Higher National Certificate/Diploma in Business

Assignment Brief
Student name/ ID Number Ritik Garodia.
Unit Number and Title 42 Planning for Growth
Academic Year 2019-2020
Unit Tutor Ms. Shreya Kanjariya
Assignment title Investing in the Future& Developing an Exit Plan
Issue Date 02/04/2020
Submission Date 03/08/2020
IV Name & Date Ms. Arshi Zaveri - 06/08/2020

Submission Format:
The submission is in the form of an individual report. This should be written in a concise, formal
business style using 1.5 spacing and font size 12. You are required to make use of headings,
paragraphs and subsections as appropriate and ensure that the report is justified aligned. All work
must be supported with research and referenced using the Harvard referencing system. Please
also provide a bibliography using the Harvard referencing system. The recommended word limit
is 5,000–6,500 words, although you will not be penalized for exceeding the total word limit.

Unit Learning Outcomes:

LO1 Analyze the key considerations SMEs should consider when evaluating growth
opportunities.
LO2 Assess various methods through which organizations access funding and when to use
different types of funding.
LO3 Develop a business plan(including financials) and communicate how you intend scaling up
a business.
LO4 Assess the various ways to small business owner can exit the business and the implications
of each option.
Assignment Brief and Guidance:
You are to work in small local business of your choice. This need not be complex and could be a
small business, such as local service (e.g. a new coffee shop or an online product sales business).
You should choose something that interests you personally.
Activity 1 (LO1, LO2)
You need to prepare a report of a business plan for the growth of your selected small business.

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 This should include:

 Analysis of key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.
 Evaluation of opportunities for growth applying Ansoff’s growth vector matrix.
 You may discuss the options for growth using a range of analytical frameworks to
demonstrate the understanding of competitive advantage within an organizational context
and critically evaluate specific options and pathways for growth, taking into account the
risks of each option and how they can be mitigated.

 An assessment of the potential sources of funding available to businesses and discuss

benefits and drawbacks of each source. This may include evaluation of potential sources
of funding and justification for the adoption of an appropriate source of funding of a
given organizational context and critically evaluate potential sources of funding with
justified arguments for the adoption of a particular source or combination of sources,
based on organizational needs.
 A recommendation for the business.

Activity 2 (LO3 &LO4)

After completion of Activity 1, you need design a business plan for growth that includes
financial information and strategic objectives for scaling up a business. You may develop an
appropriate and detailed business plan for growth and securing investment, setting out strategic
objectives, strategies and appropriate frameworks for achieving objective and present a coherent
and detailed business plan that demonstrates knowledge and understanding of how to formulate,
apply and achieve business objectives successfully.
You need to assess exit or session options for a small business explaining the benefits and
drawbacks of each option and coming to a recommendation. This may include evaluate exit or
succession options of a small business comparing and contrasting the options and making valid
recommendations and you may provide critical evaluation of the exit or succession options for a
small business and decide an appropriate course of action with justified recommendations to
support implementation.

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 Grading Criteria
Learning Outcome Pass Merit Distinction
LO1 Analyze the key P1 Analyse key M1 Discuss the options D1 Critically evaluate
considerations SMEs considerations for for growth using a range specific options and
should consider when evaluating growth of analytical pathways for growth,
evaluating growth opportunities and justify frameworks to taking into account the
opportunities these considerations demonstrate the risks of each option and
within an organizational understanding of how they can be
context. competitive advantage mitigated.
within an organizational
context.
P2 Evaluate the
opportunities for growth
applying Ansoff’s
growth vector matrix.
LO2 Assess the various P3Assess the potential M2 Evaluate potential D2 Critically evaluate
methods through which sources of funding sources of funding and potential sources of
organizations access available to businesses justification for the funding with justified
funding and when to use and discuss benefits and adoption of an argument for the
different types of drawbacks of each appropriate source of adoption of a particular
funding source. funding for a given source or combination
organizational context. of sources, based on
organizational needs.
LO3 Develop a business P4Design a business M3 Develop an D3 Present a coherent
plan (including plan for growth that appropriate and detailed and detailed business
financials) and includes financial business plan for growth plan that demonstrates
communicate how you information and and securing knowledge and
intend scaling up a strategic objectives for investment, setting out understanding of how to
business scaling up a business. strategic objectives, formulate, apply and
strategies and achieve business
appropriate frameworks objectives successfully.
for achieving objectives.

