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A STUDY ON EFFECTIVENESS OF MIS IN ORGANISED RETAIL STORES IN VIJAYAWADA (With Reference to BIG BAZAR)

Management Thesis Submitted to

K L University Business School


In partial fulfillment of requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION Submitted by S. Naga Mahesh Reg No: 09101923


Under the Guidance of

Mr. V. Srinivas, Assistant Professor

KL UNIVERSITY BUSINESS SCHOOL, KL UNIVERISTY VADDESWARAM, GUNTUR DIST 2009-2011


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A STUDY ON EFFECTIVENESS OF MIS IN ORGANISED RETAIL STORES IN VIJAYAWADA (With Reference to BIG BAZAR)
Management Thesis Submitted to

K L University Business School


In partial fulfillment of requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION Submitted by S. Naga Mahesh Reg No: 09101923 Submitted on: 3-12-2010
Under the Guidance of

Mr. V. Srinivas, Assistant Professor

KL UNIVERSITY BUSINESS SCHOOL


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VADDESWARAM, GUNTUR DIST 2009-2011

CERTIFICATE
This is to certify that the Management Thesis titled A STUDY ON EFFECTIVENESS OF MIS IN ORGANISED RETAIL STORES IN VIJAYAWADA (With Reference to BIG BAZAR) submitted by me to Dr. G. Suneetha, Associate Professor my Faculty Supervisor during Semester III of the MBA Program (The Class of 2009 - 2011) in partial fulfillment of my MBA Program requirements embodies original work done by me.

Signature of the Student

Name Enrolment No

: :

S. NAGA MAHESH 09101923

Signature of the Faculty Supervisor

Name Designation

: :

DR. G. SUNEETHA Associate Professor

DECLARATION

I hereby declare that this management thesis report entitled A STUDY ON EFFECTIVENESS OF MIS IN ORGANISED RETAIL STORES IN VIJAYAWADA (With Reference to BIG BAZAR) has prepared by me in partial fulfillment of the requirement for the award of degree of Master of Business Administration under the guidance of Mr. V. Srinivas, Assistant Professor of KLUBS. I also declare that this project is the result of my own efforts and it has not been submitted to another university for the award of any Degree or Diploma.

Place: Date:

(S. Naga Mahesh)

ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to my Institute KLUBS because of which I got this opportunity to work on the management thesis. I must also express my thanks to all the faculty members of my Institute who extended all help and cooperation, as and when required. My special thanks to Mr. V. Srinivas, Assistant Professor of KLUBS who gave valuable guidance to me, without that my thesis would not have been possible. I take this opportunity to thank those who helped me to make this thesis a better work through their constructive criticism, helpful suggestion and over all support. I am honored to extend my sincere thanks to my HOD Dr. Sheela Srivastava and Professor V. Rama Devi for expressing their faith on us by assigning this management thesis work . Their ideas and support always guide me in the completion of the thesis in time with their advice and encouragement stood us in good stead and a constant source of inspiration for my throughout the tenure of thesis work. I acknowledge the cooperation of those individuals who had taken time to participate in filling questionnaire without which my thesis would have been incomplete. I am also thankful to my family, friends for their support in successful completion of this thesis. .

S. Naga Mahesh

CHAPTER NO.

TOPIC LIST OF ABRIVATIONS

PAGE NO.

I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII.

1 2 3-22 23-26 27-34 35-38 39-48 41-48 49-51 52 53-54 55 56-60

ABSTRACT INTRODUCTION COMPANY PROFILE REVIEW OF LITERATURE RESEARCH METHODOLOGY EMPIRICAL ANALYSIS AND INTERPRETATION TABLES AND GRAPHS FINDINGS CONCLUSION QUESTIONNAIRE BIBLIOGRAPHY GLOSSARY

TABLE OF CONTENTS

CONTENTS
List of tables/illustrations Graphs/Charts 48 Abstract 2 41-48 41-

CHAPTER 1

Introduction 1.1 Objectives 1.2 Description of the problem 1.3 Justification of the study

3 26 26 26 27 35 39 45 52

CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6

Review of Literature Research Methodology Data Analysis and Interpretation Findings Conclusion

References/ Bibliography

LIST OF ABBREVIATIONS
MIS MAT MIPS GRDI VMIS POS RFID OLAP SCMS CRMS ERPS SCM IT SCOR POS ECR PCO PCS Management Information System Maintenance Access Terminal Million Instructions Per Second Global Retail Development Index Vendor Managed Inventory Systems Point Of Sales Systems, Radio Frequency Identification, Online Analytical Processing Supply Chain Management Systems, Customer Relationship Management Systems Enterprise Resource Performance System Supply Chain Management Information technology Supply Chain Operations Reference Point Of Sale Electronic Cash Registers System. Point Of Control And Observation Patchable Control Store

QIC FD DBMS

Quality Information Using Cycle Time Automatic File Distribution Data Base Management System

ABSTRACT
Indian organised retail industry is poised for growth. Rapid state of change due to speedy technological developments, changing competitive positions, varying consumer behavior as well as their expectations and liberalized regulatory environment is being observed in organized retailing. MIS (MANAGEMENT INFORMATION Systems) which provide timely and accurate information can be viewed as an integrated entity providing management with the tools and information to assist their decision making. This is a Complete MIS system which includes Customer Support System, Financial Management System, Inventory Control System Including Sales, Purchase, Bills Receivable and Payable, Income and Expense maintenance.

MIS stores Customer Information so that it can be referred later on that helps In Customer Support System. When you perform any purchase or sales transaction it automatically updates inventory and you can have current stock report. You can also issue bills to customer from this software as soon as you issue sales transaction. Moreover it also have reminder that reminds you On Due bills which is available at the bottom of the software. You can also add new customer records in Case of future reference. Comparison across national chain and local organized retailer in grocery sector reveals that national chain having implemented ERP partially are mostly using the same for majority of operational decisions like inventory management, CRM, campaign management. Two local players use spread sheets and in house software to make the above operational decisions. The benefits realized remain the same across the retailers. Prioritization as well as quantification of benefits was not communicated. The issues of coordination, integration with other systems in case of ERP usage, training were highlighted.

Management Information Systems are one of the major tools available to business managers for achieving operational excellence, developing new products and services,
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improving decision making, and achieving competitive advantages. In the retail industry, especially in the midstream and downstream sector management information system has streamlined the business operations. Effective network systems for better connectivity, better IT infrastructure for effective data handling, software for data analysis and future sales projections, efficient ERPs (enterprise resource planning) has brought the organizations competitive advantage.

CHAPTER-1 INTRODUCTION

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INTRODUCTION
Management Information Systems (MIS) is a system consisting of people, machines, procedures, data base and data models, as its components. The system gathers data from Internal and External sources of an organization; processes it and supplies Management Information to assist managers in the process in decision making. Thus it is safe to conclude that an information system is "a system consisting of the network of all communication channels used within an organization". An information system comprises of all the components that collect, manipulate, and disseminate data or information. It usually includes hardware, software, people, communications systems such as telephone lines, and the data itself. The activities involved include inputting data, processing of data into information, storage of data and information, and the production of outputs such as management reports. Retailing as simply defined is the end process of supply chain management where there is a direct interaction with the end-user or the customer. Hence forth availability, assortment, display, proper handling of product plays a vital role in a competitive world.

