strategic analysis..vegetable

7/27/2019 ...strategic analysis..vegetable

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Chapter I

Introduction

1.1About the companyIn a country where agriculture is underrated, a new business organization namely Nepal

Kareshabari and Research Center Pvt. Ltd. (NKRC) was established with a mission

statementGreen vegetables to all. The business first came into operation from

7th

Baishak, 2069 and since then it has been able to keep up with the market as the first

exclusive vegetable retail chain in the entire country. It has got its corporate office

situated at lokanthali, Bhaktapur. The firm was initially set up by two fresh MBA

graduates; Ram Raj Acharya and SushilAryal who worked together to manage and

develop the market for the business. Later, the success of the firm invited two more new

partners; Purnabahadur Palpali Khadka and KeshowrAcharya. At the moment, NKRC is

the only private initiative concerned with retail vegetable market in Nepal.

Apparently, the consumers were paying higher prices for the vegetables as it was the only

option for them. Yet, the farmers werent receiving satisfactory pricing for their products

and were compelled to accept lower prices for the products they were producing.

Nevertheless, the establishment of NKRC focused on creating a much healthier

competition in the vegetable market. As such, NKRC carries a very unique proposition

that is; it emphasizes only in selling vegetables. Although the business was established

primarily with a view of boosting the supply of vegetables within the valley by

facilitating retail business under one roof, the main aim was to provide market access to

the farmers and general consumers with reasonable price.

NKRC started up its operation with 5 retail outlets which were sited around Bhaktapur

district. However, after receiving the government support through self-entrepreneur loan,

NKRC decided to enter a wider market in Kathmandu district from 16th

Ashard, 2069. At

present, the business has 10 retail outlets in total around Kathmandu and Bhaktapur

district. The business had its initial turnover of Rs.1500 per outlet with the flow of 200


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customers daily on average. This number had been gradually increased to the annual

turnover of Rs.90000 (6000-13000 per day) on average within two months of operation.

The business has been very successful since its establishment and it has been providing

opportunities to 16 employees including the 4 partners.

Furthermore, various plans of expansion is in the process which includes setting up 9

more additional outlets within the valley and increasing the flow of customers by 200 per

day in near future. According to their calculation, there has been an ongoing increment in

the supply of vegetables that is worth Rs. 90,000 per day after the business came into its

operation. The main features of Kareshabari and Research center are listed below:

Largest vegetable market promoted by private sector in Nepal. Comparatively less expensive, fresh and quality vegetable available in the market. Vegetables price list facility is available in every retail outlet to make the price

competitive in a transparent manner.

Nearly 100 meter far from the Ring road with wider road Digital calculation system Proper sanitary management of the store

1.2Present Scenario

Vegetables (tarkaari) are one of the most important foods in the daily Nepali diet, and a

typical Nepali meal consists of rice, lentils, and some kind of side vegetable dish. The

most common vegetables include green beans, cauliflowers, cabbage, eggplants, greens

(mustard, spinach), okra, potatoes, Nepali radish, squash, tomatoes and many other

seasonal local vegetables.

Nepal has diverse agro-ecological zones. This is very rare in the world that within 50km

sq land area, we have mountains, hills and plane land. So in every season, we can

produce and export different off-season vegetables and niche vegetables. Nepal produces

vegetables worth Rs 45 billion annually, according to Nepal Vegetable Crops Survey

2009-10 and, Rs 9 billion is invested in vegetable farming every year. The report says

that vegetables are cultivated in 232,295 hectares of land in the country and around 70


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percent of Nepals total household is involved in vegetable farming, producing 2.82

million ton of vegetable. However, of the total vegetable farmers, only 18 percent are

engaged in commercial farming.

We can see on many street corners, vendors set up small stands with the fresh fruits and

vegetables. The vegetables are sold in the markets weighted in a hand-held local scale,

known as taraaju, which comes in a variety of sizes and forms. Measurements are done

in kilograms. Most Nepali households do not used store vegetables, so they are bought

fresh every day. During the peak season, we also can see a local farmer balancing a

bamboo pole across his shoulders, holding two wicker woven baskets full of freshly

picked vegetables, heading to the market.