LO4 Assess the various P5Assess exit or M4 Evaluate exit or D4 Provide critical
ways a small business succession options for a succession options for a evaluation of the exit or
owner can exit the small business small business succession options for a
business and the explaining the benefits comparing and small business and
implications of each and drawbacks of each contrasting the options decide an appropriate
option option. and making valid course of action with
recommendations. justified
recommendations to
support implementation.
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STUDENT ASSESSMENT SUBMISSION AND DECLARATION
When submitting evidence for assessment, each student must sign a declaration confirming that the work is
their own.
Student name: Ritik Garodia. Assessor name: Ms. Shreya Kanjariya

Issue date: Submission date: Submitted on:

2nd April 2020 3rd August 2020 6th August 2020

Programme:
Pearson BTEC HNC in Business level 5 - RQF

Unit:
Unit 42: Planning for Growth

Assignment number and title:

Investing in the Future& Developing an Exit Plan

Plagiarism
Plagiarism is a particular form of cheating. Plagiarism must be avoided at all costs and students who break
the rules, however innocently, may be penalised. It is your responsibility to ensure that you understand
correct referencing practices. As a university level student, you are expected to use appropriate references
throughout and keep carefully detailed notes of all your sources of materials for material you have used in
your work, including any material downloaded from the Internet. Please consult the relevant unit lecturer or
your course tutor if you need any further advice.
Student Declaration

Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the
consequences of plagiarism. I understand that making a false declaration is a form of
malpractice.

Student signature: Ritik Garodia. Date: 30/08/2020

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 Introduction to the organization:-
Bigbasket.com is the largest online grocery supermarket in India. It was launched in 2011,
quite about the time when e-commerce was in its initial stage in the country. Bigbasket.com
was founded by Hari Menon, VS Sudhakar, V S Ramesh, Vipul Parekh and Abhinay
Choudhari. Bigbasket.com is headquartered in Bengaluru and delivers to various cities in
India such as Hyderabad, Mumbai, Pune, Chennai, Delhi, Noida, Mysore, Coimbatore,
Vijayawada-Guntur, Kolkata, Ahmedabad-Gandhinagar, Lucknow-Kanpur, Gurgaon,
Vadodara, Visakhapatnam, Surat, Nagpur, Patna, Indore and Chandigarh Tricity city limits.
Bigbasket.com was launched at a time when India's busy workforce in cities was finding it
difficult to allocate time to buy groceries and home essentials. Bigbasket.com gave them the
flexibility to place their order anytime and get the things delivered at their preferred time.
Bigbasket.com offers groceries and food supplies in various categories such as fruits &
vegetables, food grains, oil, masalas, bakery items, beverages, branded foods, personal care
products, household supplies, eggs, meat, fish, etc. Bigbasket.com currently offers more than
18,000 products across various categories and features more than 1000 brands in its
catalogue. Bigbasket.com comes with the promise of lowest rates and prompt delivery
services.

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The author has analyse the key considerations BigBasket.com should consider when
evaluating growth opportunities:-
PESTLE Analysis of BigBasket.com:-
PESTLE Analysis of Big Basket’s investigations the brand on its business strategies. Big
Basket PESTLE Analysis analyses the different external variables like political, economic,
social, technological (PEST) factors which impacts its business alongside legal and
environmental factors. The PESTLE Analysis features the diverse extraneous situations
which rock the business of the brand. PESTLE examination is a structure which is basic for
organizations, for example, Big Basket.com, as it assists with understanding business sector
elements and improve its business constantly. PESTLE examination is additionally alluded
to as PESTEL investigation.
Political Factors:
BigBasket has recently launched its operations in Kochi. The company expects to grow at a
constant rate with an increase in the growth potential of the overall online grocery business.
After the current launch BigBasket would establish its presence in 25+ cities in India. Due to
favourable political conditions for the business model they have expanded into a variety of
new product lines such as milk supply, unmanned vending machines and beauty products.
Recently, in April 2019, the BigBasket company had received huge amounts of funding from
two different investors which boosted the company’s ability to expand into new areas and
their ability to achieve smooth functioning of operations. The Mirae Asset Naver Asia
Growth Fund and Alibaba group invested around $150 million into the company which
helped the company to enter the unicorn club of India.
Economic Factors:
BigBasket’s wholesale market has seen a significant improvement in revenues. Their
revenues grew by 35% up to an amount of INR 1606 crore. The company also experienced a
reduction in losses of 53% to Rs.310 crore. The company also raised an amount of $300
million from Chinese group Alibaba. The company also has a subsidiary known as Delyver
Retail Network which was eroded in 2018. The company has been acquired by BigBasket in
2015 but due to non-profitability from the current operations of the company it was eroded.
The company’s future growth returns are very promising where they expect a return of 6300
crore in 2020, a valuable increase from 3200 crore in 2019. One of the greatest advantages
that BigBasket enjoys is the growth potential of the online grocery which is expected to grow
to a sizeable number of $2.5 billion by 2020.