STAGES OF RETAILING
Retailing does not only comprise of selling the products to customer but it is also taking care of the entire product movement cycle. This path from manufacturer to the consumer has a very important stage known as the Retail Supply Chain. The retailing cycle involves the following key components:
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1. Suppliers and/or Manufacturers 2. Logistics Partners 3. Warehouse 4. Distribution Centres 5. Stores 6. Customers

POPULAR FORMATS OF RETAILING


Since the retail industry covers a wide range of corporations, it can be classified in various formats. However the most popular format of classification is by the type of business channel the retailer implements to do business. Some of the popular categories are: Mom-and-Pop Stores: This is represented by the small, individually owned and operated retail outlet. It is often seen that these are family-run businesses which cater to the local community and are capable to provide high level of service. However they often have a limited product selection. Mass Discounters: These are the type of retailers who sell either general or specialty merchandise. But their forte is in offering discount pricing to their customers. Compared to department stores, mass discounters offer fewer services and lower quality products. Warehouse Stores: This is a form of mass discounter retailer. The prices offered by these types of retailers is even less than traditional mass discounters. However, the constraint on buyers is that they need to make purchases in quantities that are greater the quantities that can be purchased at mass discount stores. The level of service is often low and product selection can also be limited. Also notable is that these stores are of warehouse style where customers might be found selecting products off the ground from a shipping package. Another form of warehouse stores is warehouse clubs where customers need to be members to be able to make purchases. Category Killers: Major retailers also focus on a concept of specialty stores wherein they service by providing multitude of options within that product category. In Indian parlance, the
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concept of category killers is often found in the product categories as electronics (The EZone), office supplies (Office Link) and Books (Crosswords). Department Stores: These retailers offer mid-to-high quality products and strong level of service. However in most cases these retailers do not fall into the full-service category. Even though the Department stores are classified as general merchandisers; some retailers may opt to carry a more selective product line. For instance, while Big Bazaar carries a wide range of products from grocery to electronics, Shoppers Stop focuses primarily their products on apparel and lifestyle products. Boutique: These are usually small stores catering very specialized or niche products which is often high-end merchandise. Also in all cases the level of service is very high for this format. They often follow a full-pricing strategy and have prices which are more than the prices of merchandise available in any of the other formats. Catalogue Retailers: The concept of this form of retailing is that the customers will place orders after seeing products from a published catalogue. Tata Sons retail venture Croma utilizes this business channel. Orders can either be delivered by in house logistics or a third-party shipper. The format utilized by McDonalds and Pizza Hut outlets for their delivery model can be identified as this format. E-tailors: In this format the retailer principally sells via the Internet. There are thousands of online-only retail sellers of which EBay is the most famous in India. The benefit of this format for customers is that it is open 24X7 and for the retailer is that it does not need to stock the merchandise. Franchise: This form of retailing comprises of a contractual channel where one part the franchisor controls the business activities of the other party franchisee. The franchisee has access to the franchisors business methods and other important business aspects, such as the franchise name. In return the franchisee shares a part of the revenue with the franchisor. The common examples are McDonalds and Pizza Hut.
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Convenience Store: As the name implies these general merchandise retailers cater to offering customers an easy purchase experience. Convenience is offered in many ways including through easily accessible store locations, small store size that allows for quick shopping, and fast checkout. The product selection offered by these retailers is very limited and pricing can be high. Vending: This form of retailing involves utilizing automated methods for customers to quickly purchase the desired product. This can be interactive kiosks and vending machines. The presence of vending machines for purchase of smaller items, such as beverages and snack food, is already common in case of products like beverages and magazines. However newer devices are entering the market which will be able to vend more expensive and bulkier products. By access of either Internet or telecommunications link, these systems will enable customers to use credit cards.

THE RETAILING CHALLENGE

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The challenge of retailing is to strike the balance between cost optimization and maintaining the level of service. The tradeoff between these factors is a dynamic one and retailers have to Endeavour to strike a balance towards it all times.

CONCERNS AMONG RETAILERS


In the global context, for retailers to be successful need is to address various issues which are inherently related to their business. The key issues include: Customer satisfaction: Customer satisfaction is one of the most important factors which determine the success of business. Only way to keep customers loyal is by making them satisfied. Needless to say the retailers need to have strategies in place that build relationships with customers and hence customers keep returning to make more purchases. Ability to Acquire the Right Products: The ability to provide the right product will make the customer satisfied. As most retailers do not manufacture the products they sell, they need to collaborate with their suppliers in order to provide the product demanded by customers. Hence, the retailers who constantly identify the products the customer will demand and negotiate with suppliers to obtain these products. Product Presentation: Often the suppliers provide the basic product and retailers need to generate interest about the product while presenting to customers. The merchandising of the product from packaging stage to putting on the shelf is very crucial. Hence the retailers need to employ creative people who understand and can relate to the market. Traffic Building: Retailers need to focus on marketing aspects as well. The main focus is to create customer interest using promotional methods. The best way to measure the customer interest is by the number of people visiting a retail location or website which more commonly known as footfalls and the measure is known as footfalls per square
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feet. Traffic Building is actually a judicious mix of promotional techniques such as advertising, including local newspapers or Internet, and customer loyalty programs and specialized promotional activities, such as coupons. Layout: Layout of the store covers attributes which are much more than the physical dimensions of the store and product arrangement. For most retailers, the layout should be of great visual appeal to customers as well it should cover the basics of ergonomics. Many retailers often keep renovating according changing trends and create makeovers to create the right shopping atmosphere (Motifs, objects, light, sound) can add to the appeal of a store. In the online context also the layout of a website is very important as factors like easy site navigation and usability are crucial deciding factors for success. Location: The decision of setting up a store is incomplete without incorporating the significance of location. Stores located in easy access and which have high visibility, might command higher land usage fees but may hold significantly more value than lower cost sites that yield less traffic. It is important to evaluate the trade-off between costs and benefits of locations before arriving at a retail decision. Technology: Technology has become the basic fabric of the retailing industry today. Perhaps the most important fact is that retailers who do not understand the ways to use technology for competitive advantage will be left out in the competition. The use of technology is present in each and every of retailing including customer knowledge (Customer relationship management software), product movement (Use of RFID tags for tracking), point-of-purchase (Scanners, kiosks, self-serve checkout), web technologies (Online shopping carts, purchase recommendations) and many more. Retailers will not only need to implement technology in their operations but also challenge their ways of doing it to succeed.

INDIAN RETAIL INDUSTRY

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The sea of change can pull customers in many directions. It is our responsibility to light the way and take care of them before the competition does. Retailing Means Re-tailing to the customers so that they comeback. Retailing consists of all activities involved in selling goods and services to consumers for their personal, family, or household use. It covers sales of goods ranging from automobiles to apparel and food products, and services ranging from hair cutting to air travel and computer education. Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not considered a retail activity. The Indian retail story couldn't have been more different. India has approx 12 million retail stores, more than rest of the world put together. But the per capita square feet area under retail is just 2 sq.ft or 0.2 sq. meters with fragmented kirana stores being the predominant players. Retailing in India has remained in the unorganized sector and largely untouched by corporate. The first decade of modern retail in India has been characterized by a shift from traditional channels to new formats including department stores, hypermarkets, supermarkets and specialty stores across a range of categories. Modern retail formats have mushroomed in metros and mini-metros, in the last few years modern retail has also established its presence in the second rung cities. Thus, exposing the residents of these cities to shopping options, they have never experienced before. It has been forecasted that the share of modern retail will increase from 2 per cent currently, to about 15-20 per cent over the next decade. To begin with, retailers today will have to support the large retail infrastructure in terms of Malls and Superstores that are being created. The challenge for leading retailers shall therefore shift from diverting demand to creating demand. With all the modern stores offering convenience in terms of an assortment of products, ambience, service and innovative products, the paradigm shall shift from competing with the kirana stores to an in-house demand creation. Relevant experiences from consumer goods
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companies, which have successfully crafted an explosion in demand in their sectors, through innovation, consumer driven strategies, will be head runner. Times are changing. With the GDP at an all time high and income levels shooting through the roof, the average Indian consumer has never had it so good. The propensity to consume has reached peaks that had never been scaled before. Credit cards are flashed with disdain and shopping baskets are getting bigger all the time. Here are some factors that indicate the potential of retail in India: At 271 million, one of the largest consuming base in the world, forming 27% of the total population. A high spending community below 45 years comprises 81 percent of the population. A young population with 54% population below 25 years Increased literacy from 44% in 1965 to 70% in 2003 Increase in working women from 1.3 million in 1961 to 4.8 million in 1998. The first decade of modern retail in India has been characterized by a shift from traditional kirana shops to new formats including department stores, hypermarkets, supermarkets and specialty stores across a range of categories. Modern retail formats have mushroomed in metros and minimetros. In the last few years, modern retail has also established its presence in the second-rung cities, exposing residents to shopping options like never before. However, even as modern retailers garner share from traditional channels, there is a larger role they would be required to play in boosting consumption levels. Figures suggest that the total turnover of the sector is around Rs 10 lakh crores, of which 4 percent is contributed by the organised sector. The retail sector in India is highly fragmented with organized retail contributing to only 2% of total retail sales. The retail sector in developed countries was also highly fragmented at the beginning of the last century but emergence of large chains like Wall Mart, Sears, and McDonalds led to rapid growth of organized retail and growing consolidation of the retail industry in the developed countries.
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Organized retail is growing rapidly and we see the emergence of large organized retail chains like Shoppers Stop, Lifestyle, and Westside. We also find retail malls mushrooming all over the country. The opportunities in retail industry in India will increase since Indian retailing is on the threshold of a major change. India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 78% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which have become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively, as a result a great demand for real estate is being created.

