Q1. Explain retail store operation in brief ?

Ans- Retail operations are the activities that allow online and physical stores to
function. The aim of retail operations is to enhance the customer shopping experience and
lower the retailer's costs. Efficient retail operations keep your business running smoothly.
Retail Operations refers to the daily functions of a retailing business. The activities provide a
shopping experience for consumers to access and make purchases. These functions include
the layout and design of stores (both online and physical locations), inventory management,
order fulfillment, customer service, sales, accounting and returns.It encompasses many
processes that happen after customers hit the ‘buy’ button. These processes are directly
linked to customer experience.Large or small, all retailers will want to have systems in place
to improve their operations. Depending on the company, many variables will affect what
works best for them and their bottom line. Businesses must define their own strategy, but the
overall aim is to stay competitive in an evolving marketplace. One part of Retail Operations
is procuring products or services and storing them in an orderly fashion. From there,the
product or service is made available to the customer. This includes activities directing the
customer to the store, such as marketing. Once the customer has made it to the homepage
or physical shop, the customer needs product accessibility. Finally, a system and form of
payment must be available to complete the purchase.

Q2. Explain the issue retail supply chain management ?

Ans- Retail supply chain management refers to the way you handle the inbound and
outbound logistics of a good, from raw materials to delivering the final product to a
customer. Supply chain managers optimize supply-side activities to cut costs, deliver
products faster, and gain a competitive advantage in the market.

Challenges of Supply Chain Management

Globally, supply chains have faced headwinds from unforeseen demand and limited logistics
capacity. The key challenges faced in supply chain management include:

• Rising risks in the supply chain

Risks in the supply chain primarily arise from volatility in the markets. Changing consumer
demand, trade wars, raw material shortages, climate change, stricter environmental
regulations, economic uncertainties and policy changes, industrial unrest, etc., contribute to
supply chain management risks and challenges.

• Unexpected delays

Global supply chains inevitably involve large distances and many steps, making them
vulnerable to delays. Long lead times for goods make the shipments susceptible to
unexpected delays.

• Cost control

Costs of raw materials, energy, freight, and labor have seen a spike around the globe. To
ensure operations without production interruptions and continued delivery of quality goods
at reasonable rates - businesses must tighten cost control.
• Collaboration and syncing of data across the supply chain

Access to supply chain data is key to the efficient management of supply chains. Due to the
multitude of data points in global supply chains, data management is a key challenge in
supply chain management.

• Increasing freight prices-The rise in energy prices and the increased demand for container
shipping have pushed freight prices. Container shipping demand experienced an increase
from the e-commerce surge seen during the pandemic.

• Difficult demand forecasting-The pandemic and the consequent supply chain disruption
made demand forecasting difficult and nearly impossible to estimate numbers for
manufacturing and the inventory to be stocke d

Q3. Explain the Inventory management with any example ?

Ans- Inventory management in business refers to managing order processing, manufacturing,
storage, and selling raw materials and finished goods. It ensures the right type of goods reach
the right place in the right quantity at the right time and at the right price. Thus, it maintains
the product availability at warehouses, retailers, and distributors. Types of Inventory
1. Raw Materials: Raw materials are the materials a company uses to create and finish
products. When the product is completed, the raw materials are typically unrecognizable
from their original form, such as oil used to create shampoo.
2. Components: Components are like raw materials in that they are the materials a
company uses to create and finish products, except that they remain recognizable when
the product is completed, such as a screw.
3. Work In Progress (WIP): WIP inventory refers to items in production and includes raw
materials or components, labor, overhead and even packing materials.
4. Finished Goods: Finished goods are items that are ready to sell.
5. Maintenance, Repair and Operations (MRO) Goods: MRO is inventory — often in the
form of supplies — that supports making a product or the maintenance of a business.
6. Packing and Packaging Materials: There are three types of packing materials. Primary
packing protects the product and makes it usable. Secondary packing is the packaging
of the finished good and can include labels or SKU information. Tertiary packing is bulk
packaging for transport.

following examples: Example #1

A soap manufacturer has already created a batch of soaps to dispatch to different points of
sale. Given the high consumption of soaps, it reorders raw materials to start manufacturing
the next lot.