But nowadays there is change in buying behavior of a consumer. Customer want easy in

access and less bargaining as compared to earlier period. Shopping the vegetable in retail

stores, malls and department stores is now a fashion and passion for high end customers

in urban areas. The trend is on the rise. The biggest supermarket chain in the country --

Bhatbhateni -- and other big malls have spaces for vegetable and other agro products.

This shows the demand of quality vegetables and agro products has increased in the latest

days. At present, the market of vegetable products has been limited to the Haat Bazar

(weekly market).But if government can truly commercialize this sector it could add valueto our agriculture sector as well as retail market of vegetable products.

1.3Mission, Vision and Corporate Social ResponsibilityMission

Our mission is to become leading vegetable retail chain in Nepal through the use of

advance technology by utilizing resources optimally and taking care of customers

satisfaction with the help of motivated and dynamic employees while operating in

ecologically sound environment.

Vision

Fresh vegetables to all


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Corporate Social Responsibility

Company has multiple responsibilities to maintain. Corporate social responsibility is the

continuous commitment of a firm toward its stakeholder. And Karesabari consider four

type of social commitment:

Economic responsibility: Karesabari is able to fulfill its good financialresponsibility to its shareholder by giving them good returns.

Legal responsibility: Karesabari is able to fulfill its legal responsibility by payingregular tax to the government.

Ethical Responsibility: Karesabari is able to fulfill its ethical responsibility byoffering quality and fresh vegetables at fair price to the customer, paying fair

wages to its employee regularly.

Philanthropic Responsibility: Being small scale business it has not been able tofulfill its philanthropic responsibilities.


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Chapter II

External Assessment

2.1 Porters five forces model

For any organization to survive it needs to understand and cope with the competition.

Often, however, managers define competition too narrowly, as if it occurred only among

todays direct competitors. Yet competition for profits goes beyond established industry

rivals to include four other competitive forces as well: customers, suppliers, potential

entrants, and substitute products. The extended rivalry that results from all five forces

defines an industrys structure and shapes the nature of competitive interaction within an

industry. An analysis of the structure of the industry should be undertaken in order to find

effective sources of competitive advantage. Therefore, in order to analyze the competitive

environment of Karesabari, Porters five forces analysis of Karesabari is as follows:

Threat of substitute products

There are fewer products that can replace the vegetable items. One substituteproduct could be meat but it is regarded as occasional food item in Nepal.

Substitutes like meat have higher price compared to items of grocery. The switching cost is high i.e. switching to other products like meat is expensive

and not affordable in daily life.

Overall threat of substitute product is low

Threat of entry of new competitors

New entrants to an industry bring new capacity and a desire to gain market share that puts

pressure on prices, costs, and the rate of investment necessary to compete. Particularly

when new entrants are diversifying from other markets, they can leverage existing

capabilities and cash flows to shake up competition.

Less investment to start the business.


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No such strict authorization from local government is needed. No such loyal customers are found as switching cost is low and there is no one

such market leader, so demand side benefit of scale is low.

Overall threat of new entry is high

Bargaining power of buyers

Powerful customersthe flip side of powerful supplierscan capture more value by

forcing down prices, demanding better quality or more service (thereby driving up costs),

and generally playing industry participants off against one another, all at the expense of

industry profitability.

The number of buyer is high. Products are not differentiated and are less standardized. Switching cost is low as there are a number of grocery stores and loyalty is low. Customers are attracted towards the low prices so keeping them intact with one

vendor is difficult.

Overall bargaining power of buyer is high

Bargaining power of suppliers

Suppliers capture more value for themselves by charging the higher price, limiting the

quality of supplies or by shifting the cost to the industry participant.

The numbers of suppliers is greater in number. Less differentiated products Suppliers depend heavily on the grocery industry for profitability. Switching cost in suppliers is low as there are numerous suppliers available within

and outside the Kathmandu valley.

Possibility of forward integration is less.Overall bargaining power of supplier is low


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Intensity of competitive rivalry

Rivalry may take many forms including price discounts, new product introduction,

service improvement and alike.

Competitors are roughly equal in size and there is also no particular market leaderin vegetable retail.

