RETAIL

SECTOR
Group 8
23P002 Aditya Arora
23P012 Avinash Kumar
23P033 Pasam Satya Sai Charan
23P051 Shubham
23P056 Srijan Saxena
23P063 Yashna Shanker
 About the Organization Timeline
2006: Reliance 2011: Reliance
Reliance Retail A subsidiary of RIL Retail (Fresh) 1st Retail achieves 2016: Launched 2021: Acquired
store in Hyd $1 billion sales AJIO Future Retail
A Multi-divisional Product Structure

MISSION: To revolutionalize the retail in India by

creating a nationwide network that would bring a 2007: 2008: 2013: Break-even 2019: 2023:
global shopping experience to every Indian’s Reliance EBITDA achieved Acquired 18,000+ Stores
Reliance
Digital Hamleys 7000+ cities
doorstep Trends
launched launched Rs 2Lakh Crore
revenue

Values

Ownership Mindset

Respect One Team

Integrity Excellence

Customer Value
 Stakeholders
Investors
High ROI, growth
of the company
Suppliers
Timely payments, long-term
partnerships, fair pricing
Government
Compliance with laws and
regulations, tax revenue
Local Communities
Positive social impact,
environmental responsibility supporting environment
Potential conflicts
Profit Maximization vs. Social
Responsibility
Balancing profitability with social
and environmental impact
Employees (200,000+)
Job security, fair wages,
career development
Employee Welfare vs.
Cost Control
Consumers Ensuring employee well-being
Low prices, wide
while managing costs
options, good quality
Customer Satisfaction vs.
Competitors
Cost Efficiency
Fair, competition,
Meeting customer needs without
compromising efficiency
 Retail Sector
A highly unpredictable and
Environment fast-changing sector
Uncertainity A highly dynamic environment
but relatively simpler
complexity

Overall uncertainity -
Moderate-to-High

Interdependency
Linkage
Mechanism

Ensure a Enables digital Resource Expand its Sharing of Pooling of

stable transformation sharing, & reach resources, resources and
supply of Eg. Jio for e- collective knowledge, expertise
goods commerce problem- and expertise
solving
 Effectiveness Evaluation

External Resource Approach Internal Systems Approach Technical Approach

Supplier/vendor relationships
and costs
Access to real estate for store
expansions
Investor/shareholder confidence
Brand perception among
customers
Employee productivity,
engagement and retention rates
Supply chain and logistics
efficiency
Technology adoption and
process optimization
Inventory/stock management
accuracy
Logistics/distribution networks
optimization
Quality control processes
Technology implementation ROI

Performance Evaluation
Control Innovation
Reliance Retail demonstrates strong They have adopted innovative
control over its operations with formats like their own e-comm
centralized monitoring and KPI platform, payments app, and
tracking across a standardized retail constantly enhancing offerings. Their
model, evident from its extensive foray into e-commerce with JioMart
store network and robust inventory and acquisitions like Hamleys
management showcase innovation.
Efficiency
One of their biggest strengths.
Their scale provides major supply
chain efficiencies through vertical
integration and logistics
management as a key driver.
 Organization Structure
Top Management span of control: 13
Relatively wide but given the size and
Top Management complexity of Reliance Retail, this span of
control appears to be appropriate,
allowing for effective oversight and
strategic decision-making

Major Functions
Business Segment Heads
Brand Management Teams
Operations, Supply Chain &
Logistics
Marketing and Sales
Finance and Accounting
Human Resources
Information Technology
Product Development &
Innovation
Legal & Policy
 Organization Structure

High degree of Bureaucacy exists

Reliance Retail follows a mechanistic structure :

High degree of specialization and division of labor across functions
Tall, multi-layered hierarchical structure with centralized decision-making
High formalization with extensive rules, procedures, and SOPs
Emphasis on economies of scale, cost efficiencies