Raw materials ordered beforehand, in this case, act as the inventory for the company. And
the already delivered finished products are the inventory for retail units that will be selling
soaps further.
Pre-ordering raw materials helps the company produce and supply soaps regularly to ensure
the lead time does not keep customers waiting or making them switch to its competitor’s
soap.

Q4. Explain huff model with example

Ans -The Huff Model is an established theory in spatial analysis. It is based on the principle
that the probability of a given consumer visiting and purchasing at a given site is a function
of the distance to that site, its attractiveness, and the distance and attractiveness of
competing sites.
This specific model, in the area of spatial interaction research, was refined and made
operational by Dr. David Huff of the University of Texas. The advent of powerful desktop
computers has made it possible to apply the model.

Where:

 Pij = the probability of consumer j shopping at store i.

 Wi = a measure of the attractiveness of each store or site i.
 Dij = the distance from consumer j to store or site i.
 a = an exponent applied to distance so the probability of distant sites is dampened. It
usually ranges between 1.5 and 2.

You can control the distance the Huff Model will extend. Enter a value that will encompass
all your competitors. You can use the Measure tool to estimate the distance. The distance
units can be either miles or kilometers. This number is usually referred to as an index. This
index can also be derived by counting how many people come to that destination or by
conducting a consumer survey.

Q4. Discuss the factor influencing consumer shopping behavior ?

Ans- 1. Psychological Factors

Human psychology is a major determinant of consumer behavior. These factors are difficult to
measure but are powerful enough to influence a buying decision.
Some of the important psychological factors are:

i. Motivation
When a person is motivated enough, it influences the buying behavior of the person. A person has
many needs such as social needs, basic needs, security needs, esteem needs, and self-actualization
needs. Out of all these needs, the basic needs and security needs take a position above all other needs.
Hence basic needs and security needs have the power to motivate a consumer to buy products and
services.
ii. Perception
Consumer perception is a major factor that influences consumer behavior. Customer perception is a
process where a customer collects information about a product and interprets the information to make
a meaningful image of a particular product.
When a customer sees advertisements, promotions, customer reviews, social media feedback, etc.
relating to a product, they develop an impression about the product. Hence consumer perception
becomes a great influence on the buying decision of consumers. 
iii. Learning
When a person buys a product, he/she gets to learn something more about the product. Learning
comes over a period of time through experience. A consumer’s learning depends on skills and
knowledge. While skill can be gained through practice, knowledge can be acquired only through
experience.
iv. Attitudes and Beliefs
Consumers have certain attitudes and beliefs which influence the buying decisions of a consumer.
Based on this attitude, the consumer behaves in a particular way towards a product. This attitude plays
a significant role in defining the brand image of a product. Hence, marketers try hard to understand
the attitude of a consumer to design their marketing campaigns.
2. Social Factors
Humans are social beings and they live around many people who influence their buying behavior.
Humans try to imitate other humans and also wish to be socially accepted in the society. Hence their
buying behavior is influenced by other people around them. These factors are considered as social
factors. Some of the social factors are:
i. Family
Family plays a significant role in shaping the buying behavior of a person. A person develops
preferences from his childhood by watching family buy products and continues to buy the same
products even when they grow up.
ii. Reference Groups
A reference group is a group of people with whom a person associates himself. Generally, all the
people in the reference group have common buying behavior and influence each other.
iii. Roles and status
A person is influenced by the role that he holds in the society. If a person is in a high position, his
buying behavior will be influenced largely by his status. A person who is a Chief Executive Officer in
a company will buy according to his status while a staff or an employee of the same company will
have different buying pattern. 
3. Cultural factors
A group of people is associated with a set of values and ideologies that belong to a particular
community. When a person comes from a particular community, his/her behavior is highly influenced
by the culture relating to that particular community. Some of the cultural factors are:
i. Culture
Cultural Factors have a strong influence on consumer buying behavior.  Cultural Factors include the
basic values, needs, wants, preferences, perceptions, and behaviors that are observed and learned by a
consumer from their near family members and other important people around them.
ii. Subculture
Within a cultural group, there exists many subcultures. These subcultural groups share the same set of
beliefs and values. Subcultures can consist of people from different religion, caste, geographies and
nationalities. These subcultures by itself form a customer segment.
iii. Social Class
Each and every society across the globe has the form of social class. The social class is not just
determined by the income, but also other factors such as the occupation, family background,
education and residence location. Social class is important to predict the consumer behavior.
4. Personal Factors
Factors that are personal to the consumers influence their buying behavior. These personal factors
differ from person to person, thereby producing different perceptions and consumer behavior.
Some of the personal factors are:
i. Age
Age is a major factor that influences buying behavior. The buying choices of youth differ from that of
middle-aged people. Elderly people have a totally different buying behavior. Teenagers will be more
interested in buying colorful clothes and beauty products. Middle-aged are focused on house, property
and vehicle for the family.
ii. Income
Income has the ability to influence the buying behavior of a person. Higher income gives higher
purchasing power to consumers. When a consumer has higher disposable income, it gives more
opportunity for the consumer to spend on luxurious products. Whereas low-income or middle-income
group consumers spend most of their income on basic needs such as groceries and clothes.

