Professional Documents
Culture Documents
COMPANY PROFILE.................................................................................1
VISION...................................................................................................2
MISSION................................................................................................2
OBJECTIVE..............................................................................................2
VALUE....................................................................................................2
INTRODUCTION (1.1)..............................................................................3
PESTEL- OT (1.3)....................................................................................3
ANALYSIS OF EFFECTS OF CURRENT BUSINESS PLANS (2.1)......................5
STAKEHOLDERS ANALYSIS(1.2).............................................................12
KEEP SATISFIED....................................................................................13
MANAGE CLOSELY.................................................................................13
MONITOR (MINIMUM EFFORT)................................................................13
KEEP INFORMED...................................................................................13
2.2 THE POSITION OF AN ORGANIZATION IN ITS CURRENT MARKET..........16
3.1 USE MODELLING TOOLS TO DEVELOP STRATEGIC OPTIONS FOR AN
ORGANIZATION.....................................................................................17
3.3 CREATE OPTIONS TO FORM THE BASIS OF FUTURE ORGANIZATIONAL
STRATEGY............................................................................................19
4.2 DEVELOP CRITERIA FOR REVIEWING POTENTIAL OPTIONS FOR A
STRATEGY PLAN...................................................................................20
Company Profile
City Mart Holding Company Limited operates retail chains that include
supermarkets, hypermarkets/supercenters, children specialty stores,
pharmacies, bookstores, shopping centers, and convenience stores. It is
the market leader in multiple retail formats in Myanmar and an icon in
the country's retail industry. Its supermarkets offer food and beverages,
books and music products, cosmetics, toiletries, electric products, frozen
foods and meats, fruits and vegetables, grocery items, kitchen ware,
furniture, and stationary items, as well as beers, liquors, and wines;
hypermarkets/supercenters provide baby products, fashion wears,
general merchandise, and pharmacies offer health and beauty products.
The companys children specialty stores provide parents and families with
maternity accessories, children apparel, and gear and toys; bakeries and
cafs offer breads and buns, cakes, cookies, desserts, and pastries;
bookstores provide books, stationery items, assessment titles, and
multimedia products; and convenience stores offer daily necessities. The
company was founded in 1996 and is based in Yangon, Myanmar with
outlet locations in Yangon and Mandalay, Myanmar. (CMHL, 2016)
Vision
To be the benchmark of EXCELLENCE for the value we create for our
customers, employees and community. (CMHL, 2016)
Mission
To be the leading retailer in Myanmar with the highest market share in
each format
To pioneer breakthrough concepts in Myanmar retailing (CMHL, 2016)Goal
Objective
To construct 20 more supermarkets and hypermarkets within Myanmar by
the end of year 2018
To obtain 1.5m in revenue from current and new customers by the end of
December 2018
Aim to achieve 90% customer satisfaction by providing healthy living and
eating products within 2017 and 2018
By regarding add up to previous data, upgrading up to 70% quality of all
the City Mart holding Co. Ltd employees by training in the end of 2018
To develop long-term relationships with suppliers by participating in
vacation activities once per year.
Value
Respect for the individual
Service to our customers
Striving for excellence
Introduction (1.1)
Explain the importance of external factors affecting an organization
PESTLE analysis is the important function to identify the future plan of the
company and objectives of the organization. Several factors are influencing
the growth and performance of the organization but some of them are under
the control of the management and some are beyond the organizations
management control. Among them, Political, Economical, Social, Technical,
Legal and Environmental factors are beyond the management control. By
analyzing these external factors, it can help making the decision whether or
not a particular country or region holds any potential for profitable business.
PESTEL- OT (1.3)
Analyze the major changes taking place in the external environment that will
affect strategy
To assess the importance of external factors that affect the CMHL, PESTEL
analysis is applied as follows:
Political
One of the important factors that can impact is from political environment
because the changes in current political system could impact on the CMHL.
As Political is reforming in Myanmar, Myanmars Economy is opened up
and leading to the better condition.
Economic Forces:
Fluctuation of Foreign exchange rates is directly impact to the CMHL as its
product price can increase if the exchange rate is increased. In fact, most
of the products are imported from foreign countries. Nowadays, top-line
GNI and GDP per capita are increasing within the country, the percentage
of Myanma Population is turning into middle class category. As CMHL is
planning to penetrate the market by opening more new outlets, and on
the other hand, Land and property rates and interest rates are high in
Myanmar so that CMHL has to struggle with these situations.
