International Higher Diploma in Business Management

Assignment
STUDENT NAME : SAJEEVAN SIVAKUMAR

EDHAT REGISTRATION NO. : 50493

PROGRAMME : International Higher Diploma in Business Management

SUBJECT CODE &TITLE : MGC 0201/ Business Strategy

Identify and present the finding on business strategy
ASSIGNMENT TITLE : that implemented by keells super retail chain operated
by jaykay marketing services (pvt) ltd

Summary of the Learning Outcomes covered:

1. Analyse how the business environment is considered in strategy formulation
2. Understand the process of strategic planning
3. Examine approaches to strategy evaluation and selection
4. Analyse how strategy implementation is realized.

ASSIGNMENT TYPE : Individual Assignment

ISSUED DATE :

DUE DATE :

DATE SUBMITTED :

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INTERNAL VERIFIER :

PLAGIARISM:
While research and discussion are an essential part of an assignment, the deliberate copying of
someone else’s work or unacknowledged copying from printed or electronic sources is NOT
permitted. You may be subject to disciplinary procedure if you do this. You should sign this
sheet to show that you comply with these regulations.

Student’s Signature: Date: _____/_____/ ___________

Higher National Diploma in Business Management Individual Assignment 1 | P a ge

TASK 01: UNDERSTAND THE PROCESS OF STRATEGIC PLANNING
T1.1 - Find out the vision, mission, objectives, goals and the core competencies of the
organisation and briefly explain how it impacts the strategic planning of the business.

Keells is presently Sri Lanka’s market leader in the processed meat industry. Keells started its
operations in the year 1983, and takes pride in being solely responsible for developing the Sri
Lankan Processed Meats industry to its current heights.
Keells has kept abreast of the industry through strategic investments in state of the art food
processing technology, quality control systems and an aggressive Companywide R&D
orientation. Keells is the only processed meat manufacturing Company awarded SLS for its
quality of product and process. This is yet another testament to our commitment to being the
leader in the market.
Keells world class Sausages, Meat Balls, Hams, Bacons, Cold Meats and Raw Meats combine
gourmet taste and nutrition while offering superior quality. The range offers convenience to meet
today’s demanding lifestyles of consumers all over the world. We serve certain markets in
United Arab Emirates & Maldives and are currently in the process of strengthening our presence
in these regional markets.
Keells Food Products PLC (KFP) sustained its market leadership position in the processed foods
category through a range of marketing strategies aimed at strengthening its market share, whilst
connecting more closely with the consumer. The Company has been driving innovation and high
brand recall in an effort to enhance the consumption of our products. Based on a combination of
consumer feedback and R&D efforts, we are constantly formulating new products that fulfill the
expectations of our consumers.

VISSION
Our passion is to deliver pleasure and nutrition throughout peoples lives, through exciting and
superior products, whenever and wherever they choose to eat and drink.

MISSION
To be a socially responsible, values based supermarket chain

GOALS
The values of Keells Supermarkets are based on the John Keells Holdings values andare given
below which are adapted to the current scenario;

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  Innovation – Provide innovative ways to make the customer aware of their health
 Integrity – Provide accurate information on products available and their effects on
healthy living especially in regards to diabetes
 Excellence – Be the best modern trade chain
 Caring – Provide care and concern for customers and employees
 Trust – Provide the safest products that have a positive impact on healthy living.
OBJECTIVES
The noble objectives of the concept are as follows:
1.To make aware to the customers the spread of diabetes in society
2.To make aware that diabetes is incurable but can be prevented by healthy living through
careful diet and exercise
3.To help those already with diabetes to maintain a lifestyle that will help them to control the
situation

