to by Unknown Author is licensed under CC BY

GROUP PROJECT
PRACTICES AND PRINCIPLES
OF MANAGEMNET
POLC APPROACH OF
RATION STORE

SUBMITTED TO- SUBMITTED BY-

Somdutta Banerjee Anand Reddy
Assistant Professor
DOMS NALSAR
TABLE OF CONTENTS
1.)
Introduction
2.) Store Overview…………………………….3
3.) Questions…………………………………..4
4.)Planning..…………………….…………….4
5.)Organizing…………………………………6
7.) Leading……………………………………8
8.Controlling………….……………………….10
9.Conclusion

2
 REPORT

ABSTRACT
The assignment deals with POLC analysis of a Kirana store. This shows how the subject applicability into
the real world is the major reason for success. Kirana store plays a crucial role in retail sector and its
working includes planning, organizing, leading and controlling.

INTRODUCTION
Kirana store are small stores setup at the corner of roads specially at convenient and accessible places where
a large number of people can be easily targeted . It is a general store which provides goods of necessity to
meet every day needs.
In India the population is growing and so are our needs, therefore kirana store is a very good idea with
handsome profit and small investment. The report contains complete analysis of the store looks , type of
products, prominent visible brands, shopkeeper behavior and much more.
This project mainly deals with POLC analysis of a local kirana store which include planning for smooth
functioning of store, resource organization, manpower usage, adaptation to technology and control
mechanism.

STORE OVERVIEW
We prepared extensive report on the outlet named as-
(general store)
and spent around 2 hours in the outlet to observe the type of clients, their choice and preferences, dealing
strategy, shopkeeper influencing power and interviewed the owner with few questions as mentioned in the
questionnaire. This was done to broaden the study perspective and for better understanding and also helped
to comprehend the movement of goods and functioning of market in a better way.

3
 TYPE PF BRANDS PROMINENTLY EXISTING
LOOK OF VISIBLE PROMOTIONS PROBLEMS
STORE PRODUCTS STOCKED BRANDS

Questionnaire

1.) How do you manage the supply of goods as you cannot solely rely on only one wholesaler?
2.) If you face competition from another nearby retail store, how do you intend to retain your
customers?
3.) According to you, what are the strengths , weaknesses, opportunities and threats for your kirana
shop?
4.) Are you the only one in your store who takes decisions, have you allowed your employees to make
decisions at some levels?
5.) What do you think about recruitment of employees as there must be more need of workers during
festival time?
6.) How have you organized all the goods and activities in your store?
7.) We know that you conduct a B-C business, but have you ever taken part in a B-B deal. If yes then
how and when?
8.) How do you create a positive work environment in your store ?
9.) What relationship do you have your employees? Is it totally professional?
10.) What action do take when the employees misbehave with the customers.?
11.) Do you intend to modernize your current business in order to compete with the big players in the
same industry?
12.) How do you deal with the goods that are near expiration?

4
1. PLANNING

Planning refers to the process of setting objectives and emerging suitable course of action to achieve these
objectives. It also clearly lays out what is to be done, who will do it and when will it be done. Planning is
one of the most important elements of management as it improves efficiency and encourages people to work
at best of their abilities for extended periods.
As a well thought out and planned organization seems to have a good position in market, so we started the
shopkeeper interviewing with some questions related to nature and kind of planning he incorporates in his
business for smooth functioning of day-to-day activities.

● Through the interview process, we came to know that the kirana store owner evaluates inventory,
manage supply chain, meet the demands of customers and implement marketing strategy as they
cannot survive without a proper planning system. The planning system is mainly the outline of W-
questions-
a) What to sell?
b) Where to sell?
c) When to sell?
d) Who to sell?
While this process is time consuming but it is necessitous for successful execution.

● Kirana stores also have some short- and long-term goals that can be accomplished only through
planning. They set up benchmarks regarding revenue, sales. The brands stocked vary from local
brands to high-end brands available in the market This wide range is offered so that a large number
of customers can be attracted by this broad choice spectrum and profit margins are also high.

● One of the special features about them is well planned manner to attend to any customer. They are
soft spoken with smiling faces. The son looks after online banking, marketing and the father handles
day to day running of the shop. They are well versed in regional languages and change it according
to the customer which gives them the upper hand on sales.

● Being a retail shop they keep contact with a large number of wholesalers. This is done to make sure
there is no shortage and all the demands of the customer are met. Whenever there is some tussle with
one wholesaler, they can contact others and meet the needs of the hour.

