Clinical Operations Analysis Of A Lagos Based Supermarket

2899 words - 12 pages

CLINICAL ANALYSIS OF A SMALL SCALE BUSINESS VENTURE:
BLENCO SUPERMARKET.

Vision “Grow Blenco to be the next big thing ahead of Shoprite in Nigeria”

Mission “Making high quality goods available to satisfy customer needs and striving to effectively deliver customer support services”

BY GROUP FIVE:
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3rd December, 2010
INTRODUCTION:

The retail food sector in Nigeria consists of supermarkets, convenience stores/small groceries and traditional open air markets.

Blenco Supermarket is a ...view middle of the document...

BUSINESS DESCRIPTION:

Over the years, the business has been focused on customer satisfaction. Management has always ensured that products are available in the market place, and when a customer places a request, it is made available to the customers conveniently, ensuring high level of customer satisfaction.
With no documented vision and mission statements, the team deduced these statements from the interviews conducted with the CEO.

Vision: “Grow Blenco to be the next big thing ahead of Shoprite in Nigeria”

The mission was inferred and highlighted in the statement below

Mission: “Making high quality goods available to satisfy customer needs and striving to effectively deliver customer support services”

NIGERIA’S RETAIL FOOD SECTOR:

The retail food sector in Nigeria consisted of supermarkets, convenience stores/small groceries and traditional open air markets (See Exhibit 2).

Supermarkets: existed since the colonial days when large British-owned conglomerates dominated the economic landscape of Nigeria with diverse business operations, including grocery retailing. These supermarkets, typically located on Lagos Island, stocked foreign goods and catered to many expatriate communities in Lagos. Few Nigerians patronized the supermarkets.

Nigeria’s independence in 1960 saw the gradual decline in the number of British owned organizations. The dominance of the British owned stores like UTC (United Trading Comapy) and Kingsway Stores (owned by UAC (United African Companies) soon ended with the introduction of Leventis stores (Greek), CFAO (French), Bhojsons (Indian) and Domino (Nigerian) in the late 1970s.

The late 80s and early 90s saw a dramatic change in the industry with the introduction of new players such as Park n Shop, Goodies, Ace Supermarket.

South African retailer Shoprite has opened its first store at the end of 2005 in Lagos at The Palms Shopping Mall and is looking to play a major role in formalizing the country's FMCG sector (See Exhibit 3). This year, Lebanese owned Park and shop partnered with Spar “the world’s largest retail chain” to bring a super market to the Lekki- Ajah axis

Convenience Stores: These are small stores usually located near residential areas or at gas stations occupying small kiosks or stalls. They served all markets but varieties of goods sold were small and usually limited to fast moving goods.

Open markets: One of the main shopping outlets in Nigeria is the traditional open market where good are exchanged through a process of haggling. Due to the ad hoc nature of this process for arriving at the sales price, prices varied widely from market to market. For example in cases where seller recognized the buyer’s experience with the market and/or lack of knowledge of current market prices, goods were initially priced higher. The buyer would then “offer” a lower price he felt comfortable paying. The transaction could be concluded if the seller agreed on the last offer made,...

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