iii. Occupation
Occupation of a consumer influences the buying behavior. A person tends to buy things that are
appropriate to this/her profession. For example, a doctor would buy clothes according to this
profession while a professor will have different buying pattern.
iv. Lifestyle
Lifestyle is an attitude, and a way in which an individual stay in the society. The buying behavior is
highly influenced by the lifestyle of a consumer. For example when a consumer leads a healthy
lifestyle, then the products he buys will relate to healthy alternatives to junk food.
5. Economic Factors
The consumer buying habits and decisions greatly depend on the economic situation of a country or a
market. When a nation is prosperous, the economy is strong, which leads to the greater money supply
in the market and higher purchasing power for consumers. When consumers experience a positive
economic environment, they are more confident to spend on buying products.
i. Personal Income
When a person has a higher disposable income, the purchasing power increases simultaneously.
Disposable income refers to the money that is left after spending towards the basic needs of a person.
ii. Family Income
Family income is the total income from all the members of a family. When more people are earning in
the family, there is more income available for shopping basic needs and luxuries. Higher family
income influences the people in the family to buy more. When there is a surplus income available for
the family, the tendency is to buy more luxury items which otherwise a person might not have been
able to buy.
iii. Consumer Credit
When a consumer is offered easy credit to purchase goods, it promotes higher spending. Sellers are
making it easy for the consumers to avail credit in the form of credit cards, easy installments, bank
loans, hire purchase, and many such other credit options. When there is higher credit available to
consumers, the purchase of comfort and luxury items increases.
iv. Liquid Assets 
Consumers who have liquid assets tend to spend more on comfort and luxuries. Liquid assets are
those assets, which can be converted into cash very easily. Cash in hand, bank savings and securities
are some examples of liquid assets. When a consumer has higher liquid assets, it gives him more
confidence to buy luxury goods.
v. Savings
A consumer is highly influenced by the amount of savings he/she wishes to set aside from his income.
If a consumer decided to save more, then his expenditure on buying reduces. Whereas if a consumer is
interested in saving more, then most of his income will go towards buying products.

Q5. Short note on market area analysis ?

Ans- A market analysis is a quantitative and qualitative assessment of a market. It looks into
the size of the market both in volume and in value, the various customer segments and
buying patterns, the competition, and the economic environment in terms of barriers to entry
and regulation.

Demographics and Segmentation

When assessing the size of the market, your approach will depend on the type of business
you are selling to investors. If your business plan is for a small shop or a restaurant then you
need to take a local approach and try to assess the market around your shop. If you are
writing a business plan for a restaurant chain then you need to assess the market a national
level.Depending on your market you might also want to slice it into different segments. This
is especially relevant if you or your competitors focus only on certain segments.

Target Market
The target market is the type of customers you target within the market. For example, if you
are selling jewellery you can either be a generalist or decide to focus on the high end or the
lower end of the market. This section is relevant when your market has clear segments with
different drivers of demand. In my example of jewels, value for money would be one of the
drivers of the lower end market whereas exclusivity and prestige would drive the high end.

Market Need
This section is very important as it is where you show your potential investor that you have
an intimate knowledge of your market. You know why they buy!

Here you need to get into the details of the drivers of demand for your product or services.
One way to look at what a driver is to look at takeaway coffee. One of the drivers for coffee
is consistency. The coffee one buys in a chain is not necessarily better than the one from the
independent coffee shop next door. But if you are not from the area then you don't know
what the independent coffee shop's coffee is worth it. Whereas you know that the coffee
from the chain will taste just like in every other shop of this chain. Hence most people on the
move buy coffee from chains rather than independent coffee shops.