COMPETETIVE ANALYSIS
competition within the food and beverage industry seems to be large as well as diversified.
McDonalds, KFC, Tea firms, Coffee firms, Cargill’s, etc. which have a tremendous range of
resources at their disposal. Although bakeries and smaller retailers.
The threat of new entrants is very low in the food and beverages industry. The industry is very
mature and it has successfully reached economies of scale. In order to compete in this industry a
retailer must be able to achieve economies of scale.
Supply side of keels: high economics of scale, because high volume of own production, thus it
will reduce the cost per unit as they can spread fixed cost over more units, employ more efficient
technology, or command better stipulations from suppliers. So these deter entry by forcing the
hopefuling entrant either to come into the industry on a large scale or to accept a cost
disadvantage.
Demand side: discourage the entry by limiting the willingness of customers to buy from a
newcomer and by reducing the price the newcomer can command until it builds up a large base
of customers.
Another barrier to entry is that it takes an incredible amount of capital requirements
technological cost. It takes an extreme amount of capital not only to be able to manufacture and
sell the products but also to keep up with the research and development that is necessary for the
innovation requirements. High initial investment will be required for building or renting new
stores, manufacturing plants, storages, and also to extend customer credit, build inventories, and
fund start-up losses. Thus the barrier is particularly great if the capital is required for
unrecoverable and therefore harder to finance expenditures, such as advertising or research and
development. Access to distribution channels is another high barrier to entry. A company must
find a retailer to sell their products or have their own retails.

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Finally, strong brand loyalty of customers also contributes to entry barriers. But as switching cost
for buyers are low, the threat of new entrants could be characterized as moderate.

T1.2 - As the strategic manager identify the specific issues and problems with regard to
strategic planning of the organization and explain them in details
SWOT analysis of keels super
Strength
High Quality Conscious
Keels products are the only processed meats in Sri Lanka that conform to the SLS (Sri Lanka
Standards) certification, whilst the processes that are carried out are aligned to incorporate ISO
22000 standards. Moreover at an organizational level our entire operations conform to ISO 9000
standards
Also having food quality standards, such as ISO 9001 certificate, HACCP certificate for food
safety management tool and SLS certificates
High technology
Having Modern Technology and qualifies works through out the process and upgraded
machineries and equipments. They incorporates some of the most modern semi automated
machinery conforming to international standards for hygiene and safety, such as sausage linking
machine ( to automate the portioning and hanging process, at high speed) peeler machine, slicer
machine and a thermoform packaging machine. in their keells range factory.
Keels using high Tec MC3000 Motorola mobile computers system working on a Wi-Fi network,
across 30 supermarket stores for inventory variation. Having the best Laboratory among in asia
and Modern storage facilities.
Keels hold a high web technology which is speed, quick download, easy navigation bars,
customer friendly and corporate colour for their web strategies

Threats
French fries, which accounts for a small segment of sales in the Krest Range faced stiff
competition from cheaper variants introduced into the market by our competitors. However due
to stock pressure and distribution strengths the product grew rapidly adding 36% growth. It is
believed further marketing support and changes in the marketing mix will further grow this
category.

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Poter’s Five forces analysis for Keels
Poter’s five forces model is based on the simple fact that each industry and market is influenced
by several competitive forces namely threat of new entrance, bargaining power of suppliers and
buyers, competitive rivalry and threat of substitutes. The intensity of completion and therefore an
industry attractiveness and profitability will mostly depend on these external factors.
Awareness of the five forces can help a company understand the structure of its industry and
stake out a position that is more profitable and less vulnerable to attack and protecting against the
competitive forces and shaping them in a company’s favor are crucial to strategy.
The strongest competitive force or forces determine the profitability of an industry and become
the most important to strategy formulation. (Harvard Business Review January 2008).
Poter’s five forces of Keels
 Potential Entrants
 Bargaining power of Threat of new entrants low
 Suppliers Low/high
 The Competitive
 Rivalry High
 Buyers
 Suppliers
 Bargaining power of customers
 High threat of substitutes
 High substitutes

