retail Operations Manager--- He/She reports to the unit head and responsible for entire store activities, decision making, etc. Act as an active unit head in the absence of the unit head. 3. DM: Department Manager--- He/She reports to the ROM and responsible for the departments allocated to him/her. 4. MT: Management Trainee--- He/She reports to the ROM and responsible for the departments allocated to him/her. 5. RMT: Retail Management Trainee--- He/She reports to the ROM and responsible for the departments allocated to him/her. 6. RST: Retail Sales Trainee--- He/She reports to the ROM and responsible for the departments allocated to him/her. 7. HR Head: Human Resource Head--- Reports to the unit head and responsible for staff recruitment, selection, interviews, training, induction, salary related issue, compensation, satisfaction, etc. 8. Admin Head: Administration Head--- Reports to the unit head and responsible for availability of stationary, arrangement for various facilities, etc. 9. Maintenance Head--- Reports to the unit head and responsible for the technicalities in the store like lightings, wiring, electricity, AC, construction issues, etc. 10. VM Head: Visual Merchandising Head--- Reports to the unit head and responsible for displaying the stocks on mannequins, thematic displays during festive seasons, floor presentation, making signages, maintaining the plannogram, etc. 11. Marketing Head: Reports to the unit head and responsible for getting institutional business for the store, bulk orders, getting corporate orders, etc. 12. Unit Co-ordinator: Reports to the unit head and responsible for updating the statistics in infozone relating to sales, stocks, pics, variances, etc. 13. EDP Head: Electronic Data Processing Head--- Reports to the unit head and responsible for the maintenance and working of the server, POS machines, freezing, acceptance, etc.MSRIM ,BANGALORE Page 33
  34. 34. 14. Cash Head: Reports to the unit head and responsible for all the monetary transaction in the store. 15. Back End Cash: Reports to the cash head and responsible for the monetary transaction in the store. 16. Security Head: Reports to the unit head and responsible for the guards employed, their training, pilferage, night permit arrangements, etc. In all security of the stocks in the store, coming in and going out of the store, regular check of people moving in and out of the store, making gate passes, etc. 17. Housekeeping Head: Reports to the unit head and responsible for maintaining the cleanliness of the floor, and places like canteen, loo, and miscellaneous works. 18. RBI: Receiving Bay Incharge--- Reports to the ROM and responsible for the entire movement of stocks in and out of the system, raises inter branch transfers, etc. 19. CCA: Customer Care Associate--- Reports to the DM and responsible for section maintenance, stacking, merchandise arrangement, attending customers, sales presentation, sales, stock take, global count, etc. 20. Merchandiser: Reports to the Category manager and responsible for raising purchase orders, arranging stock of the right mix and quantity, solving vendor related issues, maintaining vendor relation and negotiations, etc. 21. Vendor: One who supplies merchandise to us. Every vendor has a brand code and a vendor code which helps to distinguish them from each other.MSRIM ,BANGALORE Page 34
  35. 35. Cash flow of the companyStatement of Cash Flows for the year ended 31 March, 2010 Shoppers Stop.Com (India) Ltd.(All amounts in Indian Rupees)March10 march09MSRIM ,BANGALORE Page 35
  36. 36. Cash flows from operating activitiesNet Loss before tax (32,141) (28793)Operating Loss before working capital changes.(32,141) (28793)Decrease in Loans and Advances 23,737 32478Increase/(Decrease) in current liabilities32,584,761 and provisionsCash generated from operations (5,146) (1,076)Net cash from operating activities ( 5,146) (1,076)Cash flow from investing activities _ _Cash flows from financing activities _ _Net decrease in cash and cash equivalents ( 5,146) (1,076)Cash and cash equivalents as at beginning of 7,328 8,404the yearCash and cash equivalents as at the end of 2,182 7,328 the year 5,146 1,076 MSRIM ,BANGALORE Page 36
  37. 37. MSRIM ,BANGALORE Page 37