Legal
More foreign direct investments are interested to invest in Myanmar as
government gives tax exemption from income tax for five consecutive years
from the commencement of commercial operations. On the other hand,
government covers the local businesses by not allowing those FDI operating
separately. They need to offer joint venture In Myanmar. CMHL has to
consider the upcoming factors and need to prepare for cooperation.
Environmental
Myanmar is rich in natural resources and full of tourist attractions, so that
CMHL target not only to local people but also to the foreigners by offering
high standard products. As there are three seasons in country and it is
directly affect to the customers demand. According to the season,
customers buying behavior is also changing.
The first tool to analyze the current business plan is Value Chain Analysis.
Inbound Logistics
Inbound logistics is placed in the very first stage of value chain analysis
because it can create value as the earliest. In this case, the logistical tasks
which includes the receipt of goods from suppliers, storage of goods,
handling & transportation of goods internally and placing the products on the
shelves. CMHL works with many different suppliers across the country and
some foreign country to obtain the best products for the consumers. The
main warehouse of CMHL is located in Tharkayta Township in Yangon and
Industrial Zone in Mandalay. CMHL always tries to maintain most of their
products according to the customers taste; on the other hand, it also keeps
effectiveness of distribution system. Regarding to the quality control, CMHL
inspects damaged goods and products in order not to pass to consumers.
Operations
Outbound Logistics
The outbound logistics is the third stage of the value chain that is kind of
delivering the product to the customer. But CMHL could not provide the
delivery service to the customers until now. However, parking facilities,
trolley collectors, enough staffs to gain competitive advantage as these
could add value by saving the customer.
Service
CMHL started opening for 24 hours in some of its branches whilst opening
everyday according to the trading hours enabling services and products. For
the customer convenience, it also opens convenience stores as City Express
within the quarter and in the process of opening for 24 hours service.
Support Activities
Company Infrastructure
CMHLs main businesses are supermarket, hypermarket, pharmacy and
bakery and caf, bookstores, maternity and babies specialty stores. There
are 19 outlets of City Mart Super Markets, 36 numbers of pharmacies, 17
outlets of Seasons Bakery, 4 outlets of Ocean Supercenters, over 100 outlets
for City Express Convenience Stores, 3 numbers of Marketplace by City mart,
3 outlets of City Baby Club Stores and two brands of bookstores.
Planning and control functions are the ones that account to provide
the continued focus on the costs and cash control of the companys
operations (+). And departments such as profit protection whose
main jobs are to reduce shrink. The company has now increased its
staff count who are involved in upgrading its anti-fraud software
(infrastructure/technology, interdependence), and installing new
security systems which aim to reduce internal theft, an expense the
customer will now not have to cover in the price of their purchases
(+).
Technology development
Procurement
CMHLs process of procurement involves reducing its purchasing costs as far
as possible so that it could offer best and reasonable price to its customers.
The company procures most the goods directly from the manufacturers, by
passing all intermediaries.
To analyze the effect of current business plans as a second tool, McKinsey 7S
framework is conducted.
The 7S of the frame work divided into hard and soft element. Strategy,
structure and systems are considered to be hard elements of the framework.
Soft elements involved values, skills, style and staff.
Strategy
The companys is leading retail chain in Myanmar with the highest market
share in each retail format. Further, CMHL hopes to achieve more by
continue to rapidly expand more outlets for the consumers around, grow
its specialty operations and selectively pursue other opportunities to
leverage the CMHL through introduction of best products, decoration
styles, special services and value to the customers while being aware of
the impact actions have on CMHL employees, society and the
environment. Moreover, in meeting customers need by providing
customizing services, ensure better prices, constant flow of in-store
promotions enables like CMHL to control and retain the customer base.
Structure
CHML is a tall structure and highly hierarchical reflecting the large size of
business. It is also a structure of functional establishment. CMHLs CEO
who is the head of all administrative staffs, has the maximum
responsibilities and power. Moreover, who plays and important part of the
decision making. There is also a mediate level functioning between the
ground staff and the board of director. At the base level, the managerial
position takes major decision regarding their respective CMHL outlets.
Further there are assistant manager under him. The people working at
this level have a direct contact with common people on day to day basis.