T1.3 - Define and evaluate the appropriateness of the effectiveness of any two strategic
planning techniques used in strategic planning
Formulation of Retail Strategy:
In this stage, after analyzing the store’s capabilities in terms of HR, finance, physical and
intangible resources, a store manager formulates retail strategy with regard to marketing, retail
positioning and retail mix. Marketing is the way to achieve the set objectives. Therefore,
marketing strategy should be devised according to store’s primary and secondary objectives.
Generally, marketing strategy is developed on the basis of product and/or market segmentation
instead of the market as a whole.
Retail Positioning is a plan of store’s action for how the retailer will enter the target market and
will compete with its main competitors. Retail positioning from a retail store’s point of view, is a
step by step plan to create and maintain a unique and everlasting image of the store in the
consumers’ mind.

This process reveals the fact that understanding ‘what customer wants?’ is the success key to
retail positioning in the market. Under retail positioning, a retailer conveys the message that its

Higher National Diploma in Business Management Individual Assignment 5 | P a ge

products are totally different and as per customers’ requirement. The reason here is that
customers are attracted towards items that are new for them with the perception that if it is new,
it will have some extra/added features.

Retail positioning is made possible under these circumstances:

(i) By differentiating the store’s merchandise from its competitors,
(ii) By offering high level of after sales services at nominal/no cost, and
(iii) By adopting low pricing policies.

Retail Mix is the blend of various retail activities which in total present the whole concept of
retailing. The retail marketing and retail positioning strategies are put into effect by this retail
mix – the set of controllable elements that a retailer can use to satisfy customers’ needs and to
influence part of retail manager to select the various elements for a perfect retail mix.
The main elements a retail store manager has to face are:
i. Store’s location
ii. Merchandise assortment
iii. Pricing policy
iv. Customer service mechanism
v. Visual merchandising
vi. Personal selling efforts
vii. Advertising efforts and
viii. Store’s internal and external environments.

Strategy Implementation and Control:

It is concerned with the designing and management of retail systems to achieve the best possible
combination of human, financial, physical and intangible resources of a retail store to achieve the
formulated objectives, without timely and effective implementation also requires scheduling and
coordination of various retail activities. For example, the coordination between the marketing
and sales promotion department is a must for sales promotion to make success.

Further, the spirit of team work is an essential part for the success of strategy implementation. If
the retail store’s strategies are competitive, marketing efforts are as per demand but the sales

Higher National Diploma in Business Management Individual Assignment 6 | P a ge

promotion employees are not taking it seriously or are ineffective, result will not be up to the
mark.
The implementation of new retailing strategies sometimes require changes in the way of
functioning and duties that can lead to resistance from employees. Therefore, stores should take
positive steps to reduce this resistance to change and to convince the employees that it in a long
term will be beneficial for both the store and employees.
The positive steps include the following:
(i) Inspection,
(ii) Detection, and
(iii) Correction.
It means after implementing the retail strategies, retailer should assess how effectively strategies
are being implemented, how far the strategic objectives are being achieved and what has been
left to be achieved in the store’s objectives list. Therefore, retailers inspect the implemented
strategies from time to time and detect the fault (if any) in the implementation of various retail
elements. If any deficiency is found during inspection process, that has to be corrected with
immediate effect without any further loss to store.

TASK 2: ANALYSE HOW THE BUSINESS ENVIRONMENT IS CONSIDERED IN

STRATEGY FORMULATION

T2.1 - What does the term business strategy mean in a large commercial organisation like
the keels super retail chain?

Retail strategy is a holistic marketing plan for a product or a service to reach the final retail
channel and influence the consumers. This strategy covers everything from what retail channels a
product or service will be available in to what should be the price or sales incentive to be given
and how to display the product in the shelf.
Retail strategy is developed for product to be distributed through retail outlets. When a product is
sold through a retail outlet, a number of factors affect the sale of the product.
Factors in Retail Strategy
Some of the factors as already mentioned below are:
1. Pricing/discounting of the product
2. Incentive structure followed
3. Promotions planned
4. Placing of the product

Higher National Diploma in Business Management Individual Assignment 7 | P a ge

5. Display attractiveness
6. Incentive structure for the retailers
7. Overall Consumer Behavior
These are some of the major factors and is not inclusive of all. Strategizing on how to proceed in
all these friends to finally influence the consumer to buy your product is the development of
retail strategy.

