Chapter 1

Introduction

Fig. 1
1.1 COMPANY PROFILE
Company Name : - Vishal Mega Mart
Address : - (Head Office) Plot No.332,
Near Telco Work Shop,
Behind Shokeen Farmlands,
Rangpuri,
New Delhi- 110000
Tel:- +91-124-3945736
Company Type : - National (India)
Website : - www.myvishal.com
Commencement of Business
Business
Industry Classification
Table:1

1986
Grocery and Fashion Products
Retail

1.2 COMPANYs Nature

1

Started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is

today a conglomerate encompassing 183 showrooms in 110 cities / 24 states.
Indias first hyper-market has also been opened for the Indian consumer by Vishal.
Situated in the national capital Delhi this store boasts of the singe largest
collection of goods and commodities sold under one roof in India.
The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the
dynamic leadership of Mr. Ram Chandra Agarwal. The group had a turnover of
Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 million for fiscal 2007.
The groups prime focus is on retailing. The Vishal stores offer affordable family
fashion at prices to suit every pocket. The groups philosophy is integration and
towards this end has initiated backward integration in the field of high fashion by
setting up a state of the art manufacturing facility to support its retail endeavors.
Vishal is one of fastest growing retailing groups in India. Its outlets cater to

almost all price ranges. The showrooms have over 70,000 products range
which fulfills all your household needs, and can be catered to under one roof.
It is covering about 29, 90, 146 sq. ft. in 24 states across India. Each store gives
you international quality goods and prices hard to match. The cost benefits
that is derived from the large central purchase of goods and services is passed
on to the consumer
INFRASTRUCTURE

Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory has more than 700
imported machines that have a capacity to manufacturer 150000 pieces a month. The
factory occupies 80000 sq ft of covered space. The Vishal group indirectly gives
employment to more than a 1000 people. These people work in ancillaries that supply
finished goods to the company.

They have 10 warehouses that cater to 132 showrooms

in 20 states/81 cities. It is covering about 2059292 sq. ft. .in 20 state across India.
Global Retailing
The top 200 Retailers alone contribute for 30% of worldwide demand. Retail sales is
generally driven by peoples ability (disposable income) and willingness (consumer
confidence) to buy goods and services. Money spent on household consumption
worldwide has increased by 68% between 1980 and 2003. The leader has unquestionably
been the USA where some two-thirds or $ 6.6 trillions out of the $ 10 trillions American
economy is consumer spending. Consumers are spending around $ 3 trillions on
discretionary products and services. Retail turnover in the European Union is around
Euros 2000 billion and the average growth in this sector seems to be following an
upward trend. The Asian economies (excluding Japan) are expected to grow at 6%
consistently till 2005-06. Positive forces at work in Retail consumer markets today
include high rates of personal expenditures, low interest rates, low unemployment and
very low inflation. Negative factors that impact retail sales involve weakening consumer
confidence.

Top Retailers of the World:

Rank Country of Origin

Name

Company
Wal -Mart

US

of Formats

Discount, Hyper market,

Supermarket,

France

Warehouse
Cash& Carry , Convenience,

Carrefour

Discount,
3

Netherland

Royal Ahold

Supermarket
Cash and Carry

US

Home Depot

DIY, Specialty

US

Kroger

Convenience,
Specialty,

Germany

Superstore,

Warehouse
Cash& Carry,

Metro AG

Hypermarket,

Discount,
Supermarket,
Department,

DIY, Hypermarket, Specialty,

7

US

Target

Superstore
Department, Discount

US

Albertsons

Drug, Supermarket,

US

Kmart

Warehouse
Discount, Superstore

10

US

Sears

Department,
Specialty

Table 2
Type of Retailers:

Mail

Order,

Retail Organizations have shown great variety and different format of stores are coming
up quite rapidly. Generally Retailers can be of six types.
1. Specialty Store
This stores are characterized by narrow product lines but with deep assortments such as
Apparel Stores , Sporting goods store, Furniture store ,Florist and Book store. Under this
also there could be specializations like limited line store ( eg. Mens clothing store) and
Super specialty store (eg. Mens custom shirt store ). Example of such stores are Athletes
foot ,Tall men.
2. Departmental Store
Several Product Lines typically clothing ,home furnishing and household goods with
each line operated as a separate department managed by specialist buyers and
merchandisers Examples Sears, JC Penny , Nordstrom.
3. Supermarkets
Relatively large ,low cost ,low margin high volume ,self service operation which is
designed to cater total needs for food, laundry, household maintenance products
.Supermarkets earn an average profit of only 1 percent on sales. Example : Safeway,
Kroger.

4. Convenience Store
These are the stores which are relatively small in size and they are located near
residential area , normally remains open seven days a week and carrying a limited line of

high turnover convenience products at slightly high prices. Many have added take away
sandwiches , coffee and pastries. Example : 7-Eleven ,Circle K
5. Discount Stores
Standard merchandise sold at lower prices with lower margin but higher volumes. Actual
discount stores regularly sell merchandise at lower prices and offer mostly national
brands. In Discount retailing , Discount specialty retailing is also present eg. discount
electronic store or discount book store Example : Wal- Mart (all purpose discount store) ,
Kmart . Specialty : Crown Bookstore.
6. Off Price Retailers.
Merchandise bought at less than regular wholesale prices and sold at less than retail
prices. Often left over goods , irregulars obtained at reduced prices from manufacturers
and other retailers.
Factory outlets are owned and operated by manufacturers and they normally carry
manufacturers surplus ,discontinued and irregular goods. Example : Mikasa
(Dinnerware ) and Dexter(Shoes).
Characteristics of Retail Industry:
The spectrum of Retail Industry is quite wide in nature. Retail serves consumers through
a small grocery store to a huge departmental store. Retail Industry is heavily dependent
on consumer spending. In fact 2/3 of US GDP is coming from Retail business. Retail is
the second largest industry in US. It has employed 23 Million people . During economic
slow down consumer spending decreases and it poses threat to the Retail industry.
Consumers confidence is one of the key drivers of the industry.
Decline in Small Stores
6

It is observed that small independently owned stores are gradually loosing their foothold
in the market place. These stores are generally called Mom and Pop stores and they
offer limited merchandise to the consumer. These store are facing stiff competition from
the large departmental stores or superstores and in this process they are closing down
their shutters. In many locations the arrival of a superstore has forced nearby
independents out of business. In the book selling business Barnes & Noble superstore or
Borders Books and music usually puts smaller bookstores out of business.

