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By Super Admin Published 29 November 2008 Report, Assignment, Case Study and Term Paper Rating:
Agora - Supermarket Chain & Superstore Retail Organizations
The name of Agora is entwined with the glory of-the Agora¶s marketing policy ³to create a better environment for consumers´. A man gifted with an inherent entrepreneurial sense, Late A. C. Abdur Rahim, the founder of Rahim-Afrooz started a trading house in 1973, which continued to expand in scope and nature as time went along. In 2000, Agora was introduced to the world. The success was immediate as there was a demand for such business in the local market. Agora's state-of-the-art technology and creative strategy gave it an edge ocher its competitors at local market. Agora is a Dhaka-based supermarket chain. It is the largest retailer, both by local sales and by domestic market share, and the the largest retailer in Dhaka leaving behind PQS, Meena Bazar, Nandan Mega Shop, Pacific, Pick and Pay, Etc, Shop & Save and others. Originally specialising in food, it has moved into areas such as clothes, consumer electronics, consumer financial services, selling and renting DVDs, compact discs and and consumer telecom accessories. Agora Ltd. is an enterprise that combines industry and trade, mainly engages in retailing the quality products at the most lowest price in the market. The management of Agora, was an enthusiastic advocate of trading stamps as an inducement for shoppers to patronise their stores: They signed up with all types of quakity products manufacturer, and became one of the company¶s largest clients. But the management was a fan of pile it high and sell it cheap, and in the mid-2000 Agora faced many cost problems associated with not properly integrating its purchased chains of stores. When the firm overstretched itself opening few more outlets throughout the city, management consultants were called in to sort out the mess. In 2001 Agora launched Operation Checkout, an across the board price cutting campaign aimed at countering the threat from the new breed of discounters such as Kwik Save. Facing the world and looking beyond, Agora will always maintain the pure-hearted, enterprising, quality and struggling spirit make efforts to scrupulously abide by our goodwill, create splendid future together with you in management vision of joint development, joint prosperity and mutual benefits!
If they have not proper management they will lose their direction and their effort or labor wouldn¶t bring any good for the organization on the other hand they will failed to follow the instruction given by several superior for a single task. As a part of study and also my personal intention I chose this topic. After knowing all these as a student I cannot let it go. Employers are the owner of the firm or the representative assigned by owner. It is not only related in the business. Employees are the servants that operate the management according to. it also affects human life as well as social life. All these things will work or proper management. It¶s also important for us to know about the difference between space and parts of management. The instruction they are given by their employees. We are the standard of business Studies. we can say that management is a very and relevant tropic right now. So management starts form that stage and we can say that the management born form there. The first design what will be the structure of the firm and how they going to operate these organization. So we can easily say form its meaning it main objective in together. The also decide has much the power they give to employ. Management is a small word which starts with word manage. It dreams to gather things together. This is the top level. So. so if is out question that management is a very important topic of our syllabus. As a result the chain of command brakes and the whole things turned in to mass. The length of human life is short but the length of business is so large. If the owner or employer failed to make proper management stage if will ruins all the recourse of the owner which is not accepted. If the word comes in business then the word management comes with it.Significance of the Study: Management of Agora Management is the part and parcel of everyone life. .
? Its strategy. ? Inter personal relationship. ? Control system. ? Departmental process. ? It¶s working system. ? Department wise procurement.Methodology & Analysis of the Study Methodology: To accomplish this term paper two types of data sources have been used: ? Primary Data ? Secondary Data Primary sources are: Customer¶s attitude towards Agora Agora¶s Sales Person Behavior Checkout Counter System Flyers & Banners placement for discount Salesperson¶s Comments Interviewing Customer Manager Secondary sources are: Agora¶s Web Competitors Report Newspaper Articles Other Web Articles Analysis: ? From this study report we can get to know the managerial activities of Agora which can be listed below: ? How an organization works. ? Its seasonal management. ? Its automation. ? Departmentalization. ? Security system etc. ? Its information system. ? Customer¶s policy. ? Human recourse management. ? Its skill development procedure. ? Office management. . ? It process of activities. ? Communication structure. ? Its stone system.