A slight mix of organic structure also exists: Product Development team

Matrix reporting structures in some areas foster cross-functional coordination
Empowerment of store managers for local operational decisions and customer
service improvements
 Organization culture
Structure acting
as a framework
Culture Structure
Customer Centric Culture High Formalization
Execution Excellence Tall Hierarchical
Continuous Learning Bureaucratic
Cost Discipline High Specialization
Culture Enabling
Structure

To continuously improve itself in the dynamic environment, Reliance

Retail is shifting from a Structure dependent to People-Driven culture

Supply Chain Efficiency:
Advanced supply chain
management system that
enables it to optimize
inventory, reduce costs, and
ensure timely product
availability.
Diverse Portfolio: Offering a
broad range of products
from groceries to
electronics and apparel,
catering to various
consumer needs under one
umbrella.
Core Competencies
Economies of Scale: As one of
the largest retailers, it can
leverage economies of scale in
purchasing and operations to
offer competitive pricing.
Technology Integration: Utilizing
data analytics and AI to
enhance customer experiences,
personalize services, and
streamline operations.
Brand Equity: Strong brand
recognition in the Indian market,
often associated with trust and
quality.
Retail Network: A vast
network of physical stores
across different formats
and geographies,
providing extensive market
reach.
Customer Loyalty
Programs: Robust loyalty
programs that encourage
repeat business and
gather valuable consumer
data.
 Business level strategy Corporate level strategy
A mix of low-cost & differentiation strategy Diversification Strategy: spreads risk
across different consumer markets
Low-Cost Strategy: Reliance Retail
Vertical Integration: ensures product
leverages its extensive supply chain
quality and cost efficiencies
network and economies of scale to offer
Strategic Partnerships and Acquisitions:
products at competitive prices. Its ability to
enhancement of market presence and
negotiate lower prices due to high-volume
product offerings
purchases allows it to pass on savings to
Digital Transformation Strategy: (jio
customers.
mart) - to capture the growing online
retail market
Differentiation Strategy: The company also
Innovation and Expansion: Experiments
employs a differentiation strategy by
to cater different market segments and
providing a wide range of products,
consumer preferences
superior shopping experiences, and
Sustainability & Social Responsibility:
customer service. It has invested heavily in
reducing carbon footprints, &
technology to create a unique omnichannel
contributing to community development
experience for its customers.
 Multi-divisional Structure: Power distribution
From the POV of Functions From the POV of Divisions

Most central Subunit: Most central Division:

Operations & Store Operations unit Grocery Retail (central to organization’s
(responsible for the core retail functions, revenue & customer engagement)
ensuring smooth store operations)

Most Non-substitutable Subunit: Most Non-substitutable Subunit:

Supply Chain & Logistics unit JioMart division (providing a unique
(efficient & reliable supply chain is critical integrated service, making it difficult to
for ensuring customer engagement) substitute due to its digital infrastructure)

Subunit Controlling the Most Resources: Subunit Controlling the Most Resources:
Corporate Strategy and Business Grocery Retail (extensive reach and control
Development unit (oversees investments, of extensive warehousing, logistics, and
M&As, & expansion initiatives) physical store resources)
 Future focus

Need for change Obstructions Strategy for change

Market Dynamics and Incremental and
Cultural Resistance
Competition Strategic Investments

Rapid Digital Integration of

Employee Engagement &
Transformation Acquisitions
Trainings

Sustainability and Supply Chain Partnerships &

Ethical Practices Complexity Collaborations

Evolutionary Nature of change

 References
https://relianceretail.com/our-business.html
https://www.ril.com/ar2022-23/retail.html
https://www.ril.com/
The Success Story of Reliance Retail - Work Theater
Org Chart Reliance Retail - The Official Board
https://press.farm/the-expansion-of-reliance-retailmukesh-ambani/
https://economictimes.indiatimes.com/industry/services/retail/reliance-
retail-expanding-b2b-apparel-business/articleshow/105939578.cms
Reliance Retail Limited Annual Report FY2022-23
Reliance Retail Limited Annual Report FY2021-22
Thank You