T2.2 - Identify all the stakeholders attached to Keells Super retail chain and describe the
need of carrying out a stakeholder analysis with respect to Keells Super retail chain.
The value transformation process is underpinned by our drive to create value for our diverse
stakeholders. This shared value generation necessitates a proactive and deep understanding of the
issues that matter most to our stakeholders, thereby enabling the Group to formulate strategy in a
manner that effectively addresses these issues. When selecting which stakeholders to engage
with, the Group considers individuals, organisations, and communities which have the most
significant influence over our operations and/ or could be substantially impacted by our
decisions. The results of the Group’s stakeholder engagement for 2020/21 is given below:
Stakeholder Group How We Engage Topics and Concerns
Raised in 2020/21
CONSUMERS • Customer satisfaction • Product availability
Island wide network of surveys (periodic) • Quality
discerning customers who • Customer hotline • Taste
consume our products. (continuous) • Convenience
• Social media engagement • Value for money
(continuous)
• Website
• Marketing communications
(continuous)
 Mystery Shopper audits
(periodic)
EMPLOYEES • Employee satisfaction • Job security
Our team of 530 motivated and surveys - Voice of Employee • Rewards and recognition
skilled employees. and Great Place to Work • Training and development
(annual) • Safe working environment
• Performance appraisals • Opportunities for skill and
(annual) career progression
• Work-life balance initiatives • Freedom of association
• Open door communication
policy (continuous)
• Digital platforms including
staff intranet (continuous)
SHAREHOLDERS • Annual General Meeting • Commercial, social and
John Keells Holdings: 89.95% and publication of Annual environmental sustainability

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Other institutional investors:
4.88% Public Shareholders:
5.17%
DISTRIBUTORS
Islandwide network of over 70
distributors who drive market
access.
SUPPLIERS
We engage with over 200
suppliers through whom we
procure pork, poultry,
vegetables and spices among
others.
REGULATORS
The Group’s key regulators are
Department of Inland Revenue,
Central Environment Authority,
Consumer Affairs Authority, Sri
Lanka Customs, Securities and
Exchange Commission, Central
Bank, Ministry of Health etc.
Higher National Diploma in Business Management Individual Assignment
Report (annually)
• Interim financial statements
(quarterly)
• Announcements to the
Colombo Stock Exchange
(continuous basis)
• Corporate website
(continuous basis)
• Press releases (continuous
basis)
• One-to-one engagement
(when required)
• Distributor Management
and Sales Force Automation
(continuous)
• Distributor conventions
(annual)
• Audits and site visits
(periodic)
• Trade monitoring surveys
on freezer utilisation
(periodic)
• Sales team engagement
with retailers on an on-
going basis
• Site visits and audits
(periodic)
• Supplier selection process
(as required)
• Ongoing dialogue through
formal meetings, telephone
and electronic
communication
• Training programmes
(ongoing)
• On-site surveillance and
factory visits (periodic)
• Directives and circulars
(continuous)
• One-to-one engagement
(when required)
• Press releases (continuous)
• Strategic alignment to
operating conditions
• Returns commensurate with
the risks undertaken
• Timely and transparent
communication
• Robust corporate governance
practices
• Opportunities for mutual
growth
• Continuous supply of
products despite conditions
that prevailed
• Ease of transaction
• Equitable terms and
conditions
• Opportunities for mutual
growth
• Responsible procurement
practices
• Timely payments
• Equitable terms of trade
• Support in obtaining
clearance to operate during
the pandemic
• Compliance with relevant
regulations and guidelines
• Payment of taxes in full and
timely basis
• Contributions towards
community development
• Minimising adverse
environmental impacts
9 | P a ge
T2.3 - Analyse the external environment of Keells Super retail chain by conducting an
internal audit using SWOT and Analyse the strategic positioning of Keells Super retail
chain by conducting a PESTEL analysis.
Points for PEST Analysis of Keels
Political
The comprehensive victory of the Sri Lankan armed forces in liberating the North and East of the
country and developments since then, with presidential and parliamentary elections and the
recent local council elections shows stability now behind keels.
The Company profitability was significantly impacted in last year by the increase in the Nation
Building Tax (NBT) which was initially introduced as 1% point of turnover and subsequently
increased to 3% points. The total impact due to NBT amounted to Rs. 40 million which the
Company was not able to pass on due to suppressed consumer demand on account of reduced
purchasing power.
The imported chicken meat cost too was impacted by high taxes and levies resulting in a
significant cost disadvantage to the Company (Annual Report KFP Plc 2009/2010).