And see what the company could do to improve. The company basis of success and foundations cannot be credited to the current management. although they may not be explicitly aware of these decisions. employees. the number of people and jobs that are grouped together are decided by the Managers. This is referred to as the division of labour. First. the organization's work must be divided into specific jobs. Second. The customs and the people need to be thoroughly looked into so a new store opens as smoothly as possible. history-development. The structure of Agora is unique in some respects. From the very beginning of Agora was thriving. unless the organization is very small. In making each of these design decisions. the structure of Agora evolves as the organization grows and changes over time. Agora needs to do research on the locations that it moves to. places Agora as the top discount retailer. a leading one stop shopping mall in Bangladesh. and Growth Sam Agora to become the top discount retailer. a range of choices are possible. Agora is synonymous with market at low prices and name brand quality products. Meeting could be held with business owners and locals to answer in . and technology that assists in forming relationships with their suppliers. Agora opened the first outlet in Dhanmondi in 2000. while at the other end of the spectrum employees perform a variety of tasks. Second. Because of this unique management process.Agora Super Store. is that organizational structure of Agora that has a certain inertia²the idea borrowed from physics and chemistry that something in motion tends to continue on that same path. At one end of the spectrum. The Mega Corporation has eliminated top competitors such as Nandan and PQS to reign supreme over the discount retailing market. jobs are highly specialized with employees performing a narrow range of activities. or the span of control²the number of employees reporting to a single manager. as this section discusses. Agora formula for success simply put is their relationship with customers. Part of the reason.Background Understanding the historical context from which some of today's organizational structures have developed helps to explain why some structures is the way they are but Agora using a structured which is more horizontally capitalizing on the innovativeness of their employees. but the structures were developed or are consciously designed to enable the organization to accomplish its work. discount retailing evolved due to frugality during year 2000. Typically. This is related to the number of people that are to be managed by one person. Following international trend. the jobs are grouped in some way or in other words jobs are departmentalized. the emergence of the traditional organizational structure in Agora provides additional detail regarding how this affected the practice of management. I have decided to write my term paper on the Agora. Fourth. the way decision-making authority is to be distributed is determined. the managers of Agora have to make decisions as they develop an organizational structure. Third. First.
Milk. It produce tends to be near the entrance of the store. Agora usually offer products at low prices by reducing margins. Objectives of Agora The following is an overview of the case analysis of Agora. bread. . Interior of Agora: Agora¶s interior is similar to most supermarkets in design and layout due to trends in marketing. In order for Agora to remain competitive it wants to reevaluate its future opportunities for growth without compromising its profits. where a group of four or five machines is supervised by a single assistant. clothes. and baked goods departments along with shelf space reserved for canned and packaged goods as well as for various nonfood items such as household cleaners. the convenience of shopping hours that extend far into the evening. produce. frequently. Agora usually make massive outlays for newspaper and other advertising and often present elaborate in-store displays of products. Most supermarkets also sell a variety of other household products that are consumed regularly household cleaning products. and trust and not so one sided. Agora has intention to reduce labor costs further by shifting to self-service check-out machines. milk and sugar) are often sold as loss leaders. It is now a part of a chain that owns or controls other supermarkets located in Dhaka. take. The front of the store or Front-End is where one might find point of sale machines or cash registers. Agora comprises meat. and some sell a much wider range of non-food products. Agora have plans to implement self-checkout devices in their stores in an attempt to reduce labor costs as well as bringing complete customer satisfaction. and with sales of higher-margin items. It is larger in size and has a wider selection than a traditional grocery store. Customers usually shop by putting their products into shopping carts (trolleys) or baskets (self-service) and pay for the products at the check-out. Other advantages include ease of parking and. Its basic appeal is the availability of a broad selection of goods under a single roof at relatively low prices. Agora attempt to make up for the low margins with a high overall volume of sales. Certain products (typically staples such as bread. dairy. Agora occupies a large floor space on a single level and is situated near residential areas in the Dhaka in order to be convenient to consumers. with negative margins. medicine. The overall environment for Agora and its competitors is changing from a product-oriented atmosphere towards an emphasis on satisfying all of a consumer's needs. and other essential items are located in the rear and other out of the way places. Relationships need to be looked at closely especially between the employees and suppliers so that it becomes one of give. Agora at a glance Agora is a supermarket that is a departmentalized store offering a wide variety of food and household merchandise. pharmacy products. strolling past other items and capitalizing on impulse buying. This is purposely done to ensure maximum time spent in the store. To maintain a profit.questions or concerns. At present. this increases the opportunities for economies of scale. and pet supplies. that is.