Competition is mostly price based as customers are price sensitive and the productis perishable that should be sold within a limited time frame.

All the rivals are in the same direction i.e. price competitiveness Less exit barriers

Overall intensity of rivalry is high

So let us sum up the Porters five force model through this figure;

Figure 1: Porter's five forces model


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2.2 PESTEL Analysis

Political Factor

Political factors are basically to what degree the government intervenes in the economy.As the business of Karesabari is of small scale the change in the political ideology has

less impact in its business environment. The political system of Nepal is unstable there is

situation of uncertainty. Often the Banda and strikes created by the conflict of political

parties highly influence the regular demand and supply of the vegetable business of

Karesabari. During such situation the perishability nature of business makes it even

harder. Moreover the politics within the supplying place like Kalimati also has

considerable effect as this directly affects the reach to the wholesaler.

Economical Factor

In 2012, the GDP of Nepal was 4.63% but in 2013 GDP decreased to 3.56%.

The inflation rate of 2012 increased to 8.3% due to this price of goods also increased and

in 2013 it is recorded to be 9.99%. This decrease in GDP and increase in inflation rate

affects the customers purchasing behavior which directly and indirectly hampers the

business of Karesabari. As we know Nepal's economic condition is critical and 23.8% of

the total population are under poverty due to this people having low standard of living are

mainly affected. The lesser the consumption of goods the lesser will be the sales which

had negative impact on its business as well as economy of the country. Having said this

remittance is increasing and peoples consumption pattern is in increasing trend which

has some positive signal for the firm like Karesabari. For instance due to the huge rise in

price of onion has decreased its consumption

Social factor

The change in purchasing behavior of the customer would lead the positive/negative

impact for the company. People want healthy and fresh vegetables which some chunks of

people do not find in the street vendors. Karesabari have somehow tried to establish its

brand by giving the stores name Karesabari with green and yellow color board because
http://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Government


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people now a days believe on brand and quality. Also the service provided by the store

makes its different from its competitors. Larger chunk of people are shifting towards the

middle level whose perception of having better and hygienic food is increasing.

Moreover more orientation of consumers towards being hygienic and demonstration

effect of being vegetarian also have positive impact on purchasing pattern. Pressure

group has increased.

Technological factor

Karesabari has changed the traditional techniques of weighing which was Taraju and

Dhak. The use of electronic weighing machine makes it different from its competitors.

Also the look of the store is different. Vegetables are kept in a table in a rectangular

manner with the front part open for the customers to select the goods by taking a round

throughout. Thus the ease of shopping and accuracy of weighing makes it popular among

the customers.

Environmental factor

It is the important factor that needs to be considered because both company and its

surroundings can be affected from loss. A company should not only focus to increase its

profit but also have a look into its surrounding whether it is being affected by them or

not. If we talk about the store then the store is green and it has a website with its home

page in green color. Through this the company wants to give a fresh and healthy feeling

as green color is referred to clean environment. The company has also tried to reduce the

use of plastic bags by offering the customers a cloth bag. Likely, environmental factors

like the outburst of bird flu has helped the vegetable retailer as the price of meat products

has gone up and people are switching more towards the vegetable. These efforts are

somehow impressive to become ecological as a company.

Legal factor

Legal factors include discrimination law, consumer law, antitrust law, employment law,

and health and safety law. It includes the government tax policies, tariffs, quotas on

specified goods. These factors can affect how a company operates, its costs, and the
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2.4 Strategic Group Mapping

Strategic Group Mapping is analytical tool used for showing the different markets of

competitive positions that rival firm occupy in the industry. It is very important to

analyze the industrys competitive structure and identify the strategic groups.

Four strategic groups were identified namely Karesabari, Kalimati and other vegetable

market, Street vendors and department and grocery stores. Questionnaire were distributed

to 30 customers of different places as the result showed that they considered price and

quality as the most important key success factors. On the basis of these key success

factors strategic group mapping is shown below.

Figure 3: Strategic Group Mapping

From the above Strategic group mapping we can see that the major competitor of

Karesabari is department and grocery stores. So, it should closely observe the moves of

department and grocery stores to be competitive in the market as their activities will

directly affect Karesabari.


