Class Discussion: Business Pressures–Responses–Support Model

BI Case study.

Case Study: Shoprite - Navigating a Competitive

Market
Shoprite, a medium-sized grocery chain, is facing challenges in the competitive
retail landscape. Recent data reveals a 10% decline in sales over the past year,
coupled with a rise in customer complaints by 20%, primarily focused on
product availability and service quality. To make matters worse, new discount
grocery stores have entered the market, offering similar products at
significantly lower prices. Shoprite's management team recognizes the urgency
to address these issues and revitalize the company's performance.

Group Discussion Tasks:

1. Identify Business Pressures:

a) In your group, discuss the external and internal pressures that Shoprite is
facing.
b) What are the most significant pressures that Shoprite needs to address?
Prioritize the pressures based on their severity and potential impact on the
company's future.

2. Propose Responses:

a) Brainstorm potential responses that Shoprite could implement to address

the identified pressures. Consider both strategic and operational
initiatives, such as:
b) How can Shoprite leverage business intelligence (BI) to inform these
responses? What specific insights or data would be valuable in this
context?

3. Evaluate Support Systems:

 Discuss the support systems that Shoprite would need to implement its
chosen responses effectively.
 How can Shoprite ensure that it has the necessary support systems in
place to execute its strategies successfully?

4. Integration of Business Intelligence:

a) Explore how business intelligence can be integrated into Shoprite's

response strategy.
 b) What specific BI solutions or approaches would you recommend for
Shoprite, given its current challenges and objectives?

5. Implementation Plan:

a) Develop an implementation plan outlining the steps Shoprite should take

to address the identified pressures and leverage business intelligence
effectively.

3. Evaluating Support Systems:

b) Technology Infrastructure:
c) Invest in robust BI tools and data analytics platforms to gather and
analyze data effectively.
d) Explanation: Investing in Business Intelligence (BI) tools and data
analytics platforms enables Shoprite to collect, store, and analyze vast
amounts of data efficiently. These tools help in identifying patterns,
trends, and insights that are crucial for making informed decisions.
e) Examples:
f) BI Tools: Tools like Tableau, Power BI, and Qlik Sense can be used to
create interactive dashboards that provide real-time insights into sales
performance, customer behavior, and inventory levels.
g) Data Analytics Platforms: Platforms such as Apache Hadoop and
Google BigQuery can handle large datasets, enabling complex data
analysis and reporting.
h) Use Case: By using a BI tool like Tableau, Shoprite can create a
dashboard that tracks daily sales, customer complaints, and inventory
levels. This dashboard can help managers quickly identify which
products are underperforming, which stores are receiving the most
complaints, and where inventory shortages are occurring.
i) Training Programs:
j) Develop training programs for employees to improve their skills and
adapt to new technologies and processes.
k) Explanation: Continuous training and development programs are
essential to ensure employees are well-equipped to handle new
technologies and processes. This helps in maintaining high levels of
productivity and customer service quality.
l) Examples:
m) Customer Service Training: Training programs focused on improving
customer interaction skills, problem-solving, and complaint resolution.
n) Technology Training: Workshops or online courses to familiarize
employees with new systems like self-checkout machines, CRM software,
or SCM platforms.
o) Use Case: Implementing a training program for customer service
representatives to handle complaints more effectively can reduce the
 number of unresolved issues, thereby improving customer satisfaction.
For example, training sessions on using a new CRM system can help
employees manage customer data more efficiently and provide
personalized service.
p) Customer Relationship Management (CRM):
q) Implement a CRM system to manage customer interactions and
improve service quality.
r) Explanation: A CRM system helps in managing customer interactions,
tracking customer data, and automating various marketing, sales, and
customer service processes. This leads to better customer relationships
and improved service quality.
s) Examples:
t) CRM Software: Solutions like Salesforce, HubSpot, and Zoho CRM can
centralize customer data, track customer interactions, and automate
follow-ups.
u) Personalized Marketing: Using CRM data to send personalized offers
and promotions based on customer preferences and purchase history.
v) Use Case: By implementing Salesforce, Shoprite can track customer
purchase history, preferences, and feedback. This information can be
used to send targeted promotions, such as discounts on frequently
purchased items, and to quickly address any service issues that arise.
w) Supply Chain Management (SCM):
x) Invest in SCM systems to optimize inventory levels, reduce costs,
and improve efficiency.
y) Explanation: SCM systems help in managing the entire supply chain
process, from procurement to distribution. These systems can optimize
inventory levels, reduce operational costs, and enhance overall efficiency.
z) Examples:
aa) SCM Software: Tools like SAP SCM, Oracle SCM Cloud, and Manhattan
Associates can provide end-to-end visibility and control over the supply
chain.
bb) Inventory Optimization: Using predictive analytics to forecast demand
and adjust inventory levels accordingly.
cc) Use Case: Implementing an SCM system like SAP SCM can help Shoprite
optimize its inventory by predicting which products will be in high
demand based on historical sales data and current market trends. This
reduces the risk of stockouts and overstocking, leading to cost savings
and improved customer satisfaction.
dd) Feedback Mechanisms:
ee) Establish mechanisms for continuous customer and employee
feedback to monitor the effectiveness of implemented strategies.
ff) Explanation: Continuous feedback from customers and employees is
vital for monitoring the effectiveness of strategies and making necessary
adjustments. Feedback mechanisms can include surveys, suggestion
boxes, and digital feedback tools.
gg) Examples:
hh) Customer Surveys: Regular surveys to gather customer opinions on
product quality, service, and overall shopping experience.
ii) Employee Feedback: Internal surveys and suggestion boxes to collect
feedback from employees on workplace conditions, processes, and new
initiatives.
jj) Use Case: Using a tool like SurveyMonkey, Shoprite can regularly send
out customer satisfaction surveys to understand how customers feel
about their shopping experience and identify areas for improvement.
Similarly, an internal employee survey can reveal insights into
operational challenges and areas where additional training might be
needed.
kk)