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Unformatted text preview: FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS STUDENT NAME 1. ONG 2. NG STUDENT ID NUMBER SIN KANG 16WBR12561 SIN YEE 16WBR12197 3. ALAN TIONG YE 4. KUAN YUH HUI HUNG 16WBR12150 16WBR12166 BACHELOR OF BUSINESS (HONOURS) IN INTERNATIONAL BUSINESS TUTORIAL GROUP 1 RIN2 BBDM 2153 Operations Management BUSINESS PLAN TITLE: Business Report of Retail Outlet LECTURER: Mr Teh Seng Lye TUTOR: Ms Chong Chu Le SUBMISSION DATE: 23/7/2018 4445 MARKS AWARDED WORD COUNT Table Of Content No Title Pages 1 Introduction 2 Activity Description 1-2 3 Finding 3-5 1 3.1 Utilisation of space for equipment 3.2 Signage 3.3 Flow of information layout 3.4 Safer working condition layout 3.5 Customer/client interactions layout 3.6 Services-capes 3.7 Warehouse and storage layouts 4 Opinion 5-7 4.1 Utilisation of space for equipment 4.2 Signage 4.3 Flow of information layout 4.4 Safer working condition layout 4.5 Customer/client interactions layout 4.6 Services-capes 4.7 Warehouse and storage layouts 5 Recommendation 8-9 5.1 Utilization of space for equipment 5.2 Signage 5.3 Flow of Information Layout 5.4 Safer working condition layout 5.5 Customer/client interactions layout 5.6 Services-capes 5.7 Warehouse and storage layouts 6 Key success factor of location decision 6.1 Attractiveness of the location region/ 10-11 neighbouring shop 6.2 Labour talent, availability and cost 6.3 Physical Quantity 6.4 Competition in the area 6.5 Purchasing power of customer drawing area 7 conclusion 12 8 References 13-14 Executive Summary In this report, we will include our executive summary, Gantt chart, activity table, findings, opinion, recommendation, key success factor of location decision and conclusion. In the activity description, we are going to determine the product that the market most needed and segment the customer based on the factor, name of the shop, location, who will be our supplier and warehousing and layout. For the layout, we will decide and compare our current layout and own proposed retail layout based on utilization of space on equipment, signage, flow of information layout, safer working condition layout, customer layout, service cape. We will provide the overview layout plan in the next page. For the location decision, we are going to show you the attractiveness of location, out labour talent, availability and cost in the retail shop. Some of the physical quantity such as accessibility or parking will be included in this report. We will the virtual for you to observe the competition the area and purchasing power of customer. Picture and grant chart about the layout and location will be provided as a visual aid to let you have a closer look to our report. 1.0 Introduction As the head of the Operation Manager of SINA Company, we are pleased to hand over our project of establishing a new layout for our company. Since, the purpose of this project is to let our company retail shop working more smoothly and also convenience. We are choosing same retail shop that was 99 Speedmart as an example for our company. 99 Speedmart is one of the retail shop that had a successful result in Malaysia. After the research, we may get some idea or example to analyse the layout of our company. There will get some research on the market needs to keep the cost in minimum and also fulfil the customer satisfactions. So, we have the confidence that our company able to establish a new layout for our retail shop. In this report, we included our executive summary, Gantt chart, activity table, findings, opinion, recommendation, key success factor of location decision and conclusion. 2.0 Activity Description A) Determine Product We need to discover that what product that the most needed in market. We also have to do research on the customer preference to satisfy their wants. Hence, we need about 3 days to determine the product what we want to order. B) Customer Segmentation We will do research about the segmentation of customer. It can help us figure out that what age, gender and income group to enter the market. It will take about 7 days to do on segmentation of customer that we will more pay attention on which group. C) Select Name A correct name also is an important things for the retail shop. A good name can let the customer easy to remember it which also can attract more customer. It may take 5 days to choose a name and design a logo. This activity will start together with target of location. D) Target Location Location of retail shop must be selected in a strategy position which mean there have a lot of people and they also able to pay for the goods. Target location also will cause the cost of usage reduce or increase. We also will find the competitor that located at that place. This may take 4 days to complete it. This activity will start together with select retail shop name. 1 E) Resource Supplier When open a retail shop, we needed the resources such as goods to fulfil customer needs. So, a supplier become