Professional Documents
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The Business
New Line Retail Pvt Limited (NLR) is a 12-year-old business establishment in organized retail
business in Sri Lanka. Having its head office based in Colombo, the Company expanded its
branch network to 272 outlets on the island. NLR employs 8032 employees in all levels, in its
vast operational network. The operations include sourcing, logistics, retailing, promotional,
finance, HR and maintenance activities. The business is managed internally by a hierarchical
divisional structure with divisional heads, executives and operational staff.
Sourcing is centralized for all the products, and the products are stored at the organizations
owned central warehouse facility outside Colombo and delivered to retail stores on a planned
basis.
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CQHRM - Case Study 01 [Business Acumen [CQHRM S5]]
Business Environment
A challenging year with the Easter Sunday terror attack in April 2019, weather conditions
ended the calendar year of 2019 with economic growth of 2.3 per cent of Sri Lankan economy.
Despite the challenging macroeconomic environment, New Line Retail grew while
maintaining its leadership position in the market. The 12% growth in turnover and 10 % on
profitability greatly attributed to the expansion of outlets, sourcing efficiency and internal
controls.
While organizational performance has been reduced to a certain extent due to Covid-19, the
organization looks at the future with a positive mind and an aggressive plan.
Strategic Focus
NLR developed and implemented its five-year strategic plan (2019- 2024). The strategy
focuses on three primary areas. Growth, Cost & People
The strategic focus is to take the organization to be No2 in the organized retail sector in Sri
Lanka with a revenue projection of 38%. In turn, the strategic focus will have an impact on the
following areas of resources and activities.
No of new stores
Expansion of storage & logistics
Introduce house brands
Improved employee retention
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CQHRM - Case Study 01 [Business Acumen [CQHRM S5]]
Price competition
Cost management
Logistics management
Information – Real-time availability
Recruitment & retention
Skills & competencies
With the expansion, the spread of retail stores, connectivity and information gathering for
management decision making become a critical and a business need. Introduction and
improvement of technology to make accurate and real-time information availability will be a
clear advantage. Availability and development of analytical skills and knowledge, technology-
driven competencies become key factors and competitive advantage.
The strategies are developed and driven by talented and motivated employees who are
passionate about the organization. The ability to attract, motivate, and retain the best talent has
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CQHRM - Case Study 01 [Business Acumen [CQHRM S5]]
been one of the Company's key success factors. Also, continuous investment on people through
training and development, and providing opportunities to grow professionally and personally
may be a way of retaining talent.
Looking Ahead
The growth envisaged will have a greater impact on people requirement and people-related
activities of the Company. Activities such as recruitment, training and personal management
activities will take a larger time and space of HRD.
The organization's size in terms of people in numbers and its growth of activities with
expansion plan based on its strategic plan will be around 10,200 at the end of 5 years. In this
scenario, HR will play an even more crucial role in the organizational day-day activity.
Increased activities in various divisions will also bring new and diversified employee groups
and special talents enlarging the training & development, motivational plans and activities.
Critical understanding and evaluation of HR planning and HR management and its current
recruiting, selecting, onboarding performance management and other activities should be re-
looked to support the organization.
Questions
02. Identify and develop an intervention plan based on the strategic focus and its
implication on the people of the organization
(25 marks)
03. Identify from a Business Process Management perspective the areas to be outsourced
with sound justification
(25 marks)
04. Critically analyze at least four HR functions to be outsourced for the better use of
resources on key activities
(25 marks)
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CQHRM - Case Study 01 [Business Acumen [CQHRM S5]]
Critically analyse at
Controls steps to be taken to
least four HR functions Business impact of In the organizational
implemet outsourcing Cohesiveness of discussion
to be outsourced for outsourcing HR functions (NLRPL) whar HR function Justification of selcted reas
activity and process- with logical arrangement of
Q4 the better use of and the benefits to type of can be finalized in a futuristic and the impact and benefit
Identifying, screening, components and cohesive
resources on key organizations (Big & small) sence (R & S, training, for the organization
selection, training, inegration flow
activities organizations) payroll, legal support etc)
etc
(25 Marks)
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CQHRM - Case Study 01 [Business Acumen [CQHRM S5]]
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