System
In CMHL, CCTV surveillance, order processing systems, scheduling
systems, Financials, HR software, communications technology to connect
stores, e-commerce and e-business systems, information systems used in
CMHL to support the loyalty card. CMHLs electronic point on sales
comprised of a keyboard, a digital display, a scanner which reads bar
codes, a printer, a set of scales, and a credit/ debit card reader. Every
supermarkets and hypermarkets under CMHL, a branch computer send
the details of every individual sale to main computer at the head office.
Further CMHL HRM system involved of training and development of
employees, communication, reward and benefits linked to who achieve
targets.
Style
The style for the CHML organization is innovative, flexible and team
orientated. Although CMHL businesses are the customer-oriented so
company aims to offer products that provide value for its customers and
to deliver high quality service. The autocratic style is adopted within the
organization which benefit business the clear direction and valuable
when the business faces a crisis or when urgent problem arises.
Leadership styles is usually allowing to all departments and branch
managers to make most operational decisions. The democratic approach
is also allowing for managers which decisions are made with teams, with
each member having equal input. (this increase team motivation and
encourages creativity- SWOT)
Staff
Through generous benefits and comprehensive training of CMHL, it is
able to have high quality employees. For the training program, staff could
select and learn skills which they need to fill up their gap as to progress
to the next work level within the firm. CMHL undertakes an annual staff
survey to find the problems in working process. CMHLs HRM strategy
also relates to rewards and benefits which could attain greater profit and
results with ecstatic and motivate employees.
Skills
CMHL has a distinct competitive advantage with its front line employees
who are knowledgeable and friendly. Further, CMHL experience is
reinforced through strategic alliances with major grocery retailers, food
and beverages retailers, others goods retailers which are for CMHLs
consumer.
Shared Value
The organization constantly refers to the striving for excellence, service to
our customers and respect for the individual. Knowing the matters of
customers and communities need and company trying to give the excellence
things and services. Moreover, its about listening to people and talking to
them, respect all the words from the consumer. Then, CMHL changing and
innovating to meet their needs. Respect is essential to the success of City
Mart Holding Company Limited.
SWOT Analysis
Strength Weakness
o Good image and good o Online shopping
o Self check out
reputation in public
o Weakness in R&D
o Local market knowledge
o Overly dependent upon
and network
o CMHL works with many leaders direction and
decision
different suppliers across
the country and some
foreign country
o Facilities
o Special services
o started opening for 24
hours
o the well-trained employees
o most of the goods directly
from the manufacturer
o ecstatic and motivate
employees
o Effective teamwork
Opportunity Threats
o top-line GNI and GDP per o Fluctuation of Foreign
capita are increasing exchange rates
o Land and property rates and
within the country
o Collaboration with interest rates are high
o FDI is coming into the
multinational organizations
o Government not allowing country
o Increasing competitive
the FDI operating
pressure
separately
o the advancement of
o Natural resources and full
technologies
of tourists attractions
o three seasons in country
and it is directly affect to
the customers demand
Stakeholders Analysis(1.2)
There are three kinds of Stakeholder that affect or can be affected by the
actions of our business. These are Internal, Connected and External
Stakeholders.
Internal Stakeholders of CMHL are Employees, suppliers and investors are
connected stakeholders of CMHLA and external are communities, media,
government and non-government organization.
These different stakeholders have needs and expectations from our CMHL.
These are as follow;
Stakeholders Expectations
Employees Training and development program,
job security/ permanent of job, good
salary, bonuses, Promotion, proper
communication with the
management and feedback from
superiors, participation in
implementation of projects
Suppliers Regular or up to date payments,
regular orders, scheduling, Business
growth, long-term business
relationships.
Investors/ shareholders Good percentage of dividends,
reliable results reporting, open and
regular communications.
Customers High quality and premium goods,
fresh foods, reasonable and good
price, seasonal promotion or reward
for their loyal
Community/public Corporate Social Responsibilities
(CSR)activity, donations, sponsorship
Media Open, comprehensive, reliable and
fast communications.
Government Submission of proper documentation,
filing taxation and adherence to rules
and regulations.
P
o Keep Satisfied Manage Closely
w
e
r
Monitor Keep Informed
(Minimum
effort)
Low High
In this figure, stakeholders can be divided into four categories: high power
high interest, high power low interest, low power high interest, and low
power low interest.