INDIAN ORGANIZED RETAIL MARKET


Indian organized retail market is growing at a fast pace due to the boom in the India retail industry. In 2005, the retail industry in India amounted to Rs 10,000 billion accounting for about 10% to the country's GDP. The organized retail market in India out of this total market accounted for Rs 350 billion which is about 3.5% of the total revenues.

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Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010. Traditionally the retail industry in India was largely unorganized, comprising of drug stores, medium, and small grocery stores. Most of the organized retailing in India have started recently and is concentrating mainly in metropolitan cities. The growth in the Indian organized retail market is mainly due to the change in the consumers behavior. This change has come in the consumer due to increased income, changing lifestyles, and patterns of demography which are favorable. Now the consumer wants to shop at a place where he can get food, entertainment, and shopping all under one roof. This has given Indian organized retail market a major boost. Retail market in the organized sector in India is growing can be seen from the fact that 1500 supermarkets, 325 departmental stores, and 300 new malls are being built. Many Indian companies are entering the Indian retail market which is giving Indian organized retail market a boost. One such company is the Reliance Industries Limited. It plans to invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets. A pantaloon is another Indian company which plans to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Bharti Telecoms an Indian company is in talks with Tesco a global giant for a 750 million joint venture. A number of global retail giants such as Wal-Mart, Carrefour, and Metro AG are also planning to set up shop in India. Indian organized retail market will definitely grow as a result of all this investments.

CLASSIFYING INDIAN RETAIL


(A)Modern Format retailers 1) Supermarkets (Food world) 2) Hypermarkets (Big Bazaar) 3) Department Stores (Shoppers Stop) 4) Specialty Chains (IKEA) 5) Company Owned Company Operated (BP) (B)Traditional Format Retailers:
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1) Karanas: Traditional Mom and Pop Stores 2) Kiosks 3) Street Markets 4) Exclusive /Multiple Brand Outlets (C)Large Indian retailers I Hypermarket 1) Big Bazaar 2) Giants 4) Star II Department store 1) Lifestyle 2) Pantaloons 3) Piramyds III Entertainment 1) Fame Adlabs 2) Fun Republic 4) PVR

CLASSIFICATION OF INDIAN RETAIL SECTOR


A) FOOD RETAILERS There are large number and variety of retailers in the food-retailing sector Traditional types of retailers, who operate small single-outlet businesses mainly using family labor, dominate this sector In comparison, super markets account for a small proportion of food sales in India, However the growth rate of super market sales has being significant in recent years because greater numbers of higher income Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience.
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B) HEALTH & BEAUTY PRODUCTS With growth in income levels, Indians have started spending more on health and beauty products .Here also small, single-outlet retailers dominate the market. However in recent years, a few retail chains specializing in these products have come into the market. Although these retail chains account for only a small share of the total market their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products.

C) CLOTHING & FOOTWEAR Numerous clothing and footwear shops in shopping centers and markets operate all over India. Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. However, with rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of time. D) HOME FURNITURE & HOUSEHOLD GOODS Small retailers again dominate this sector. Despite the large size of this market, very few large and modern retailers have established specialized stores for these products. However there is considerable potential for the entry or expansion of specialized retail chains in the country. E) DURABLE GOODS The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Intense competition among

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companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector.

F) LEISURE & PERSONAL GOODS Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. There are specialized retailers for each category of products (books, music products, etc.) in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers. The organised retail industry has started in the late 1990s and after a decade it has surpassed all expectations. It is undoubtedly one of the most fast growing sectors of the Indian economy and big players from other industries are focussing on retailing like never before. Some of the key attributes of the Indian retail industry as of today are: 1. It is the 5th largest retail destination globally. This phenomenon has been fuelled both by the increase of both domestic retailers as well international retailers setting up their operations in India. 2. The Indian retail industry has shown tremendous growth. In exact numerical terms the retail industry had done business worth US $ 25.44 billion in the financial year 2007-08 whereas the level business done in financial year 2006-07 was US $ 16.99 billion. This is an overall industry growth rate of 49.73%. 3. The Indian retail industry boasts of the largest number of retail outlets in the world. There are total 12 million retail outlets out of which 5 million sell food and related products. 4. The industry has been the delight of all consulting organization. The recent report from AT Kearney has declared the industry tops the Global Retail Development Index (GRDI) for the 3rd consecutive year.
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ORGANISED RETAIL STORES


Organised retail stores are characterized by large professionally managed format stores. They provide goods and services that appeal to customers, in an excellent ambience that is conducive for shopping, created based on consumer preference analysis, and offer good value as some of the benefits of large-scale purchases are passed on to consumers. In India, retail has its deep root since long back and that is why India is being known as Nation of Shopkeepers with about 12 million retailers by 2003.Organised retailing contributes 2% to the total Indian retail sector and expected to increase to 5%, by 2010. Retail sector forms 10-11% of GDP. It is attractive in terms of investment, employment opportunity, and usage of technology. Indian organized retail industry was worth Rs. 13,000 crore in the year 2000 and was expected to grow by 30 per cent in the next five years touching Rs. 45,000 crore in 2005. Food and personal care amounted to Rs. 1000 crore in 2000. Retailing is in a rapid state of change due to speedy technological developments, changing competitive positions, varying consumer behavior as well as their expectations and liberalized regulatory environment. In such a scenario, information is crucial to plan and control profitable retail businesses and it can be an important source of competitive advantage so long as it is affordable and readily available MIS (Management Information Systems) which provide timely and accurate information can be viewed as an integrated entity providing management with the tools and information to manage the retail stores. VMIs- vendor managed inventory systems, Scanner at the counters- point of sales systems, RFID- radio frequency identification, OLAP (online analytical processing), supply chain management systems, forecasting systems, CRM- customer relationship management systems, ERP- enterprise resource performance system etc. are the tools used by organized retailers in developed nations. Most retailers collect and have access to huge amount of data, collected from day to day operations e.g. customer loyalty data, retail store sales and merchandise data, demographic
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projection data etc. Currently retailers are data rich but information poor. There is a great potential to develop systems that enable analysts and decision makers to manage, explore, analyze, synthesize and present data in a meaningful manner for decisions. The organization needs to pool in both internal and external data, software, customer data, models and trained people to appreciate and use the systems for decision making which will help build sustainable competitive advantage.

APPLICATION OF MIS IN RETAIL STORTES


The Indian organized retail industry is the fastest growing in the world. To keep pace with the rapid expansion, companies are forced to leverage technology to bring in operational efficiency. With the government of India allowing 100% FDI in retail, major retail companies have started entering the Indian market. The competition is getting tougher by the day and companies are using technology as a differentiator. The following sections highlight the various operational areas of retail industry and how information technology is used for competitive advantage. MIS in Supply Chain Management Supply Chain may be defined as the series of companies that eventually make products and services available to consumers, including all of the functions enabling the production, delivery, and recycling of materials, components, end products and services. Supply Chain Management may be defined as the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across business within supply chain for the purpose of improving the long term performance of the individual companies and the supply chain as a whole. SCM gives a value-enhancing and longterm benefit for the organisation. Firms with large inventories, many suppliers, complex product assemblies, and highly valued customers have a lot to gain by good practices in SCM. The cost of inventories was over $2.2 trillion in U.S in 2000. Transportation and inventory carrying cost in U.S totalled $434 billion in 2000 (U.S Central Bureaus Annual Survey of Manufacturers).
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The best way to leverage the potential of SCM is by the efficient use of IT in this area. The importance of IT in SCM has long been acknowledged but little work has been done in this area. But with growing competition and greater emphasis to keep price as low as possible the companies are looking towards strengthening their supply chain. IT can be used in SCM in various areas such as: Purchasing Management Demand Forecasting Performance Evaluation Inventory Management Implementation of JIT ERP Systems MIS in Purchasing Management Electronic data interchange was developed in 1970 to improve the purchasing process. The rapid advent of internet technology in the 1990s spurred the growth of non-proprietary and more flexible internet based e-Procurement systems. Earlier critics argued that e-Commerce have been over inflated and it results in larger expenses than its savings. Today though many well managed e-commerce firms are beginning to thrive as users realize the benefits of their services. The material user initiates the e-procurement process by entering a material request and other relevant information. This is then submitted to the purchasing department. After verification of this the buyer transfers this data to the e-procurement system and assigns qualified suppliers to bid for it. Suppliers connected to this system receive the bid instantaneously. The purchasing department maintains a list of preferred suppliers for each category of material. Thus the buyer is able to submit the bid request to numerous suppliers within seconds. The traditional manual purchasing system is a tedious and labour intensive task. The new e-procurement system is a time saving system. It also results in a lot of cost saving as manual tasks are reduced. This system is much more accurate than the manual system. It allows mobility to the system. Audit trails can be maintained for all transactions in electronic form thus