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Chapter III

Internal Assessment

Firms, regardless of nature, analyze the surroundings are supposed to be the successful.

Basically, internal as well as external environments are equally important to analyze and

diagnose in order to fit and fix the firm in the dynamic scenario. While talking about the

internal environments, those factors and forces which affect the doing of business are

taken as the internal environments. Knowing the internal facts and figures is really

valuable in the sense that it gives the insights about the firms strengths and weakness. At

the same time, it also gives the answer to the question where should firm move.

There are so many tools and techniques to analyze the internal environments. Our

business is all about the retail chain of vegetables, thus, as per the business nature,

Resource Based View (RBV) and Value Chain Analysis (VCA) will be the most effective

tools for the investigation of the internal part.

3.1 Value Chain Analysis

Value chain describes a way of looking at a business as a chain of activities that

transform inputs into outputs that creates the value to the customers.

Figure 4: Value chain analysis


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Primary activities

Karesabarisprimary activities start from research and development activity. In this part

Karesabari, normally, conduct those activities which are really necessary to implement

the basic activities of the business. Following are the basic activities:

a. Research and DevelopmentThe first and foremost point of different from the competitors is R&D activities.

Karesabari always observe and analyse the market opportunities and threats via formal

and informal research activities. In the formal process, Karesabari gives the R&D

activities to the interested group outside the organisation like college students and other

professional group. On the other hand, in informal process, Karesabari go through

various reports, publications, observations and some other tools.

b. Inbound logisticThe main inbound items are green vegetables. In the process of sound and smooth

inbound logistic management Karesabari follow two approaches. First, Karesabari try to

buy the required vegetables directly from the farmers. The main intention of this

approach is to reduce the middle men and the unnecessary costs. Second approach is to

buy from the retail wholesale market like Kalimati and other local markets. The basicintention of this approach is to assure the smooth flow of vegetables. Whenever possible,

Karesabari try to buy vegetables from the direct farmers.

c. OperationIn operation the activities range from placing the vegetables in the store to arrange the

required resources. Placing the vegetables, sorting the damage pieces, supplying the

vegetables in the different stores and pricing the products, are the major operational

activities that is performed in the course of the business.

d. Outbound logisticIn this process Karesabari takes order from the customers, process the orders, deliver the

order and manage the cash. So far, Karesabari is not following the home delivery system,


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thus, customers come to the store and they take the products from there. That is why;

Karesabari mainly focus on the order receiving and deliver of the order.

e. MarketingBy nature, Karesabari need not to invest huge investment in the marketing activities but

we should not ignore the customer to let us know. As of today, Karesabari is marketing

the company and products via indirect way. It is promoting through magazines and public

cry out system.

f. ServiceIt is quite difficult to provide the after sales services to the customers. Karesabari is trying

making our customer satisfied by maintaining friendly relation; it is updating the

customers about the current market scenario.

Secondary activities

Those activities which are supportive to the business are taken as the secondary activities.

In this case following are the secondary activities.

a. ProcurementKaresabari purchases the vegetables, assets, raw materials, and other required supplies

from the suppliers to assure the smooth operation of the business.

b. Information management systemKaresabari do not have resourceful MIS. It has online portal to aware the stakeholders

about the company and products.

c.

Human resource management.

Karesabari has highly motivated and satisfied human resources. At the same time,

Karesabari always try to upgrade them via various training and development activities.

d. Infrastructure


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Right now Karesabari have moderate level of infrastructure. Due to the customer friendly

decoration, customer can see almost all vegetables from the entry gate. Similarly, we are

trying to enrich the level of infrastructure so as to meet the customer flow.

The main concern in the vale chain system is to satisfy the customer by the generating

unique values. Karesabari is trying to generate the profit by adding values to the all

stakeholders.

3.2 Resource Based View

Resource Based View(RBV)approach to competitive advantage contends that internal

resource are more important for a firm than external factors in achieving sustaining

competitive advantages.RBV of the firm provides a rigorous model for analyzing firm's

strengths and weakness. As for Karesabari is concerned analyzing and evaluating its

resources helps us to find out our core competencies and gain competitive advantage

among our competitors. Basically, internal resources include human resource, technical

know-how, marketing, operational, MIS and production.

