Professional Documents
Culture Documents
Chapter One
Chapter One
Chapter One
INTRODUCTION
1. Introduction:
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A business is an organization or economic system where goods and services are exchanged
for one another or for money. Every business requires some form of investment and enough
customers to whom its output can be sold on a consistent basis in order to make a profit.
Businesses can be privately owned, not-for-profit or state-owned.
A grocery store is a retail store that primarily sells food. A grocer is a bulk seller of food.
Grocery stores often offer non-perishable food that is packaged in cans, bottles and boxes,
with some also having fresh produce, bakeries. Large grocery stores that stock significant
amounts of non-food products, such as clothing and household items, are called
supermarkets. Some large supermarkets also include a pharmacy and an electronics section.
Specific Objective
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To examine the cost and return of different items of grocery business at College gate
Market, Tongi, Bangladesh.
Grocery business plays an important role in our local economy. It is one of the profitable
businesses in our country that’s why some businessmen think that they will set up grocery
business in different areas in Bangladesh. Grocery shop fulfill the daily needs of the local
community so that customers don't have to go far distance to meet the needs. This study is
very much helpful for us to gather some field visit experience. Because, Grocery business is a
well renowned business among our country. It is well profitable business all over the country.
Grocery business may be three types small, medium and large. This research helps us to
apply our academic knowledge into practical field. By conducting this study we can
understand why grocery business is important for our economy.
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CHAPTER TWO
METHODOLOGY
2.1 Methodology:
Methodology means the state of order. The state of order in which the research planning
activities are conducted is called research planning methodology. These may be put in
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sequence as identification of problem, prioritization of researchable problems, monitoring
and midway correcting evaluation, publication of research data and discrimination of research
result.
The survey was undertaken within the College gate market, Gazipur district of Bangladesh.
The following criteria were followed in the study area-
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businessman. There was a wide variation in the population of three kinds of businessman.
The number of small, medium and large businessman was 3, 3 and 4 respectively. Hence
10% of small, medium, large businessman selected following simple random procedure.
After collecting all the data, I took from each group 30% as a sample using the simple
random procedure.
Size NO.
Small 3(30%)
Medium 3(30%)
Large 4(30%)
A survey questionnaire was devised for collecting the necessary information from the sample
businessman. The questionnaire was pretested in the area of investigation to determine the
most relevant items and to evaluate consistency of these items with the objectives. While
some items related to primary data about the cost and returns of businessman general
information. Performance of grocery business facilities, consumption, and investment for
different practice per businessmen were added. These are as follows:
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Basic Necessities (food, clothing, medical, education, repairing cost, housing cost,
etc.)
Luxurious Needs (TV, computer, cosmetics, etc.)
4. Investment of businessman. Such as
There are two categories of cost associated with Grocery Business. These are as follows-
2.6.1 Fixed costs:
A fixed cost is a cost that remains constant, in total, regardless of changes in the level of
activity (Bhabatosh Banerjee,2006-2007). Fixed costs are costs that are independent of
output. These remain constant throughout the relevant range and are usually considered sunk
for the relevant range. In Grocery business, good examples of fixed costs are –
• Labor cost, Shop rent, Purchase of Fan, Fridge ,T.V, Computer, etc
2.6.2 Variable costs:
A variable cost is a cost that varies, in total, in direct proportion to changes in the level of
activity (Samwelson, 1964). Variable costs are costs that vary with output. Generally variable
costs increase at a constant rate relative to labor and capital. Examples of variable cost in
Grocery Business are- Electricity cost, Cost on food,
• Transport cost, food cost, clothing cost, education cost, housing cost electricity cost
etc.
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Because of the shortage of time, it was not possible to collect information of huge
samples.
Sometimes they get angry to explain about their income and expenditure as it is a
part of personal question.
The data was helpful to identify the impact of Grocery businessman on income, consumption,
savings and investment of the business owners. However, the overall economic condition of
Grocery businessman has been extracted through the survey.
Tabular analysis was used to classify the data and derived meaningful findings by employing
arithmetic mean, percentage and ratio.
I study approxiately 3 months for preparing this report. The time line for preparing the report
is 10th september, 2016 to 28th november 2016. First data was collected from the selected
area that is College gate market, then analyze those data and then I prepare this report.
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CHAPTER THREE
REVIEW OF LITERATURE
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3.0 Review of literature:
Review of literature means current and past available literature is available. Our literature
review current and past available literature pertinent to the problems are reviewed
exhaustively for the purpose of –
(a) Obtaining an idea about the current status of the problem- what is known and what is left
to be known
(b) determining a research problem based on gap identify whether a research problem lying in
the gap would be relevant and practicable
(c) Avoiding repetitions of study on which information already available.