5
●
STRENGTHS WEAKNESS
● Bargain ● Private Labels
● Easy Access ● Pricing
● Quick Delivery
● Economy of scale

OPPORTUNITY
● Expand as an organized supermarket
● Opening more stores
THREATS
● Supermarkets and Hypermarkets
with in 2-5Kms
● Foreign players like Walmart whose
operations are too strong.

6
2. ORGANIZING

Organizing refers to the means of identifying and grouping the work to be performed, defining and
delegating responsibility and authority and developing relationships for the purpose of making people to
work most effectively together in accomplishing organizational goals.
In a Kirana shop, organising plays an important role, as all the work cannot be performed by the owner
individually. He divides the work among people and provide them with sufficient authority to delegate their
responsibility. The whole purpose behind this rationale is to achieve the goals efficiently.

● The kirana owner, told us about the process of smooth functioning of his shop. He has divided
different segments of work among his employees along with holding them responsible for their
decisions. This is departmentalization. Along with this the division of work has been divided into
two forms functional departmentalization and customer departmentalization. One of the
employees is made to look after production department, which mainly deals with getting all the
goods available for selling, the second is marketing department which is looked after by his son who
works as employee and the finance department is handled by himself . On the other hand, he also
promotes customer decentralization, under which workers have to organize separate units for
particular kind of customers. Department of domestic customers is handled by him whereas his son
managed the department of wholesaler customers.

PRODUCTION
DEPARRTMENTALIZATION

FUNCTIONAL
DEPARTMENTALIZATION

CUSTOMER
DEPARTMENTALIZATION

DEPARTMENTALIZATION
DOMESTIC CUSTOMER

CUSTOMER DEPARTMENTALIZATION

WHOLESALER

● We asked him about how he recruit employees in the ration shop. He mentioned that there is no such
recurring recruitment as the employee turnover rate is very low. The employees have been working
in ration shop since long and due to good incentives and unbreakable trust they do not leave the
shop. Sometimes he needs more worker at the time of festivals, then he train the new employees

7
 regarding how to pack orders, how to unload material and much more. Training helps in developing
skills and experience of employees to improve their job performance.

Training- It helps in developing skills and experience of employees to improve their

job performance

● They conduct B-c to see business with every customer and evolve this kind of business from their
forefathers but as the world is changing they also wanted to make some changes in their business
Strategies and business methods. Earlier they used to make business by buying our goods at
wholesaler but now the things are changed we are making a direct deal with the manufacturers to sell
their goods at a reasonable deal.

● They also follow the principles of Henri Fayol which is ORDER. He was not aware of this term but
as he told about the process, we interlinked it with principles given by Henri Fayol. They have
arranged all the food stuffs which are ready to eat at one corner, food grains on one block and other
things at some other shelf. As well as every employee has been assigned a fixed job which defines
order as everyone in their right job.

ORDER- Everything in its right place and right place for everything along with
everyone in their right place.

● The highest profit margins in kirana store come from ration products. They sell basic ration products.
The highest profit margins in kirana store come from these products. The profits in this business
depends on the minutest details to increase the profit margins, like availing the cheapest price for
your goods and basic necessities like oils, shampoos, corals, millets, wheat, etc. The average profit
margins of the kirana store range from 5-25% and have a narrow margin. Kirana stores also include
products like beverage and cosmetics, which have low profits margins but contribute to profits.

8
3. LEADING
It refers to the process of influencing others in a way that they strive willingly and exuberantly to achieve
the organizational goals and targets.
A leader is someone who has the proficiency to maintain promising interpersonal relationships with his
employees, subordinates or followers. Leaders and their leadership skills plays a major role in the growth of
any organisation.

Retail leader must balance the two key elements of management

1) task direction
2) people management.

Authoritative and task-oriented kirana store owner get the work done by his employees effectively and
efficiently, As they possess the skill to rapidly react and carry out decisions associated to customer situations
and functional dilemmas, this is especially the key element in success of a kirana store.

● Finding balance -When we interviewed the kirana owner we came to know that he tries to build a
good relationship will all the employees and believes in democratic style of leadership. He
intentionally spends time in interacting with employees and developing bonding with them )[ Higher
level needs McClelland’s Learned Needs Theory ((belongingness, relatedness, and affiliation)]
. he usually balance employee relationship along with the task direction at retail store consists of a
small number of employees, a relationship-oriented, participative manager may obtain better results
in creating a positive work environment. Employees eventually work effectively and efficiently if
they sense that the leader not only cares about them, but also communicates and maintains
expectations.