This is a

major characteristic prevailing worldwide. But it is also true that many small independent
outlets still thrive by knowing their customers better and providing them with more
personalized service.
Internet and E-Commerce
Internet the ubiquitous medium has opened a new avenue in front of the Retailers. It has
offered an opportunity to the consumers to shop from the home. As it stands today overall
Retail sales through internet may not be that significant but gradually it is gaining
popularity amongst consumers. Amazon.com is the company which is very successful in
this E commerce domain.
Repositioning of Departmental Stores
The appeal of big departmental store is in the wane and they are trying to reposition
themselves. They are repositioning their product lines to survive in this highly
competitive market eg. A departmental stores which is supplying general merchandise to
the consumer is changing themselves to a giant apparel store.
Rise in Discount stores

Supremacy of Discount store is also one of the distinct characteristics of Retail Industry
today. Discount stores offer money back guarantee, every day low price etc to lure
customers. They also provide floor help and easy access to the merchandise to facilitate
the consumer. Wal- Mart the worlds largest Retailer comes under this category of Retail
store.
Category Killers
There are Retailers who actually concentrate on one particular product category and grab
a lions share of that market and outperform their competitors. They are called Category
Killers. Toys R Us (Toy market ), Home Depot (Home Improvement) , Staples (Office
Supplies) are the examples of such Retailers who have grabbed a major market share in
that product category and they have forced a reduction in the number of players in that
product segment. This is also a distinct trend observed in the current Retail market. Ten
years back there were number of players in the toy market and no one was controlling
more than 5% of market share but now the number of players has come down to six and
Toys R Us is enjoying 20% market share.
Direct Marketing
With the advancement of technology Retailers have found another sales channel through
which they can reach the consumer and this is direct marketing. Direct marketing has
their root in direct mail and catalog marketing (Lands End and LL Bean). It includes
telemarketing, television direct response marketing. (Home shopping network, QVC) .
Although an overwhelming majority of goods and services is sold through stores, non
store Retailing is also growing at a faster rate. Direct selling is $9 Billion industry with
around 600 companies selling door to door. Avon ,Electrolux ,Southwestern company

,Tupperware and Mary key cosmetics are the examples who have adopted this strategy
successfully.
Demographic Changes
Retail industry is impacted by the demographic changes. As a result of this change taste
of the consumer is undergoing a change and it creates a demand for certain products.
World wide Retailers are keeping a close watch on this change and they are trying to
realign themselves with this change.
Mergers and Acquisitions
Retailers who want to dominate the market place have adopted the strategy of mergers
and acquisitions. This is also one of the distinct trends in Global Retail Industry today.
Instead of achieving an organic growth Retailers can grow significantly with the help of
mergers and acquisitions. This helps them to occupy more shelf space in the market
place. As the volume increases they are establishing better control over their suppliers
and they are reducing the procurement cost and in that way they are boosting their
profitability. This is driven by the economic growth factors, size ,revenue pattern and the
customer demand. Sears and Lands End merger is one of the significant mergers which
has happened in recent times. Another important example would be Nikes acquisition of
Hurley, a well known surfing brand. This has helped Nike to enter in to a new market
segment.

Operational Issues:

In order to survive in this Industry, which is driven by the consumer demand Retailers
need to successfully counter the operational issues. If the Retailers fail to diagnose and
address those operational issues their existence will be jeopardized.
Supply Chain Management and Logistics
The process of getting goods to the customer has been traditionally known as Physical
Distribution. Physical Distribution starts at the factory and it ends at the store. Nowadays
the definition of Physical distribution is expanded and a broader concept has come which
is Supply Chain Management. Ideally Supply Chain Management encompasses the
material flow from suppliers suppliers to the final destination. Retailers need to have a
grip on that whole chain in order to control the procurement and delivery cost. This will
help them to choose the right supplier for the merchandise. Retailers need to come out of
the constricted view about the supply chain which is viewing the market as a point to
point destination, instead they need to consider the holistic picture which is a part of
Market Logistics. Market Logistics involves physical flow of materials from point of
origin to the point where it meets the customers requirement.
This Demand Chain orientation can help them to cut down the procurement cost to a
great extent. IKEA the global furniture retailing giant has successfully addressed this
issue and they are able to sell quality furniture at a much lower cost than his competitors.
Pricing
In Retailing environment pricing has become a burning issue to the retailers. Customers
expectation from a Retail store has become very high and customers are looking for more
and more bargain prices. This situation can be referred as Price drought . Price deflation
is taking hold in the Retail environment and any reduction in volume is complicating the

10

scenario further. This trend is quite evident in Apparel and Consumer goods market.
Pricing seems to be a key positioning factor and must be decided in relation to the target
market , Assortment mix and competition. Strategic pricing has become an important
strategic tool to the retailers. Airlines Industry started this strategic pricing technique
where the underlying philosophy is not all consumers want a particular product at the
same time and the degree of demand will also vary. With this idea in mind different
consumers are charged different prices for the same product or service. Retailers need to
adopt the right pricing tactics in this environment of fierce competition. Retail stores
markdown the price for some items to attract people, this is called traffic building. They
also run storewide reduction sell. It is observed that a shoe Retail outlet sells 50% of the
product at normal mark up , 25% of the product at 40% mark up and remaining 25% at
cost. Some Retailers have done away with sales pricing and they are resorting to
everyday low price (EDLP). It leads to lower advertising cost , greater pricing stability
and higher Retail profits. Wal- Mart uses this kind of pricing strategy.
Sales Channels
Design of sales channel is also a key operational issue in todays Retail industry.
Technology has become one indispensable business component and Retailers need to
make use of this successfully. Retailer needs to come out from the mindset of traditional
store retailing and they need to use all available channels to reach a wider consumer
community. Amongst Non store Retail channels Internet and E commerce is gradually
gaining popularity. Consumers do not need to come to store for buying goods or service
they can do that over a click of a button from their drawing room. Retailers need to derive
benefit from that . Marketing through call centre or catalogue marketing is also an

11

emerging trend . Retailers need to choose sales channels carefully and need to use all
those channels effectively to acquire more customer centricity. Ultimate objective here is
to offer a consumer a tailor made shopping experience and to provide more easy access to
his product and service offering.
Strategies in Retail:
A business firm can not travel in an unplanned way .