Competition
The aim of this section is to give a fair view of who you are competing against. You need to
explain your competitors' positioning and describe their strengths and weaknesses. You
should write this part in parallel with the Competitive Edge part of the Strategy section.

The idea here is to analyse your competitor's angle to the market in order to find a weakness
that your company will be able to use in its own market positioning.

Barriers to Entry
This section is all about answering two questions from your investors:

1. what prevents someone from opening a shop in front of yours and take 50% of your
business?

2. having answered the previous question what makes you think you will be successful
in trying to enter this market? (start-up only)

As you would have guess barriers to entry are great. Investors love them and there is one
reason for this: it protects your business from new competition

Regulation
If regulation is a barrier at entry in your sector then I would advise you to merge this section
with the previous one. Otherwise, this section should be just a tick the box exercise where
you explain the main regulations applicable to your business and which steps you are going
to take to remain compliant.

Q6 Short note on Trade area analysis ?

Ans- Trade area analysis is studying and understanding trade activity within a given
geographical area. This includes things like what types of businesses are there (and how
many), along with how many potential customers are in the area, where they are coming
from (or going), and what they are buying.

1. Informed site selection -Trade area analysis is one of the best ways to determine whether a

particular site would be a good fit for a certain business. For example, you might want to set

up a shop in an area with high demand for your industry’s goods or services, but is currently

being underserved. Of course, you’re also going to want to make sure that the purchasing

power of your potential customers outstrips your operating costs . 

2. Competitive intelligence - Trade area analysis can give you an overview of where

your competitors are and who they’re likely serving. That way, you can avoid

spots where competitors are already meeting people’s needs and focus on

sites where the population is underserved. You can also weigh the

opportunities and risks of setting up shop somewhere where you may be

competing with another company over the same customers.

3. Personalized marketing and advertising - When selecting a trade area to do business

in, it’s not enough to know just who might be buying from you. You also have to keep in
mind what specifically they’ll likely want to buy. After all, a prime location doesn’t do you any
good if you aren’t selling what the nearby demographics are looking for. Even worse is if you
have what they want, but they have no idea that you carry it.
This is where trade area analysis comes in. By looking closely at people’s purchasing
behaviors, you can get an idea of the kinds of lifestyles the people in an area have. Based
on that information, you can adjust things like your store layout, inventory, and marketing
accordingly.

3. Supply chain and inventory planning - Using this information can also help you
plan your supply and inventory systems, even down to each individual product you
carry. You can plan to have shipments come in before days and times where your
stores are busy and shoppers will likely be buying specific products. You can also
estimate how much of each product you should order so that you’ll have most things
in stock, even when they’re in high demand

Q87. Explain the source of recruitment ?

Ans-Internal recruitment sources

Internal recruitment sources are a company's existing employees who can perform the
available job. These recruits are less expensive to hire and more convenient to recruit
because they come from the organisation's qualified workforce. The human resources
(HR) personnel can share information about the job title, duties, work experience and
educational qualifications with the current employee. They usually do this internally via
phone calls, email, notice board messages and website postings. Typically, HR
professionals include contact details and encourage employees to apply so that they
can put them on an interview shortlist.

 Promotion: The organisation might offer qualified employees a higher-ranking

role in the same department or a different one with more duties,
responsibilities and a salary increase. Since a promotion means a better job
status and benefits, it motivates employees to be more diligent and productive.
 Transfer: The organisation may move an employee from one department to
work in another. It could also transfer an employee to a branch office in another
city or country.
 Freelance and former employees: The organisation might offer a full-time
position to a freelancer already working for it. It could also hire former or
retired employees who want to work part-time or full-time.
 Employee referral scheme: The organisation may screen current employees
and refer qualified candidates for available positions. Existing employees might
receive bonuses or other rewards for making referrals.