  38. 38. SWOT Analysis:STRENGTHSShoppers Stop‟s focus on a single format had led to better operational metricsand different formatssimultaneously. Each new format, however, was beingplanned and executed as a separate strategicbusiness unit (SBU) within thegroup. Shoppers Stop was a conservative retailer, wary of the risks of inventorypile-up (which would increasecosts) and low inventory turns (which wouldreduce cash flow). The risk aversion stemmed from itsgrounding as an apparelretailer that purchased goods largely on an as-needed, consignment basis.Shoppers Stop‟s strong back-end systems provided real-time information tomanagers and had helpedthem to achieve operating metrics often considered thebenchmarks for Indian retail The company had adopted a customer-centricmarketing campaign as opposed to the conventionalproduct-based campaign .Together with promotions that coincided with the seasonalfashions, theadvertisements had helped to drive footfalls at a compounded annual rate of 16percentand to maintain the conversion rate at about 27 percent. Shoppers StopMSRIM ,BANGALORE Page 38
  39. 39. had one of the most successful loyalty programs among Indian retailers. FirstCitizen,which was introduced in 1994, had enrolled 630,000 members by March2006. Membership had beengrowing by 10 to 15 % every year. The amountspent by the First Citizen card member‟s wasapproximately twice the amountspent by other customers. The loyalty program provided the companywith thecompetitive edge of a solid customer base and business certaintyThey believe that they are well positioned to capture the growth opportunities inIndia‟s apparel manufacturing and retail Sectors, because of our following keystrengths:• Wide network of Exclusive Brand Outlets.• Integrated player with low-cost sourcing capabilities.• Unique brand positioning.• Design and merchandising expertise, with a pulse on fashion.• Experienced and efficient management.• Wide apparel range.• I.T Infrastructure.• Ability to deliver quality service to the customers.• Affordable price with new fashion.WEAKNESSESMSRIM ,BANGALORE Page 39
  40. 40. The majority Shoppers Stop offerings were standardized and the scope forcustomization was limited. Young customers preferred the three competitor‟sbrands: Lifestyle, Pantaloon and Central• Not a well-known name in the consumer segment (low brand identity).• Less experience in many consumer segments.• High dependency on franchisee for sales of the products.• KRILs manufacturing units are located in &aroundGurgaon& Haryanaonly i.e. North India only.OPPORTUNITIES;The company‟s strategic goals and the necessity to connect with youngerconsumers. At more basic level, four factors were driving the retail revolution inIndia: changing demographics, an upward migration of income, easyavailability of credit and government impetuses. A demographic dividend is arare social phenomenon which led to opportunities for economic growthbecauseof a confluence of factors, such as decline in the birth rate, increase in thenumber of workingadults and a decrease in the dependent population• The growing retail market in India.MSRIM ,BANGALORE Page 40
  41. 41. • They can enter into new market segment like Sports goods and apparels.• Expanding into new geographies - KRIL has recently entered the southIndian market in 2007.• KRIL intends to target young customers (between the ages 18-35 years)for their brands.THREATS Threats This Perception seemed to harmonize with the characteristics of its core customer group, adults aged25 to 45. But the study also showed disengagement with younger customers. Pantaloon and Central, which described asfashionable,trendy,flashy,modern,sporty and lively. Any attempt on the part of Shoppers Stop to connect with younger consumers would neither detractfrom Shoppers Stop‟s business focus, dilute its brand identity nor alienate existing customersA major driver for retail revolution was the Indian government‟s decision inFebruary 2006 to allow 51% ownership by a foreign enterprise in a local retailventure of a single brand.Indian Woman, who preferred the cloths, cut andfinish of their clothing to be offering an array of fabric designs and patterns andan army of tailors who created to individual tastes. The difficulty of abuilding astrong retail business in women‟s clothing was the single largest bottleneck inthedevelopment of clothing superstores and of department stores in generalbecause women were oftenthe main buyers of all clothing, including men‟sclothing and accessories  Entrance of new garment companies with low priced and high quality products.MSRIM ,BANGALORE Page 41
  42. 42.  High level of competition in marketMSRIM ,BANGALORE Page 42
  43. 43. CHAPTER 3 DISCUSSION ON TRAININGMSRIM ,BANGALORE Page 43