Economical
The Sri Lankan economy saw GDP growth of 3.5 percent in 2009. This was lower than the 6
percent seen in 2008 but a good performance given the global environment. Inflation and interest
rates declined significantly through the year, while the local currency appreciated, reflecting the
strengthening economic fundamentals post war. The Sri Lankan Rupee as at 31st March 2010
was Rs. 114 to the US dollar compared to Rs. 115.53 as of 31st March 2009 (Annual Report
KFP Plc 2009/2010).
Prediction of an economic growth in the next years, however sales of keels has dramatically been
increased in the past three years. Sausages continued to account for the biggest segment
amounting to almost 50% of their total market volumes in the Keells range of products. Overall
sales of keel’s sausages grew by 1%, in a very static market (Annual Report KFP Plc
2009/2010).
French fries, which accounts for a small segment of sales in the Krest Range faced stiff
competition. However due to stock pressure and distribution strengths the product grew rapidly
adding 36% growth. It is believed further marketing support and changes in the marketing mix
will further grow this category (Annual Report KFP Plc 2009/2010).

Strength
High Quality Conscious - Keels products are the only processed meats in Sri Lanka that conform
to the SLS (Sri Lanka Standards) certification, whilst the processes that are carried out are
aligned to incorporate ISO 22000 standards. Moreover at an organizational level our entire
operations conform to ISO 9000 standards

Higher National Diploma in Business Management Individual Assignment 10 | P a ge

Also having food quality standards, such as ISO 9001 certificate, HACCP certificate for food
safety management tool and SLS certificates
High technology - Having Modern Technology and qualifies works through out the process and
upgraded machineries and equipments. They incorporates some of the most modern semi
automated machinery conforming to international standards for hygiene and safety, such as
sausage linking machine ( to automate the portioning and hanging process, at high speed) peeler
machine, slicer machine and a thermoform packaging machine. in their keells range factory.
Keels using high Tec MC3000 Motorola mobile computers system working on a Wi-Fi network,
across 30 supermarket stores for inventory variation.
Having the best Laboratory among in asia and Modern storage facilities.
Keels hold a high web technology which is speed, quick download, easy navigation bars,
customer friendly and corporate colour for their web strategies

Threats
French fries, which accounts for a small segment of sales in the Krest Range faced stiff
competition from cheaper variants introduced into the market by our competitors. However due
to stock pressure and distribution strengths the product grew rapidly adding 36% growth. It is
believed further marketing support and changes in the marketing mix will further grow this
category.

T2.4 - Develop and present a new strategy Keells Super retail chain.