External recruitment sources

External recruitment sources refer to a group of candidates from outside the company
who might fit the vacant role. Organisations develop a recruitment budget to find,
screen and interview candidates from various external sources. After hiring new talent,
an organisation typically offers an orientation or training programme to help the new
employee understand their role and teach them to manage their work responsibilities.
Some types of external hiring in organisations include the following:

 Advertisements: The organisation advertises available job positions on its

website, social media platforms, professional networking sites, job sites and
newspapers. The job advertisements may look for freshers, mid-level or senior-
level employees.
 Employment agencies: Private sector and government employment agencies
often provide in-person and online job search services to qualified candidates.
In addition to informing candidates of available positions that match their
qualifications and work experience, these agencies may offer resume and
interview tips.
 Employment sites: Many online employment sites list available jobs from
companies across industries. People can create personal profiles on these sites,
upload their resumes, select the types of jobs they want, get job notifications
and send applications.
 Campus selections: Organisations conduct campus selection drives at various
educational institutions to recruit final-year students for available positions.
They may offer the students internships before graduation and jobs afterwards.
 Employee recommendations: Existing employees may recommend the
organisation to qualified family members, friends and acquaintances by
informing them of open positions and encouraging them to apply.
 Labour union recommendations: Organisations from unionised industries
such as hotels, construction, retail, textiles, finance and insurance may hire
recruits from labour union recommendations.
 Employment enquiries: Skilled, semi-skilled or unskilled candidates may
present themselves at the organisation to enquire about available work. A
manager might hire them according to their abilities.
 Walk-in interviews: Some organisations might have walk-in interview policies
that enable talented candidates to apply without a formal interview
appointment.
 Labour contractors: Organisations may pay commissions to labour contractors
when hiring semi-skilled and unskilled employees to ensure they can maintain
an adequate workforce.
 Public talks, appearances and posts: An organisation might conduct public
lectures, talk show appearances and social media posts by senior executives
and other employees to inform potential candidates about its business work
culture and available opportunities. These posts encourage people to apply for
open positions.
 Trade shows: An organisation might participate in trade shows to inform the
public about its products and services and attract recruits.
  Indirect sources: Articles, books and documentaries about an organisation's
achievements can work as indirect recruitment sources by showing interested
candidates that an organisation is successful and a great place for career
advancement.
 Files of past applicants: Organisations may maintain files of past applicants
and contact them when they have suitable job openings.


Q8. Explain the meaning of retailing and functions of retaining?

Ans- (meaning )retailing, the selling of merchandise and certain services to consumers.
It ordinarily involves the selling of individual units or small lots to large numbers of
customers by a business set up for that specific purpose. In the broadest sense,
retailing can be said to have begun the first time one item of value was bartered for
another. In the more restricted sense of a specialized full-time commercial activity,
retailing began several thousand years ago when peddlers first began hawking their
wares and when the first marketplaces were formed.

Function of retailing

1) Delivery of the goods to the end consumer—This makes shopping for all
requirements quite hassle-free for the consumers. This also facilitates consumption
and maximizes consumer satisfaction. Because the company cannot take responsibility
of delivery to every single customer, it appoints retailers. One of the functions of
retailing is immediate delivery.

2) Is an essential part of the distribution chain—Because the retailer takes over the
cumbersome task of distribution of goods manufactured to the target market, the
manufacturer is relieved of this responsibility and can divert his resources to
manufacturing activities.

3) Finances the wholesaler—While booking his order of goods with the wholesaler, the
retailer pays some percentage or the whole of the order price in advance. This helps
the wholesaler to carry on with his operations seamlessly.

4) Stores the goods according to market requirement-The retailer invests his working
capital in building a gamut of inventory reflecting market requirements. He also sells
the requisite quantity, however small or big, to the final consumers satisfying their
needs. The retailers know the complete demand and supply potential due to their
years of experience.

5) Lends a hand in manufacturer’s marketing initiative—Retailer plans and executes

many advertising and promotion activities at the point of purchase i.e. right in his
store. This leads to gain in popularity of and favorable market conditions for the
product of the manufacturer.
6) Assumes storage and credit risks—When the retailer orders and stores a large
quantity of goods from the manufacturer, he makes sufficient provisions to store it
safely for some days. This involves costs. Also, there is also a risk of loss of these goods
on account of destruction, theft, spoilage etc.

Q9 What are the Responsibilities of a Store Manager?

And- 1) Maintain the sales environment of the store—In a store, things are displayed in
such a fashion so that customers can find everything they need easily. It is a
responsibility of the store manager to keep everything at its place. Other then that, he
has also to make sure that the order of the things displayed so that People can get to
know about the things on sale or on a special discount.