a character play important role in this business. We need 2 days to search about supplier which can provide quality goods to our shop. F) Store/Warehousing We also have to look for the store or a warehouse to save the surplus stock of the retail shop. This action is to search a place that must be dry to prevent stock rot. It will 2 days for this action. G) Layout The retail shop need a beautiful and comfortable layout to attract more customer. It also can increase the working capability of workers and staff. The layout also can bring convenience that either customers or workers. It may take 3 days to finish it. H) Product Pricing After find the competitor, we will do research on pricing which find out about the compete price of products or goods to get a suitable price for the customer. This activity maybe take 3 days to finish. This activity will start together with hire the staff. I) Hire Staff We will find staff or workers who are more experience to run the shop. It can help the retail shop to save the cost of training. It also can avoid the accident situation happen in the retail shop. This activity may take 3 days to done it. This activity will start together with the product pricing. J) Promotion7 We will do promotion of our retail sop by make advertisement thought the television programme, radio, newspaper and also website. We also will have a discount of 20% of all goods in retail shop for first 3 days. This promotions will take about 7 days to finish it. K) Last Preparation2 At the last few days of opening shop, we will start to check back the list of our stock, equipment and tools need to use. This preparation is to avoid or prevent there have something forget or missing when the opening day. This action will take about 2 days. 2 3.0 Finding 3.1 Utilisation of space for equipment Space utilization is a measure of whether and how space is being used. The utilization rate is a function of a frequency rate and an occupancy rate. (Space Management Group, 2018) Inside the layout of 99 Speedmart, the counter is set at the two sides of the door. Every customer go in and out will pass by the counter. In front of counters there are some space for the customers to queue up to pay. After pass by the counters, there are 7 vertical shelves and 4 horizontal selves are behind these 7 selves that are put different kind of food and beverages. At the right side of the vertical selves there are two refrigerators for beverages and one refrigerator for ice cream. At the left side of the counter, there are 4 vertical selves and 4 horizontal selves that are put daily necessities. 3.2 Signage Signage is generally defined as any kind of graphic display intended to convey information to an audience. (Octink, 2018) The logo of 99 Speedmart is a white color number 99 with green color background. Their company logo represents the shopping environment in 99, completes with trolley and doing their best to achieve 99 marks.(99 Speedmart, 2018) This can help customers identify the actual location of 99 Speedmart if they do not know where 99 Speedmart is. There is a “Keluar” signage above the door of 99 Speedmart, this is let staff and customer can identify where is the way to out if accident happen. Other than that, there is a store room behind the shelves that pass by the counter and the door have a signage stated “For staff only” and “No smoking”. 3.3 Flow of information layout The flow of the information needed during the input-throughput-output process. (IGI Global, 2018) There is some “non halal” label at the shelves that sell alcohol drinks. In 99 Speedmart, there are some products have price tag and some product do not have price tag. Although the products in 99 Speedmart had arranged according to categories but there is no signboard in front of the shelves so that customers need to find themselves. 3.4 Safer working condition layout The Occupational Safety and Health Administration sets general standards that apply to all industries, such as the requirement that workers be provided with safety gear and that 3 workplaces must be protected from toxic chemicals. (Chron, 2018) The staff should be provided by a safe working environment but 99 Speedmart do not have a safe working environment. In the 99 Speedmart, there are only one fire extinguisher at behind the counter and there is an umbrella on the fire extinguisher. This means that the staff is not pay attention on this. Besides that, there are many boxes and products are placed at between the shelves so that the space between two shelves become narrow. 3.5 Customer/client interactions layout Customer interactions layout link to the layout how to craft positive customers experiences while remaining your company culture (Hunter,2018). 