In this stage, after analyzing the store’s capabilities in terms of HR, finance, physical and
intangible resources, a store manager formulates retail strategy with regard to marketing, retail
positioning and retail mix. Marketing is the way to achieve the set objectives. Therefore,
marketing strategy should be devised according to store’s primary and secondary objectives.
Generally, marketing strategy is developed on the basis of product and/or market segmentation
instead of the market as a whole.
Retail Positioning is a plan of store’s action for how the retailer will enter the target market and
will compete with its main competitors. Retail positioning from a retail store’s point of view, is a
step by step plan to create and maintain a unique and everlasting image of the store in the
consumers’ mind.
This process reveals the fact that understanding ‘what customer wants?’ is the success key to
retail positioning in the market. Under retail positioning, a retailer conveys the message that its
products are totally different and as per customers’ requirement. The reason here is that

Higher National Diploma in Business Management Individual Assignment 11 | P a ge

customers are attracted towards items that are new for them with the perception that if it is new,
it will have some extra/added features.

Retail positioning is made possible under these circumstances:

(i) By differentiating the store’s merchandise from its competitors,
(ii) By offering high level of after sales services at nominal/no cost, and
(iii) By adopting low pricing policies.
Retail Mix is the blend of various retail activities which in total present the whole concept of
retailing. The retail marketing and retail positioning strategies are put into effect by this retail
mix – the set of controllable elements that a retailer can use to satisfy customers’ needs and to
influence their buying behavior and compete effectively in the target market. Utmost care is
required on the part of retail manager to select the various elements for a perfect retail mix.
The main elements a retail store manager has to face are:
i. Store’s location
ii. Merchandise assortment
iii. Pricing policy
iv. Customer service mechanism
v. Visual merchandising
vi. Personal selling efforts
vii. Advertising efforts and
viii. Store’s internal and external environments.

TASK 3: EXAMINE APPROACHES TO STRATEGY EVALUATION AND

SELECTION
T3.1 - Analyse the appropriateness of alternative strategies substantive growth, limited
growth or retrenchment for Keells Super retail chain
According to (Antell and Wallgren, 2016), There are a number of strategies that can be used
when a company decides to enter a market. Before a business makes a decision about which
market to enter, the following questions must be answered:
• Which markets to enter?
In deciding which market to enter the firm must consider the impact that entering the potential
market could have on its profits. The firm should consider the size of the market, the demand for

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the product, the competitiveness of the products etc

• When to enter these markets?

This is where the decision is made about whether or not the firm wishes to enter the market early
(before many competitor) or late. There are a number of disadvantages and advantages of
entering the market early.
Disadvantages:
i. Mistakes due to ignorance
ii. Costs of promoting
iii. Establishing a product – educating customers
Advantages
i. Ability to preempt rivals
ii. Capture demand by establishing strong brand name
iii. Build sales volume and ride down the experience curve with a cost advantage
iv. Create switching cost that tie customers into products

• What is the scale of entry?

The company needs to decide whether or not they will be supplying a lot of products in the initial
stage. This will help to gauge the marketing strategy that will be used.

• What is the best mode of entry?

In direct exporting the company sells to a customer in another country. In contrast, indirect
exporting usually means that the company sells to a buyer (importer or distributor) in the home
country who in turn exports the product.
Substantial Growth Strategies:
Related diversification: “A process that takes place when a business expands its activities into
product lines that are similar to those it currently offers. For example, a manufacturer of
computers might begin making calculators as a form of related diversification of its existing
business.”
Unrelated diversification: “Unrelated diversification is a form of diversification when the
business adds new or unrelated product lines and penetrates new markets. For example, if the
shoe producer enters the business of clothing manufacturing. In this case there is no direct
connection with the company´s existing business - this diversification is classified as unrelated.”

Limited Growth and Retrenchment: According to Investopedia, 2016, “A business arrangement

in which two or more parties agree to pool their resources for the purpose of accomplishing a
specific task.”

Higher National Diploma in Business Management Individual Assignment 13 | P a ge

Advantages
-Sharing of risk and ability to combine the local in-depth knowledge with partners.
-Joint financial strength
Disadvantages
- Partners do not have full control of management.
- May be impossible to recover capital if needs be.