2) Management of Staff—A number of employees work in different departments like

sales department, cleaning department, and clerical departments of a store. The
number of employees who works in a store depending on the size of the store. It is the
foremost duty of a manager of a store to manage its staff. He is responsible that every
staff member is doing their duty properly.

3) Recruitment, training, and development—Recruitment of staff is also one of the

most important responsibilities of a store manager. A store manager invites
applications and conduct interviews to hire the right personnel. His job does not end
here, it is his duty to make sure that they are provided training, whether to conduct
training indoor or outdoor and also make familiar with the store’s policies and working
environment.

4) Cost Minimization—Cost minimization means controlling day-to-day expenses to run

a store successfully. A manager is responsible to apply effective policies so that total
expenses for running a store can be minimized and hence, profit can be maximized.
This can be done by eliminating errors, waste, and accidents. Cost minimization is
crucial for stores who work on low price policy.

5) Implementing Marketing Plans—Every commercial store has its own marketing

plans. The success of the store relies on the effective implementation of those
marketing plans. It is one of the most important responsibilities of a store manager is
to implement that plan and make the staff of the store understands it so that they
don’t feel difficult to deal with customers. A manager is also required to take training to
understand the work process of a marketing plan.

6) Managing budgets—A store manager is responsible to make understand each

department’s head about their target and funds allotted to them and to collect daily,
weekly, and monthly performance report and analyze them.

Q10 What do you know about ATL, BTL, and TTL?

Ans- ATL Marketing' stands for 'Above the Line Marketing'. This kind of marketing is the
kind of marketing that has a very broad reach and is largely untargeted. Think about a
national TV campaign, where viewers across the nation see the same advert aired
across the various networks.

BTL Marketing' stands for 'Below the Line Marketing'. This kind of marketing is the kind
of marketing that targets specific groups of people with focus. For example, a leaflet
drop in a specific area, a Google Adwords campaign targeting a certain group or a
direct telemarketing campaign targeting specific businesses.

TTL Marketing' stands for 'Through the Line Marketing'. This kind of marketing is really
an integrated approach, where a company would use both BTL and ATL marketing
methods to reach their customer base and generate conversions. It might seem
obvious, although not all marketing campaigns are like this - some are ATL only and
some are BTL only (it would be much more common to see a BTL-only marketing
campaign in practice though).

Q11 Theories of Retailing-t

Ans- The theones developed to explain the process of retail development. It revolves
around the importance of competitive pressures. It is the investments in organizational
capabilities.

Environmental Theory-

Retail Management

According to environmental theory there is a change in retail. It is attributed to the

change in the

environment in which the retailers operate. The environmental theory explains how
retail business evolved from

of retall enterprises many a times is attributed to the business environment. Therefore,

Darwin's statement of "Survival is the Fittest is very well applicable in this context. For
this reason, it is important for retailers to be aware of and adjust to changing
environments

II. Cyclical Theory- Cyclical theory hasically explains the different phases in a company.
According to this theory, change follows a patrem and all phases have identifiable
attributes associated with them. There are three primary components associated with
the theory: Wheel of retailing, retail cycle and retail accordion. Wheel of retailing refers
to a company entering the market with low prices and affordable service in order to
challenge competitors. Retail life cycle addresses the four stages that a company goes
through when entering the boyer's market. The retail accordion aspect of cyclical
theory suggests that some businesses go from outlets that offer an array of products
to establishments providing a narrow selection of goods and services
Conflict Theory-According to this theory the competition or conflict between two
opposite types of retailers, leads to a new Format being developed. It says that
retailers change in response to competition. It explains how some department stores
tramitioned into discount stores. The conflict always exists conflict always exists
between operators of similar

formats or within broad retail categories

This theory proposes that new forms of retail institutions emerge due to "inter-
institutional conflict When an innovative retailer (antithesis), challenges an established
retailer (thesis), a new form of retailer (synthesis) results. The synthesis later becomes
a thesis, triggering a new turn for a new turn for assimilation

For example, when a thesis and antithesis are taken as department stores and discount
stores respectively, the synthesis may emerge as discount department stores

Q12. Define environmental theory ?