RBV is analyzed through three basic categories: Tangible resources, Intangible resources

and Company capabilities.

Tangible Resources

Wide variety of products: Organic and other Well-equipped office and outlets Favorable location Low cost of capital and full utilization of capital

Intangible Resources

Expert and educated investors Simple and formal organization structure Use of corporate color green which give the feeling offreshness Good corporate image


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Positioning by creating image of freshness and green vegetable Reliable source of suppliers Highly satisfied and motivated workforce

Company capabilities

Low cost of capital as compared to competitors by acquiring goods throughreduction large distribution channel

Low price as compared to competitors High quality customer service Possible technical and operational collaboration with malls

3.3 SWOT Analysis

The analysis of SWOT of Karesabari is done so that it will be known what are the

strengths and weakness of the firm along with the opportunities it is having with the

possible threats. This analysis along with the SWOT analysis diagram presented below

will help to know the strengths that Karesabari has to exploit the opportunities and the

possible threats that may come along due to its weakness.

Strength (S)

Loyal human resource who are ready to work in minimum facilities Technology use i.e. electronic weighing machine ensuring that customers get the

exact weight and use of website to inform the customers

Corporate image of being freshness, charging reasonable price Competitive price i.e. Karesabari has low cost vegetables Dynamic team of investors Direct contact with farmer i.e. supplier adding to the cost competitiveness and

freshness


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Weakness (W)

Financial position is weak which has resulted in less number of outlets. The layout of the store is congested Documentation of the financial matter has not been done Less promotional work and poor utilization of webpage

Opportunities (O)

Consumers consciousness towards hygienic and fresh vegetable is increasing Popularity is growing so there is chances of getting new customers Opportunity for e-portal shopping using the existing web page and possibility of

adding home delivery

Threat (T)

Large number of competitors competing for the customers Low customer loyalty due to low switching cost Concentration of outlets in Baneshwor and Bhaktapur area making it chances of

overlooking the other market

Uncertainty in transportation due to banda, strikes, jams, thereby resulting inuntimely delivery of the goods affecting the perish ability of the product.

After having the SWOT analysis, series of managerial discussion takes place which

becomes the insightful place for discussion and information sharing which will help to

improve the quality of choices and decisions managers can make. This diagram helps the

manager to identify one of the four distinct patterns in the match between firms internal


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resources and external situations.

Figure 5: SWOT analysis diagram

Seeing the SWOT analysis of Karesabari and analyzing with the diagram it falls in the

quadrant of having numerous environmental opportunities and having substantial internal

strength which gives Karesabari the option of aggressive strategy which could be vertical

integration, horizontal integration, Market concentration and Market development. Since

Karesabari does not have much substantial strength but numerous opportunities,

Karesabari will vie for concentrated growth.

3.4 Internal Factor Evaluation Matrix

Internal Factor Evaluation Matrix is strategic management tool for auditing of evaluating

major internal strengths and internal weakness in functional areas of an organization.

Internal Factor Evaluation Matrix of Karesabari is shown below.


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Figure 6: IFE matrix

As from the matrix above we can see the weighted score is 2.63 which show that

Karesabari has strong internal position and it can formulate the strategies as per it.


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Chapter IV

Strategic Analysis and Choice

4.1 Porters Five Generic Strategies

Any organisation before formulating the long term strategy, should know how it will

compete in the market. For that generic strategies needs to be formulated so that they can

have competitive advantage and sustain in the environment .Any organisation can use

any of the strategies or combination of strategies if firm is in multibusiness, as mentioned

below.

Striving for the overall cost leadership Create and market unique products for varied customer group through

differentiation

Have special appeal to one or more groups of consumers or industrial buyers,foocusing on their cost or differentiation concerns.

Let us see the Porters generic strategy and what Karesabari is doing to compete in the

market through the below matrix.

Figure 7: Porter's five generic strategies


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From the above figure we can say that Karesabari is currently adopting the differentiation

strategy and catering the broad range of customers through different outlets. But the

competition is getting severe and competition is on price due to which Karesabari will

have to compete to be the cost leader also which will ultimately take it towards being the

best cost provider in the long run.