To encounter the business

challenges in a highly competitive environment and to find out a sustainable growth road
map Retailers need to realize the importance of strategic planning. Strategic planning can
be viewed as a stream of decisions and activities which lead to Effective business
strategies which help the organization to fulfill its

objectives. Retail landscape is

changing rapidly and in this changing economic environment Retailers need to find out
the right strategy which will help them to cope up with this environment and empowers
them to take right decisions for the future. Adopting correct strategy will help the
Retailers to optimize their resources and also it will give an edge over its competitors.
Margin and Turnover are the two important parameters of Retail Industry and the Retail
operations can be classified into four groups/quadrants.
i)

High Margin and High Turnover eg. a convenience food store

ii)

Low Margin and High Turnover eg. a discount store

iii)

Low Margin Low Turnover i.e .a dying business

iv)

High Margin Low Turnover eg. an up market specialty store.

12

Retail business needs to formulate the suitable strategy after considering its strengths and
weaknesses. Hence SWOT analysis will be an effective tool in determining the correct
strategy for the particular category of retail business.
IT in Retail:
Information Technology has become a key business driver in todays world. Retailers are
also trying to reap in the benefits of the technology. Thus technology has become a
critical and competitive tool for surviving in the business. Retailers are using software
systems to manage and plan their inventory , to reduce the procurement costs , electronic
ordering , electronic fund transfer , e mail communication and for many other things. IT
is poised to take a much bigger role in Retail Industry however the high implementation
cost of IT projects has restricted many Retailers to go for proper IT solution. IT growth
areas in Retail are mentioned below.
Supply Chain Management:
Supply chain is one of the focus areas for the Retailers and immense opportunity of
business process improvement and scope of technological empowerment is there in this
area. In todays tough economic climate customers have become price sensitive and there
is a price draught in the market . Retailers are struggling to control the cost and in this
environment effective Supply Chain Management can act as a big contributor. It helps
them to integrate with their suppliers and through collaborative planning retailers can
reduce the cost. SCM solutions will enable Retailers to track their inventory movement
from suppliers premises to the point of sale. It gives a better visibility in the area of
demand planning, forecasting and inventory management. Worlds largest Retailer Wal
Mart has adopted a state of the art SCM system which not only tracks the inventory but

13

also it increases the efficiency of the process. Wal Mart has also introduced the Radio
Frequency Identification (RFID) of merchandise.
CRM
CRM continues to be a growth area for IT in Retail sector. Advancement in this field
helps to maintain sophisticated customer database and systems that can maximize multi
channel returns. This helps the retailers to understand the customers demand pattern and
enables them to offer a tailor made shopping experience.
Internet
Internet has unfolded lot of opportunities to the Retailers. Retailers can do business over
internet. It can also be used as a communication medium. Successful Retail community
uses internet technology for reliable communication between Retailers , customers and
suppliers.
Business Intelligence
Business Intelligence is an effective analytical tool which helps the Retailers to
understand the eco system of retail business . It helps the business community to take
mission critical

business decisions which will help them to navigate in the right

direction. In todays world

Retailers equipped with such data mining or data

warehousing tool can have the micro level understanding of customer demand.

Retail scenario in India:

Overview :
Economic liberalization has brought about distinct changes in the life of urban people in
India. A higher income group middle class is emerging in the Indian society.

14

Demographic changes have also made palpable changes in social culture and lifestyle . In
this environment Indian Retail Industry is witnessing rapid growth . AT Kearney has
ranked India as fifth in terms of Retail attractiveness. The industry has got tremendous
potential but it also requires sufficient capital flow. Current Foreign Direct Investment
policy of Indian Government does not allow any foreign direct investment in this sector
however different global retail players are seriously eying this market.
Industry Characteristics :
Indian Retail Industry is the largest employer after Agriculture (around 8% of the
population) and it has the highest outlet density in the world however this industry is still
in a very nascent stage. The whole market is mostly unorganized and it is dominated by
fragmented Kirana stores. A poor, supply chain and backward integration has weakened
the whole process. Organized corporate retailers contribute only a negligible percentage
of the overall retail business. Organized and trained Retail workforce is not available in
India and the overall skill level is low mainly because of the low maturity level of the
Industry.
Business Opportunities
However India can unveil significant business opportunity to the Retailers. Indian retail
sector is estimated to have a total market size of $ 180 Billion. A McKinsey report on
India says organized retailing would increase the efficiency and productivity of entire
gamut of economic activities, and would help in achieving higher GDP growth. The
factors responsible for the development of the Retail sector in India can be broadly
summarized as follows:

15

1.

Rising incomes and improvements in infrastructure are enlarging consumer

markets and accelerating the convergence of consumer tastes. Looking at income
classification, the National Council of Applied Economic Research (NCAER)
classified approximately 50% of the Indian population as low income in 1994-95;
this is expected to decline to 17.8% by 2006-07.

2.

Liberalization of the Indian economy which has led to the opening up of the
market for consumer goods has helped the MNC brands like Kellogs, Unilever,
Nestle, etc. to make significant inroads into the vast consumer market by offering
a wide range of choices to the Indian consumers.

3. Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic,

etc.
Major Retail Players in India:
Retailer
Pantaloon
RPG
Shopper Stop

Current Turn Over in Rs. Crore

700
550
400

Life style

230

Westside

120

Ebony

85

Piramyd

72
Table 3

1.3 Companys Vision & Mission

Values: Operate with these values in mind:
16

Customer satisfaction

Teamwork

Respect for the individual

Diversity

Integrity

Mission: Provide Customer Care ,Satisfaction

and services that add value to the

relationships between company and customers.

