This document talks about the standard procedure that a retail shop can follow for their shop opening.

1. ASSIGNMENT
ON
Retail Management
SUBMITTED TO
Dr. Madhvendra Misra
SUBMITTED BY
Shashwat Shankar
IMB2018017

2. Identify critical processes which can be classified as shop opening task & closing
procedure as part of Standard Opened procedure beyond the degree of automation
For many retailers, achieving organic growth by opening new stores is a fundamental
cornerstone of the business model. The purpose is to explore the process of opening a store by a
retail company.
This takes into account the process of opening a store in a company-level project managed by the
company's functional department, during which the internal functional department and external
suppliers must be coordinated.
The store opening as a project management process
It can be described as a systematic method of project execution with five general stages: concept,
analysis, definition, execution, and evaluation. It starts at the market planning stage, which will
assess the demographic and psychological characteristics of the market and competition. Next,
based on, for example, selecting the appropriate attribute for the store. Demographics within the
radius of the property and the costs associated with a specific location. The next stage involves
the construction and installation of equipment. Finally, after the store opened, the lease and
facility management phase covered the actual operation of the store.
It is said that the organization uses a combination of six basic coordination mechanisms
● The store opening process includes cross-functional participation and decision-making
based on a wide range of industry knowledge
● Direct supervision is the coordination of others.
● Work standardization, which means specifying the work procedure itself.
● Output standardization, which means that the output of the activities carried out are
standardized to suit other activities,
● The standardization of skills and knowledge gives people the opportunity to understand
each other ’s expectations of work
● Normative standardization, in a sense, shared values ​​and beliefs must promote people to
work for the same goals and expectations
The establishment function
The merge function is considered to be an important business function between companies.
Usually, other activities managed by the establishment function are maintenance of existing
property, management of lease contract, etc. However, there are differences in organizational
membership in terms of reporting structure and hierarchy between companies
In addition to the structure of the relationship, the organizational relationship between the
company and other company functions is also different. In particular, sales and/or marketing
functions are closely related to factory functions. Many activities in the process of opening a
store are carried out jointly by the factory and the sales department.
The store opening process

3. As for many project management processes, although the general activities performed during a
store opening process
1. Identification of site location.
2. Data collection.
3. Top management meetings.
4. Formal decision.
5. Contract writing:-
6. Supervision of project leader.
7. Tasks effected by other company functions.
8. Construction/renovation by external companies.
9. Installations and preparations.
10. Store opens.
11. Evaluation.
Accelerated Inventory Management
Japan's "7-11" has achieved remarkable success, which can be attributed to its management
information system, which makes inventory up to 30 times a year, and the United States 12 times
a year. In the US, the introduction of the 7-11 Accelerated Inventory Management System (AIM)
is the first step in building a customer-oriented inventory management system. In particular,
AIM will perform the following operations:
● Build a balanced inventory by
○ identifying ‘core’ products
○ maintaining a minimum inventory of three units per product to maximize
safes/minimize shortages and enhance product presentation
○ developing a list of optional items that the store can use to customize product mix
to suit its target market
● Improve store merchandising by establishing a consistent layout of product categories
○ implementing a flexible planogram’ system
○ providing training programs to assist store operators and field consultants with
product presentation, dead/new item evaluation and merchandising know-how
● Improve inventory management by
○ reducing on-hand inventory to no more than twice that amount required to satisfy
sales during a delivery cycle with a minimum of three items each
○ removing dead items and slow-selling items
● Improve ordering by

4. ○ counting every item during every order cycle using standard count and order
forms. Information on count sheet determines quantity on hand, delivered
quantity, credits and write-offs, sales and order quantity, Frequency of counts
depends on the product.
○ assigning each store employee a section in the store to manage inventory. This
process raises employee morale by encouraging ownership, establishing
accountability and enriching the job.
○ providing forms to assist in the analysis of data, such as dead items, ordering
efficiency and new product sale
● Remove dead items by
○ developing predetermined sales hurdle rates for defining dead items
○ evaluating dead items based on the determined rates as well as other factors, after
which an item may be adjusted and remain active or is disposed of through
transfer to another store, return to seller, clearance or writeoffs
● Introduce new products by
○ selecting new products based on a criterion, according to which products must
conform to and enhance the speed of service, quality, selection, price and store
environment
○ sending new item information to stores and presenting new items to field
management groups at weekly meetings
○ requiring field consultants to review new products, while giving store operators
the final decision, unless products are to be carried in other corporate stores or are
recommended to be carried in franchises
Combined Distribution Center
● Reduced number of deliveries
● Managed system of scheduled deliveries
● Reduction in vendor’s expenses
● Broader assortment of products
● Shorter replenishment cycle
● Quality controlled from manufacture through point of sale

5. The greatest force in shaping people's lives is technology. Technological progress is an important
factor affecting detailed marketers in two ways. First, they are completely unpredictable, and
second, restrictions imposed by internal and external resources often prevent the adoption of new
technologies.
Technology has helped retailers measure products of modern scale. Previously, they used
balances that could not measure goods correctly. With the help of balances, products can be
measured, which can increase customer satisfaction. The technology has been widely used in the
following areas.
● Product packaging
● Print the store name visually on the product
● Modern refrigerator for long-term use of goods
● Invoicing.
Technological change is faced with opposition from a group of people who say it may lead to the
downsizing of employees. But in the long run, this view may not be supported. Retailers need to
understand the changing technological environment and how new technologies meet human
needs. They must work closely with R & D personnel to encourage more consumer-oriented
research. Retailers need to be alert to any negative impact on innovation that may harm users and
cause consumer mistrust and opposition.
Retail Evolution
Organized retail is definitely a growing market, and for retail companies that profit from
technical resources that provide customers with a better shopping experience, this will be a lot of
risk. Among the organized business units, most of the growth will be driven by the entry of
mature shops in the retail industry, such as ITC owning its Lifestyle will chain and Tata Group
and its western chain. Both use technology to improve business efficiency and benefit customers.

6. Many retail companies are aware of the latest technology and are at various stages of improving
IT infrastructure to manage the expected growth of the business and therefore bring greater
benefits to the business. These are encouraging developments, but more work needs to be done.
The problem lies not only in adopting the technology that is taking place, but also in how to
make good use of the technology, which is not the case. Organized retail has begun and is still
mainly in southern India.
With the development of the Indian retail format, we will see many changes in retail store types,
scale and competitive strategies. For example, India ’s major retail chains are exclusive, and the
discount concept is being adopted. In addition, grocery stores seem to be the main growth area,
followed by apparel retail. But there are still undeveloped areas, such as Sari Supermarket.
Although Sari is the favorite female leader among most Indians, there are few such
supermarkets. Another feature is that the number and coverage of retail chains is still much lower
than that of Western chains.