  44. 44. 3.1 ROLES AND RESPONSIBILITIESI had the responsibility to check the inventory. I have analyzed the company‟sposition using cash flow of last two years.To convince the existing and newcustomers and make them aware of the new sales and offers of the company.Survey of Markets & Analysis in terms of demand & supply, pricing andlooking after the operations of company‟s Depot& MarketActivities.Responsible for manual & Computerized Accounting of the dailypurchases. 3.2 DESCRIPTION OF TASKS HANDLEDI have learnt about inventory management during internship. During the firsttwo weeks I have worked in inventory.During the subsequent two weeks I have interacted with MARKETINGDEPARTMENT of the company and I have gathered the information regardingtheir promotional strategy of different department i.e radio, tv channel, mediaschool, their shows of production house. Also collected information aboutdistribution channel, sales force and measurement metrics of the company.During the subsequent two weeks I have interacted withACCOUNTS/FINANCE DEPARTMENT of shoppers stop .and I have gatheredthe Accounting Statements of company and during this time I have guided byMr. Sujoy ( Finance/Accounts head) .During the last two weeks & so I have analyzed the Financial Statements withthe help of cash flow with the guidance of my External Guide. And I haveinterpreted my analysis. I have also done a study about the cash flow of thecompany.MSRIM ,BANGALORE Page 44
  45. 45. 3.3 CONTRIBUTION TO THE ORGANIZATIONBecause of the study, Organization came to know about their Short TermFinancial Strength which is of great importance for Companies. Because thesuccess of the company is mostly depends upon the smooth management ofShort Term Finance.MSRIM ,BANGALORE Page 45
  46. 46. CHAPTER 4 Analysis The Task Research UndertakenMSRIM ,BANGALORE Page 46
  47. 47. 4.1Research DesignResearch is common parlance to refer to a search for knowledge. We can alsodefine research as “Scientific ad systematic search for pertinent information ona specific topic” Research is careful investigation or inquiries for new facts inany branch of knowledge. Researches are basically systematic inquiry withcustomer‟s critical examination with objectives to search new facts or interpretknow facts in new light.4.1Objective of Research:- The main objective of study is to analyses the company cash flow and do an analyses and study the cash position of the company To study marketing strategy of shoppers` stop To study of effectiveness of sales promotion in shoppers` stop To study the customer satisfaction in shoppers` stop4.2Statement of problem: To analyze the cash position of the company To perform cash flow.4.2Methodology of the Study:The data of SHOPPERS STOP and for year (2007-2008 to 2009-2010)used inthe study has been taken from secondary sources for e.g. published annualreports of the company. Editing classification of the financial data which arecollected from the above mentioned sources, have been done as per therequirement of the study. For assessing the performance of the company, in thisstudy the technique of cash flow have been used.4.2Research Design: - Analytical.4.2Primary Source of Data:Personal interaction with customerStructured questionnaireMSRIM ,BANGALORE Page 47
  48. 48. 4.2 Secondary Source of Data:Websites of shoppers stopwww.shoppersstop.comwww.corporate.shoppersstop.comwww.scribd.comother retail related websites 4.2SCOPE OF STUDY IN SHOPPERS STOP  For cash flow, Researcher got only four years data (2007-2008to2009-10) trough company‟s annual reports.  Service involves the actions performed in the organization to keep the customer satisfied and delighted.  Study includes to know the customer needs and aspirations and to fulfill those aspirations.  Every business depends upon the customer base. So, there is a need to satisfy our customers at any cost, because not satisfying a customer might lead to loss of the customer permanently.  The impression that the organization leave on the heart and mind of the customers are very strong. They are really like interface between customer and organization itself.  So, a better and efficient management can only act as guiding principle in running an organization.CASH FLOW:The Cash flow statement is being prepared on the basis of an extractedinformation of historical records of the enterprise. Cash flow statements can beprepared for a year, for quarterly and even monthly. The cash included means not onlycash in hand but also cash at bank.Motives of Preparing the Cash Flow Statement: To identify the causes for the cash balance changes between two different time periods, with the help of corresponding two different balance sheets. To enlist the factors of influence on the reduction of cash balance as well as to indicate the reasons though the profit is earned the year and vice versa.MSRIM ,BANGALORE Page 48