Fulfilling corporate social responsibility which includes:
Customers:
Serve a wide range of customers in many different vertical markets.

People:
As a company, relationships with employees should be built on trust and a
sincere respect for the individual.

Environment:
Working environments should be designed to optimize performance and
efficiency while reducing energy consumption, waste and pollution.

1.4 Location

17

Fig. 2

Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory has more than
700 imported machines that have a capacity to manufacturer 150000 pieces a
month. The factory occupies 80000 sq ft of covered space. The Vishal group
indirectly gives employment to more than a 1000 people. These people work in
ancillaries that supply finished goods to the company.
Vishals 10 warehouses cater to 183 showrooms in 24 states/110 cities across India.
It is covering about 29, 90, 146 sq. ft.
1.5 Size of the organization:
Company has 125000 employees with a very Big retail chain of management.
1.6 SWOT Analysis
Some of the strengths and weaknesses of Vishal Mega Mart are outlined below.
STRENGTHS:
i)

Understanding of the value retail segment

ii)

Supply chain management

iii)

Logistics and distribution network

iv)

Geographical spread

v)

Identifying new locations

vi)

Private labels
18

vii)

Information technology systems

viii)

Experienced and skilled management team

WEAKNESSES:
i)

Slow performance of the Stores

ii)

Advent of Category Killers.

OPPORTUNITIES:
i)

Increasing penetration in the country by leveraging our supply chain,

distribution and logistics network

ii)

Emphasis on Backward Integration

iii)

Expansion of FMCG

iv)

Procurement from low-cost production centres outside India

v)

Increasing customer satisfaction and our base of loyal customers

vi)

Continue to upgrade information technology systems and processes

vii)

Continue to train employees and seek entrepreneurship from employees

THREATS:
i)

Demise of Independent small stores

ii)

Demographic Changes

1.7 Product Range Of The Company

PRODUCT CATEGORIES

- HOME FURNISHING

19

Drawing Room
Door Mat
Carpet
Curtains
Kitchen
Apron

Bedroom
Bed Sheet
Pillows
Pillow Cover
Bathroom
Bath Mats

111Kitchen Napkin Towel Gift Sets

Fig. 3
- SPORTS & FITNESS
INDOOR GAMES OUTDOOR GAMES
Basket Ball
Cricket Bat
T.T. Bat
Football
Boxing Kit
Lawn Tennis
Swimming
Tennis Racket
Costumes
Water Ball
Tennis Ball
Fitness Equip.
Personal Gym
Fig. 4
- FOOTWEAR
BOYS
Shoes
Sandals
LADIES
Shoes
Slippers

GIRLS
Slippers
Sandals
MENS
Shoes
Slippers
Fig. 5

- TELEMART
Communication
Mobile

Mobile Accessories
Mobile Batteries
Mobile Charger
Mobile Dori
Fig. 6

20

- MENS
Upper
Shirt Casual
Shirt Formal
Ethnic & Sports
Night Suits
T-Shirts
Dupatta
Sherwani

Lower
Jeans(MP)
Cotton Trouser(MPC)
Winter Wear
Suit(WMC)
Blazer(WMB)
Windcheater(WMW)
Jacket
Fig. 7

- LADIES ACCESSORIES
Upper
Lower
Kurta
Pants Jeans
Skirt Top
Capri
Ethnic
Winter Wear
Nighty
Jackets
Lancha
Stawl
Sharara
Blazer
Track Suit
Salwar Suit
INFANTS
Garments
Hot Pant
Frock
Baba Suit
Winter Wear
Sweater

Fig. 8

Accessories
Bed Sheet
Under Garments
Socks

Pull Ove
- WOMEN
Sarees
Fancy(SRF)
Synthetics
Banarsi
Jewellery
Necklace
Ring

Fig. 9
Personal Items
Cap(LCA)
Socks(Las)
Cosmetics
LIp Gloss
Nail Polish
Fig. 10

21

- KIDS BOYS
Lower
Jeans
Bermudas
Dungries
Upper
Shirt Formal
T-Shirt

Sets
Night Suit
Baba Suit

Winter Wear
Suit
Blazer
Jacket

Ethnic
Kurta- Pyjama
Sherwani
Fig. 11

- KIDS GIRLS
Lower
Hot Pant
Skirt
Dungries
Upper
Tops(GWT)

Sets
Night Suit
Capri Set

Winter Wear
Hipster Set
Blazer
Jacket

Ethnic
Sharara

Frock(GFK) Lancha
Fig. 12
- TRAVEL ACCESSORIES
Luggages
Portfolio Bags
Suitcase
Shoulder Bags
Executive Bag
School Bags
Pouch & Cases
Waist Pouch
Vanity Cases
- HOUSEHOLD
Acrylic Ware Copper
Steel
Dinner Set
Jug
Cake Server
Pressure
Home Aids
Non Stick
Cooker
Floor Wiper
Cooker
Handi
Sanitary Brush Pressure Pan Dosa Tawa
General
Electrical App.Bone China
Plastic Goods
Coffee Mug
Chopper
Soup Set
Bucket
Microwave
Dessert Set
Oven
22

Fig. 13

Fig. 14

Glass Ware
Cup
Lemon Set

Thermo Ware Porcelain

Tiffin
Cup & Saucer
Container

- LIFESTYLE
Time Zone
Ladies Wrist
Watch
Mens Wrist
Watch
Mens
Accessories

Gifts &
Novelties

Opticals

Ladies Sun Glass Flower Vase

Mens Sun Glass Key Chain

Belts

Electric &
Electronics
Items
Battery(ABT)

Wallets

Calculator(EEC)

- TOYS & GAMES

Soft Toys
Dolls
Musical Toys
Barbie Doll
Non-Musical
Other Dolls
Board Games Infant Toys
Wooden Blocks Teether
Puzzles
Swing