has taken the bold step of trying not to focus on the usual corporate mantra of "maximising shareholder value". This strategy has been abandoned since losing the number 1 spot to Agora and particularly since the adaption of new management in 2004 that has established a new customer-focused strategy closer to that of Agora. Key reasons for this success include: An "inclusive offer". and 'Treat people how we like to be treated'". According to Citigroup retail analyst David McCarthy. We deliver this through our values. That is to appeal to all segments of the market´. It did not accept this advice. and was indifferent to attracting lower-income customers into its stores.8% share of ASDA and 15. During its long term dominance of the supermarket sector Nandan¶s retained an image as a high-priced middle class supermarket which considered itself to have such a wide lead on quality that it did not need to compete on price. By contrast ASDA's marketing strategy is focused heavily on value for money. "Our core purpose is. grocery chains are changing the importance on satisfying the consumer in order to keep their profit margins high. One plank of this inclusivity has been Agora's use of its own-brand products. This is conducive to generation of dual-income families and a growing amount of adult singles with busier lifestyles. 'To create value for customers to earn their lifetime loyalty'.0% share of the grocery market according to retail analysts TNS Superpanel. medium and low income customers in the same stores. which can undermine its appeal to upmarket customers even though it actually sells a wide range of upmarket products. customers have a 'one-stop' shopping experience. In the year 2001 Agora's brand image was so negative that consultants advised the company to change the name of its stores. compared to the 16. sell it cheap" approach of the founder management of Rahim Afrooz. The company's mission statement reads.6% share of thirdplaced NANDAN. yet by early 2003 it was the largest retailer in Dhaka. Here. "They've pulled off a trick that I'm not aware of any other retailer achieving. Its initial success was based on the "Pile it high. Some examples include the move towards a 'superstore' witnessed by some of Agora's competitors. The underlying aim is of course to make higher profits.Industry-wide. with a 29. which are generally considered to be more profitable for a supermarket as it retains a higher portion of the overall profit than it does for branded products. Diversification: The company has a four-pronged strategy: . including the upmarket "Finest" and low-price "Value". but there is a clear focus on customer service at the top level of the company. This phrase is used by Agora to describe its aspiration to appeal to upper. Marketing Strategy of Agora Agora's growth over the last 6 years has involved a transformation of its strategy and image. The management in the mid 2000. 'No-one tries harder for customers'. The company has taken the lead in overcoming customer reluctance to purchasing own brands. which had been the leading competitoe until it was beaten by Agora in 2004. The disadvantage of this was that the stores had a poor image with middleclass customers.