  49. 49. Utility of Cash Flow Statement : To identify the reasons for the reduction or increase in the cash balances, irrespective of the level of the profits by the firm. It helps the management to maintain an appropriate level of cash resources. It guides the management to take futuristic decision on the prospective demands and supply of cash resources through projected cash flows. How much cash resources are required. How much cash requirements could be internally settled. How much cash resources are to be raised through external sources. Which type of instruments are going to be floated for raising the required resources. It helps the management to understand its capacity at the moment of borrowing for any future capital budgeting decisions. It paves way for scientific cash management for the firm through maintenance of an appropriate cash levels i.e. optimum level of cash resources. It helps to prevent holding of excessive or excessive or inadequate cash resources through proper planning. It moots control through identification of variations occurred in the cash expenses and expenditures.MSRIM ,BANGALORE Page 49
  50. 50. Steps in the preparation of cash flow statement : Prepare non- accounting to identity the cash flow Cash inflows Cash outflowsSales of assets or investments, rising Purchase of assets or investments,Of financial resources redemption of financial resources Balancing figureMSRIM ,BANGALORE Page 50
  51. 51. Preparation Of Adjusted Profit &Loss Account: Adjusted Profit &Loss Account Net profit method Accounting profit to be adjusted To find out the cash profit/loss Addition of non-cash and non- Operating expenses Deduction of non-cash and Non-operating incomes Cash from operations or cash lost in operationsMSRIM ,BANGALORE Page 51
  52. 52. Alternate Method: Net Profit (+) Decrease in current assets and Increase in current liabilities (-) Increase in current assets and Decrease in current liabilities Sales method Cash Sales Deduct Cash purchases and Cash Operating Expenses Cash from operations or cash lost in operationsComparison Of Current Items to determine the inflow of cash oroutflow of cash;Increase in current assets outflow of cashDecreasein current assets Inflow of cashDecrease in current liabilities outflow of cashIncrease in current liabilities Inflow of cashMSRIM ,BANGALORE Page 52
  53. 53. Cash Flow Statement: Complementing the balance sheet and income statement,the cash flow statement (CFS), a mandatory part of a companys financial reports since 1987,records the amounts of cash and cash equivalents entering and leaving a company. The CFSallows investors to understand how a companys operations are running, where its money iscoming from, and how it is being spent. Here you will learn how the CFS is structured andhow to use it as part of your analysis of a company.The Structure of the CFS :The cash flow statement is distinct from the income statement and balance sheet because itdoes not include the amount of future incoming and outgoing cash that has been recorded oncredit. Therefore, cash is not the same as net income, which, on the income statement andbalance sheet, includes cash sales and sales made on creditCash flow is determined by looking at three components by which cash enters and leaves acompany: coreoperations,investingandfinancing,OperationsMeasuring the cash inflows and outflows caused by core business operations, the operationscomponent of cash flow reflects how much cash is generated from a companys products orservices. Generally, changes made in cash, accountsreceivable, depreciation, inventory andaccounts payable are reflected in cash from operations.Cash flow is calculated by making certain adjustments to net income by adding or subtractingdifferences in revenue, expenses and credit transactions (appearing on the balance sheet andincome statement) resulting from transactions that occur from one period to the next. Theseadjustments are made because non-cash items are calculated into net income (incomestatement) and total assets and liabilities (balance sheet). So, because not all transactionsinvolve actual cash items, many items have to bere-evaluated when calculating cash flowfrom operations.MSRIM ,BANGALORE Page 53