Ans- According to environmental theory there is a change in retad. It is attributed to

the change in the vinment in which the retailers operate. The environmental theory
explains how retail business evolved from the specialized stores into department,
discount, chain, mail order and online stores. Retail environment is made up of
customers, competitors and changing technology. The changes in the external
environment can alter the profitability of retail organizations. If an organization is not
able to cope with external environment, it will soon vanish from the market. Thus, the
birth, success or decline of different forms retail enterprises many a times is attributed
to the business environment. Therefore, Darwin's statement of "Survival is the Fittest"
is very well applicable in this context. For this reason, it is important for retailers to be
aware of and adjust to changing environments

Q13. Explain factor affecting retail business?

Ans - 1) Growth of Consumers – Nowadays there is tremendous growth in number of

consumers in India, especially the middle class. Consumer demand & income structure
has also increased further raising their expectations for quality products at reasonable
prices. Retail outlets offer a wide variety of products & services to the customers to
meet their demands thus resulting into the growth of Retail Sector.

2) Working Population – In recent times the graph of working population has seen a
steep increase in urban as well as rural areas thus changing their spending habits &
income structure. It becomes very difficult for the working people to spend enough
time in shopping at different locations. This enables a retailer to provide them various
products at one place, creating a platform for development.

3) Value for Money – Big & organised retail outlets basically deal in volumes & can offer
a good range of products at reasonable price thus attracting customers at a very large
scale. This in return also creates a good opportunity for retailers to get more profits &
enables new business groups to enter into this sector.

4) Rural Market – Today’s Indian Retail market has entered in rural areas creating a big
competition, as the rural population has become more literate & quality conscious.
These high potential rural populations have thus enabled the retailers to enter rural
market & develop new products & strategies to meet their demands. Also it has
created employment opportunities for the rural people thus heading towards growth &
development.

5) Corporate Sector –Corporate sectors have also entered into the retail business to
cater the customers demand & provide them better quality products at reasonable
price. This is one of the reasons that have brought revolution to the retail sector thus
driving it towards the growth.

6) Foreign Retailers – Rapid expansion & the race to cater the demand of every
customer is catching the interest of foreign retailers to enter the market &provide
good quality products & services through joint ventures or franchising. This will further
boost the retail sector & will help in developing economy of the country.

7) Technological Impact – Advance technology has made it easier for the retailers to
handle large scale business & cater the needs of consumers. With the introduction of
computerized billing system, electronic media & marketing techniques, barcode
system has changed the face of retailing in providing products & services to customers.
Also the use of online market has driven the retail sector towards advanced growth
structure.

8) Income Structure –Increase in the number of working population has resulted in

increase in the income structure in cities as well as remote areas. This has further led
to increase in the demand for quality products & services. People nowadays tend to try
new things & improve their look thus increasing the spending habits & giving an
opportunity to grow & expand their business

Q14 Explain OWNERSHIP STRUCTURE?

Ans- With a few exceptions, businesses have owners. The nature and the number of
owners usually vary a lot for each business. In fact, the owner of a business can be an
individual or even another business. To make things more complicated, the rights of an
owner to the business can be split between the economic and management rights. The
management rights here refers to the ability to influence the appointment of the
officers while the economic rights include the rights to receive dividends and profits of
the business.

A lot of businesses also own other businesses. To be clear, there are basically three
levels of ownership in a share ownership structure. These are parents, affiliates, and
subsidiaries. Here, parent companies own the subsidiaries. The amount of ownership
interest can range from a fraction to even a complete 100%. Additionally, an affiliate is
a sibling legal entity.

Q15. What is retail supply chain management?

Ans- Retail Supply Chain Management is the process of managing the entire supply
chain of retail organisations. The differentiating factor of retail supply chain
management from other supply chain management is in the volume of product
movement and the fast moving nature of the products of the retail industry. Retail
supply chain has to be monitored very closely and has to be free from defects as the
products are always on the move and the cycle time is very low. Further the continuous
movement of materials across the supply chain is crucial to the success of any
organisation in the retail industry. Hence retail management is very crucial to any
organisation in the retail industry and has to be monitored closely and
maintained properly.

Q16. Explain the social and Ethical issues in retailing ?

