"This category of customers select Supermart for its availability of healthy foods such as sugarfree- low carb and other foods with health attributes. Though, this category of customers is smallin numbers,there is possibility to develop this market by introducing new products.Customer buying behaviorThe Supermart customers are middle class and working class with low or average income, hencethey are price sensitive. Customers consider supermart for its location and for its friendly atmosphere with trained staffthat are helpful. The selection and variety of items and its in-store displays and layout attracts thecustomers who are looking for one-stop shopping and save time.2.8 Product and Portfolio Analysis – PLC/BCGQuestion MarkThe question mark shows high growth with low market shares as a result of high competition inthe supermart business. The consumers tend to buy things from competitors like Agora, RedWave etc., as they provide variety of products at low prices which is enabled by their directimports. Moreover, these competitors have multiple presencesin the capital city with storesthroughout, and have frequent promotions with discounts whichmake them more accessible tocustomers and enjoy high profit margin.2.9 Resource and Competency Analysis – People, technology, financial, land, buildingPeople, technology, financial, assetsResourcesHuman Capital? Skilled and diverse work force who are experienced? Strong management team? Well trained IT teamPage | 16 ? Opportunities of trainings in team building, service enhancement, leadership and demandand forecast etc.Technology? The entire business of the company is integrated via SAP (Systems ApplicationsProducts) system.? The human resources, services, sales and finances & inventory are efficiently managedthrough SAP systems.? Technological developments to carry out timely communications with internationalbusiness partnersFinancial? Increased revenue? Strong cash flow? Government contribution in acquiring loans and corporate bonds? Infrastructure of stores, warehousesCompetency Analysis? The staff of the Company is well trained and experienced. They have the requiredknowledge and have the capability to offer the desired services to satisfy the customers. ? The company has the ability to share and leverthroughout the organization via intranet? The company has the capability to competently manage its finances, assets, humanresources, operations and services through the sophisticated system, SAP.Page | 17 2.10 Value Chain Analysis – Michael PortersInbound LogisticsInbound logistics are placed at the first stage of the value chain as they possess the earliestopportunity to create value. Therefore, the elements of this stage are considered to be upstreamactivities. The logistical tasks, in this case, include the receipt of goods from suppliers, storage ofgoods, handling and transportation of goods internally and placing the products on the shelves.STO tries to maintain a high level of consumer choice in store, whilst improving the efficiencyof its distribution system. In applying a quality control procedure concerning damaged goods andproducts, it provides an excellent opportunity to reduce costs unfairly incurred by the company,therefore preventing these costs being passed on to the consumer.OperationsThe production element of STO’s activities is service orientated. Hence operations could be thesecond upstream opportunity that enables services and products to be provided, tasks such asopening every day in accordance with trading hours, maintaining the shelves, and stocks.OutboundLogisticsThe third stage of the value chain is the outbound logistics that is concerned with delivering theproduct to the customer. STO currently adds value in its home delivery service. However, othertangibles that have to be improved are those of parking facilities, trolley collectors, toll staff andPage | 18 systems to gain competitive advantage; if executed more efficiently than competitors they willadd value by saving the customer time. Adding value could be achieved through theimplementation of a trolley deposit system, keeping them tidy and enabling customer to get toand from the premises quicker, as well as making these facilities readily available and quicker toobtain.Sales and MarketingMarketing and sales are placed under downstream elements of the value chain.Loyalty/club/membership cards give further discounts and encourage customer loyalty.However, STO may also decode to attract more customers by advertising via radio, localnewspapers and national TV, for instance the “lower prices’ advertising campaign or morediscounts offered. With a more customer sophistication and their awareness of ethical businesspractices, the company may face some constraints and need to sell products with more healthattributes. Support ActivitiesInfrastructurePlaned and control functions are the ones that provide continued focus on the cost and cashcontrol of the company’s operations. Also important are department such as profit protectionwhose main job is to reduce shrink. The company has invested in upgrading its ICTinfrastructure, and installing new security systems which aims to reduce internal theft, anexpense the customer will now not have to cover in the price of their purchases.Human Resource Management (HRM)HRM and Human Resource Development (HRD) are regarded as up and downstream activity,covering everything from recruitment to management development. The company aims toincrease the number of training schemes and further develop its customer care programs to passon the benefits of a well recruited, well trained staff, but not the costs to customers. STOcontinues to invest in customer service where training is also linked directly to pay, so the staffPage | 19 are motivated to learn and are encouraged to improve their approach to customers and serviceprovision quality.2.11 Stakeholder Analysis/ Stakeholder Value Gap AnalysisCapacity/ Capability/Stakeholder Needs & Expectation Value GapPowerEmployee Good Salary Option of choosing Low income, no careerMotivation other competitors development path.Development opportunitiesCustomer Variety of quality The possibility of going Not consistent andproducts with low price. for competitors is high. reliable with the productFriendly environmentavailability.and friendly staff.Government Social responsibility Political influence. No consistency.Losing Governmentshare.Shareholders Increase revenue Change or sell shares. Low growth ratecompared tocompetitors2.12 SWOT AnalysisStrengthsPage | 20 "