1. According to Mondal (1980) observe that the benefits for large businessman was always
hire than small and medium businessman.
2. According to Lumpkin and McConkey, (1984) found that satisfied customers were willing
to pay higher prices for products and showed that cost and returns especially for business
purpose in the case of item of large size business perform better than small business purpose.
3. According to Fram and Axelrod, (1990) and Aylott and Mitchell (1998) found that
customers associated more stress with grocery shopping than with other forms of shopping.
4. According to Day,(1994) found that customer satisfaction led to greater customer
maintenance and research shows grocery customers are more concern about grocery shops
and quality.
5. According to T.Levesque and G.H.G. McDougall, (1996), the study investigated the major
determinant of customer satisfaction and future behavioral intensions in the retail banking
sector. The study identifies the determinants that include service quality dimensions. Service
features, service problems, service recovering and product use.
6. According to Baltas and Papastathopoulou, (2003) found that product quality and product
features were considered the most important product choice criteria in a study of Greek
grocery customers.
7. According to Gomez et al., (2004) showed that improvements in quality have a small
positive impact on satisfaction while reductions in quality of the same magnitude have a
significantly greater chance of reducing satisfaction for grocery shop customers.
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CHAPTER FOUR
RESULT & DISCUSSION
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4.0 Result and discussion
In College gate market, there are lots of small, medium and large grocery businessmen they
provide grocery products such as: Rice, flour, dal, daily necessities, toiletries, and so on at a
reasonable price to the customer. Here I am trying to sketch the view of the economic
condition of grocery businessman, status of family, educational background and some
recommendations regarding its policy matter.
4.1 Table 1 shows that the average family size sample is 6.67 and the national level is 5.06.
So, average family size is higher than the national level. In here adult male are 40.03 %, adult
female are 34.93 %, below 18 years 25.04% and 0% no educated 25.04% is primary level,
25.04% is secondary level, and 49.93% is above secondary level. In this table, businessmen
are 14.99%, service 19.94% and other is 64.92% that means housewife, students etc.
Table 1: Socio economic status of Grocery shop business at College gate Market,
Bangladesh, 2015
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4.2 Table 2 shows that yearly Income and Expenditure and net income of grocery businessmen in the
study area, 2015. Here Total income of three businessmen is BDT. 1376666.67 From business,
agriculture and others sector and total expenditure is BDT. 601666.67 so total net income are BDT.
775000.00.
Table 2: Per family net income from different sources of Grocery shop business at
College gate Market, Bangladesh, 2015
This table shows that the average total net income is 24.09% and 4.30% which comes from on
farm income and about 9.25% comes from off farm sector. So, the findings of this income
and expenditure table income come from business sector that is 47.31% and 15.05%.
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4.3 Figure 1: Item wise Business expenditure of Grocery business at College gate
Market, Bangladesh 2015
The figure shows the average business expenditure of grocery businessmen in different
sector, where transport cost is 17%, Labor cost is 16%, Shop rent is 44%, and electricity bill
is 10%, tax is 8% and other is 5%. In here, transportation cost is very high in this area.
C=C0 + C1 + Yd
C0 = Autonomous consumption.
Yd = Disposable income.
Table 3: Per family yearly consumption of Grocery Business at College gate Market,
Bangladesh, 2015.
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A. Basic Necessities:
Food 316,666.67 46.00
Clothing 26,666.67 3.87
Education 63,333.33 9.20
Medical cost 22,333.33 3.24
Housing 119,000.00 17.29
Repairing cost 8,333.33 1.21
Others 22,000.00 3.20
Sub Total= 578,333.33 84.02
B. Luxurious Needs:
TV 25,000.00 3.63
Fan 2,666.67 0.39
Computer 30,000.00 4.36
Refrigerator 24,000.00 3.49
Cosmetics 13,333.33 1.94
Others 15,000.00 2.18
Sub Total= 110,000.00 15.98
Grand Total= 688,333.33 100.00
Table 3 shows that the total consumption on an average is BDT. 688333.33. Basic necessities
are BDT. 578333.33 Which are 84.02% of total consumption and luxurious needs is
BDT.110000 which is 15.98% of total consumption. Under basic necessities, expenses of
food is 46.00%, clothing is 3.87%, education is 9.20%, housing is 17.29%, repairing cost is
1.21%, medical cost is 3.24% and others 3.20 It indicates that they spend more money for
food and housing cost because this area has higher food price and house rent. Under
luxurious needs, tv is 3.63%, fan is 0.39% and Refrigerator e is 3.49%.
4.5 Savings: According to Keynesian economist the amount leftover when the cost of
person’s consumer expenditure is subtracted from the amount of disposable income that he or
she earns in a given period of time.