99 Speedmart must know how to handle up the customers interactions by set up an excellent layout in order to maintain a good company’s image. Based on our observation, we found that 99 Speedmart have no an actual customer interactions layout. We can see that there is only provide two counter. Customer is very difficult to interact with the worker if there is something issues happen in the retailer shop or customer need to wait until the cashier finish their job. For example, sometimes customer need to ask about the product’s specific location need take a long time to get the service. Besides that, the space for queuing is also very narrow. This will cause the customer satisfaction drop immediately. 3.6 Services-capes Services-capes can be describe as the physical circumvention in which the accommodation is distributed and how the circumvention have a humanistic effect on customers and employees (Heizer and Render, 2017). By observation from 99 Speedmart, we had found that it have provide a ambient conditions in the shop. For example, we can fell relax and comfortable inside 99 Speedmart because it have provide the cool air conditioning especially in summer day. Other than that, we also can make sure there is no any uncomfortable smell and provide some popular song in the shop. According to the spatial layout and functionality, we found that 99 Speedmart make a good use of space for product and classify good with reasonable. However, they have a bad customer circulation path planning because there have a narrow space for walking. The aisle characteristics of 99 Speedmart is long but narrow. 3.7 Warehouse and storage layouts The purpose of the warehouse layout is to find the optimum trade-off between handling costs and costs associated with warehouse space (Heizer& Barry 2001). Normally, the task of the 4 management is maximize the utilization of the warehouse to maintain the lower material handling cost. Based on our observation, we found that the warehousing layouts of 99 Speedmart is locate behind of the shop. Based on our observation, we can see that the warehousing of 99 Speedmart is located in a good position because lorry can easy delivery item into warehouse. Other than that, we found that they warehousing is a little dirty and the environment inside was more dim. The temperature inside the warehouse also hot and not ventilation. 4.0 Opinion 4.1 Utilisation of space for equipment For the layout of 99 Speedmart, the space in front the counters should bigger because if the there are two lines of customers are queuing up to pay at counters then the customer that want to go in will feel narrow. The staffs put some chocolates and candies below the counters so that can attract customers when they are queuing up to pay at the counters. Sometimes, the staff will put some stock between the shelves so that the customers will also feel narrow when they walk over the corridor between the two selves. 4.2 Signage Typically, signage tends to serve a few common purposes: to promote, identify, provides information, and gives directions or to raise safety awareness. (Octink, 2018) The signage of 99 Speedmart should be more attractive or colourful so that can let the customer impress on the signage. The number 99 in the signage of 99 Speedmart is good because there are two circles below the number and it looks like a trolley. Although there are no trolley in 99 Speedmart but this can let customers know that they can buy many things in the speedmart. The signage at the door of the store room remind customer do not go in and remind staff do not smoke in the store room because there are many inflammable material in the store room like boxes, cooking oils and others. 4.3 Flow of information layout The flow of information layout of 99 Speedmart is actually only a few. 99 Speedmart should add more information layout in their shop for customer. Not every products in 99 Speedmart have the price tag so customer need to take the product go to counter ask the staff 5 for the price if the product do not have price tag. Although the products in 99 Speedmart is arranged by according to categories of the products but they should state signboard before the shelves so that customer can find the products faster. 4.4 Safer working condition layout Employers can create good working conditions by addressing difficulties proactively, disciplining perpetrators of discrimination before they reach the point where an employee is driven to file a complaint. (Chron, 2018). This 99 Speed mart do not have a safety working condition. They should not place the boxes and products between two selves and the space become narrow, this will block the road to exit the shop if accident happen. The boxes that placed between the shelves actually very danger because it is inflammable material so that they should place inside the store room or recycle after finish arrange the products. The fire extinguisher in 99 Speedmart should add more because it is not enough in a shop especially there are many inflammable material in the shop. 4.5 Customer/client interactions layout In our opinion, 99 Speedmart can do a customer service counter to make sure customer can solve the problem of get their want. Besides, customer satisfaction will increase due to 99 Speedmart provide a better customer service because people expect more pleasant, personalized interactions with companies, and they want to feel positive about the way they are treated.. Nearly 100 percent of the surveyed shoppers said a great experience makes them more likely to buy more of a product or repeat a service (Chrad, B 2011). This statement approved that customer always looking for a good service and they also make a competition between the retailer shops. So, they must look important to the customer interactions layout. Other than that, the layout for queuing for 99 Speedmart can also make some changes. Refer to figure 1, 99 Speedmart can set up a wide layout for customer queuing to improve the customer satisfaction. 