T3.2 Select an appropriate future strategy Keells Super retail chain.

Supermarkets have moved beyond something for the elite. How has this impacted communities
and is there a trickle-down effect?
The positive thing is we have been able to create a market space for local farmers and create
jobs. In terms of real estate, we offer a decent rent for the land which may have been otherwise
unutilized. In terms of tax, what we pay is also substantial, because it’s on the income we
generate. On the flip side, some may argue that corner stores are being driven out of business by
supermarkets. But the critical aspect here is where do consumers prefer to go? Even small
groceries have updated and the people who have done that have created loyalty.

What are the determinants for Keells to set up in an area?

The determining factor is the population and their income so that sales generated could sustain
the outlet. We had been focusing on the Western Province until two years ago but have expanded
by opening stores in Kandy, Galle, Matara, Kurunegala and Puttalam since.
The use of polythene has become a massive concern in our country and supermarkets are a
contributor to this issue. Is Keels addressing this?
We’ve pledged to cut polythene usage in half over the next five years. Most of the polyethene
used in a supermarket is between the meat, vegetables and checkout counters. We have already
switched to paper bags in the bakery counter, and we are going to use compostable bags in meat
counters, which will take off 50% of polythene used within the store. The other half of polythene
is used in the checkout counter. This will be reduced by the recycled bags we have introduced.
The recycled bags are sold below the margin, and for customers to use the bag, we offer extra
loyalty points. A few years ago, supermarkets, together with the Central Environmental
Authority (CEA) pledged to charge customers for polythene usage. We witnessed a drastic drop

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in usage. But due to a petition at the Supreme Court, we had to abandon the initiative. We will
continue to lobby with the government as an organization to reinstate a charge for polythene
usage because then, people will start looking for alternatives. It has to work both ways. As an
ethical organization, we will look at reducing polythene usage, but some kind of legislation will
help with the initiative.

TASK 04: ANALYSE HOW STRATEGY IMPLEMENTATION IS REALIZED

T4.1 - Provide a detail assessment on the personnel roles and responsibility needed in order
to implement the suggested future strategy.
The types of questions that are enquired under different resources are:
Human resource:
(a) Is present strength of employees at various levels is sufficient for future action?
(b) Are the employees trained and capable to perform the tasks assigned to them?
(c) Are the employees loyal to store?
(d) Are the employees punctual and regular?
(e) Are the employees skilled in their assigned tasks?
Financial resource:
(a) What is the total cash flow from store’s present activities?
(b) What is the ability of retail store to collect money at the time of requirement/ emergency?
(c) How much effective and stable financial policies are?
(d) What is the ratio between fixed and current assets?
(e) What are the contingency plans in case of negative cash flow?
Physical resources:
(a) What is the contribution of fixed assets?
(b) What is the position of abandoned/unused assets?
(c) How effective and update are the store’s information systems?
Intangible resources:
(a) What is the present capability of the company’s management?
(b) How effective is the R & D cell?
(c) How good is the competitor’s intelligence system?

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(d) How effective store’s loyalty programmes are?
(e) What is the capability of retail store manager?
(f) Are customers loyal towards company’s products?

In this stage, after analyzing the store’s capabilities in terms of HR, finance, physical and
intangible resources, a store manager formulates retail strategy with regard to marketing, retail
positioning and retail mix. Marketing is the way to achieve the set objectives. Therefore,
marketing strategy should be devised according to store’s primary and secondary objectives.
Generally, marketing strategy is developed on the basis of product and/or market segmentation
instead of the market as a whole.
Retail Positioning is a plan of store’s action for how the retailer will enter the target market and
will compete with its main competitors. Retail positioning from a retail store’s point of view, is a
step by step plan to create and maintain a unique and everlasting image of the store in the
consumers’ mind.
This process reveals the fact that understanding ‘what customer wants?’ is the success key to
retail positioning in the market. Under retail positioning, a retailer conveys the message that its
products are totally different and as per customers’ requirement. The reason here is that
customers are attracted towards items that are new for them with the perception that if it is new,
it will have some extra/added features.