4.2 Grand Strategy Cluster Matrix

Often firm comes across with the question on what to do next when they grow over the

period of time. Karesabari also has been in such situation on which strategy to employ so

that they will be in better position than now. For this dilemma Grand Strategy cluster is

useful which is defined in terms of growth rate of the general market and the firms

competitive position in the market. With this four quadrants are possible as:

Strong competitive position in a rapidly growing market Weak position in rapidly growing market Weak position in a slow growth market Strong position in a slow-growth market

Talking about Karesabari on what it should peruse it falls in the quadrant of strong

competitive position with rapid market growth as illustrated in the figure below.

Figure 8: Grand Strategy Cluster Matrix


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It is because Vegetable market is growing and Karesabari has financial and process

competency to fall in the quadrant as mentioned above and pursue concentrated growth in

future too.

4.3 Internal External Matrix

Figure 9: Internal External Matrix

After doing internal evaluation matrix and external evaluation matrix we got the total

weighted score from these matrices which help us to locate where we fall in the Internal

External matrix. In this case the EFE total weighted score is 3.2 and that of IFE is 2.63.

When these two scores are plotted in IE matrix Karesabari falls in second cell as

represented by circle in the above IE matrix. It shows that Karesabari needs to adopt

grow and build strategy. Karesabari needs to adopt concentrated growth or market

development but concentrated growth will be the best option as Karesabari have

numerous opportunities and strength that can utilize those opportunities.


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4.4 Quantitative Strategic Planning Matrix

This technique helps to clear the confusion and makes it able to choose from the

alternatives of strategies. This tool allows strategists to evaluate alternative strategies

objectively, based on previously identified external and internal critical success factors.

Quantitative Strategic Planning Matrix of Karesabari is shown below.

Figure 10: Quantitative Strategic Planning Matrix

From the initial period there was the dilemma of whether choosing concentration growth

or market development. Result supports concentrated growth over market development as

total attractiveness score of concentrated growth is higher than market development.


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Chapter V

Strategic Implementation and Control

5.1 Organizational Structure

Karesabari currently has five investors who are in Board of Director. The firm has one

chairman and under him is one Chief Executive Officer and under him there are four

functional manager namely Holistic Manager, Purchase/Operation Manager and Human

Resource/ Finance Manager. And twelve employees are working under three functional

managers. Right now Karesabari is pursuing the Functional Structure as it is

concentrating in definite geographical area and few numbers of stores. Since it is a small

company the functional structure suits the best for its current strategy of concentrated

growth. Karesabari in short period of time not grabbing another near strategy which is

market development should maintain its functional structure currently. If it gets stronger

in financial term and is capable of expanding to far geographic region then it must slowly

pursue the Divisional structure by geographic area.

Figure 11: Organizational Structure


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5.2 Matching strategy with organization culture

The core culture of Karesabari directly supports the company mission. The quality

service has become a deep rooted culture among all the employees. And Karesabari is

continuously following its strong culture since its establishment period.

Away from that, the culture of predefined roles and responsibilities helps in minimizing

the probable conflict appearing among the employees. Since in Karesabari there is little

change required to implement the strategy of concentrated growth, the compatibility of

existing culture with the new strategy greatly resembles. Hence, Karesabari needs

implement synergistic culture.

Figure 12: Matching strategy with organization culture

5.3 Matching Leadership with Strategy

Every organization needs a leader (and preferably several leaders) to "show the way" to

others as the organization strives to define and achieve its goals. At Karesabari the three

investors are equally enthusiastic and self-motivating. The main work of leaders here is to

instill a sense of purpose and passion to the work that the organization undertakes. The

performance of leaders in Karesabari is very satisfactory. A strong blend of knowledge,


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skill, capabilities and creativity of the leaders of Karesabari has proved to be very

effective for the company. Right now Karesabari must concentrate in penetrating the

current market more effectively therefore changes required to implement this strategy are

few. Karesabari needs to maintain its current leadership style and go with stability.

Figure 13: Matching Leadership with Strategy

5.4 Short term objectives and Functional tactics

Short Term Objectives

Formulating only long term objectives will not do much of the work. In order to achieve

and comply with the long term objectives short term objectives have to be developed.