Perfume/Deo
Spray
Deo
Fig. 15

Cycles & Scooters

Cycles
Scooters
Video Games
T.V. Video Game
Hand Video Game

Fig. 16
- STATIONARY
School
Office
Exam Board
Office File
Punching
Clay
Machine
Party Stuff
Balloons

Paper Mart
Diary
File

Ribbons
Fig. 17
23

SOME POPULAR BRANDS OF VISHAL MEGA MART

Zeppelin : Men Shirts &

Trousers

Fizzy
Babe :

Kitaan
Studio :

Men Shirts &

Trousers

Jasmine : Ladies & Kids

Girls

Blues &
Khakis :

Men Trousers

Zero
Kids Boys
Degree :

Paranoia :

Men Shirts & TShirts

Chlorine : Men Shirts

Fume :

Men Shirts, TShirts,

Undergarments.
Table 4

24

Ladies & Kids

Girls

Soil :

Men Shirts

Massa
Bay :

Men Trousers
& Bermudas

1.8 Organizational Structure

ORGANIZATION STRUCTURE OF VISHAL MEGA MART, NEW
DELHI

STORE MANAGER
(MR. ABHISHEK MATHURIA)

ASSISTANT STORE
MANAGER
(MR. ANURAG PRADEEP)

LOSS PREVENTION HEAD

(MR. ABHISHEK SAXENA)

COMMERCIAL MANAGER
(MR. CHANDRESH)

HEAD CASHIER
(MR. SHYAM)

LINE OF BUSINESS HEADS (5)

(FLOOR MANAGER OF
DIVISION)

SALES EXECUTIVES
(TEAM LEADERS &
MEMBERS
25

CASHIERS (4)

SECTIONS AT VISHAL MEGA MART, NEW DELHI

1) EDP(Execution Data Processor) section for system update

2) DC(Distribution Centre) section for store-keeping
3) House-keeping section
A new division has been started in Vishal Mega Mart of

NewDelhi i.e.,

Vishal Care++ which deals in sale of commodities. It offers following

insurances:
1) DLF Pramerica Life Insurance
2) Reliance General Insurance
3) Royal Sunderam General Insurance
4) Max New York Health Insurance
5) ICICI Lombard

STORE DIRECTORY
GROUND FLOOR
Food Mart
Mens Wear
Life Style
Electronics
Computers

26

 FIRST FLOOR
Ladies Wear
Kids Wear
Footwear
Home ware
Sports & Fitness
Travel Accessories
Restaurant
Household Items
Stationary

Jewellery

27

Chapter 2

Literature Review

Motivation and job satisfaction in one government research and

development environment
Engineering Management Journal, Dec 2000 by Leach, Frederick J,
Westbrook, Jerry D
ABSTRACT
Many factors affect motivation and job satisfaction in a research and development
environment. This study was conducted at a U.S. government research laboratory
to determine the factors that are important to motivation and to job satisfaction.
Data from researchers and managers were collected and compared. The framework
used for this study is Frederick Hertzbergs motivation hygiene factor theory. The
results demonstrate that with small differences, Hertzbergs theory generally
applies to this environment. Researchers and managers agreed on the importance
of various factors in motivating performance. But they did not agree on the
importance of various factors in job satisfaction. More researchers reported lower
job satisfaction than managers.

28

Benefits Of High Internal Work Motivation Comparing Retail Sector To

Manufacturing

Journal of Diversity Management Third Quarter 2008 Volume 3 by

Rickey Casey, University of the Ozarks, USA
Jay Robbins, Ouachita Baptist University, USA

ABSTRACT

The Hackman and Oldhman Model have been tested in several areas with
additional testing needed in the service sector. This study tested the model within a
manufacturing company and evaluated several of the dimensions of the model.
This paper evaluates two of these dimensions; high internal work motivation and
task significance. The plan that was surveyed has a population of 1,000 with 200
sampled. The company examined is a larger manufacturer of electric motors and
the sample was taken from one plant with all three shifts samples. The plant has a
population of 1,000 with 200 sampled. A comparison study was done in a major
retail company. From the survey sample of 534 employees of the retail company,
330 responses were returned, indicating a 62 percent response rate. The average
29

age of those responding to the survey was 37.9 years. Males accounted for 22.7
percent of the respondents while 72.7 percent were female.

Work motivation and job satisfaction in the Nordic countries

Journal of Employee Relations, 2004 Volume 26 by
Jacob K. Eskildsen, Center for Corporate Performance, The Aarhus
School of Business, Aarhus, Denmark

ABSTRACT
This paper studies differences in job satisfaction and intrinsic work motivation
between employees with different characteristics. Based on a study of the
literature assumptions regarding these differences are developed and tested on
data from a survey in the Nordic countries. In this survey 9,623 employees
from randomly selected households in the Nordic countries participated.
Among the findings are that Danish workers were found to be the most
satisfied and that there is no difference between the genders with respect to job
satisfaction in the Nordic countries.

30

Chapter 3

Research Methodology

Every project work is based on certain methodology, which is a way to systematically

solve the problem or attain its objectives. It is a very important guideline and lead to
completion of any project work through observation, data collection and data analysis.
According to Clifford Woody, Research Methodology comprises of defining &
redefining problems, collecting, organizing &evaluating data, making deductions
&researching to conclusions.
Accordingly, the methodology used in the project is as follows: Defining the objectives of the study
Framing of questionnaire keeping objectives in mind (considering the objectives)
Feedback from the employees
Analysis of feedback
Conclusion, findings and suggestions.

3.1 Objective of Study

1. Brand positioning of Vishal Mega Mart.
2. To find the brand personality of Vishal Mega Mart and its impact on both
merchandise and overall store image across market segment.
3. To compare the level of job satisfaction of employees working at Vishal Mega
Mart.
4. To study the employee working behavior.
5. To identify the working motivation and concerned factors for employee at Vishal
Mega Mart.
6. To study and analyze the employee perception about good working conditions.
7. To know the effect on job satisfaction after advent of organized retailing.
8. To know the level of employee satisfaction working at Vishal Retail shops.

31

9. To find out the different motivational techniques used in Vishal Mega Mart.
10. To analyze the key aspects of apparel branding and retailing.