I = Investment
r = Rate of interest
Figure 2: Net Saving position of Grocery Business in College gate Market, Bangladesh,
2015
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Net Saving positi on of GROCERY Business
900,000.00
800,000.00
700,000.00
600,000.00
500,000.00
Amount
400,000.00 775,000.00
688,333.33
300,000.00
200,000.00
100,000.00
86,666.67
-
Net Income Total Consumption Net Savings=
Items
This figure shows that net income of grocery businessmen is BDT 775000 and total
consumption is BDT 688333.33. Net savings position is BDT 86666.67
I = GDP – C – G – NX
Where, I = Investment,
G = Government purchase,
NX = Net export,
C = Consumption.
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AVERAGE INVESTMENT
Bank Land Business
Business
31% Bank
34%
Land
35%
This figure shows that, grocery businessmen are more interested to invest money in their
bank and land sector because they are more concern about their future savings and housing
.Besides they think that this is a more secure place for them and think that by depositing
money in bank they can able to earn more profit. So they invest 69% money from savings.
Then they invest 31% money to business in order to earn more profit
4.7 Table 4: Problems of Grocery Business in College gate Market, Bangladesh, 2015
The table shows, on an average 100% businessmen have said that lack of capital is a problem,
about 66.67% said that labor cost is high and 100% businessman said that lots of competitors,
33.33 % said that transportation cost is high 66.67 % said that HIGH electricity problem in this
area.
4.8 After consulting businessmen with their problems, i am trying my best to give a solution
to overcome this sorts of problem that grocery businessmen faces to do their business. After
reviewing my suggestions they give some opinion base on this.
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Table 5: Opinion to overcome the problems of Grocery Business in College gate
Market , Bangladesh,2015
This table shows that about 100% businessmen agree that taking loan from different sources
like bank, NGO etc. capital problem will be solved. About 100% businessmen agree that Buy
a new generator for electricity backup can be the greatest solution and about 100% businessmen
agree that do a market analysis according to the competitors’ performance make them more
competitive and 33.33% agree that it’s Better to buy as a whole lot to reduce the transportation cost
and they can reduce the expenditure and increase the payment to the employees to motivate the
employees.
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Chapter Five
Summary & Conclusion
5.1. Summary:
The above survey is a case study of College gate Market. There are three types of business
such as small, medium and large business are categories according their total paid up capital.
In this research. In this research report, there are seven chapters and each of the chapter
discusses lots of information about Grocery Business in College gate Market. In the first
chapter, introduction, objectives of the study and importance of the study are described. In
chapter 2, review of literature is given. In chapter 3, methodology, in chapter 4, result and
discussion, in chapter 5, summary and conclusion, in chapter 6, references and in chapter 7,
appendix are described. This study tells about the socio-economic condition, income and
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expenditure, saving and investment of the businessman of College gate market area who are
involve in grocery business. In this report I have found some problems of grocery business
and gives some solution how to solve those problems based on this area. In this report, both
qualitative and quantitative method was applied to conduct this research. I can say that this
survey will help further entrepreneurs who wants to run grocery business in college gate area.
5.2. Conclusion:
This study refers the family size, education status and profession of grocery business men in
college gate area and their average socio-economic condition, income and expenditure,
saving and investment of the businessman of college gate market who are involve in grocery
business. I find the different type of obstacles and give some opinion to remove the obstacles.
If some investors (like- government, private financial institutions, NGOs, and foreign
investors) invest their money, then grocery businessmen will get financial support from those
investor and grocery businessmen will earn more profit. Many researcher are trying to find
out the pros and cons of grocery business and I think my research also help to find out this
because in here they can find some barriers that are facing grocery shop owners and
according to this problems they can solve the problem. The grocery businessmen and the
concerned authority should take proper step to solve the problem for the better output and
survival of grocery business in this area.
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CHAPTER SIX
REFERENCES
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Gomez, M.I., McLaughlin, E.W. and Wittink, D.R. (2004), “Customer satisfaction
and retail sales performance: an empirical investigation”, Journal of Retailing, Vol. 80
No. 4, pp. 265-278.
King, C.W. and Ring, L.J. (1980), “Market positioning across retail fashion
institutions: a comparative analysis of store types”, Journal of Retailing, Vol. 56 No.
1, pp. 37-55.
Lumpkin, J.R. and McConkey, C.W. (1984), “Identifying determinants of store choice
of fashion shoppers”, Akron Business & Economic Review, Vol. 15 No. 4, pp. 36-55.
Samuelson, P.A. 1964, Economics: An inductor analysis, 6th Edition.
