SPJIMR

BIP 1
RETAIL AND SERVICES P1C3
FMB-26-005
AKSHIT AGGARWAL

1) Being in a retail jewellery segment the company faces a lot problems

that affect the major aspects of the business in positive as well as
negative ways.
a) Sales; there has been a constant increase in the sales for past 5 years.
This is because the inventory management of the owners is in line.
The stock is always kept up to date and latest trends are followed
throughout.
b) Cash flow; in jewellery market the cash flow is very unpredictable as
the customer always demands a credit and the credibility is what
makes the customer loyal. So there are increasing receivables and the
creditors are maintained at the same ratio.
c) Profits; in this segment the pricing is regulated by the national stock
exchange. The profit ratio to sales is almost constant for the past 3
years.

2) a) Suppliers: increase in sales also gives business to the vendors. As I

mentioned that the inventory is one big factor that attracts the
customer so more inventory was purchased to give the customer more
variety to choose from. The vendors were happy with business boom
and helps us making a good relation with them and we get more credit
and better price.
b) Competitors: Ambala is a hub for jewellery and cloth market. So it’s a
highly competitive market. Every action we take affects the competitor
and vice a versa. Increase in my sales leads the competitor to lower his
margin for more sale and this affects us in a bad way. There is a recent
 example of our direct competitor whom changed is showroom location
which helped us increase our sales.

3) PESTLE
a) Political factors: they actually do not affect the jewellery segment
b) Technological factors; it affects the business in a way in which
customer expectation increases. For example the customers feels
that jewellery should also go online as the world has become digital.
c) Environment factors; environment is such that affects everything in
this universe so I feel that that all environmental conditions go in the
favour of the company as it unpredictable.
d) Importantly that all the factors in PESTLE do not affect my jewellery
retail business.