These objectives are designed to be achieved within 10 months period. Following are the

list of short term objectives:

To increase the number of outlets from 10 to 15 To increase the number of customer from 100 to 200 through the use of

promotional activities

To provide better service to customer by increasing the number of trainedemployees from 12 to 29

To advance with the IT by decorating and maintaining the website.


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Functional Tactics

As soon as short term objectives are made they need to be translated to functional tactics

which are the routine works that needs to be done so that short terms objectives can be

obtained in a concrete manner. Some of the specific functional tactics Karesabari is doing

are:

Tie up with Jyoti Group for the functional and operational management. For customers retention and attracting new customersproviding membership

card to the customers, offering some goods/service to those customers who buys

beyond the limit of Rs.500.

Flyer, Pamphlets and social network will be used for grabbing customer attention. Home page of the website will be made attractive which will include updated

price list of the vegetables.

So, with the functional tactics in place, there will be need for the control mechanism so

that the implementation of the strategy will be in the right direction. Control mechanism

will ensure that we do not deviate from the strategy that is being implemented. Feedback

will be taken on how the activities are being done to be intact with the strategy.


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Chapter VI

Conclusion

Karesabari is one of the first of its kind in vegetable retail vegetable store started by the

private sector. With the vegetable market growing and the consumer consciousness in

having fresh and hygienic vegetable the prospect of the market seems to be very

promising. With the mission to be the leading vegetable retail store and vision of fresh

vegetables to all, Karesabari has been fulfilling its promise in socially responsible

manner. Through the Porters five force model it seems that the competitive situation is

very fierce due to which differentiation is necessary and the margin is decreasing. The

environment seems to be much confusing due to the instability in the political scenario.But due to the strength of Karesabari it has been able to cope with the opportunities that

have come in the way.

As per internal analysis it was seen that Karesabari has internal resources that can help to

overcome its weakness and pursue concentrated growth strategy which will help it to

cater the larger base of customer. In case of strategic it adopts the differentiation strategy

which is a sound strategy for the time being but as the number of outlets will increase and

more competition will be on price it should also look for the cost leadership and the

combination of these strategies will make it even more competitive in the market. Also

organization culture leadership and structure are in synchronization with the current

strategy but they will have to be reviewed as the concentration will occur in the coming

periods.

From all these we can say is the vegetable retail market is growing, is facing stiff

competition and Karesabari is doing good and needs to closely watch the competitors

move opt for concentrated growth strategy to be more visible in the market and satisfy

more consumers.


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List of figures

Figure 1: Porter's five forces model 7

Figure 2: EFE matrix 10Figure 3: Strategic Group Mapping 11Figure 4: Value chain analysis 12Figure 5: SWOT analysis diagram 18Figure 6: IFE matrix 19Figure 7: Porter's five generic strategies 20Figure 8: Grand Strategy Cluster Matrix 21Figure 9: Internal External Matrix 22Figure 10: Quantitative Strategic Planning Matrix 23Figure 11: Organizational Structure 24Figure 12: Matching strategy with organization culture 25Figure 13: Matching Leadership with Strategy 26


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Table of Content

Chapter I 1

Introduction 11.1 About the company 11.2 Present Scenario 21.3 Mission, Vision and Corporate Social Responsibility 3

Chapter II 5External Assessment 5

2.1 Porters five forces model 52.2 PESTEL Analysis 82.3 External Factor Evaluation Matrix 102.4 Strategic Group Mapping 11

Chapter III 12Internal Assessment 12

3.1 Value Chain Analysis 123.2 Resource Based View 15

3.3 SWOT Analysis 163.4 Internal Factor Evaluation Matrix 18

Chapter IV 20Strategic Analysis and Choice 20


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4.1 Porters Five Generic Strategies 204.2 Grand Strategy Cluster Matrix 214.3 Internal External Matrix 224.4 Quantitative Strategic Planning Matrix 23

Chapter V 24Strategic Implementation and Control 24

5.1 Organizational Structure 245.2 Matching strategy with organization culture 255.3 Matching Leadership with Strategy 255.4 Short term objectives and Functional tactics 26

strategic analysis..vegetable

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