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CHAPTER SEVEN
APPENDIX
Impact of Grocery Business on Income, Consumption, Saving and Investment at College gate
Market based on 2015
Questionnaire
1.Identification of Business
1. Identification of Businessman
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Father’s Name: Aziz Ahmed
(a) On farm/year
Others _ _
(c ) Nonfarm/year
Others _ _
4. Business Expenditure
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Total = 250,000
5. Consumption of Businessman
Others 6000
TV 10,000
Fan 2,000
Computer 20,000
Refrigerator 22,000
Others : 10000
6. Net Income
Item Amount(Tk)
Bank 10,000
Business 15,000
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land 20000
Total = 45,000
8. Constraints of business:
Lack of capital
Political unrest
Transport issues
Electricity problem
Lots of competitors
An Easy long term loan from bank with lower interest rate can solve the problem of Capital.
Buy a new generator for electricity backup.
Do a market analysis according to the competitors’ performance.
Impact of Grocery Business on Income, Consumption, Saving and Investment at College gate
Market based on 2015
Questionnaire
1.Identification of Business
1. Identification of Businessman:
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Daughter 16 ssc Student
(a) On farm/year
Others _ _
(c ) Nonfarm/year
Others _ _
4. Business Expenditure
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Others*(Per Month)
30000
Total = 400,000
Others 10000
TV 25000
Fan 3,000
Computer 40,000
Refrigerator 20,000
OTHERS 15000
6. Net Income
Consumption -750000
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7. Investment
Item Amount(Tk)
Bank 40,000
Land 20,000
Business 30000
Total = 90,000
8. Constraints of business:
Political unrest
CAPITAL PROBLEM
Labors are unhappy with their salary, so they frequently switch their job
Lots of competitors
Easy loan from bank with lower interest rate and with long term to repay the loan to solve the
problem of Capital.
Do a market analysis according to the competitors’ performance.
Reduce the expenditure and increase the payment to the employees
Impact of Grocery Business on Income, Consumption, Saving and Investment at College gate
Market based on 2015
Questionnaire
1. Identification of Business
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MD. SHARIF
40 B.Com Business
SARKER
Wife 30 H.S.C JOB
Father 70 PRIMARY No
Mother 60 PRIMARY Housewife
Son-1 16 SSC Student
Son-2 14 SSC Student
Daughter 22 BBA job
3. Income & Expenditure
4. Business Expenditure
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Housing (Per Month) 150,000
Others 50000
TV 40000
Fan 3000
Computer 30,000
Others 20000
6. Net Income
Item Amount(Tk)
Land 50000
business 35000
Total = 125,000
8. Constraints of business:
Political unrest
Slow delivery of product from the whole sellers
Lots of competitors
Transportation cost is too much higher
Electricity problem
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9. Opinion to overcome the problems:
To reduce the risk of competitors the business should make proper planning and hire efficient
labor in shop.
Easy loan from bank with lower interest rate and with long term to repay the loan to solve the
problem of Capital.
Better to buy as a whole to reduce the transportation cost
Calculation of Table 1:
7
Small Family
Medium Family 6
Large Family 7
Total = 20
Average = 6.67
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Business Services Others
Small Family 7 1 1 5
Medium Family 6 1 1 4
Large Family 7 1 2 4
Total = 20 3 4 13
Average = 6.67 1 1.333333333 4.33333333
Calculation of Table 2:
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Calculation of Figure 1:
Business
Expenditure
:
Shop
Transport Labor Tax rent Electricity Others
Small
Family 7 60,000 20,000 25,000 120,000 10,000 15,000
Medium
Family 6 50,000 70,000 40,000 180,000 30,000 30,000
Large 120,00
Family 7 120,000 0 50,000 300,000 90,000 20,000
210,00
Total = 20 230,000 0 115,000 600,000 130,000 65,000
6.6 76666.666 38333.333 43333.3333
Average = 7 7 70000 3 200000 3 21666.667
Small
Family 7 250,000 20,000 40,000 20,000 90,000 10000 6000
Medium
Family 6 400000 30,000 50,000 20000 117000 5000 10000
Large
Family 7 300000 30000 100000 27000 150,000 10000 50000
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7
Luxurious
Needs:
TV FAN COMPUTER REFRIGERATOR COSMETICS Others
Medium
Family 6 25000 3,000 40,000 20,000 15,000 15000
Depreciation
cost= 133.3333333 1500 4000
Calculation of Figure 2
Amount
Items
Net Income 775,000.00
Calculation of Figure 3
Average Investment
Bank Land Business
Small Family 7 10,000 20000 15,000
Medium Family 6 40,000 20,000 30000
Large Family 8 40000 50000 35000
Total = 21 90000 90000 80000
Average = 7 30000 30000 26666.6667
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