DATE: 12th OCTOBER ,2023

BBA 100 ASSIGNMENT (CAT 1)

GROUP MEMBERS:
1. IBRAHIM YAHUMA JUMA D33/1624/2023 ____________
2.TONY OMONDI OPONDO D33/1586/2023 ____________
3.EDDAH MJENI NGUMA D33/1382/2023 ____________
4. PETER NGIGI NDUNG’U D33/1276/2023 ____________
5.CHRISTOPHER MUTETHIA MURIUNGI D33/1362/2023 ____________
6.JOHN MWANIKI MAINA D33/1246/2023 ____________
7.PURITY NYANDUKO MAGOMA D33/8188/2023 ____________
8.BRIAN MWANTHI MBINDYO D33/8044/2023 ____________
9.BEVON BARAKA KITUYI D33/1496/2023 ____________
10.CHRISPENCER ODERO OKElO D33/1582/2023 ____________
i. Looking at the retail market in Kenya, a number of them rise and fall within a very short time and are
now being overtaken by foreign retail markets. Using your knowledge on business environment,
advice upcoming retail markets on two other environmental analysis methods they can use apart from
SWOT and PESTEL analysis so as to survive in the turbulent business environment?

a) Porter’s Five Forces Analysis

This will help Kenyan retailers to understand competitive forces shaping the Kenyan market
hence enable them to thrive over foreign retailers.

1.Evaluate and monitor existing competitor rivalry - Kenyan retailers should conduct market
research to understand the nature and level of competition in the retail market. They should
then differentiate their own retail market from their competitors. This would realise to profit
due to the low competitor rivalry.
For example, a Kenyan retailer should engage with the foreign retailers who are their
competitors and understand the nature of competition. Also, they should offer unique products
and services with less substitutes hence result in high profit and low competition.

2. Potential entrants new to the industry – Kenyan retailers should develop and create a strong
barrier to the industry hence prevent foreign market retailers that are potential threats. As a
result, there would be a low threat of new entrants thus realizing high profit.
For example, they should possess unique intellectual property, unique technology in
production and use vertical integration where they own all the suppliers, distribution channels
and retail stores hence earn profits. They could even start in the production of their own
pharmaceutical products.

3. Threat of substitutes – Kenyan retailers should produce goods hat have less substitutes or
have fewer close substitutes hence have more power to raise the price and earn high profits.
This is by identifying the market gaps as well as listening to the consumers hence invent and
renovate a product. For example, engage in food consumer products like Nyandarua county
which is associated with potatoes.

4. Supplier power – Kenyan retailers should identify their supply power. They should own
their suppliers and the cost of switching from one supplier to the next should be low. Their
market space should also entail many suppliers hence easy to obtain raw materials as a result
earn profits easily.
For example, they should identify a good that its raw materials are easily available and at low
costs by suppliers such as the bakery industry.

5. Buyer power – Kenyan retailers should monitor their buyer power. They should identify the
purchasing practices and behaviour. There should be low buyer power hence they do not
decide on costs allowing vary in prices in order to earn high profits.
For example, they should possess a unique and high quality product or service hence attract
many customers since there are less substitutes of the same quality such as how Delamere
products have a high price but due to their good quality tend to attract more customers
regardless of the price.
b) Customer Analysis

This will allow the Kenyan retailers to understand what makes consumers to use their products
and services instead of foreign retailers.

1.Identify, valuate and monitor customers – Kenyan retailers should identify their customers
and evaluate why the buy from them, know what their expectations are as well as identify if
they add value to their customers and know their purchasing pattern.
For example, they should use questionnaires to interact with the customers hence know their
potential customers and on how to improve products and service delivery hence boost
business.

2.Asses lost customers – The Kenyan retailers should conduct market research for causes of
their lost customers to foreign retailers. They could also inquire what the foreign retailers’
products and services offer thus making theirs not be preferred hence find a solution early in
order to cut on the losses.

3.Asses their products and services – Kenyan retailers should look into the products and
services they offer regularly. This is so as to ensure they have a good performance in the eyes
of the customers in terms of the strength of their brands as well as value added to their
customers. As a result, this would lead to the improvement of their goods and services hence
lead to profit.

4.Know competitive and substitute products from the point of view of the customer – Kenyan
retailers should identify the strengths and weaknesses of the competitive and substitute
products offered by the foreign retailers. This is so as to find out what is making the customers
to prefer the foreign products and services as well the unique qualities they possess in order to
find the best solution in how to improve their products and services.

5.Asses potential and likely effects on customers due to economic changes – Compared to the
foreign retailers the local Kenyan retailers would have a better chance on figuring out the
effects of increase or decrease on prices on the customers. For example, they could introduce a
customer service week where they interact with their customers hence get a chance to know
them well hence get a chance to improve service delivery thus get the edge on the foreign
retailers as well as maximizing profits.

(Reference: Eyre, E.C (1994). Mastering Basic Management page 59-62)

ii. With an aid of a diagram, discuss how a business manager can help his or her employees to satisfy
their needs though the Abraham Maslow’s hierarchy of human needs.

a) Physiological needs – These are the needs that we cannot do without and are basic to
continued existence such as food, shelter and clothing. A business manager should ensure that
there are places for drinking water, guarantee meals such as lunch to ease life for the
employees. He or she should also ensure that the business premise is sheltered from harsh
weather conditions. Uniform may also be issued to ensure equity among the employees. A
steady income should be ensured so as to allow the employees to cater for needs such as food
as well as rent. Satisfaction at this level will enable the employees to m0ove on to the next
level of hierarchy.
b) Safety needs – These are the needs associated with protection on the employee. A business
manager should ensure the business premises have adequate security measures such as hiring
security personnel as well as installation of C.C.T. V cameras hence prevent external threats.
The employees should also be ensured of a safe space to conduct their daily duties such as
ensuring gender equality as well as strict measures against harassment. They employees
should also be guaranteed of compensation in case of any layoffs. This will make all the
employees feel safeguarded and enable them to move up the hierarchy.
c) Love and belonging /Social needs – These needs often motivate one to enter and participate
actively in the social environment he or she is placed. A business manager should create a
conducive environment to interact with the employees; He or she should organize birthday
parties as well as anniversaries in order to allow the employees to interact socially and build
strong bonds among themselves hence giving them a sense of belonging.
d) Esteem needs – It includes self-discipline, self-respect, feeling confident and adequate. The
business manager should respect his or her employees and listen to suggestions given as well
as involving them in decision making. Employees should also be recognized for their
accomplishments and be promoted as well as a rise in salaries along with awards to celebrate
them. This will create a goal-oriented workplace hence enable employees to improve
themselves.
e) Self-actualization – This motivates one to seek and find what they are passionate about. The
business manager should organize regular talent planning meetings as well as career
discussions in order to enable the employees to grow in the areas they are more suited in. The
business managers should focus on the abilities and skills of employees so as to help them find
ways to advance their careers.
(Reference: Eyre, E.C (1994). Mastering Basic Management page 126 - 127)