  54. 54. For example, depreciation is not really a cash expense; it is an amount that is deducted fromthe total value of an asset that has previously been accounted for. That is why it is added backinto net sales for calculating cash flow. The only time income from an asset is accounted forin CFS calculations is when the asset is sold.Changes in accounts receivable on the balance sheet from one accounting period to the nextmust also be reflected in cash flow. If accounts receivable decreases, this implies that morecash has entered the company from customers paying off their credit accounts - the amountby which AR has decreased is then added to net sales. If accounts receivable increase fromone accounting period to the next, the amount of the increase must be deducted from net salesbecause, although the amounts represented in AR are revenue, they are not cash.An increase in inventory, on the other hand, signals that a company has spent more money topurchase more raw materials. If the inventory was paid with cash, the increase in the value ofinventory is deducted from net sales. A decrease in inventory would be added to net sales. Ifinventory was purchased on credit, an increase in accounts payable would occur on thebalance sheet, and the amount of the increase from one year to the other would be addedto net sales.The same logic holds true for taxes payable, salaries payable and prepaid insurance. Ifsomething has been paid off, then the difference in the value owed from one year to the nexthas to be subtracted from net income. If there is an amount that is still owed, then anydifferences will have to be added to net earnings.Investing :Changes in equipment, assets or investments relate to cash from investing. Usually cashchanges from investing are a "cash out" item, because cash is used to buy new equipment,buildings or short-term assets such as marketable securities. However, when a companydivests of an asset, the transaction is considered "cash in" for calculating cash frominvesting.Financing :Changes in debt, loans or dividends are accounted for in cash from financing. Changes incash from financing are "cash in" when capital is raised, and theyre "cash out" whenMSRIM ,BANGALORE Page 54
  55. 55. dividends are paid. Thus, if a company issues a bond to the public, the company receives cashfinancing; however, when interest is paid to bondholders, the company is reducing its cash.Tying the CFS with the Balance Sheet and Income Statement :The cash flow statement is derived from the income statement and the balance sheet. Netearnings from the income statement is the figure from which the information on the CFS isdeduced. As for the balance sheet, the net cash flow in the CFS from one year to the nextshould equal the increase or decrease of cash between the two consecutive balance sheets thatapply to the period that the cash flow statement covers. (For example, if you are calculating acash flow for the year 2010, the balance sheets from the years 2009 and 2010 should beused.)ConclusionA company can use a cash flow statement to predict future cash flow, which helps withmatters in budgeting. For investors, the cash flow reflects a companys financial health:basically, the more cash available for business operations, the better. However, this is not ahard and fast rule. Sometimes a negative cash flow results from a companys growth strategyin the form of expanding its operations.By adjusting earnings, revenues, assets and liabilities, the investor can get a very clear pictureof what some people consider the most important aspect of a company: how much cash itgenerates and, particularly, how much of that cash stems from core operations.MSRIM ,BANGALORE Page 55
  56. 56. SUMMARY OF FINDINGS  35% of people look for offers, 20% for quality and18% for price, 15% for brand and for 12% matters the place of during the purchasing.  30% customer likes offers, 22%affordability and 20% preferred price, 18% looks for quality and remaining10% want design in Shopper‟s stop products.  About 10% of customers visit once in a week,47% of customers visit once in a month,25% customers visit once in a quarter and only 18% of customers once in six months or more to buy products in shoppers stop.  About 91% of the customers are purchased products from shoppers stop in the past and 6% of customers didn‟t buy any product from shoppers stop. 87% of customers find their merchandise which they are looking for and 13% of the customers didn‟t find out what they are in need of. Of the total customers only 56% are first citizenship card holders or shoppers stop members, remaining 46% are not members of shoppers stop. Majority of the customers give first preference to quality which is followed by verity, offers, brand and price. About 52% are satisfied with first citizenship card and rest 48% are not satisfied with it. About 90% are satisfied with availability of brands and rest 10% are not satisfied. About 94% are satisfied with the ambience of the store and rest 6% are not satisfied. About 65% are satisfied with cashiering department and rest 35% are not satisfied. About 76% are satisfied with trail rooms in the store and rest 24% are not satisfied. About 41% are satisfied with the alteration facility in the store and rest 59% are not satisfied. About 97% are satisfied with hygienic and cleanliness of the floor and only 3% are not satisfied. About 74% are satisfied with the background music played in the store and rest 26% are not satisfied. About 92% are satisfied with the availability of brands in the Men‟s Department and rest 8% are not satisfied.MSRIM ,BANGALORE Page 56