● Governance- Store owners sometimes have to take tough and disheartening decisions, which is
undesirable but is a necessary part of the job. They have to deal with difficult customers and
misbehaving employees. The kirana owner mentioned that sometimes unfavourable situation occur
and arguments are bound to happen. He uses his leadership skills and tries to get everyone onboard,
he tries to communicate effectively and also listens to the employee's concerns. This sometimes lead
to termination in worst case scenarios as this affects the customer loyalty.

9
● Fearless environment- Confidence and trust can only prevail where there is presence of
transparency the kirana store owner has created such an environment that everyone feels comfortable
and secure as well as disclose their mistakes and intend to improve. This has created confidence
commitment and enthusiasm among employees and they try to comply to all the work ethics

● Communication -The store owner effectively communicates with all the employees and listen to all
their concerns. He also puts effort to give out clear instructions to the team throughout the day and
this leads to smooth functioning of the work. He Is also open for the advice from the employees and
try to balance the leadership skills. The way owner communicates with the employees tends to affect
their communication style with the customers.
COMMUNICATION

FORMAL COMMUNICATION- BETWEEN OWNER AND EMPLOYEES

INFORMAL COMMUNICATION- GOSSIPS AMONG EMPLOYEES

● Motivation-Motivation plays a major role in increasing the efficiency of the employees. The owner
tries to keep the employees motivated through financial as well as non-financial incentives which
includes praising the employee, giving free food grains and other necessities such as medical
support. Even during the covid times the employees were not fired, but we’re provided with
reasonable salaries and safety equipment (masks and sanitizers)[ Lower level needs McClelland’s
Learned Needs Theory]

10
 DIRECTION- where to
put effort

INITIATING- how much PERSISTENCE- how

effort to put in long to put effort for
EFFORT

11
4. CONTROLLING
Controlling is a regulatory process of establishing standards to achieve organizational goals,  
comparing actual performance against the standards, and taking corrective action when  
Necessary.  
And this Controlling is a follow-up function for retail management. This is when the actual performance is
compared with planned performance to spot and evaluate deviations or corrections. Then, the retail industry
covers numerous market segments and differing business needs.  
  
Control mechanisms in place to ensure effective & efficient usage of available resources for Smooth
conducting of day-to-day business.  

1. begins with the establishment of clear 4. is a dynamic, cybernetic process  

standards of performance

5. consists of three basic methods: feedback control,

2. involves a comparison of performance to concurrent control, and  
those standards   feedforward control.  

6. control is not always worthwhile or possible

3. takes corrective action, if needed, to repair
performance deficiencies. 
  

● Technology  -The shopkeepers are now closely following customer trends and help them figure out
which Products are attracting customers the most. Analytics can also show retailers the characteristics
of their audience, helping to target and cater to them effectively  
  
● Design of store- The warm presence of the shop is much more powerful than any kind of marketing.
A well-designed and modernised kirana store generates 40% greater sales. The kirana shopkeeper
mentioned he is going to construct kirana store's racks and fixtures to maximise product display while
providing a clearer view of products and deals. The things are visible to customers and arranged
neatly so that they could locate it at one glance.  
  

12
 ● Go Online - This covid times had given a lot of challenges to retail stores due to impose of lockdown
people are permitted to their houses but one some of the retail store sell their products by some of the
e-commers platforms. This would even provide first-mover advantage as the stores nearby do not
have online presence. 
Three ways to get the products of your Kirana store online:  
o You can list your Kirana store on major online shopping websites, such as Amazon and Flipkart, to
attract more customers.  
o You can register your store online, and if someone buys something, you can ship it to them.  
o You can also make your own website. This will allow some of the r regular customers to order from
the comfort of their own homes, while still receiving the customised service from your Kirana shop.
It'll be a hit with your frequent customers.  

● Inventory management-Inventory management is of utmost importance in the entire process of

Supply chain management. If your inventory is well managed, the rest of your supply chain will fall
into place. Without a decent Inventory Management System, one can make mistakes such as
missing-shipments, overproduction, out of stocks, delay in the pickup, etc. A sophisticated Inventory
Management System ensures smooth facilitation of logistical management of products. It automates
the entire process of trading, ordering, stocking.  When goods are near expiration date, the owner
comes up with some offer including ‘Buy two and Get one free’ or reduce to clear section.
  
 
 

CONCLUSION
Through this group project, we learnt the working of a Kirana store. How it conduct its day to day business
through proper planning. The jobs are divided among different people for proper execution. Just like anu
other business it also deals with downfall which is later corrected by the process of controlling. Successful
business is not just about the sales but also about the leadership of owner and his relationship with his
employees. So we conclude that POLC Analysis of Kirana shop helped us to understand the basics of
managing a business.

**** **** ****

13
14