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Social Factors:
Since BigBasket is an online grocery site, the user interface of the company should be user-
friendly in order to keep the customer interaction with the site as smooth as possible. For
customers who are looking to save their money, BigBasket targets them by luring them with
discounts and offerings at regular intervals and also providing them with products at very
competitive prices. The payment portals on the website should be easily accessible as that is
the point when a potential customer turns into a buyer. A lot of consumers are apprehensive
of the security concerns regarding the payment of bills through an online platform. The
preferences of the users in India have switched to mobile devices. The number of
smartphone users and 4G users have improved at an increasing rate which has provided a
boost to e-commerce websites.
Technological Factors:
The funding received by the BigBasket company from its recent investors has provided the
company with large amount of available funds to invest in different kinds of technology. Of
the $150 million received in funding the company has decided to invest $100 million to
improve the supply chain of their firm. The proposal includes installation of vending
machines and setup of small distribution centres across different cities where the operations
of the company currently are. They have also decided to invest in reseller channels. The
main goal behind the investments to BigBasket is to provide its customers with a two-hour
delivery in the top ten cities in which they operate. Since they deal with perishable products
it would ensure that the products are delivered in a timely manner and quality along with
freshness of the products is maintained.
Legal Factors:
In 2018, BigBasket faced a major legal trouble when Mumbai based tea company Girnar
Food and Beverages sued BigBasket of infringement of company’s “Royal” trademark. They
have alleged that the company was selling a variety of products including tea through their
website and they were selling them under the umbrella of Girnar’s Royal trademark.
BigBasket does sell a royal tea which is manufactured by a firm known as Mohini Tea and is
a white label product. The nature of the e-commerce business allows for such concerns
where the companies face such legal allegations over the issues of trademark. These legal
affairs act as a hindrance for the smooth functioning of the enterprise and can sometimes act
as a very costly affair. Apart from this the e-commerce players are often accused of selling
counterfeit or fake products across their website.

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Environmental Factors:
As part of its CSR activity Big Basket has joined a partnership with the Robin Hood Army
which is a not for profit organization. They have launched a joint campaign known as
Mission Million 2018, to eradicate the striking problem of hunger. The initiative includes the
inclusion of 16,000+ “Robins” across the India and those Robins would be assigned the task
of serving the food. They have conjointly decided to create a difference in the lives of 1
million people. For this purpose, a Hunger Independence Kit which includes 1 kg of rice and
500 gm of Dal which was available on their website from 7th August till 16th August 2018.
Although the Robin Hood Army has been working to eliminate the problem of hunger from
the past four years, Big Basket has joined the initiative and they would be contributing
additional 10% for the donation purposes. Before this the company was part of a Go Green
initiative in which a sapling was delivered with every order placed by the customer.

To conclude, the above Big Basket PESTLE Analysis highlights the various elements which
impact its business performance. This understanding helps to evaluate the criticality of
external business factors for any brand.

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Porter’s Five Forces Model/ Analysis based upon comparing with the direct competitor
of Big Basket.com i.e. Grofers.com:-
Bargaining power of buyers: (HIGH)

 Strong bargaining power of buyers puts downward pressure on pricing and induces
BigBasket vs Grofers Who Will Win the Online Grocery War to offer the high quality
product at discounted pricing.

 Strong bargaining power makes it easier for BigBasket vs Grofers Who Will Win the
Online Grocery War ’ customers to switch to other alternatives.

 There are three major reasons for strong buyer bargaining power:
 High substitute availability.
 A wide number of alternatives.
 Low economic and psychological switching costs.

