Assignment of

Accounting for Management

Submitted to - Dr. Ranjana Sharma

Submitted by - Rahul Bhatt
Sanyam Jain
Shruti Barik
Vinit Jaiswal
Introduction :

Smile Store is a leading general store offering a wide

range of products to cater to diverse customer
requirements. At Smile Store, they understand the
importance of convenience and quality, and that's why
they strive to provide an exceptional shopping experience
for their valued customers. The store is designed to meet
the individual , familial and household needs, offering a
thorough selection of items spanning across various
categories.
Mr. Vivek Bhardwaj owns the enterprise . They take pride
in curating their inventory boasting an arsenal of high
quality products from reputed brands. Whether one is
looking for fresh produce, pantry staples, household
cleaning supplies, or the latest gadgets, Smile Store has it
all. So, whether a customer is a local resident or a visitor
to Dehradun, they are invited to experience the
convenience, quality, and affordability offered by smile
store.
Objectives :
The objective of a retail shop varies depending on its
specific goals and business model. However, some
objectives are commonly recurring :

1. Sales and Revenue Generation : The primary if not

one of the primary objectives of a retail shop is the
generation of sales and revenue. Retailers aim to attract
customers, promote their products, and ultimately drive
sales to generate profits.
2. Customer Satisfaction and Loyalty : Retailers strive to
provide excellent customer service and create a positive
shopping experience to satisfy their customers , all to
build customer loyalty which in turn results in repeated
visits and long term retention.
3. Product and Brand Promotion : Serving as a platform
for promoting specific products and brands, retail stores
tend to increase awareness and interest to ultimately
drive sales for the products or brands in question.
4. Market Expansion : Some retail businesses expand
their market presence to reach a broader customer base.
This objective usually involves opening new store
locations, setting foot in new geographical markets, or
targeting fairly new customer segments.
5. Cost Efficiency and Profitability : Retailers generally
aim to manage their operational costs effectively to
maximize profits. This objective usually involves
optimized inventory management, streamlining
processes, negotiating favorable supplier contracts, and
reduction of overhead expenses.
6. Competitive Advantage : Retail shops often strive to
create a distinguished identity from their competitors
and establish a unique selling proposition. They may
usually opt to focus on offering exclusive products,
superior customer service, or creating a distinctive
shopping atmosphere to gain a competitive edge.

Problems Faced by the Store :

1. Competition :
General stores face intense competition from other
stores or businesses performing in the same segment.
Competing with larger retailers or e-tailing giants can be
challenging due to their ability to offer lower prices and a
wider range of products.
Solution :
Smile Store tries to differentiate itself by offering unique
products, superior customer service, and implementing
effective marketing strategies to attract and retain
customers.
Our Opinion :
Their budget is rather restricted for purchasing unique
products which are highly likely not to be sold because of
their limited demand. Their idea of exposing unique
products is suboptimal to their retention through
customer service.
2. Inventory Management :
Efficient inventory management is a challenge for local
general stores. Implementation of an automated
inventory management system will work wonders in
helping Smile store keep track of stock levels, identifying
fast selling items against slow moving items, and
streamlining the ordering process to avoid stockouts.
Solution :
They use a mix of employees and bookkeeping to keep
track of the products that are constantly moving in and
out as well as to identify the bestselling items and the
ones on the “other” side of the spectrum.
Our Opinion :
As automated inventory management system is priced
exorbitantly so they can throw in inventory management
software’s with a mix of employees which will heaps of
funds and do the trick for a store sized like theirs.
3. Pricing Strategy :
Pricing strategy is tantamount for a business if it wants to
make a decent revenue margin. Most of the general
store’s struggle in this aspect, reaching only the marginal
revenue.
Solution :
Smile store bulk purchases commodity which costs them
relatively less than what they individually sell those
commodities .The commodities are priced as such (within
the MRP range) that the sale proceeds from those
commodities outweighs the initial purchase price.
Our Opinion :
They can try to manage their operational costs efficiently
to turn over more revenue at a reasonable rate.
4. E-Commerce and Online Presence :
In today's digital age, having an online presence is
essential for business to have a fairly high chance to
succeed, given their commodities can be sold online.
Solution :
The smile store prefers the personal touch between them
and their customers ,operating like a standard
supermarket in this aspect.
Our Opinion :
Smile store can consider creating a user-friendly website
or partnering with established e-commerce platforms to
sell products online. This can help them reach a wider
customer base and increase sales. They should at least
try making an online presence and partake in local
deliveries of groceries they want to deal in.
5. Cash Flow Management :
Efficient cash flow management is essential for any
business.
Solution :
The store prefers invoicing customers in a timely fashion,
offloading inventory that does not sell well and closely
monitoring where they spend money.
Our Opinion :
Smile store must maintain proper financial records,
intricately monitoring expenses , and implementing
efficient billing and payment systems to ensure a steady
cash flow.
6. Employee Retention :
Inadequately trained or dissatisfied employees can affect
firsthand customer service and overall store experience.
High turnover can disrupt operations and increase
recruitment costs.
Solution :
They provide their employees with bonuses , festival gifts
and rewards for good performance.
Our Opinion :
Smile Store should invest in comprehensive training
programs for employees to enhance their product
knowledge, customer service skills, and sales techniques.
Offering competitive wages, benefits, and opportunities
for growth and advancement can also improve employee
satisfaction and retention.
7. Customer Retention :
Building customer can ensure long-term success for any
business.
Solution :
Smile stores strive to provide excellent customer service
and create a positive shopping experience to satisfy their
customers , all to build customer loyalty which in turn
results in repeated visits and long term retention.
Our Opinion :
Smile store can focus on delivering exceptional customer
service, personalized experiences, and maintaining a
strong relationship with customers through various
channels such as social media, email marketing, and
loyalty programs.
8. Staff Training :
Ensuring that the staff is well-trained and knowledgeable
about the products and services is crucial.
Solution :
The store ensures that the staff is well-trained and
knowledgeable about the products and services is crucial.
Smile store. They normally have a comparatively
experienced employee show the ropes to the fresh ones.
Our Opinion :
Smile store can invest in regular training sessions to
enhance product knowledge, customer service skills, and
overall operational efficiency.
9. Low Customer Footfall :
Smile Store is experiencing low customer footfall in their
physical stores, which is affecting their sales and revenue.
Solution :
They could invest in marketing and advertising to
increase brand awareness and attract more customers.
Additionally, they could offer promotions or loyalty
programs to incentivize repeat visits.
Our Opinion :
Increasing footfall is crucial for any retail business. Smile
Store's solution is reasonable, but they should also
consider enhancing the in-store experience to retain
customers.
10. Customer Feedback Handling :
Smile Store receives customer feedback but struggles to
effectively address and act upon it.
Solution :
Implementing a structured feedback management system
and actively listening to customer concerns can improve
their responsiveness. Regularly communicating changes
made based on feedback can also enhance customer
satisfaction.
Our Opinion :
Listening to customers and acting on their feedback is key
to building trust and loyalty. Smile Store's solution aligns
with this principle, but they should ensure a transparent
feedback loop.

Conclusion :
Smile Store General Store in Dehradun may face various
business problems such as competition, declining foot
traffic, inventory management issues, pricing and
profitability challenges, and employee training and
retention concerns. However, each of these problems can
be addressed through specific solutions. By implementing
these solutions, Smile Store can overcome the identified
challenges, enhance its competitiveness, improve
customer satisfaction, and ultimately achieve better
business performance in the dynamic retail market of
Dehradun. It is important for Smile Store to continuously
monitor the market, adapt to changing customer needs,
and consistently seek feedback to ensure ongoing
success.