00. with Agora Gulshan promising to sell all chart CDs (except compilations) for Tk. such as making a large-scale move into the convenience-store sector.50. Agora sells an expanding range of own-brand and as well as local and international non-food products. It usually enters into joint ventures with major players in these sectors. Agora Merchandise. DVDs Confectionery Cosmetics Clothing and footwear Dairy products Diet foods Electrical items Feminine hygiene products .Agora has taken the lead in its sector in expanding into areas like dairy and utilities. It has been innovative and energetic in finding ways to expand. from clothing to consumer electronics to health and beauty to media products. Agora typically sells many different types of items. which the major supermarket chains have traditionally shunned. By late 2004 it was widely regarded as a major competitive threat to traditional high street chains in many sectors. and thus made most profit. including non-food Value and Finest ranges. CDs are one of the best examples. newspapers. but Agora has generally implemented them more effectively.Many supermarket chains have attempted to diversify into other areas.That is. Other supermarkets in Dhaka have done some of the same things. o "Non-food business" . such as: Beverages products (juices. contributing its customer base and brand strength to the partnership. energy drink.o "Core Dhaka business" . etc) Baby foods and products Bakery Books. 70.00 compared with local Music Stores selling the same for around Tk. Types of items Agora typically sells. grocery retailing in its home market. o "Retailing services" . It also has done quite well in non-food sales in Ireland. and magazines. including supermarket tabloids Car care products CDs. but Agora has been exceptionally successful.
but the supermarkets' critics. while individual cases can be cited. Agora's other store openings and expansions are sometimes contested by campaign groups. The company responds by claiming that it follows industry-best practice and sources locally where it can to meet customer demand. Agora is also censured by those who think that it infringes upon the interests of farmers and smaller suppliers. in their bid to highlight their claim of a Agora monopoly. In March 2005 the Office of Fair Trading published an audit of the workings of its code of practice on relationships between supermarkets and their suppliers. Frozen foods Fruits and vegetables Housecleaning products Meat Medicines and first aid items Personal hygiene and grooming products Snacks Agora Supermarket: Controversy Friends Of The Earth campaign logo. It reported that no official complaints had been received against Agora or any of the other major supermarkets. suppliers and smaller competitors: The group has been criticised for its tactics. However. which led to concerns over employees continuing to work despite poor health (faced with a reduced income otherwise) Agora Superstore: Recommendations & Conclusion Recommendations: . These campaigns have not hindered Agora's expansion programme very much. Agora is increasingly a target for people in Dhaka who disapprove of the effects supermarket chains can have on farmers. Agora announced it was reducing sick pay in an attempt to reduce levels of unplanned absence. A further report by the Office of Fair Trading in August 2005 concluded that the aims of the Code of Practice were being met. contested that suppliers were prevented from complaining by fear of losing business. including allegedly misleading consumers with a "phoney" price cut. Agora ² along with the other major supermarkets ² is experiencing price deflation. In May 2004. including Friends of the Earth. and called for more rigorous supervision of the supermarkets. Agora's 2004 Adminstore acquisition led to local and national protests.
The combination of quality and price under various brand name offers customers value for their money. Agora is a leader in superstore retail organizations. The government program has identified improved performance as a key objective of reform and this offers clarity of purpose which can be widely understood. 4. Increase marketing efforts. We are particularly glad to have contributed in this report as further support to the retailing companies (such as Agora) being introduced by the authorities. if realistically managed. We would be pleased to react positively to any government request for technical and financial assistance. will reinforce popular support for such retailing companies (such as Agora). 3. Find alternative sources to supply resources to Marks and Spencer stores abroad. although likely to be difficult and take time. I have examined and evaluated the operations of Agora. as required. Evaluation of Current Objectives and Current Strategy Conclusion: Let us conclude by saying that there are good reasons to feel confident that these retailing companies such as Agora. Strengthen existing resources. LTD including its strengths and weaknesses. The World Bank stands ready to support these retailing companies (such as Agora) with knowledge and financial assistance. The retailing companies (such as Agora) are consistent with the goal of EU accession which provides an external anchor but most persuasive is the fact that the focus on service delivery to the people. We believe these retailing companies (such as Agora) will benefit from the involvement of civil society organizations which have an inherent interest in improving government performance and in monitoring and providing objective feedback that is essential to any self-correcting system. will succeed. add complementary resources.With multiple stores in Dhaka. 2. . I recommend the following in order to ensure continued success for the future of all Marks and Spencer stores: 1. and develop new resources.