Bargaining power of suppliers: (LOW)

 Weak bargaining power of supplier makes it comparatively less important strategic

issue for BigBasket vs Grofers Who Will Win the Online Grocery War as suppliers cannot
dictate the prices and have to accept the BigBasket vs Grofers Who Will Win the Online
Grocery War ’ terms and conditions.

 Three factors result in moderate to weak supplier power:

 A large number of suppliers
 High overall supply
 Suppliers’ weak control over their distribution network.

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 Competitive rivalry: (HIGH)

 Currently, the rivalry among competitors is high, which makes it difficult for
BigBasket vs Grofers Who Will Win the Online Grocery War to achieve its market
growth objectives.

 The product differentiation is low and setting the differentiation basis has become
increasingly challenging.

 Intense competitive rivalry is a major reason for BigBasket vs Grofers Who Will Win
the Online Grocery War ’ declining profitability.

Threat of substitutes: (HIGH)

 The technological advancement has raised the threat of substitutes for BigBasket vs
Grofers Who Will Win the Online Grocery War .

 Changing trends towards healthy products also raises the consequences of this threat
for BigBasket vs Grofers Who Will Win the Online Grocery War .

 Overall, the threat of substitutes is strong for the following reasons:

 High performance/cost ratio of substitute products.
 High availability of substitute products.
 Low switching cost.

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Threat of new entrant: (LOW)

 BigBasket vs Grofers Who Will Win the Online Grocery War faces moderate new
entrant threat, which means new entrants do not have a significant influence on BigBasket
vs Grofers Who Will Win the Online Grocery War ’ market share.

 High level marketing know-how with huge expenditure on marketing activities is

required to enter the industry.

 BigBasket vs Grofers Who Will Win the Online Grocery War faces a moderate threat
of new entrants for the following reasons:
 High brand development cost weakens the threat.
 Low switching cost increases the threat.
 High capital cost weakens the threat of a new entrant.

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Ansoff Matrix of BigBasket.com:-

Figure 1.1: Ansoff Matrix Grid.

Figure 1.2: Ansoff Matrix of Big Basket.com.

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Market Penetration: Existing Products in Existing Markets.
Market Penetration is connected to selling a more prominent measure of the association's
existing products to existing markets. To enter and build up the client base in the existing
market, an association may cut prices, improve its dispersion game plan, put more in
marketing and increment existing production limits. Brands, for example, Big basket is
spending a lot of money and resources in its marketing campaign in order to infiltrate their
markets. Additionally, they strive to increase the utilization of circulation channels by
making engaging arrangements with a tremendous variety of merchants for example, other
online sellers, and offline sellers.
Product Development: New Products in Existing Markets.
Product Development is connected to making and offering new products to existing markets.
Organizations could for example make a few changes in the existing products to give
expanded an incentive to the clients for their buy or make and dispatch new products close
by an association's existing product promoting.
Market Development: Existing Products in New Markets.
Market Development is connected to selling a more noteworthy measure of the association's
existing products to new markets. This methodology is connected to showing up at new
client sections or developing all around by concentrating on new geographic regions. In case
an association's product is doing particularly well in one market, why put forth an attempt
not to enter another market with similar products.
Expansion: New Products in New Markets Expansion procedures are connected to entering
new markets with new products that are either related or absolutely insignificant to an
association's existing commitment. Broadening along these lines can be ordered into three
kinds of broadening techniques. Concentric/even enhancement (or related enhancement) is
connected to entering another market with another product that is to some degree related to
an association's existing product promoting.
Total enhancement (or disengaged broadening) on the other hand is connected to entering
another market with another product that is absolutely arbitrary to an association's existing
commitment. Big Basket can open physical stores in various other countries or in more Tier
2 and Tier 3 cities specially for communities for people who like to grab their groceries and
other essential products on the go and don’t want to wait for the delivery time and want to
physically see and inspect the product to make a purchase as well as it will help to create a
strong brand identity in the offline/ online market and to achieve greater market share to
make more dominance in such a competitive market and bring loyalty in greater percentage
from their existing customers and make the reach of the brand even deeper.

