Investment optimization in the large format of the retail business
This is a guest article contributed by ABBS, Acharya’s Bangalore Business School. Feel free to share and discuss your opinions about it.
The retail industry is confronted with unprecedented change. Economic turmoil and technological advances are combining to reshape the retail landscape faster than some retailers are able to react. Today’s customers have vastly different and sophisticated expectations of product, service, value and environment than few years ago.
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An organization needs an end-to-end view of the entire supply chain to improve processes and control inventory. Only if the retailer knows its supply chain at the root level, can it reduce inventory costs while maintaining/improving its service level. Hence, it is imperative to ensure that any attempt to reduce inventory is in harmony with the organization’s vision and strategy. The investment in the retail business has been a challenge in itself.
The key Investment areas for retail business are:
Large format of the retail business requires huge infrastructure to accommodate the operation. It certainly requires an efficient space audit on the periodic basis to ensure optimum space management for ensuring better ROI for the stake holders.
This is probably one of the most crucial attention points for the business as a whole since the optimum and efficient utilization of the entire value chain of the inventory management will ultimately will ensure the profitability /loss of the organization.
Large format of the retail business has been evolving since quite some time and certainly there has been a constant effort to minimize investment especially in Inventory and maximizing the ROI for the various stake holders in the business.
One of the most innovative way to minimize the Inventory investment is not going through the route of direct purchase and own the product but on the contrary to have them get displayed on the retail outlet shelf and once the product gets sold get a certain percentage of profit is being shared with the supplier as per their agreement. E.g. Hindustan lever supplies soap to Big bazaar and the same gets displayed in Big Bazaar various outlets. Big bazaar does not purchase this from HLL, however once the soap gets sold then a percentage of profit comes to big bazaar and the balance of the sale price is due to HLL. This way the working capital requirement of the retailer becomes minimal and reduces the operating cost drastically.
In way, the whole way of doing retails business has to change. Is there another way to reduce operational cost? What’s your say...?
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I wanted to know about the fee structure for MBA in finance
The fee for mba is around 8,00,000/- and the entrance exam accpeted are cmat, cat,kmat
What about placements in this college
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Well Sunita as I can you wanted to know about the placement of certain college. But I would like to inform you that you have not mentioned the college name which is difficult to answer about the placement record. I would request you to kindly mention the college name so that we can answer it without any delay.
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Opinion on acharya banglore b-school?????ABBS
Hey Prejeesh P,
Acharya Bangalore B school is accredited by NAAC A grade and rated as AAA by Careers360. This college is an average college. the placements are little average too! It just provides average salary package as 4 lakhs only. The faculty are also average but not that good
Is Acharya Bangalore B school is good for finance specialization and even for placements too
The placement record of the MBA students at ABBS over the years has been impressive and many of the top companies have recruited from our Institution and have kept coming back, year after year. More than 80% of our students were placed by the time they passed out of our college and the remaining students have also been placed in due course.
We hope your company is also in this list of recruiters from ABBS and we would once again like to invite you to come over to our campus, recruit some of our students and give them a chance to be a part of your success story.
Does pgcet also accepts for mba
Karnataka PGCET is conducted by Karnataka Examinations Authority for admissions to full-time MBA programme in Government and Private institutes in Karnataka. To secure a rank in Acharya B-school, Bangalore, you need a rank between 1000-1500 in PGCET.