Ans- Ethical issues in the retail industry include misleading advertisements, deceptive
promotions, product misrepresentation, bait-and-switch, tax fraud, treatment of
customers, honoring warranties, diversity of employees, discrimination, loyalty to and
treatment of employees, employment of disabled persons, working conditions,
bribes to secure contracts, outsourcing labor issues including child labor, and
business practices of supply firms. This is not by any means an all-inclusive list. There
are a host of ethical issues, and more come up every day.

Safety Workplace Recommendations

To create a safe work place, begin by identifying what you want to avoid. For
example: accidents injuries, lawsuits, harassment, loss of productivity. Talk with other
professionals and research data for similar workplaces in your industry and what
common types of occurrences that they have had. Identify the most common types
of injuries or hazards in your industry. Review with employees to see what they feel
are potential areas that need attention. Create a clearly thought out Safety Plan and
ensure that all employees are aware of the policies and procedures contained in the
plan.

Advertising Recommendations

The simplest and easiest way to avoid deceptive advertising is to just be honest.
While everyone is trying to come up with the most clever or entertaining way to get
the customer’s attention, honesty just sometimes goes right out the window without
anyone realizing it. To be ethical, advertising needs to be at all times clear,
straightforward, and honest
Ethical Accounting Recommendations

Implementation of a “smart” accounting system is recommended for any company in

any industry. These systems have periodic system updates in which any new laws,
policies or procedures are downloaded to the software and immediately
implemented into the company’s financial accounting system. Because payroll and
human resources rely on the correct filing and retention of personnel files and
financial data, a smart system is excellent way to remain up-to-date and informed
without missing any new laws. Utilizing the most user-friendly smart system available
can make legal record keeping a much easier task with less risk of financial
impropriety

The Impact of Deceptive Advertising

The most basic explanation of deceptive advertising is when a business directly or

indirectly makes false claims as to what their products or services can offer
consumers in a positive sense. When an item or service turns out to be not as
described or advertised by the company, that customer is not likely to return to that
company. There are also other ways in which the company can be affected. The
customer may choose to report the company to the local or state advertising
regulation agency (such as Florida’s Department of Agriculture and Consumer
Affairs), report the company to the Federal Trade Commission who regulates
advertising for the United States, or they may even go so far as reporting to the
media. But by far, word of mouth is still the most powerful advertising tool of all.

Q17. Brief about the important human resource planning ?

Ans- I. Assessing Future Personnel Needs:

Whether it is surplus labour or labour shortage, it gives a picture of defective planning or
absence of planning in an organization. A number of organizations, especially public sector
units (PSUs) in India are facing the problem of surplus labour.
It is the result of surplus labour that the companies later on offer schemes like Voluntary
Retirement Scheme (VRS) to eliminate surplus staff. Thus, it is better to plan well about
employees in advance. Through HRP, one can ensure the employment of proper number and
type of personnel.
II. Foundation for Other HRM Functions:
HRP is the first step in all HRM functions. So, HRP provides the essential information
needed for the other HRM functions like recruitment, selection, training and development,
promotion, etc
III. Coping with Change:
Changes in the business environment like competition, technology, government guidelines,
global market, etc. bring changes in the nature of the job. This means changes in the demand
of personnel, content of job, qualification and experience needed. HRP helps the
organization in adjusting to new changes.
IV. Investment Perspective:
As a result of change in the mindset of management, investment in human resources is
viewed as a better concept in the long run success of the enterprise. Human assets can
increase in value as opposed to physical assets. Thus, HRP is considered important for the
proper planning of future employees.
V. Expansion and Diversification Plans:
During the expansion and diversification drives, more employees at various levels are
needed. Through proper HRP, an organization comes to know about the exact requirement
of personnel in future plans.
VI. Employee Turnover:
Every organization suffers from the small turnover of labour, sometime or the other. This is
high among young graduates in the private sector. This necessitates again doing manpower
planning for further recruiting and hiring.
VIII. International Expansion Strategies:
International expansion strategies of an organization depend upon HRP. Under
International Human Resource Management (IHRM), HRP becomes more challenging. An
organization may want to fill the foreign subsidiary’s key positions from its home country
employees or from host-country or from a third country. All this demands very effective
HRP.
IX. Having Highly Talented Manpower Inventory:
Due to changing business environment, jobs have become more challenging and there is an
increasing need for dynamic and ambitious employees to fill the positions. Efficient HRP is
needed for attracting and retaining well qualified, highly skilled and talented employees.