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COMILLA UNIVERSITY Dept.

of Management Studies
Course Title: Strategic Management
Course Code: MGT-422
Case study on

ANYTHING 100 TK STORE

Submitted To:
Dr. Mohammad Ahsan Ullah
Professor and Chairman
Dept. of Management Studies
Comilla University. Submitted By:
Sohel Rana
ID: 11705040
Session: 2016-2017
Dept. of Management Studies
Comilla University

Date of Submission : 29 September,2021


Case Study
Anything 100-Taka Store (ATS) was established in 2004 in Dhaka. It has own retail stores in
four metropolitan cities of Bangladesh - Sylhet, Rajshahi, Barisal and Khulna. It offers in its
retail stores a wide variety of consumer products, ranging from grocery and toiletries to garments
products. ATS is one of the largest retail chains in the country catering to the houschold needs of
primarily middle-income groups. In 2010, its sales plummeted to Tk. 54 crores from Tk. 21
crores in 2005. Net income rose from about Taka one crore to five crores during that period. It
has been for many years rolling over other competitors like Meena Bazar, Stop-N-Shop and
GMart.
ATS neither has a vision statement nor a mission statement. However, the store provides its
products and services with high quality at a low price always. Its manager claims that all people
in ATS believe in full customer satisfaction with extended customer service and high quality
low-priced products. With respect to individual, it strives for excellence.
ATS currently operates nine stores including the five stores in Dhaka. It is contemplating to open
seven additional stores in Dhaka. ATS is also thinking about opening two discount stores in
Kathmandu of Nepal and Thimpu of Bhutan. In recent meeting with the managerial level people,
current CEO said, "We are great a success in Bangladesh; our best years are waiting for us; we
have to move from the national boundary to international sphere."
ATS has automated distribution centers all over the country. It has a strong online link with its
six dozen vendors nationwide. The computers in the headquarters and the regional stores are
linked by radio- frequency network. Each store in different places wires product requests to
warehouses (place orders), and the warehouses ship immediately. The warehouses follow just-in-
time system for receiving products from vendors upon receiving requests from the stores. ATS
delivers products to stores within the shortest possible time by using its own fleet of trucks from
the manufactures on the way back to the distribution centers.
ATS is an equal employment opportunity employer. All employees of ATS receive benefits
under its profit-sharing scheme and stock-ownership plan. High performers (doing better than
average) get rewarded with pay increases, bonuses, paid vacations, and subsidized car loans.
ATS is nationally known for its corporate social responsibility programs. It was several time
awarded prizes for excellent corporate social responsibility. The primary beneficiaries of its
charitable giving include sports, education and health.
Four years back, ATS acquired 5M Retail Chain. Recently, it has entered into an agreement with
Wimpy to franchise its fast food items. In a few stores in Dhaka, it will open a corner for Wimpy
fast foods.
Answer the questions
1. What strategies would you recommend for ATS to further grow in the future?
2. Would you recommend ATS to go for e-retailing? Why or why not?
3. Would it be a right strategy for ATS at this time to expand internationally?
4. Should ATS make further acquisitions for increasing market share?

Solution of these Questions :

1. What strategies would you recommend for ATS to further grow in the
future?
Answer:
I would recommend to international expansion strategy for ATS to further grow in the
future. At present, many companies like ATS invest and build capacity for creating
economies of scale, That companies target expansion into new markets by efficiently using
their potential and creating additional sustainable income opportunities.
Here are some common reasons for international expansion of ATS:
1. To Find New Talent or Fill Talent Gaps
2. To Extend the Sales Life of Products
3. To Diversify Market Presence
4. Unique Circumstances Present a Rare Moment to Expand
Business expansion has the potential to expose ATS products and services to a broader
audience. Increasing its customer base will help it convert more customers and improve its
sales. This leads to higher profits. Just like its team members, customers are important to the
success of its business.
Question-2: Would you recommend ATS to go for e-retailing? Why or why
not?
Answer: No, I will not recommend ATS to go for e-retailing just now.

Reason of my recommendation:

Current situation of ATS


1. Operating business nation wide
2. Providing Low priced quality goods or services
3. Going to open more additional stores in home country.
4. Thinking about opening two discount stores in abroad
5. . Strong automated distribution centers all over the country
6. Strong online link with its nationwide vendors.
7. . Follows the Just-In-Time method for its inventory management.

Prerequisites of going for e-retailing

1. Attractive B2C e-commerce portal


2. Right revenue model
3. Strong internet connection with 24 hrs, backup
4. Strong customer database
5. Well designed and attractive e-catalog
6. Comparing tool
7. Price calculation system
8. A payment gateways
9. Strong supply chain
10. Strong inventory and distribution system
11. Support service, etc.

Advantages of going for e-retailing


1. Opportunity to reach new markets
2. Overcome some limitations of the traditional markets
3. Helps to collect data about customer behavior
4. Sheer convenience
5. Wider customer choice
6. Better value
8. Saves time and strain
7. Unique gifting opportunity
9. Micro targeting
10. Mass personalization

Disadvantages of going for e-retailing


1. May lack know-how and technology
2. Substantial set-up, investment and ongoing cost
3. Complex logistic of fulfillment
4. Legal problems
5. Pressure on margins and prices in-stores
6. It lacks an emotional shopping experience
Question-3: Would it be a right strategy for ATS at this time to expand
internationally?

Answer:

1. Worldwide acceptance

2. Efficient top management

3. Financial strength

4. Growth

5. Customer situation

6. Backward linkage

7. Variety of consumer production

Question-4: Should ATS make further acquisitions for increasing market


share?
Answer: Yes, ATS should make acquisitions for increasing market share.
A corporate action in which a company buys most, if not all, of the target company's ownership
stakes in order to assume control of the target firm. Good reasons for further acquisition

1. Unique (or strong) market position


2. The target in a potential turnaround situation
3. Required skills or experience in management or staff A geographic expansion
4. Reduced costs or improved profit
5. Increase in breadth and depth of product line
6. Stopping or limiting opportunities for a key competitor

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