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The author has assessed the various methods through which Big Basket access funding
and when to use different types of funding:-
Bangalore-based new e- Commerce FMCG product selling brand Future Group, the parent
company of Big Basket.com, that owns Bangalore: Supermarket Grocery, which runs and
operates the online grocery brand BigBasket, has received $150 million in a financing round
led by South Korea’s Mirae Asset- Naver Asia Growth Fund, UK’s CDC Group, and
existing investor Alibaba, said the company on Monday.
This round has boosted the company’s valuation to over $1 billion, pushing it to the coveted
‘unicorn’ club.
BigBasket has received funding worth around $526 million. The investors include Alibaba
Group, Abraaj Group, Ascent Capital, Bessemer Venture Partners, Brand Capital, Helion
Venture Partners, ICICI Venture, IFC Venture Capital Group, LionRock Capital, Paytm
Mall, Sands Capital Management, Sands Capital Ventures, Trifecta Capital and Zodius
Capital. There are talks about additional funding of around $200 million, post which, the
company would be valued at around $900 million.
Acquisitions:
BigBasket acquired Delyver in June 2015 for an undisclosed amount. Delyver was also an
online grocery store and its specialty was using local stores to deliver groceries to people.
Now, all business assets of Delyver have been merged with BigBasket.
Meaning of series E funding:
Any association has different rounds of financing. It begins from seed to getting V.C.
involved and it begins at series an and ends till series f, etc. At each round either the investor
sells his/her stake at an expense or he will either put more for greater value. At each round
the founders need to weaken their value to capital. So close to the completion of series e the
investor stake will be at either 8–9%.
Advantages:

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1) It very well might be a quick method to raise money with no forthright fees
2) Pitching a venture or business through the online stage can be a critical type of marketing
and result in media consideration
3) Sharing your idea, you can regularly get information and master direction on the best
method to improve it
4) It is a decent method to test the open's response to your product/thought - if people are
speedy to invest it is a decent sign that your idea could work outstandingly in the market
5) Investors can keep tabs on your development - this may help you with advancing your
brand through their networks
6) Ideas that may not speak to conventional investors can regularly get financed all the more
easily
7) Your investors can regularly transform into your most devoted customers through the
financing process
8) It's an elective record choice in the event that you have struggled to get bank loans or
standard sponsoring
Disadvantages:
1) It won't necessarily be an easier process to experience contrasted with the more
conventional methods of raising fund – not all projects that apply to crowdfunding stages get
onto them
2) At the moment that you are on your chosen stage, you have to do a huge amount of work
in working up interest before the undertaking launches – noteworthy resources (money and
also time) may be required
3) In the event that you don't arrive at your financing objective, any money that has been
promised will ordinarily be come back to your investors and you will get nothing
4) Failed projects risk mischief to the notoriety of your business and people who have sworn
money to you
5) In the event that you haven't ensured your business thought with a patent or copyright,
someone may see it on a crowdfunding site and steal your idea
6) Getting the rewards or returns wrong can mean leaving behind a ton of the business to
investors
2. Family and Friends: investment:
You can request your friends, family or close associates to help finance your business. This
sort of funding has more to do with the relationship itself, as opposed to the assessment of a

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feasible business plan. The purpose of such a funding is to help kick off a business to a point
where it can seek and get different types of funding.
Pros:
1)Faster funding process and flexible payment methods.
Cons:
1)Family and friends give the funding without assessing the reasonability of a business plan
itself.
2)Brings nothing to the table aside from the underlying capital investment.
Example - A SBA Community passage suggests another strategy to formalize the
relationship: organizing the credit through a shared (P2P) advancing association that will go
about as a go-between, gathering the payments from you for an expense.
3. Angel Investors:
Angel investors are rich people who will give funding in return to a share of value in the
business. Some investors work in gatherings and screen deals together before giving funds,
while most work in solitude.
Pros:
1)Angel investors can offer noteworthy counsel and direction since they have involvement
with the business you're in.
2)Flexible business terms.
Cons:
1)You may be compelled to surrender control of your business to some degree.
Example-Shark Tank is an unscripted TV dramatization, and really, the objective is
amusement. However, the new businesses are genuine and the Sharks are bona fide angel
investing geniuses. Along these lines, while the Sharks don't in every case part with their
angel investing secrets (as we do) there is still a ton to pick up from them
4)Bank Loans: Bank loans are an acclaimed source of funding for some new businesses.
Before applying for a bank credit, ensure that you are accomplished about the different
choices accessible, and the interest rates that accompany every choice.
Pros:
1)There are distinctive funding choices relying upon your needs.
2)The funding process is generally quick in the event that you qualify.
3)You don't need to surrender control of your business.
Cons:
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1)Requires a great deal of documentation, which can be tiring and tedious.
2)You need to teach yourself about the best alternative accessible for you; otherwise, you
may end up picking an arrangement that will at long last hurt your business.
3)The money must be taken care of whether the business succeeds or not, shelling which
may incite loss of your assets, accepting any.