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increasing the track ability. This system results in overall better management. This also results in various benefits for buyers.

IT in Forecasting Demand Forecasting provides an estimate of future demand and the basis for planning and sound business decisions. The goal of a good forecasting technique is to minimize the gap between actual and forecast demand. All the factors that influence demand, the impact of these factors and there time frame must be considered in developing an accurate forecast. Also buyers and sellers should share all the relevant information about the forecasting so that a correct decision can be made. Various forecasting techniques are as follows:

SOME OF THE FORECASTING SOFTWARE USED ARE


Forecast Pro Software: It is used by over 15,000 companies in 84 countries. The software is easy to use and has a built in expert selection system that analyzes the data, selects the appropriate technique for forecasting, builds the model and calculates the forecast. Smart Software: This software is used by companies such as HP, Mead Corporations etc. This is designed to run on Windows 95, 98, 2000, XP. IT in Performance Measurement It is said that You cant improve what you cant measure. Performance measurement is the use of statistical evidence to determine progress toward specific defined organizational objectives. The daunting task of measuring performance for organizations across industries and eras, declaring the top performers, and finding the common drivers of their success did not occur to anyone until around 1982, when Tom Peters and Bob Waterman got down to work researching and writing In Search of Excellence. This publishing sensation challenged industrial managers actions and attitudes, and inspired researchers and scholars to further pursue the theory of high performance. This task becomes more complex as corporations diversify into
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multiple industries. A researcher must take this into consideration when conducting a comparative analysis of companies. The evaluation of performance of the suppliers, material etc. requires a lot of data and continuous evaluation is required. Due to large volume of information available it has become almost impossible to do this evaluation process manually and thus the role of IT in this area has been increasing. One of the most recognized methods for integrating supply chain and measuring their members performance is the Supply Chain Operations Reference (SCOR). This model is used as a supply chain management diagnosis, benchmarking and process improvement tool by manufacturing and service firms in a variety of industries across the globe. This follows weighted approach to the areas that need more competencies. IT in Inventory Management

In traditional supply chain inventory management, orders are the only information firms exchange, but information technology now allows firms to share demand and inventory data quickly and inexpensively. The inventory management directly influence how effectively the organisation deploys its assets and capacity in producing its goods and services. The problem of inventory is compounded in an integrated supply chain, where a missed due date or stock out cascades downstream, affecting the entire supply chain. In this area IT is used in The Chase Production System in which the capacity is adjusted in the demand pattern. It is also used in Master Production Scheduling, listing the exact end items to be produced in a specific period. IT is also used in Material Requirement Planning and Manufacturing Resource Planning. IT in Point Of Sale Point of Sale (sometimes also known as Point of Service) as per the literary connotation is the actual location where the monetary transactions between the buyer and the seller of goods take place. It is usually used to indicate a retail shop or the checkout counter in shops, supermarkets, casinos, hotels, restaurants, stadiums, reservation counters at airports and railways and all other types of retail enterprises. Nowadays, the term POS is used to describe the system

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which is in place at the counter, consisting of both the hardware and the software components and it has evolved from the Electronic Cash Registers (ECR) system. Technology by itself does not cause sales increases or expense reductions, but rather the way the information that technology provides is used causes the increased sales and reductions in expenses.

OBJECTIVES OF STUDY
Study the MIS implementation of the BIG BAZAR. To get an insight into the needs of MIS in business setups on a big scale. How MIS stores Customer Information, how this can be referred and how this can be help full In Customer Support System. How it performs if any purchase or sales transaction and how it automatically updates inventory and how to find out the current stock report. How issue bills to customer from this software as soon as you issue sales transaction.

DESCRIPTION OF PROBLEM
What is the role of Management Information System in an organized retail stores.
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JUSTIFICATION OF STUDY
To understand how information flows from one department to another department and how this information system is useful in the organization to overcome problems regarding customers in retail stores.

COMPANY PROFILE
Pantaloon Retail (India) Limited, is India's leading retail company with presence across multiple lines of businesses. The company owns and manages multiple retail formats that cater to a wide cross-section of the Indian society and is able to capture almost the entire consumption basket of the Indian consumer. Headquartered in Mumbai (Bombay), the company operates through 5 million square feet of retail space, has over 331 stores across 40 cities in India and employs over 17,000 people. The company registered a turnover of Rest 2,019 crore for FY 2007-08 It owns and operates multiple retail formats including Pantaloons, Big Bazaar, Food Bazaar, Central, E-Zone, Fashion Station, Depot and many others. Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that combines the look and feel of Indian bazaars, with aspects of modern retail, like choice,
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convenience and hygiene. Food Bazaar, food and grocery chain and launch Central, a first of its kind seamless mall located in the heart of major Indian cities, followed this. Some of its other formats include, Collection (home improvement products), E-Zone (consumer electronics), Depot (books, music, gifts and stationary), All (fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It has recently launched its retailing venture,futurebazaar.com.

The group's subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing. The group also has joint venture companies with a number of partners including French retailer Etam group, Lee Cooper, Manipal Healthcare, Jaywalkers, Gini & Jony and Liberty Shoes. Planet Retail, a group company owns the franchisee of international brands like Marks & Spencer, Debenhams, Next and Guess in India. Pantaloon Retail is listed on BSE and NSE with a turnover of Rs 2,018 crores for financial year ended 2007-08. Pantaloon Retail was selected as the Best of Best Retailers in Asia by Retail Asia-Pacific Top 500 magazine in 2006.

Future Group
Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to cater to the entire Indian consumption space. The Future Group operates through six verticals: Future Retail (encompassing all retail businesses), Future Capital (financial products and services), and Future Brands (management of all brands owned or managed by group companies), Future Space (management of retail real estate), Future Logistics (management of supply chain and distribution) and Future Media (development and management of retail media). Future Capital Holdings, the group's financial arm, focuses on asset management and consumer finance. It manages two real estate investment funds (Horizon and Kshitij) and consumer-related private equity fund, Indecision. It also plans to get into insurance, consumer credit and other consumer-related financial products and services in the near future.
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Future Group's vision is to, "Deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner." One of the core values at Future Group is, 'Indians' and its corporate credo is - Rewrite rules, Retain values.

Future Group Manifesto


Future the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve. We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners. Our customers will not just get what they need, but also get them where, how and when they need. It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing. Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the Pantaloon Group. It works on same the economy model as Wal-Mart and has had considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the head of Pantaloon Retail India Ltd. Big Bazaar is not just another hypermarket. It caters to every need of customers family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, customer will definitely get the best products at the best prices -- thats what Big Bazaar guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils,
32

crockery, cutlery, sports goods and much more at prices that will surprise customer. And this is just the beginning. Big Bazaar plans to add much more to complete customers shopping experience. Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the Pantaloon Group. It works on it the economy model as Wal-Mart and has had considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the head of Pantaloon Retail India Ltd. At Big Bazaar, customer will definitely get the best products at the best prices -- thats what Big Bazaar guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise customer. And this is just the beginning. Big Bazaar plans to add much more to complete customers shopping experience.