  57. 57.  About 60% are satisfied with the availability of brands in Ladies wear and rest 40% are not satisfied. About 27% are satisfied with the availability of brands and products in Kids Department and rest 73% are not satisfied. About 59% are satisfied with the availability of brands and products in Accessories Department.  About 45% of customer say their satisfaction level with Shopper‟s stop product is good, 25% better, 10% excellent, 6%bad, 12% can‟t say.  About 89% of the customers are satisfied with Shopper‟s stop billing process and rest 11% are not satisfied. About 82% of the customers are satisfied with the store layout and rest 18% finds that accessibility of the store is difficult and are not satisfied. About 88% of the customers are satisfied with the employees, where as 10% of customers experienced in the other way. About 74% of customers are satisfied with the parking facility , where as 26% experienced the other way. About 15% of customers experienced that shopping in shoppers stop is excellent, 59% as good, 15% as average and 11% experienced it as poor. About 97% said that they will recommend others to visit shoppers stop, where as 3% said that they don‟t recommend.RECOMMENDATIONS: 1. Companies should focus more on advertising and promotional activities to make their brand occupy a special and distinctive place in the minds of the customers. 2. Shoppers stop need to improve so that it can accommodate more kids products and also provide space for children coming with their parents to play and have fun so that for them visiting shoppers stop becomes exciting. 3. More computers should be included and number of billing counters should be increased especially during festive season and sales, so as to speed up the process of billing and avoids queues.MSRIM ,BANGALORE Page 57
  58. 58. 4. Majority of customers are not satisfied with shoppers stop first citizen ship card. Therefore it can be recommended that the management should change the present plan of first citizenship scheme and also should go for advertisement or promotional activity so as to bring awareness to all the customers of First Citizen ship card. 5. Since the customers prefer high quality, variety and offers as their most important reasons to opt a particular brand, the companies should focus on these factors. 6. Company should give more concentration on new fashion and youngster‟s expectation. 7. Staff should be trained properly to assist people and to make them understand the benefits the first citizen membership, it will strengthen not only satisfaction level of customer but also customer loyalty. 8. More tailors to be employed for smooth and fast alterations process. 9. Packaging of products should be check properly on daily basis. 10. The security system should be more tightened.MSRIM ,BANGALORE Page 58
  59. 59. LIMITATIONS:• The study is limited to the people of Bangalore region and survey may not hold goodto other parts of the country.• Time constraint was the main limitation of the study.• As the sample size is 70, the findings may or may not be appropriate.• Not all respondents were willing to provide all the information.MSRIM ,BANGALORE Page 59
  60. 60. BIBLIOGRAPHYMSRIM ,BANGALORE Page 60
  61. 61. REFERENCE:• Marketing Management by PHILIP KOTLER 13th Edition.• Marketing channels (7th edition) by LOUIS W. STERN ADELELANSAR, ANNE T.CHOUGHLAN• Marketing management by BELCH• Business periodicals: Business TODAY, Business India, Business world,4P‟s and economics times.•Technical details provided by SHOPPER‟S STOP PVT LTD1.www.shoppersstop.com2.www.corporate.shoppersstop.com3.www.scribd.com4. www.world marketshares.com5.www.marketshare.comMSRIM ,BANGALORE Page 61
  62. 62. JOURNALS• Journals of marketing• Marketing Mastermind• Effective Executive• Harvard Business Review• Business world• Business Standard• Economic Times• Catalyst (Business Line)MSRIM ,BANGALORE Page 62

×