T4.2 - Explain in detail the human, financial and physical resource requirements you will
need to implement the new strategy within Keells Super.

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T4.3- Provide an evaluation of the use and the importance of SMART targets in the
implementation and achievement of Keells Super retail chain.
When we revamped in 2012, we started looking outwards. We introduced lots of globally used
processes in modern trade, and we have been continually benchmarking against global best
practices. Sri Lankans are traveling widely, and are being exposed to new things, so we were
motivated to offer similar services to become a complete brand. Soon enough, some international
players entered the market over the past couple of years, and we were ready to compete with
them. To keep innovating, we conduct panel and customer surveys regularly to understand new
customer preferences and concerns and decide what new projects would be relevant in the
market.
How successful has the rebranding been?
I think the proof is in what we have achieved. The FMCG business was pretty bad last year, but
we gained market share. Brand Finance ranked us the 12th most valuable brand in 2018, up from
14th in 2017. They also valued us as the most valuable supermarket brand in the country last
year, for the first time, since the rebranding in 2017. This showed us that the transition had
delivered results in a short time. However, when we used the colour, green people assumed it
was a message about being environmentally friendly, but the green came purely from the fact
that the brand was focused on freshness. We had looked at different colour palettes, and the
‘fresh green’ look seemed the most relevant.
How is Keells addressing sustainability?
Out of our 99 stores, 40 have solar panels, and we plan to include solar power in every new
outlet. In outlets which have solar power, it accounts for around 30-35% of the energy
consumed. The repayment period for solar is about five years. In some of the older outlets, the
leases’ don’t extend that far so we have not converted them. There are various ways to manage
emissions. If one lorry takes consolidated goods to the outlet, it will reduce emission and
maximize truck utilization. Centralization is the way forward. Now, we have a centralized point
where we bring all the vegetables from our collection centers in the morning. Vegetables and
meat are then trucked separately to outlets. Fifty percent of our dry goods are centralized in a
warehouse. To centralize further, we need space.
We are now building a large state-of-the-heart 250,000 square foot warehouse. It is an
investment of Rs4 billion. Construction has commenced, and it will ready by end 2020 and is
located out of Colombo. It can store up to 400 to 500 outlets capacity of goods.

Higher National Diploma in Business Management Individual Assignment 17 | P a ge

REFERENCES
ANDREWS, K. R. Concept of Corporate Strategy 1971 - McGraw-Hill - New York In-text:
(Andrews, 1971)
ANSOFF, H. I. Strategic management 2014 - Palgrave Macmillan - [Place of publication not
identified] In-text: (Ansoff, 2014)
APPLE Earnings Releases and 10 K Annual Reports 2017 - Apple In-text: (Apple, 2017)
BARNEY, J. Firm Resources and Sustained Competitive Advantage 1991 - Journal of
Management In-text: (Barney, 1991)
BLOOMBERG Apple-Supplier Foxconn Weighs $7 Billion U.S. Display Plant 2017 In-text:
(Bloomberg, 2017)
BUTCHER, L. iPad Exclusive! How to Undertake Quality Improvement 2013 - Oncology Times
In-text: (Butcher, 2013)
CARPENTER, M. AND SANDERS, G. Strategic Management 2014 - Pearson Education
Limited - Harlow In-text: (Carpenter and Sanders, 2014)
CHOI, J. Y., SHIN, J. AND LEE, J. Strategic demand forecasts for the tablet PC market using
the Bayesian mixed logit model and market share simulations 2013 - Behaviour & Information
Technology
CLARK, W. AND LUCKIN, R. iPads in the Classroom 2013 - Institute of Education University
of London - London

Higher National Diploma in Business Management Individual Assignment 18 | P a ge

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Higher National Diploma in Business Management Individual Assignment 19 | P a ge