BOARD OF DIRECTORS

Mr. Kishore Biyani

Managing Director

Mr. Gopikishan Biyani

Whole time Director

Mr. Rakesh Biyani

Whole time Director

Mrs. Veda Prakash Arya

Director

Mr. Shailesh Haribhakti

Independent Director

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Mr. S Doreswamy

Independent Director

Dr. D O Koshy

Independent Director

Mrs. Anju Poddar

Independent Director

Mrs. Bala Deshpande

Independent Director

Mr. Anil Harish

Independent Director

CHAPTER-2
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REVIEW OF LITERATURE

REVIEW OF LITERATURE
ARTICLE 1: Management Information Systems (MIS): the Heart and Soul of the Organizations By SYAM SUNDAR BAKKI A system is a set of interrelated elements. An information system is an open, purposive system that produces information using the Input-Process-Output (I-P-O) cycle. A purposive system is a system that seeks a set of related goals. All information systems are purposive. Management Information System (MIS) is not new; only its computerization is new. Before computers, MIS techniques existed to supply managers with the information that would permit them to plan and control operations. The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems the MIS helps in Strategic Planning, Management Control, Operational Control and
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Modern

Transaction Processing. The MIS helps the clerical personnel in the transaction processing and answers their queries on the data pertaining to the transaction, the status of a particular record and references on a variety of documents. The MIS helps the junior management personnel by providing the operational data for planning, scheduling and control, and helps them further in decision making at the operations level to correct an out of control situation. The MIS helps the middle management in short them planning, target setting and controlling the business functions. It is supported by the use of the management tools of planning and control. The MIS helps the top management in goal setting, strategic planning and evolving the business plans and their implementation. The MIS plays the role of information generation, communication, problem identification and helps in the process of decision making. The MIS, therefore, plays a vital role in the management, administration and operations of an organization. In a manual information system, human beings perform the five basic functions; in a computer-based system the basic functions are performed by equipment. In either type of system the basic functions are: 1. Entering data into the system 2. Processing the data (rearranging input data and processing files 3. Maintaining files and records 4. Developing procedures that tell what data are needed and when, where they are obtained, and how they are used, as well as providing instruction routines for the processor to follow; and 5. Preparing report output A lot of changes have taken place in business, industry and technology. The changes are so radical in nature that it is changing the ways of business management. The sole factor affecting world economic scene is the rise of Information Technology to a level where it has changed the business culture altogether. All the radical and dramatic changes have affected the working styles of the managers. The management process now need speed, precision, and snapshot business status through relevant information technology support. This requires a new MIS development approach.
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Though the basic role of MIS has not changed, it has changed inside out in terms of content and presentation. Information Systems that include a computer are known as computer-based information systems. The computer can fulfill several roles in the production of information. First, when used as data storage and retrieval device, the computer acts as a data librarian. Second, the computer provides processing capabilities for the production of information. Examples include calculations of totals, averages, maximums, and the like. Third, the computer serves as a communication device to obtain data or information from other computers. Finally, the computer presents information by producing tables, reports, charts, graphs, and formatted documents. Computers are digital machines that record, manipulate and playback digital representations, operating at speeds and levels of discernment beyond the abilities of humans. The steady decline in the price of computers has made the rapid spread of digital rendering feasible. The data entered into a computer system is reduced ultimately to the Esperanto of 1s and 0s. Then the data is said to have been digitized. Once digitized, information acquires the digital advantage: A universal rendering that is resource-conservative. Cheap to store and transport, and easy to copy.

Digital rendering thus liberates information from the constraints of any particular medium and raises the possibility of the liberation of "information" from the constraints of scarcity and rationing by price: easy and cheap replication means that whatever can be digitally rendered can be made universally available. Businesses are becoming more productive and easily put up and run. Business operations today are not possible without computers. Anything in the world has to be done fast, especially the world of business. With the use of computers, one can add or subtract numbers for large amount of data. Even meeting with business partners can be done easily. The entrepreneurs have options in discussing matters over the internet through instance messaging or through VoIP (Voice-over-Internet Protocol). VOIP enables the two or more people who are in different
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places to talk live over the internet. They don't need to spend much money in discussing business with partners or clients. If you're one of those entrepreneurs, you don't have to travel or spend a lot for long distance phone call. Everything is made cheaper with computers (and internet). Saving your bucks is one among the benefits of computers, aside from saving your time and energy. For example, accounting is highly a routine activity involving a precise step by step procedure. The basic method of recording transactions, irrespective of the nature of the firm, is almost the same. It is algorithmic because it has a set of standards, clearly defined and unambiguous rules and procedures to prepare books of accounts. This factor makes accounting easy to be automated in a precise step by step sequence, using tools like flowcharts and programmers can easily convert a flowchart into a source code. A computerized accounting system saves a great deal of time and effort, considerably reduces (if not eliminates) mathematical errors, and allows for much more timely information than does a manual system. In a real-time environment, accounts are accessed and updated immediately to reflect activity. The need to test for equality of debits and credits through trial balances is usually not required in a computerized system accounting since most systems test for equality of debit and credit amounts as they are entered. If someone were to attempt to input data containing an inequality, the system would not accept the input. Since the computer is programmed to post amounts to the various accounts and calculate the new balances as new entries are made, the possibility of mathematical error is markedly reduced. Computers may also be programmed to record some adjustments automatically at the end of the period. Most software programs are also able to prepare the financial statement once it has been determined the account balances are correct. The closing process at the end of the period can also be done automatically by the computer. However, human judgment is still required to analyze the data for entry into the computer system correctly. Additionally, the accountants knowledge and judgment are frequently required to determine the adjustments that are needed at the end of the reporting period. The mechanics of the system, however, can easily be handled by the computer. Information flows are to the life and health of a business what the flow of blood is to the life and health of an individual. Without information, a business simply cannot survive. This
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applies to small organizations as well as to large ones. Indeed superior Information Systems have enabled many small organizations to more than offset the economies of scale enjoyed by their bigger competitors. Information is analogous to light. When light is present, objects are visible. Information presents a picture of reality to a user who is not aware of that reality. Like light, too little or too much of information vitiates the picture of reality conveyed. ARTICLE 2: INDIAN RETAIL INDUSTRY - --By Economic times The DLF Mega Mall -- located in the IT and ITES hub of Gorgon on the outskirts of Delhi -- bears a deserted look. Of the few operating shops in this large mall, most have nary a customer. The same goes for several other retail outlets and many of the other malls in the vicinity. True, a retail chain like Future Group's Big Bazaar may be clocking heady sales (growing at 100% year-on-year), but the dozen-odd shops operating in its proximity wear a deserted look, giving a somewhat hollow ring to the much-talked-about retail boom in the country. In what seems like a quirk of circumstance, malls have sprung up all over urban India in anticipation of a consumption boom that may itself prove to be eventually truant. Move to Mulund (West), a suburban locality of India's financial nerve, Mumbai. Rajesh Parashar, a resident of the area has the option of shopping at Big Bazaar, Apna Bazaar, Subhiksha, Spinach, Shoprite, and Foodland or at the local Sai Supermarket, all of which are within a two-kilometer radius of his residence. This is paralleled by the developments happening in the Delhi suburb of Ghaziabad, where the upcoming Shipra Mall at Indirapuram already has Big Bazaar operating out of its lower-ground floor, while Reliance is slated to open shop on the third floor. Customer footfalls, however, are more in the projections of the occupiers of the mall than real. All this retail activity, and more, and the sheer gargantuan size of the investments planned, beg the question -- does the consumer's wallet have enough money in it for everyone?
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"Only time will tell," is KPMG's executive director, Deepankar Sanwalka's laconic answer. To a great extent the success or the failure of malls will hinge on the consumer population of the area. "If the spending power of consumers is high in a locality, it could sustain two-to-three large players." Not so, elsewhere, he adds poignantly. The significance of these remarks sinks in gradually. With planned investments of $22 billion over the next five years -excluding what might be brought in by new global and large local players henceforth -- the retail sector is expected to grow 40% to $427 billion by 2011.Organised retail, which is 3% of the whole currently, is in turn pegged to grow to $64 billion by 2015. And one consequence of all those investments will be the fact that India's present two square-feet per capita retailing space will raise 15-20% by 2010. To be viable, the huge investments made in the sector by India Inc would have to be responded to by a corresponding massive surge in footfalls. And for that to happen, a lot of links would have to fall in place. Between the drawing board and the emerging market realities, the realisation dawns that a lot of things can go wrong with India's much-heralded retail revolution. The more visible among these loose ends: vexingly high real estate prices, the loosely-knit distribution networks in India's hinterland, the near-absence of any modern supply chain logistics, shortage of skilled personnel, and a regulatory system that resembles a patchy quilt more than anything else. Then there is the nature of the business itself. Retailing is a low-margin, high-volume, commodity business where profitability gets strained as competition intensifies. And if wrong choices are made regarding the location or the formatting of the store, woe betides the retailer. The catches are many and to make it big, a retailer would have to negotiate all the tricky turns most of the time. The big players are sanguine, however. "There is enough room for six-to-eight players," says Reliance group chairman Mukesh Ambani, who recently kicked off the first Reliance Fresh outlet in Hyderabad. There are reasons for his optimism: the country's preponderantly young working population, disposable incomes that are expected to increase at an average 8.5% per
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annum till 2015, and a steadily climbing per capita income (from $460 in 2002, it rose to $620 in 2005). In fact, it is the expectation of a large working and earning population that has attracted most global retailers to the country. But most analysts are agreed that the Indian retail market could at best support 10 large players with revenues in excess of $2 billion each by 2015. Given the number of players getting into the fray today, this clearly means a winnowing out of the weaker retail players. What's more, that time could be sooner rather than later, maybe just three or four years down the line. That's not so surprising, industry insiders even say, pointing out that a large number of the new entrants may not be committed to retailing in the long term. While some almost certainly are looking to act as silent partners for foreign players, others may be more willing to look at an exit option a few years down the line. ARTICLE3: Information Technology in Retail - store management www.infosys.com The Indian organized retail industry is the fastest growing in the world. To keep pace with the rapid expansion, companies are forced to leverage technology to bring in operational efficiency. With the government of India allowing 100% FDI in retail, major retail companies have started entering the Indian market. The competition is getting tougher by the day and companies are using technology as a differentiator. The following sections highlight the various operational areas of retail industry and how information technology is used for competitive advantage. Electronic data interchange was developed in 1970 to improve the purchasing process. The rapid advent of internet technology in the 1990s spurred the growth of nonproprietary and more flexible internet based e-Procurement systems. Earlier critics argued that e-Commerce have been over inflated and it results in larger expenses than its savings. Today though many well managed e-commerce firms are beginning to thrive as users realize the benefits of their services. After verification of this the buyer transfers this data to the eprocurement system and assigns qualified suppliers to bid for it. Suppliers connected to this system receive the bid instantaneously. The new e-procurement system is a time saving system. It also results in a lot of cost saving as manual tasks are reduced. This system is much more
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accurate than the manual system. It allows mobility to the system. Audit trails can be maintained for all transactions in electronic form thus increasing the traceability. This system results in overall better management. This also results in various benefits for buyers. Forecasting provides an estimate of future demand and the basis for planning and sound business decisions. The goal of a good forecasting technique is to minimize the gap between actual and forecast demand. All the factors that influence demand, the impact of these factors and there time frame must be considered in developing an accurate forecast. Also buyers and sellers should share all the relevant information about the forecasting so that a correct decision can be made. In traditional supply chain inventory management, orders are the only information firms exchange, but information technology now allows firms to share demand and inventory data quickly and inexpensively. The inventory management directly influence how how effectively the organisation deploys its assets and capacity in producing its goods and services. The problem of inventory is compounded in an integrated supply chain, where a missed due date or stock out cascades downstream, affecting the entire supply chain. In this area IT is used in The Chase Production System in which the capacity is adjusted in the demand pattern. It is also used in Master Production Scheduling, listing the exact end items to be produced in a specific period. IT is also used in Material Requirement Planning and Manufacturing Resource Planning.