4.6 Services-capes In our opinion, the purpose of the services-capes model is to explain behavior of people within the service environment with a view to designing environments that accomplish organizational goals in terms of achieving desired behavioral responses (Elsevier, 1999). So, 99 speed mart do well with provide a comfortable environment to customer. The temperature is always cool and enjoyable inside the shop. But, they need do a lot effort to improve their 6 environment cleaning especially for their product. Customer is always looking for clean product. For example, the product like soft drink, cookies, and snacks. However, they also need improve spatial layout and functionality. Even though they have categories well the product, but some product is difficult to find it out in a short time. They have a very bad customer circulation path planning. Refer to figure 2, we can see that the walking space is full with the boxes and this cause a lot of inconvenience. 4.7 Warehouse and storage layouts In our opinion, the 99 speedmart have do a good location of warehouse which is behind the shop. They can refuse the stock immediately from their storage if they sold out the product. But, the clean of the storage must be improve. They also can fully utilize the storage space by setting a new layout which can store more goods. We think the temperature in the storage is very important to keep some of the product in a good condition. For example, milk, sugar, and candy. Other than that, 99 speedmart also need to improve their lighting inside the storage. A good lighting in a storage can make the worker easy to take the stock and create an effective and efficiency workforce. Warehouse management system can optimize your inventory in terms of storage and the amount of labour you use to keep your operations running. 99 speedmart must create a good management system in order to saving a handling costs. 7 5.0 Recommendation 5.1 Utilization of space for equipment In our shop, we will also place two counters at the two side of the door. After pass by the counter, we will have the shelves which we put the products that according to the categories of the products so that customer can compare the products that same categories in one place. For example, we will have separate the categories in food and beverages, daily necessities, small tools and others. We will also put some small products such as chocolates, sweets and candies below the counter, this can attract customer when they are queuing up to pay at the counter. We will place three refrigerators for beverages and one refrigerator for ice cream and frozen food. 5.2 Signage Signage is important for customer to identify our shop and for the directive in our shop. We will have a logo that is our company name “SINA” with white color font and rainbow color background. This will attract customer and customer can identify our shop logo easily. We will also have “Keluar” or “Exit” label above the door to let the staff and customer know where the exit is. There will have a label of “no smoking” at our main door and store room door to remind staff and customer do not smoke in our shop because we have many boxes and inflammable material in our shop and store room. 5.3 Flow of Information Layout For information layout of our shop, we will state the signboard of categories in front of the shelves so that customer can find the products that they want to buy easily. We will label the price tag on every products or at the shelves to let customer know the price and no need ask the staff at the counter. We will also state the label of “non-halal” clearly at the products that non-halal like pork and alcohol drinks. At the counter, we will have a signboard that state our shop collect cash and also credit card and debit card. This will make customer more convenience if they do not have cash. 5.4 Safer working condition layout Employer should create a good and safe working environment for the employees, this will increase the working efficiency. We will prepare two or three fire extinguisher in our shop and place it at the place that easy to take and use when accident happen. We will ask the staff cannot smoke in the shop to make sure fire disaster do not happen...
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