5)Small-medium enterprises Loans:

This involves funding from an organization given to helping small businesses to succeed.
SME's assistance small businesses get capital and ensures that a specific level of agreements
are granted to the small businesses.
Pros:
1)Helps improve the relationship among lenders and borrowers.
2)Increased chances of obtaining a bank advance if the SBA advance is appropriately
overseen.
Cons:
1)Strict capacity guidelines.
2)To help you with picking the perfect funding source for your business, make a highlight
survey your money related needs, capabilities, and the criticalness of financing. Some
funding sources need certain requirements to be finished before you qualify. It's along these
lines imperative to ensure you are knowledgeable on the different choices accessible to you,
and their respective advantages and disadvantages.

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The author has developed a business plan (including financials) and communicate how
he intends scaling up the business of Big Basket.com:-
Corporate strategy of Big Basket.com:-

Vision statement of BigBasket:

Bigbasket.com allows you to walk away from the drudgery of grocery shopping and
welcome an easy relaxed way of browsing and shopping for groceries. Discover new
products and shop for all your food and grocery needs from the comfort of your home or
office.

Mission statement of BigBasket:

The mission statement of BigBasket com is motivational in that it works towards inspiring
the employees and the workforce towards giving their optimal best performance towards the
goal achievement of BigBasket com.

Stakeholder matrix/ Analysis of Big Basket.com:-

High Satisfy Manage

power
Shareholders Media Houses
Investors NGO’s
Government authorities Green supermarkets

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 Green Consumers

Low Monitor Inform

power
Non green consumer Employees
Local buyers
Communities
Distributors
Suppliers
Low interest High interest

Pricing strategy:-
1) Cost-plus pricing strategy:
Cost-plus pricing, additionally called markup pricing, is the preparation by an association of
deciding the cost of the product to the association and then including a rate head of that price
to decide the selling price to the customer.
Cost-plus pricing is a simple cost-based pricing strategy at setting the costs of merchandise
and services. With cost-plus pricing you initially include the immediate material cost, the
immediate work cost, and overhead to figure out what it costs the association to offer the
product or service. A markup rate is added to the absolute cost to decide the selling price.
This markup rate is profit. In this way, you have to begin with a strong and exact
understanding of all the business' costs and where those costs are originating from.
In specific cases, the markup rate is settled upon by both purchaser and seller. This rate can
likewise serve as a negotiating apparatus during the sale.
Advantages of Cost Plus Pricing:
Coming up next are advantages to utilizing the cost plus pricing strategy:
It is very easy for Big Basket.com to infer a product price utilizing this strategy, however
BigBasket ought to characterize the overhead allotment technique in order to be consistent in
ascertaining the prices of different products.
Assured agreement profits. Big Basket temporary workers will acknowledge this strategy for
a legally restricting concurrence with a customer, since it is assured of having its costs
reimbursed and of making a profit. There is no risk of misfortune on such an agreement.
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Justifiable. In cases where the supplier must persuade its customers of the requirement at a
cost increase, by then Big Basket can highlight an increase in its costs as the reason for the
increase.
Disadvantages of Cost Plus Pricing:
Ignoring the competition. BigBasket may set a product price based on the cost plus equation
and then be surprised when it finds that competitors are charging substantially different
prices. This has an immense effect on the market share and profits that an association can
hope to achieve. At that point BigBasket either ends up pricing excessively low and leaving
behind potential profits, or pricing excessively high and achieving minor revenues.

Agreement cost overruns. From the perspective of Licious, a supplier under a cost plus
pricing game arrangement, the supplier has no inspiring force to shorten its expenditures - in
reality, it will most likely incorporate as numerous costs as possible in the agreement with
the goal that it tends to be reimbursed. In this way, an authoritative game arrangement should
incorporate cost-decrease incentives for the supplier.
Ignores replacement costs. The technique is based on verifiable costs, which may have
subsequently changed. The most brief replacement cost is more representative of the costs
caused by the entity.
2) Demand - Based Pricing:-
Demand-based pricing, otherwise called customer-based pricing, is any pricing technique
that uses consumer demand – based on apparent value – as the central component. These
include: price skimming, price separation, mental pricing, bunch pricing, invasion pricing,
and value-based pricing.
Advantage:
Demand-based pricing may provoke potential high profit.
Disadvantage:
Management must have the alternative to estimate demand at different price levels, which
conceivably difficult to do accurately. Segment must be sufficiently separate with the goal
that those that purchase at lower prices can't sell to those who purchase at higher prices.
Plan of action