11. To identify the facilities/benefits provided at Vishal Mega Mart to its

employees in order to increase their satisfaction level.

3.3 Sources of Data collection

Data Collection
To determine the appropriate data for research mainly two kinds of data was collected
namely primary & secondary data as explained below:
Primary Data
Primary data are those, which were collected afresh & for the first time and thus happen
to be original in character. However, there are many methods of collecting the primary
data; all have not been used for the purpose of this project. The ones that have been used
are:
Questionnaire
Informal Interviews
Observation
Sample Size

60

Sample Area

New Delhi

Sample Unit

Officials & Employees of Vishal Mega Mart

New Delhi

Secondary Data
Secondary data is collected from previous researches and literature to fill in the
respective project. The secondary data was collected through:
Text Books
32

Articles
Journals
Websites

3.4 Sampling techniques

Sampling Technique Used
The technique of Random Sampling has been used in the analysis of the data. Random
sampling from a finite population refers to that method of sample selection, which gives
each possible sample combination an equal probability of being picked up and each item
in the entire population to have an equal chance of being included in the sample. This
sampling is without replacement, i.e. once an item is selected for the sample, it cannot
appear in the sample again.
3.5 Tools used for Data Collection
Statistical Tools Used
The main statistical tools used for the collection and analyses of data in this project are:
Flow Charts
Tables
QUESTIONNAIRE DESIGN / FORMULATION
Questionnaires: - A questionnaire consists of a set of questions presented to respondent
for their answers. It can be Closed Ended of Open Ended
Open Ended: - Allows respondents to answer in their own words & are difficult to
Interpret and Tabulate.
Close Ended: - Pre-specify all the possible answers & are easy to Interpret and Tabulate.
TYPES OF QUESTIONS USED IN THIS PROJECT
Close ended Questions
To know the choice of the people regarding various matters.
Dichotomous Questions
This has only two answers Yes or No.
33

Multiple Choice Questions

Where respondent is offered more than two choices. This is done to know the choice of
the customers regarding different matters.
Sample Extent
Central Delhi
Limitations of the Research
The limitations of the research are as follows
The employees were not very keen to fill up the questionnaire.
Some of the employees did not either understand the questions or they were not aware
of the recruitment and selection procedure of the company.
There was hardly any scope to interact with the employees. Although there was some
issues which were confusing as some most obvious questions were answered by the
employees in no and I was curious to know whether they are saying correctly or not
and wanted to consult them to verify the facts but the employees were not available
very easily.

Chapter 3

Data Analysis and

Interpretation

Q1) Are you satisfied with your job?

Response
Satisfied

No. of Response
12
34

% of Response
34.29

Partly Satisfied
Unsatisfied

23
-

65.71
-

70
60

Satisfied

50
40

Partly
Satisfied

30
20

Unsatisfied

10
0
% of Response

Fig. 18

Interpretation: Most of the people are partially satisfied with their job, which
shows they are not fully satisfied with their job.
Q2) Are you satisfied with the salary provided to you?

Response
Satisfied
Partly Satisfied
Unsatisfied

No. of Response
5
13
17

% of Response
14.29
37.14
48.57

50
Satisfied

40
30

Partly
Satisfied

20
10

35

0
% of Response

Unsatisfied

Fig. 19

Interpretation: This shows that the employees are not happy with the salary
provided to them in Vishal Mega Mart; this also reflects
that

some of them are partially satisfied with the salary. Only

14.29% people are satisfied with their salary and

they are top

level people.

Q3) Are you aware of various benefits which Vishal Mega Mart is providing to its
employees?

Response
Yes
No

No. of Response
33
2

% of Response
94.29
5.71

100
80
60

Yes

40
20

No

36

0
% of Response

Fig. 20
Interpretation: 94.29% of the employees are aware of the different benefits
provided by Vishal Mega Mart to the employees, whereas
5.71%

are unaware of those benefits. This shows that those

5.71%

employees are not aware of all the policies,

benefits, rules etc. in

Vishal Mega Mart.

Q4) Are you satisfied with the working environment and conditions of Vishal
Mega Mart?

Response
Satisfied
Partly Satisfied
Unsatisfied

No. of Response
27
5
3

% of Response
77.14
14.29
8.57

80
70

Satisfied

60
50
Partly
Satisfied

40
30
20

Unsatisfied

10
0
% of Response

37

Fig. 21
Interpretation: Most of the people i.e., 77.14% people are fully satisfied and
14.29% of people are partly satisfied with the working
conditions and environment, 8.57% of the
employees are not at

all satisfied with the working

conditions & environment of

KVS.

Q5) Is Job Security provided to you in Vishal Mega Mart?

Response
Yes
No

No. of Response
7
28

% of Response
20
80

80
70
60
50
40

Yes

30

No

20
10
0
% of Response

Fig. 22
38

Interpretation: It shows Job Security is not provided to employees, but it should

be provided because it is one of the important source of
satisfaction of employees.

Q6) Are you satisfied with the work culture of Vishal Mega Mart?

Response
Satisfied
Partly Satisfied
Unsatisfied

No. of Response
30
3
2

% of Response
85.72
8.57
5.71

90
80
70
60
50

Satisfied

40

Partly Satisfied

30

Unsatisfied

20
10
0
% of Response

Fig. 23

39

Interpretation: This analysis shows that most of the employees are satisfied with
the work culture of Vishal Mega Mart. This shows that
work

culture of Vishal is acceptable and suitable to almost all of

the

employees, those who are not satisfied must adjust

themselves

with that culture.

Q7) Are you comfortable with the timings of your job?

Response
Yes
No

No. of Response
30
5

% of Response
85.71
14.29

90
80
70
60
50

Yes

40

No

30
20
10
0
% of Response

Fig. 24

Interpretation: 85.71% of the employees are comfortable with the timings of the
job; this shows that there is mutual understanding between
40

the

employees and the management. This also shows that

timings of

job in Vishal Mega Mart is suitable to all, that it is

set after

considering the regular normal daily routine

of the people and

comfortability to reach work place from their

residence.
Q8) Does management has trust in employees?