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CHAPTER-3 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY PERIOD OF STUDY: The period of the study for this project cover near about three months. Further, this much period is a reasonable period to study the performance of target and to gain knowledge with respect to the objective of study. TYPES OF THE RESEARCH: It is a Descriptive Research and the main objective of Descriptive Research is to learn about who, what, when and how. It includes study and fact finding inquiries of different kinds.

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Thus the major purpose of descriptive research is the description of the state of affairs, as it exits at present. To understand how MIS will be effects in an organized retail stores and I will design a questionnaires that inclued all the above said objectives It also include Exploratory Research as I also focusing on the what are the customers opinions on this Management Information System. Proposed Sample Size: 100 customers, 20 Employees Research Tool: Questionnaire FRAMEWORK OF ANALYSIS: The study has been undertaken to examine and understand the technology aspect of IT and organization relationship for a business playing a crucial role in the growth. The framework of study is concern with the MIS activities by retailers in the region defined above.

RELEVANCE OF THE TOPIC

Most of Retail Organizations are using MIS now a days which provides lot of benefits to the organization and at the same time customers also. MIS is an integral part of the management, software sector and Retail industry. For Every Retail Organization MIS is an integral part. And there is a lot of uses in retail sector. Now a days, there is lot of employment opportunities in Retail Organizations. Retailing is in a rapid state of change due to speedy technological developments, changing competitive positions, varying consumer behavior as well as their expectations and liberalized regulatory environment. In such a scenario the study was focused on said topic. I chose electives as Marketing and IT, which is very much relevant to the topic.

SIGNIFICANCE FOR THE PROPOSED STUDY

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Indian Retail Industry has embraced the new concept of MIS, it is very popular mode of many organizations in the developed countries like America, Japan and China... In the light of the above emerging trends in Retail industry, the present study has been taken up for the following purpose To study the effectiveness of MIS in Organized Retail Stores in Vijayawada. To study various factors which influence the technology towards Retail Industries

SOURCES OF DATA
The research will be done on the basis of primary and secondary data
Primary data is facts and information collected specifically for the purpose of the

investigation at hand .The Primary Data was collected from SAP Implementation Head IT Infrastructure Managers in the Information System department of BIG BAZAR by conducting telephonic interviews and collecting documentation which gave an insight into the procedures being followed with regards to the functioning of MIS. The Secondary Data was taken from various online sources like the website and various reference books on MIS and retailing.

SOFTWARE USED
Microsoft Excel XP has been used to do the Empirical analysis.

SAMPLE PLAN
I would consider my sample size to a minimum of 20 members covering all the various departments employees of big bazaar, enquiring about how this information is flexible in their routine work. And also enquire the customers about the services provided by the BIG BAZAR.
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METHODOLOGY
In order to address the aforesaid objectives, I first reviewed available current literature on MIS in organized retail. This was helped in understanding; I prepared a questioner and interviewed the people who are dealing with MIS in different departments in BIG BAZAR. And also interviewed few customers in BIG BAZAR.

HYPOTHESIS
Alternative Hypothesis (Ha): The existences of MIS in Retail Stores are very expensive. Null Hypothesis (H0): There is on effect of MIS in organized retail stores. And it is useful to the organization to improve the business and at the same time it is useful to the customers.

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CHAPTER-4 DATA ANALYSIS AND INTERPRETATION

EMPIRICAL ANALYSIS
The word empirical denotes information gained by means of observation, experience, or experiment. Empirical data is data that is produced by an experiment or observation. From the below data analysis (using graphs) we conclude that: Customer point of view:
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1) 78% of people dont get any false information in BIG BAZAR. 2) 92% of people are satisfied with the services provided by the BIG BAZAR. Employee point of view: 3) 75% of employees cant face any problems during the MIS implementation stage.

4) 100% of employees said MIS is very useful to superior coordination, problem identification, improving services and to get higher/greater profits in BIG BAZAR.

Totally 85% of people are satisfied the services and maintenance of technology provided by BIG BAZAR and 87.5% of employees are satisfied to working with the MIS system and MIS maintenance.

