MANAC II

Store24

Group Members
Devagya Jha - B19014
Divya Mani Tripathi - B19016
Nikita Gulgule - B19031
Snehal Tiwari - B19055
Overview
Store 24 is a privately held convenience retailer store in New England and
has more than 75 stores located all throughout Massachusetts, New
Hampshire, Rhode Island and Connecticut. In order to further move ahead,
they decided to differentiate their retail outlets by creating an in-store
entertainment atmosphere by coming up with various themes and promotion
strategies. They finally came up with the ‘Ban Boredom’ strategy with a
focus on the store-level efficiency. But off late, the feedback from the
customers and the financial figures showed a stark difference in the
effectiveness of the Ban Boredom. While the company was doing well
financially, the customer feedback suggested that they just didn’t connect
with the services being offered under the Ban boredom scheme. The
customer rated the store highly majorly for its fast service and customer
value provision. This pointed out to only 2 possibilities

 The management was wrong in the effectiveness of the Ban Boredom

plan
 The plan was not being executed as it is intended to be executed.
Problem Statement
The major problem Store24’s management faced was to identify which half
of the Ban Boredom strategy had an issue

1. The ‘Ban Boredom’ strategy itself

2. The mismatch in the planning and the implementation of the strategy
at the retail level.

And to evaluate the Balanced scorecard system.

Regression Analysis
Here, we need to critically evaluate the performance system which the
management had brought out. The “Balanced Scorecard” system took in various
performance metrics as parameters and measured them at the store-level.

In order to evaluate which parameter had the biggest impact on the financial
performance of the stores and the company as a whole, we did a regression
analysis as to which parameter had the highest co-relation with the profitability
metric of the store.

We identified a few important parameters like population, Number of competitors,

Crew skills, Employee tenure and Manager skills and did a regression analysis on
these performance metrics.

Regression Statistics
Multiple R 0.97221638
R Square 0.945204689
Adjusted R Square 0.616432826
Standard Error 72300.91618
Observations 8
 Regression Analysis done for Demographic factors like Population

Looking at R square value generated from the regression analysis, we can say
financial performance of all the stores of Store24, is affected by the physical factors.

Regression Statistics
Multiple R 0.939832043
R Square 0.883284268
Adjusted R Square 0.836597976
Standard Error 47190.19811
Observations 8
Regression Analysis done for Employee Tenure and Crew and Manager Skills

Looking at R square value generated from the regression analysis, we can say
financial performance of all the stores of Store24, is affected by the above
measured factors.

But, from all the above analysis, we can say that the profitability although has a
high co-relation with the demographic factors is not completely dependent on them.
It’s also based on the crew skills, manager skills and other metrics.

Recommendations
Profit also has a significantly strong positive co-relation with

 population around the store

 Crew skills
 Manager skills

On the other hand, it has a negative co-relation with

 Number of Competitors

It has a very low co-relation with

  Ban Boredom Strategy

Hence, we could say that the management should focus more on improving the
crew and manager skills instead of focusing on the ‘Ban Boredom’ strategy.