The strategies to manage these stakeholders are as follows:
Stakeholders with high power and high interest should be managed
with the utmost care.
Stakeholders with high power and low interest should be kept satisfied.
Stakeholders with low power and high interest should be kept
informed.
Stakeholders with low power and low interest require less effort than
the rest. They should only be monitored. (Usmani, 2014)
After explaining above the stakeholder mapping, and based on that, let me
emphasize the priority of some stakeholders of CMHL.
Investors (main priority)
The main interest of the investors are profits of the business because if CMHL
have more profits, they can get higher dividends or increase earnings per
share. In relation, investors are also expect to minimize the operational costs
of the company as lower costs usually lead to higher profits and as a result,
they will be more beneficial.
CMHL prioritizes investors in one of its strategies and make them satisfied by
balancing their recommendations to reduce operational costs and trying best
to increase the profits as they can invest more in the future projects of CMHL
as per the objective.
Dogs
The dog in the stores are the products that are slow sellers or dead items.
These are mostly composed of the music and book stores. The advantage of
the slow sellers is that it helps keep the store fully stocked and get the more
space for other best-selling items. Allowing the products to remain in the
store will still bring in revenue even if a customer purchases it once a week
or a month.
Cash Cows
The most important section of the BCG Matrix section is the cash cow
because those goods are bringing the money with little investment and
allowing the company to invest largely in other ideas and merchandise.
CMHL need to do more for convenience stores due to this business is rapidly
change in Myanmar cause of improve the living standard.
Questions Marks
CMHL should consider Bakeries & cafe shop and maternity & baby specialty
store at a better bargain because of the economy. Those shops tend to more
expensive for so little selling quantity and use a lot of investment. Whereas
bakeries, cafe, baby specialty items are only selling the urgent need for
customers.
Stars
Supermarket, shopping centers, Market place and supercenters are known to
be the best business of CMHL. They generate ample amount of cash and
continuously appeals to customers but this type of business requires the best
customer service and careful handing because of this business have a lot of
competitors. Therefore, CMHL need to careful handling due to its perishable
factor.
Ansoff Matrix
The main business of CMHL is the supermarket and hypermarket. At the
present, new as well as existing products that always has strategy in
accordance with move forward in current market as well as potential
market. That is why CMHL need to innovate the products and develop the
strategic options of an organization. One of the most suitable modelling
tool for the company is Ansoff Matrix.
Market Penetration
This involves increasing market share with existing products and premium
products. This includes finding new methods in accordance with move
vertically with current production to expand its market share. As Myanmar
is highly price sensitive market, City Mart has variety of products which
have high and middle price, followed by suitable promotion activities.
CMHL also continuously penetrate the market with the ways of their
customers needs to serve them better.
Market Development
As we all know City Mart is market leader for supermarket and it has the
franchisee FDI system to reach new markets. As the firm is expanding into
new markets; the market development strategy typically has more risk
than a market penetration strategy for CMHL but the developments of
new markets have been proven significantly successful for CMHLs core
competencies of its experience with a specific market segment. Therefore,
CMHL is planning to develop the market by constructing 20 more
supermarkets within next two years.
Product Development
This involves developing new products and obtaining new customers in
existing market. CMHL is planning to open 20 more new supermarkets
within two years. Moreover, it is recently opened high standard
marketplace by city mart at 6.5 mile. In these coming new supermarkets,
it will also include art galleries, fashion jewelry shop, international
luggage brand shop, variety of restaurants apart from supermarkets. In
addition, CMHL will try to let customers using debit, credit cards apart
from their provided member cards and others.
Diversification
CMHL focus on diversifying the products to provide the multi choices that
the clients attention fast and fresh food and guarantee a unique shopping
experience. With the diversification of offers on fresh food products and
vibrant environment prevailing, CMHL was quickly transferred to the most
comfortable shopping destination.
Market Development
In the market development, CMHL could use variety of marketing strategies
in order to sell existing products/ services to new markets and increase its
profit by expanding to other geographical areas, foreign markets or by
looking for users that will use products in a different ways and to expand
from the private sector to the public. And another development is to
introduce new design of outlet like mobile grocery stores in order for the
customers with low income who are staying some distance away from
Supermarket to buy it. With this technique CHML gain a new market and
make a small profit. Some primary consumers are attracted by retailers.
Growing urban population will drive further retail demand.