1. Monthly income of BIG BAZAR customers: SALARIES NO.OF PERSONS 1000-5000 5000-10000 10000-15000 >15000 STUDENTS TOTAL 8 13 37 28 14 100

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NO.OF PERSONS

STUDENTS, 14, 14%

1000-5000, 8, 8% 5000-10000, 13, 13% 1000-5000 5000-10000 10000-15000 >15000 STUDENTS 10000-15000, 37, 37%

>15000, 28, 28%

Interpretation: from the above analysis it is observed that 37% of employees getting 1000015000 /- monthly income, 28% of people getting above 15000 /- , 14% of people getting no income(students), 8% of people getting 1000-5000/-, and 13% of people getting 5000-10000/-.

2. Customers visit the BIG BAZAR in a month:

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No. of times visits the BIG BAZAR in a 1 month No. of Persons 23

Total

38

25

10

100

No.of times visits the BIG BAZAR in a month

No.of times visits the BIG BAZAR in a month, 1, 7% No.of times visits the BIG BAZAR in a month, 5, 33% No.of times visits the BIG BAZAR in a month, 2, 13% No.of times visits the BIG BAZAR in a month, 3, 20% No.of times visits the BIG BAZAR in a month, 4, 27%

1 2 3 4 5

Interpretation: From the above analysis it is observed 33% of people visits the BIG BAZAR 5 times in a month, 27% of people visits 4 times in a month, 20% of people visits 3 times in a month, 13% of people visits 2 times in a month and 7% of people visits 1 time in a month.

3. Reasons for people prefer to make purchase at BIG BAZAR:

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Preference to make purchase at Ambience BIG BAZAR No. of Persons 8

Availability/Variety Quality 63

Service

Price

All

Total

24

100

Reasons for People preferes to make purchase at BIG BAZAR

No.of Persons, All, 2, 2% No.of Persons, Price, 24, 24%

No.of Persons, Ambience, 8, 8% Ambience Availability/Variety Quality Service Price All No.of Persons, Availability/Variety Quality, 63, 63%

No.of Persons, Service, 3, 3%

Interpretation: From the above analysis it is observed 63% of people prefers to make purchase at BIG BAZAR for the product availability/verity quality, 24% of people go for price, 8% of people go for ambience, 3% of people go for services and 2% of people go to purchase at BIG BAZAR for above all reasons.

4. Number of persons getting false information at various places in BIG BAZAR:

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People

getting

false Billing Counter 8

Purchase Counter 2

customer Care 12

No Where

Total

information at No. of Persons

78

100

No of persons getting false information at various places in BIG BAZAR


No.of Persons, Billing Counter, 8, 8% No.of Persons, Purchase Counter, 2, 2% No.of Persons, customer Care, 12, 12%

Billing Counter Purchase Counter customer Care No Where

No.of Persons, No Where, 78, 78%

Interpretation: : From the above analysis it is observed 2% of people getting false information at purchase counter, 8% of people getting false information at billing counter, 12% of people getting false information at customer care and remaining 78% of people dont get any false information in BIG BAZAR.

5. Number of people satisfied with the services provided by the BIG BAZAR:
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Satisfied with the services provided by the BIG BAZAR No. of People

Yes 92

No 8

Total 100

People satisfied with the services provided by BIG BAZAR

No.of People, No, 8, 8%

Yes No

No.of People, Yes, 92, 92%

Interpretation: : From the above analysis it is observed 8% of people not satisfied with the services provided by the BIG BAZAR and remaining 92% of people are satisfied with the services provided by the BIG BAZAR.

6. Employee Age groups in BIG BAZAR:

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Age of the Employee No. of Employees

18-28 15

29-38 4

39-48 1

Total 20

Different Age roups of Employees in BIG BAZAR

No.of Employees, 39-48, 1, 5% No.of Employees, 29-38, 4, 20%

18-28 29-38 39-48

No.of Employees, 18-28, 15, 75%

Interpretation: : From the above analysis it is observed 75% of employees are 18-28 years age group people, 20% of employees are 29-38 years age group people,5% of employees are 39-48 years age group people working in BIG BAZAR.

7. Problems faced at MIS implementation in BIG BAZAR:


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Problems Faced at MIS System implementation Stage Integration

Man Power

Tracking

Break down

collaboration & ordination

No

Total

co- Problems

No. of Employees

15

20

Problems Faced at MIS implementation

No. Of Employees, System Integration, 0, 0% No. Of Employees, Man Power, 5, 25% No. Of Employees, Tracking, 0, 0% No. Of Employees, Break down, 0, 0% No. Of Employees, No Problems, 15, 75% No. Of Employees, Collaboration & coordination, 0, 0% System Integration Man Power Tracking Break down collabration & co-ordination No Problems

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Interpretation: : From the above analysis it is observed 25% of employees faced problems due to man power at MIS implementation process, 75% of employees cant face any problems during the MIS implementation stage. 8. Employees perceived the MIS benefits in their operations: Benefits perceived Employees No. of Employees 0 of MIS Superior by Coordination Higher Profits/Greater Profits 6 Helps problem identification 0 in Improving Services Profits 9 5 20 Above & All Total

Interpretation: : From the above analysis it is observed 45% of employees said MIS is very useful to improving the services and profits, 30% of employees said MIS is very useful to get
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higher profits/greater profits, 25% of employees said MIS is very useful to superior coordination, problem identification, improving services and to get higher/greater profits in BIG BAZAR.

CHAPTER-5 FINDINGS

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FINDINGS Benefits:
Reduction in check out time : Faster check out of customers at the transaction or billing counter takes place due to the scanning of the items that the customer purchases. The scanning of items through various technologies like RFID retrieves the item from the inventory database and displays it along with its price on the screen of the cashier, which facilitates faster billing process. Such a smooth and quick process also prevents customers from diverting to the competitor due to long queues or during peak periods. Faster approval of purchases from the inventory of the retailer : The POS system enables the PC at the billing counter to be always connected either through LAN or some other networking technology to the central database of the inventory. Thus, it enables faster purchase of the goods and enhances the experience of the customer. Capturing the product details: The out of stock problem that most retailers experience due to inaccurate inventory management can be avoided by having a reordering software which would facilitate in increasing the in stock position of merchandise. Software with related item or suggested item prompts : When an item is scanned, if there is a related or add-on item available, the software will prompt the sales associate to ask the customer if they would like the additional item) which leads to increases in average transaction value. Transaction Suspend: This feature places a transaction in suspense while the customer either goes to their car to get their check or charge card or goes back to the store to get an additional item and resumes the transaction when the customer returns. This speeds
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up processing of customers in line behind this customer and reduces waiting time. It also makes it easier for a customer to add on items to their purchase. Automatic store credits: These credits can be given on returned goods which lead to a reduction in cash refunds and tracks returned items. These store credit notes are serialized and can be used just like a gift card and often small credit balances either are not used or lead to larger sales when they are redeemed. They also replace manual issuance of store credit notes which are time consuming and open to fraudulent use. Capture of customer information: This feature enables after-marketing to individual customers based on purchase habits and practices. Also particular customers due to their loyalty or high spending inclination can be given further discount on products or additional perks such as redemption of points they secure on purchases made in that store. This leads to high sales and a niche customer base which can be targeted for micro marketing strategies of the company. Reconciliation: At the end of the day, the owner can easily track the price of the products sold with the cash generated in the cash register, hence the occurrence of theft by the staff at the billing counter is greatly controlled. Time Stamping: All the transactions are time stamped implying the exact time of the occurrence of the transaction is registered in the system. This can be tracked by the retailer to determine the peak hours so that he can increase the shop floor assistants during that period, and also the low revenue hours for which he can offer incentives such as further discounts or free parking to attract customers. Clocking In Period: Sales associates clock in on the cash register and hence their work hours can be tracked. This saves time and money which was earlier employed for this process and also reduce the payroll staff as this data can be directly transported to them. It's user friendly, scalable, flexible, reliable and easy to maintain

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It enables the management to track individual transactions from the POS to the general ledger Maximizes business value and efficiency

Losses:
MIS Software is very costly ERP is one of the software of MIS used by many stores Maintaining ERP is not an easy task Trained people can only handle the ERP systems

CONCLUSION
The mood is upswing in this sector as more and more players are joining this sector with huge investments and the focus is in every stage of this service oriented industry. Basic operational information systems like Computerized Inventory Management, Point of Sale Systems are just to name a few, will be with every player in this sector. The key challenge will be to source, develop or deploy those information systems which will have both backward and forward integration capabilities. More and more retailers will look to diverge to all the different formats and likely to create synergy between these different formats so as to reach to the same customer at all times. Gartner Inc. predicts that the online shopping will be such a key component of business that it will contribute around 11% of total revenue when considered on industry wide level. Need of the hour is to have that the visibility of this convergence by retailers and before treading on the path of any technology upgrades, they foresee the integration challenges. From the observation I conclude that totally 85% of customers are satisfied with the services and maintenance of technology provided by BIG BAZAR and 87.5% of employees are also satisfied to working with the MIS system and MIS maintenance.