Response
Yes
No
To Some Extent

No. of Response
25
4
6

% of Response
71.43
11.43
17.14

80
70
60

Yes

50
40

No

30
To Some
Extent

20
10
0
% of Response

Fig. 25
Interpretation: Employees of Vishal Mega Mart are very happy and enjoying full
trust of their employers. This is one of the main reasons of
41

employees job satisfaction in Vishal Mega Mart. Faith of

employers is one of the important things to
motivate employees

to work hard in the interest of the

organization.
Q9) Are your ideas welcomed and appreciated by the management for the growth
of business?

Response
Yes
No
To Some Extent

No. of Response
23
4
8

% of Response
65.71
11.43
22.86

70
60
50

Yes

40

No

30
20

To Some
Extent

10
0
% of Response

Fig. 26
Interpretation: It shows that employees are also given chance to participate in
the management and feel a part of the organization.
42

Q10) Are your personal problems taken care of?

Response
Yes
No
To Some Extent

No. of Response
25
6
4

% of Response
71.43
17.14
11.43

80
70
60

Yes

50
40

No

30
To Som e
Extent

20
10
0
% of Response

Fig. 27

Interpretation: It shows that the personal problems of the employees are also
considered by the management to a great extent.

43

Q11) Is there any kind of appreciation for your good performance?

Response
Yes
No
To Some Extent

No. of Response
22
4
9

% of Response
62.86
11.43
25.71

70
60
50

Yes

40
No

30
20

To Som e
Extent

10
0
% of Response

Fig. 28

Interpretation: Appreciation is very necessary for motivating the employees and

according to the response of employees; this need is fulfilled by
Vishal Mega Mart.

Q12) Is there proper promotion and growth for you in the organization?

44

Response
Yes
No
To Some Extent

No. of Response
9
21
5

% of Response
25.71
60
14.29

60
50
Yes

40
30

No

20

To Som e
Extent

10
0
% of Response

Fig. 29

Interpretation: 60% of the employees feel that there is no proper promotion and
growth for them in the organization, which is one of the
reasons
according to the

of dissatisfaction. Even if they work hard and

employers, they do not get success, in terms

of promotion.

Q13) Is management focused towards employees needs and demands?

45

Response
Yes
No
To Some Extent

No. of Response
14
16
5

% of Response
40
45.71
14.29

50
40
Yes
30
No
20
To Som e
Extent

10
0
% of Response

Fig. 30

Interpretation: There is no clear response in this case because 40% of the

employees are in favour of management in terms of
listening to
with the
45.71% employees
about

employees needs and demands. They are satisfied

behavior and concern of management. While
feel that management is not too much concerned
employees needs and demands. Therefore no

proper conclusion

could be drawn.

Q14) Is any recognition given to you at Vishal Mega Mart?

Response
Yes
No

No. of Response
26
5
46

% of Response
74.29
14.28

To Some Extent

11.43

80
70
60

Yes

50
40

No

30
To Som e
Extent

20
10
0
% of Response

Fig. 31

Interpretation: Recognition is a need of a deserving and hard working

employee. If he/she will not get recognition in return of
his hard

and efficient work, he/she shall be dissatisfied. In

Vishal Mega

Mart, 74.29% of the employees are satisfied with

the behavior

and appraisal of employers. If an employee is hard

working

he/she is getting recognition as well.

Q15) Do you think job satisfaction increases the productivity of employees?

Response
Yes
No
To Some Extent

No. of Response
34
1

47

% of Response
97.14
2.86

100
80
Yes
60
No
40
To Som e
Extent

20
0
% of Response

Fig. 32

Interpretation: 97.14% people agree with the fact that job satisfaction increases
the productivity of employees.

Q16) Is you job stressful?

Response
Yes
No
To Some Extent

No. of Response
12
20
3

% of Response
34.29
57.14
8.57

60
50
Yes

40
30

No

20
10

48

0
% of Response

To Som e
Extent

Fig. 33

Interpretation: 57.14% respondents responded that their job is not stressful at

all while for others their job is stressful to some extent

Q17) Is your job affecting your personal life?

Response
Yes
No
To Some Extent

No. of Response
4
29
2

% of Response
11.43
82.86
5.71

90
80
70

Yes

60
50

No

40
30
20
10

49

0
% of Response

To Som e
Extent

Fig. 34

Interpretation: According to 82.86% respondents, their job is not affecting their

personal life in any manner.

Q18) Does your job motivate you?

Response
Yes
No
To Some Extent

No. of Response
17
12
6

% of Response
48.57
34.29
17.14

50
40
Yes
30
No
20
To Som e
Extent

10
0
% of Response

50

Fig. 35

Interpretation: This shows that their job motivates them. The target
achievement method used by the management is really a
motivating factor for employees.

Chapter 5

Findings and Conclusions

5.1 Findings
Following are the concluding points taken into consideration after the conduct of
the research study:

Employee
Dissatisfaction

Fulfillment
Commitment
Engagement

Employee
Satisfaction

Team Work
Limited Salary

Department Goods at
less price
Factors leading to
Satisfaction
Team work

Long
working
hours
Factors
leading
to
Dissatisfaction
Poor Compensation
Lack of job security
Extra Working Hours

Fun Place
51

Flexible Timings
Clear direction & objectives

Fig. 36

Employee Satisfaction means a lot for the management of Vishal Mega

mart, New Delhi. They deal with each & every aspect which can satisfy
their employees. According to them Human Resource is the most important
part of any organization, and it is very necessary for the organization to
keep their employees happy in order to achieve the organizational success
& goal.
Employee satisfaction being a very important part of their ideology, the
group is sensitive to the requirements of its greatest asset and committed to
ensure utmost satisfaction and value for their hard work and dedication.
This is the reason that Vishal Mega Mart, Bly. enjoys faithful and good
employees forever.
Employee satisfaction and motivation is really very important and thats
why Vishal Mega Mart provides different benefits, good working
conditions, suitable time, initiative and responsibility etc. to their
employees in order to attain maximum Satisfaction of employees.
52

 A considerable portion of employees feel that they are getting only limited
salary.
Most of the respondents will like to recommend the product to others.
Most of the people are satisfied with working at Vishal Mega Mart.
Some employees feel dissatisfied on the reason of long working hours.