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It should concentrate on extending its products portfolio especially in the water segment and
the fresh dairy products.
It can likewise do product development by creating pleasure focused products for kids like
chocolate flavored yogurt which will likewise be healthy. It can likewise go for vegetarian
products for Asian countries where the Muslim just as Hindu countries embrace fasting
culture.
BigBasket ought to likewise embrace Differentiation strategy by creating a closer
relationship with its customers by advancing products through celebrating World Vegetable
Day or Healthiest Baby Competition to promote its infant products. In its developed markets
it can delight its customers by unleashing the new power of its famous brands like dietary
infant products and nourishing products. It can likewise implement end-to end cost
management for picking up profits and reserve funds through supply chain management and
leveraging overheads.

SWOT Analysis of Big Basket.com:-

Strengths in the SWOT Analysis of Big Basket :

1. Product Range: Big Basket offers a huge range of products which stretches to about
18000 products.

2. Exotic Range: It also offers exotic fruits, vegetables and imported groceries which are
not easily available in nearby retail outlets. This gives them an edge in catering to
customers who like buying such stuff.

3. Discounts: Big Basket offers huge discounts on various products. They also have the
product bundling technique to maximise sales and offering maximum discounts to the
customers. This makes them a lucrative option for customers to buy.

4. Convenience: Big Basket offers an escape from the hassle of standing in the queues of
malls or going all the way to the retail stores. They give the products right at the door step
and offer multiple payment options. The on-time delivery guarantee makes them a
lucrative option, Customers, especially in big cities where life is very fast and it is
difficult to reach the customers, can shop at any time of the day.
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5. Target Group: They have selected their target customers very carefully and have
established a footing in the metropolitan and some tier-I cities. They operate in
Bangalore, Hyderabad, Mumbai, Pune, Chennai, Delhi, Mysore, Vadodara, Patna, Indore,
Vijaywada, etc. They are currently operational in about 25 cities.

6. Low Fixed Cost business model: Most of the items that Big Basket offers are perishable
hence they depend on the retail stores they are coordinating with for the products. This
means they have no inventory cost and makes their business model more profitable.

Weaknesses in the SWOT Analysis of Big Basket :

1. Delivery Time: Big Basket delivers the groceries the next day. Many retailers have
started the facility of home delivery to nearby societies and customers in just few minutes
to hours. So customers prefer this instead of waiting for 24 hours.

2. High Variable Cost: Cost of running many delivery guys, delivery trucks, storage for
perishable items, wastage during transportation makes the business run at a high variable
cost. They have to bleed more money and will take longer to break even.

3. Minimum order quantity/price compulsion: Big Basket does not offer home-delivery

below a certain set order price limit. This means that customers would be forced to add a
product or two just to avail the service. This makes them lose a customers.

4. Be at home: Customers have to be at home when Big Basket is about to deliver. This

means the customers have to plan according to the delivery time. If by some means the
order gets delayed customer gets angry and unhappy by the service. On top of this they
have to pay a little add on price for the home delivery.

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5. Order Cancellations: They depend on stores that they have tied-up with to provide them
the items. If they do not have the items available they won’t be able to deliver them. This
sometimes tend in cancellation of orders. Out of stock issues tend to make the customers
unhappy and repetitive of such issues makes the customers reluctant to reuse the service.

Opportunities in the SWOT Analysis of Big Basket :

1. Market: Indian retail market is valued at more than approx. $550 million and grocery
alone covers 60% of this share. Hence it’s a huge market with many players to
accommodate and customers to cater.

2. Grocery Growth: India is the 6th largest grocery market in the world. E- commerce

grocery market is growing with a year on year growth rate of 19%.

3. Expansion: Many cities are still not covered by these start-ups and Big Basket can target
them and gain the first movers advantage. They can expand to tier-2 cities and increase
their market.

4. Cross selling and Value Packaging – Cross selling is a major advantage for Big basket as
it can sell multiple products by product bundling.