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Questionnaire A STUDY ON EFFECTIVENESS OF MIS IN ORGANISED RETAIL STORES IN VIJAYAWADA Employee (With Reference to BIG BAZAR)

1. Name: ____________________________________ 2. Age: __________ 3. Gender:a) Male b) Female 4. Qualification: _____________________________ 5. Designation: ____________________________ 6. Has this store implemented ERP package? a) Yes b) No

7. What problems did you face in implementing MIS-? a) System integration problems (please elaborate) c) Tracking problems b) Manpower problems d) Breakdowns due to power problems

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e) Collaboration and co-ordination problems

f) Above All

8. What benefits do you perceive in using MIS in your operations? a) Superior coordination c) Diagnostic help in identifying problem e) Above All 9. Why you are unable to store the customer information in your retail store? 10. Any suggestions to avoid this problem. b) Higher profits/greater profitability d) Improving services and profits.

Questionnaire A STUDY ON EFFECTIVENESS OF MIS IN ORGANISED RETAIL STORES IN VIJAYAWADA (With Reference to BIG BAZAR) Customer 1. Name:__________________________ 2. Monthly Income:_______________________ 3. How many times do you visit the BIG BAZAAR in a month? ( 4. Why do you prefer to make your purchase in BIG BAZAAR? a) Ambience b) Service c)Availability/Variety Quality d) Price )

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e) Above All 5. Are you getting any false information at., a) Billing counter c) At the purchasing counter

b) Customer care

d) No Where

6. Are you satisfied with the services provided by BIG BAZAAR at Billing Counter? a) Yes b) No

BIBLIOGRAPHY Books and journals:


ARTICLE: Management Information Systems (MIS), By Syam Sundhar Bakki, Vijayawada Jawadekar, Management Information System, Tata McGraw Hill, New Delhi marketing management by Philip kotler Retail Management, Swapna Pradhan Introduction to Information system by james OBrien

REFERENCE BOOKS:
1 2 C.S.V. Murthy , Management Information System, Himalaya Publishing House, Mumbai. Mallach, Decision Support and Data Warehouse Systems, McGraw Hill Co., New Delhi.

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Davisl. Michael W.A. Management approach Mc Milan Publishing Company, Prentice Hall, New Jersey.

4 5

Retail Management, Chetan Bajaj. The Indian Retales. V. Rajesh

WEB SITES:
www.scribd.com www.proquest.com www.findarticle.com www.articlesbase.com www.authorpalace.com www.iocxtrapower.com www.articlesnatch.com and Google search engine

GLOSSARY
Coupon: A promotional tool in the form of a document that can be redeemed for a discount when purchasing goods or services. Coupons feature specific savings amount or other special offer to persuade consumers to purchase specific goods or services or to purchase from specific retailers. CRM - Customer Relationship Management: Customer Relationship Management (CRM) is a business strategy designed to reduce costs and increase profitability by strengthening customer loyalty. Cross-Sell: Cross-selling refers to a sales technique in which the salesperson recognizes what a customer is purchasing and will make suggestions or recommendations of other related merchandise the shopper may also be interested in purchasing.
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First In, First Out: A method of stock rotation in which goods that are received first are sold first. Newly received product is stocked behind the older merchandise. FOB: Shipping term used to indicate who is responsible for paying transportation charges. Gross Margin Return On Investment: A measure of inventory productivity that expresses the relationship between your total sales, the gross profit margin you earn on those sales, and the number of dollars you invest in inventory. Journal: A journal is the electronic or paper documentation of all transactions that have been recorded on a cash register. Keystone: Keystone pricing is a method of marking merchandise for resell to an amount that is double the wholesale price. Loss Prevention: Loss prevention is the act of reducing the amount of theft and shrinkage within a business. Margin: The amount of gross profit made when an item is sold. Markdown: Planned reduction in the selling price of an item, usually to take effect either within a certain number of days after seasonal merchandise is received or at a specific date. Marketing Calendar: A marketing calendar is a tool used by retailers to show what marketing events, media campaigns and merchandising efforts are happening when and where, as well as the results. Markup: A percentange added to the cost to get the retail selling price. POS: Point of Sale (POS) refers to the area of a store where customers can pay for their purchases. The term is normally used to describe systems that record financial transactions. This could be an electric cash register or an integrated computer system which records the data that comprises a business transaction for the sale of goods or services.
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Private Label: Products which are generally manufactured or provided by one company under another company's brand. Product Breadth: The product breadth is the variety of product lines offered by a retailer. Product Depth: Product depth is the number of each item or particular style of a product on the shelves. Product depth is also known as product assortment or merchandise depth. Product Life Cycle: The stages that a new product is belived to go through from the beginning to the end: Introduction, Growth, Maturity and Decline. Profit Margin: A ratio of profitability calculated as earnings divided by revenues. It measures how much out of every dollar of sales a retail business actually keeps in earnings. Quantity Discount: A reduction in price based on the amount purchased. May be offered in addition to any trade discount. Retailer: What is the definition of a retailer? One who sells goods or commodities directly to consumers. These items are generally sold in small quantities, at a marked up price from the manufacturer or wholesaler. Retailing: The sale of goods or commodities in small quantities directly to consumers. RFID: Radio Frequency Identification (RFID) refers to the technology that uses radio waves to transmit a products unique number from a tag to a reader Shoplifting: What is shoplifting? Shoplifting is the theft of property which is worth less than $500 and which occurs with the intent to deprive the owner of that piece of property. The crime of shoplifting is the taking of merchandise offered for sale without paying.
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Shrinkage; Retail shrinkage is a reduction or loss in inventory due to shoplifting, employee theft, paperwork errors and supplier fraud. SKU; The Stock Keeping Unit (SKU) is a number assigned to a product by a retail store to identify the price, product options and manufacturer. Visual Merchandising: Visual merchandising is the art of implementing effective design ideas to increase store traffic and sales volume. Wholesale: Wholesale is the sale of goods, generally in large quantity, to a retailer for resale purposes. Management Information System: Organized approach to the study of information needs of a management at every level in making operational, tactical, and strategic decisions. Its objective is to design and implement manmachine procedures, processes, and routines that provide suitably detailed reports in an accurate, consistent, and timely manner.

Business System: Hardware, software, policy statements, procedures, and people which together implement a business function. Baseline: A specification or product that has been formally reviewed and agreed upon, that thereafter serves as the basis for further development and that can be changed only through formal change control procedures or a type of procedure such as configuration management. Batch Processing: Processing data or the accomplishment of jobs accumulated in advance in such a manner that each accumulation thus formed is processed or accomplished in the same computer run Communications Mechanism: Hardware and software functions which allow Application Platforms to exchange information.

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Communications System: A set of assets (transmission media, switching nodes, interfaces, and control devices) that will establish linkage between users and devices Database: Structured or organized collection of information, which may be accessed by the computer. Database Management System: Computer application program that accesses or manipulates the database. Data Interchange Service: A service of the Platform entity of the Technical Reference Model that provides specialized support for the interchange of data between applications on the same or different platforms. Data Management Service: A service of the Platform entity of the Technical Reference Model that provides support for the management, storage, access, and manipulation of data in a database. External Environment Interface (EEI): The interface that supports information transfer between the Application Platform and the External Environment. Information System: The computer-based portion of a business system. Information Technology (IT): The technology included in hardware and software used for information, regardless of the technology involved, whether computers, communications, micro graphics, or others User: 1. Any person, organization, or functional unit that uses the services of an information processing system. 2. In a conceptual schema language, any person or anything that may issue or receive commands and messages to or from the information system. User Interface Service: A service of the Application Platform entity of the Technical Reference Model (TRM) that supports direct human-machine interaction by controlling the environment in which users interact with applications

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