5.2 Limitations

One major limitation of this study is that time is limited, as this report is to
be completed within 1 months, so more detailed analysis is not possible to
be done.

Some of the information might not be given correct up to an extent, due to

confidentially of data by the employees.

We cant believe on the responses given by the employees.

Inability & unwillingness of the respondents to provide information.

5.3 Suggestions
On the basis of this study, suggestions to the Vishal Mega Mart are:-

53

 As it is observed that the policy of Vishal Mega Mart to measure the employees
satisfaction is on the basis of target achievement. But Vishal Mega Mart should
not focus on turnover as a measurement of level of job satisfaction of employees
because achieving the target does not mean that the employees are happy with
the policies, rules, etc. of the organization. It may be due to some pressure or
further hope of improvement they are performing their tasks efficiently. Turnover
is not the appropriate basis; Vishal Mega Mart should rather focus on more
effective measurement techniques.
Vishal Mega Mart should provide incentives to their employees for the
achievement of target for full satisfaction of employees.
Vishal Mega Mart should provide job security to it performing employees.. This
will motivate them to work hard.
There should be proper availability of promotion and growth for the employees
in the organization.
Another important thing is that there must be good amount of increment in their
salary every year. This is the biggest tool in the hands of employers to gain
confidence, faith and satisfaction of their employees.

5.4 Conclusions
Job satisfaction has its own definition for every employee. On the whole job
satisfaction broadly involves five aspects and they are- salary, supervision,
Promotions, relations with coworkers and most importantly their work which they

54

perform for the organization. But according to the analysis, conclusion may be
summarized as follows:

Only 34.29% of the employees working in Vishal Mega Mart are satisfied
from their job.
The remaining 65.71% of the employees are partly satisfied that means
they are somewhat dissatisfied from the job. They should not be left
ignored because their dissatisfaction could be proved fatal for the
organization. As satisfied employees contribute their best efforts towards
the growth and success of the organization.
48.57% of the employees are not fully satisfied from the salary, this is a
clear indicator that employees feel that they are getting less than what
they deserve.
Almost all the employees are fully aware of different benefits available to
them.
As far as job security is concerned, it is low in Vishal Mega Mart and
hence employees are not free of this fear.

Timings are well set and suitable to employees.

Employees in Vishal Mega Mart enjoy proper recognition & full faith of
their employers.

55

 In Vishal Mega Mart ideas of employees are welcomed, by which

employees feel themselves as a part of Vishal Mega Mart and not just an
employee.
Another good step to attain high level of job satisfaction of employees is
maintaining peaceful, good, satisfactory, faithful human relations with
their employees. Vishal Mega Mart is also providing good working
conditions as well as good working environment to their employees.
Satisfactory work culture is there in Vishal Mega Mart which is
acceptable by all the employees.
After performance appraisal, if the employer finds that performance of an
employee is outstanding, he provides reward to that employee as a symbol of
appreciation and motivation. Employees are satisfied due to this reason also.

56

BIBLIOGRAPHY
BOOKS CONSIDERED ARE:
1) ASWATHAPPA K- Human Resource and Personnel Management, TATA
MCGRAW- HILL PUBLISHING COMPANY LIMITED, New Delhi,2005,4 th
Edition
2) GARY DESSLER- Human Resource Management, PHI Publications, New Delhi,
1999, 9th Edition
3) KOTHARI.C.R- Research Methodology Methods & Techniques, WISHWA
PRAKASHAN, New Delhi,2001,3rd Edition
4) MONDY NOE- Human Resource Management, THI Publications, 2007, 9th
Edition.
5) RAO V.S.P- Human Resource Management, Excel Publication, 2000, 2nd Edition.
6) BHATTACHARYA D.K. - Human Resource Management, TMH Publications,
Delhi, 2002, 2nd edition.
7) MAMORIA C.B. - Personnel Management, Himalaya Publications, New Delhi,
1997, 12th edition.

57

REFERENCES:
Engineering Management Journal, Dec 2000
Journal of Diversity Management Third Quarter 2008 Volume 3
Journal of Employee Relations, 2004 Volume 26

WEBSITES USED:
www.citehr.com
www.managementparadise.com
www.hrtools.com

Annexure
QUESTIONNAIRE
Q1. Are you satisfied with your job?
a) Fully Satisfied
b) Partially Satisfied
c) Not Satisfied
Q2. Are you satisfied with the salary provided to you?
a) Fully Satisfied
b) Partially Satisfied
c) Not Satisfied
Q3. Are you aware of various benefits which Vishal Mega Mart is providing to its
employees?
a) Yes
b) No
Q4. Are you satisfied with the working environment and conditions of Vishal Mega
Mart?
a) Fully Satisfied
b) Partially Satisfied
c) Not Satisfied
Q5. Is Job Security provided to you in Vishal mega Mart?
a) Yes
b) No
Q6. Are you satisfied with the work culture of Vishal Mega mart?
58

a) Yes
b) No
Q7. Are you comfortable with the timings of your job?
a) Yes
b) No
Q8. Does management has trust in employees?
a) Yes
b) No
Q9. Are your ideas welcomed and appreciated by the management for the growth of
business?
a) Yes
b) No
Q10. Are your personal problems taken care of?
a) Yes
b) No
Q11. Is there any kind of appreciation for your good performance?
a) Yes
b) No
Q12. Is there proper promotion and growth for you in the organization?
a) Yes
b) No
Q13.Is management focused towards employees needs and demands?
a) Yes
b) No
Q14. Is any recognition given to you at Vishal Mega Mart?
a) Yes
b) No
Q15. Do you think job satisfaction increases the productivity of employees?
a) Yes
b) No
Q16. Is your job stressful?
a) Yes
b) No
Q17. Is your job affecting your personal life?
a) Yes
59

b) No
Q18. Does your job motivate you?
a) Yes
b) No
Personal Information
Name: ..
Age: .
Gender:
1) Male
2) Female
Designation: .
Salary:

60