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Threats in the SWOT Analysis of Big Basket :

1. Competition: It has small presence in terms of cities covered hence, it is getting a huge
competition from other start-ups like Grofers, PepperTap, Nature’s Basket, Zop Now,
Aaram Shop, Mera Grocer, etc.

2. Bigger Players: Bigger players in terms of financial backing and presence are also
entering this lucrative industry. Players Amazon, Flipkart and Google have also entered
this industry. This may prove fatal for smaller players like Big Basket to compete with
them.

3. Smaller Players: Many other localized shops have picked up on this trend and have
started home delivery service to nearby customers thereby killing groups of target
customers across regions and cities.

4. Customer retention: It is very difficult to retain customers. They would tend to move
with the service provider that offers the most discounts.

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The author has assessed the various ways a small business owner can exit the business
and the implications of each option:-
Succession Planning:-
Definition: Succession planning is a process by which people are scanned to pass on the
leadership work inside an association. The process ensures that business continues to work
proficiently without the presence of people who were holding key situations as they should
have resigned, and so on.
STEP 1. Identify Key Areas and Positions:
Key areas and positions are those that are basic to the association's operational activities and
strategic objectives. Identify which positions, whenever left empty, would make it very hard
to achieve current and future business objectives Identify which positions, whenever left
empty, would be detrimental to the health, safety, or security of the Indian public
STEP 2. Identify Capabilities for Key Areas and Positions:
To establish selection criteria, center employee development efforts, and set performance
expectations, you need to determine the capabilities required for the key areas and positions
identified in Step 1. Identify the relevant knowledge, aptitudes (including language),
abilities, and competencies needed to achieve business objectives Use the Key Leadership
Competencies profile inform employees about key areas and positions and required
capabilities
STEP 3. Identify Interested Employees and Assess Them Against Capabilities:

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Determine who is interested in and can possibly fill key areas and positions. Examine career
plans and interests with employees Identify the key areas and places that are vulnerable and
the candidates who are ready to advance or whose abilities and competencies could be
developed within the required time frame Ensure that a sufficient number of bilingual
candidates and members of designated bunches are in feeder bunches for key areas and
positions.
STEP 4. Develop and Implement Succession and Knowledge Transfer Plans:
Incorporate strategies for learning, training, development, and the transfer of corporate
knowledge into your succession planning and management.
Define the learning, training, and development experiences that your association requires for
leadership positions and other key areas and positions
Link employees' learning plans to the knowledge, aptitudes (including language), and
abilities required for current and future roles
Talk about with employees how they can pass on their corporate knowledge

STEP 5. Evaluate Effectiveness:

Evaluate and screen your succession planning and management efforts to ensure the
following:
Succession plans for all key areas and positions are developed;
Key positions are filled rapidly;
New employees in key positions perform effectively; and
Members of designated bunches are adequately represented in feeder bunches for key areas
and positions
Roles and responsibilities at BigBasket.com
Executives
 Ensure that succession planning is integrated with HR planning and business planning
 Communicate and champion the importance of effective succession planning and
management
 Participate in the succession planning process and talent review meetings for executive
level positions
Managers
 Participate in identifying key areas and positions

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  Identify capabilities (knowledge, aptitudes and abilities) required for key positions
 Identify basic or emerging holes and communicate these to employees with the goal
that they can better tailor their learning plans
 Consult with stakeholders, including representatives of bargaining agents and
employees
HR professionals
 Develop HR instruments for managers and employees
 Provide timely advice and guidance to managers, e.g. by helping to identify vulnerable
positions (e.g. for which incumbents will be retiring or leaving for other reasons
within the next several years) or key areas and positions
 Engage in and ensure ongoing conversations with bargaining agents

Advantages
1)Business is set up for the brisk loss of a key worker.
2)Employees selected are ceaselessly prepared and created.
3)A progressing supply of very much prepared, comprehensively experienced, all around
spurred people who are prepared and ready to step into key situations as required.
4)Characterized profession ways, which will enable the association to select and hold better
people.
5)Maintenance of information on business practices.
6)Hold a basically critical worker who may otherwise leave if not officially perceived as the
successor.
Disadvantages
1)Designating an inappropriate person can incite an assortment of problems that result in less
fortunate association execution and turnover.
2)Selecting someone excessively quick to delegate someone just to have a superior candidate
appear later on.

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3)An inadequately directed succession planning process will incite helpless decisions,
disharmony and finally helpless association execution also.

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