Strategic Management

Internal and External Assessment of

Sam 99p Store

MBA Innovative Management British Institute of Technology & Ecommerce

Group Name: Innovators

Group Members
1.

2.
3. 4.

5.
6.

Umair Rahim (42003) Atif Munir (43825) Sohail Sarwar (43825) Azhar Ali (43270) Arbab Khan (43853) Azam Khan (44213)

(Leader) (Secretary) (Member) (Member) (Member) (Member)

Strategic Management

The strategic management process means defining the organizations strategy. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance.
Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.

SAM 99p Store

SAM 99p Stores is a family run business founded in January 2001 by Nadir Lalani, who opened the first store in the chain in Holloway London, with a further three stores opening later that year. In 2002, Lalani decided to expand the business throughout the UK and has rapidly developed 99p Stores, operating a total of 129 stores as of March 2010 and serving around 1.5 million customers each week The retailer offers a large range of products in its 3,500 lines, from "Do it yourself" (DIY) and electrical to toys, food products and stationery products

SWOT Analysis
Strength

Single price retailer Reputation Easy to approach

Weakness

Low quality product Poor customer service No self checkout No online system No customer loyality

Swot Analysis
Opportunity

To introduce frozen goods To cater for middle class customers Introduction of self checkout

Threat

Lack of ICT Competitive environment

Pest Analysis
Political

Government stability Trade restriction Tax Policy

Economical

Globalization Interest rate Inflation rate Labour costs

Pest Analysis
Social

Health consciousness Attitude to work Cultural taboos Population growth rate

Technological

Technological incentive Impact of internet (reduced communication cost)

Problems & Issues

Low quality product No online system No customer loyalty

Strategies

Price consistency across all products All sam99p store have been using an advanced point of sale solution, developed in-house running on Epson's touch screen Intelligent Registers (IRs). The primary purpose is to track and understand which products customers are buying, allowing for up-to-date tracking of the most popular products, helping to ensure constant stock via automated ordering SAM 99p Plans to launch a transactional web site before the end of 2012, in an effort to attract customer. The proposed site would offer a limited range of products with best-sellers and seasonal items featuring strongly, such as Halloween and Christmas products

Conclusion

Maximum profit Easy access Suitable for all customers Availability of products conveniently Consistency in price

Recommendation

Customer Retention Good customer service Loyalty cards Introducing online system Home delivery

References

99p Stores looks to cash in further as shoppers seek bargains Scotsman Business. 8 March 2010. http://business.scotsman.com/business/99p-Stores-looks-tocash.6130853.jp Retrieved 15 March 2010. Thompson, James (17 June 2010). "Company behind 99p Stores launches discount retail chain Family Bargains" London: The Independent. Archived from the original on 20 June 2010. http://www.independent.co.uk/news/business/news/company-behind99p-stores-launches-discount-retail-chain-family-bargains-2002573.html Retrieved 22 June 2010. "Discount store to open in Halesowen Halesowen News. 30 April 2009. http://www.halesowennews.co.uk/news/4332237.Discount_store_to_open_in_Haleso wen/ Retrieved 1 January 2010. Mesure, Susie (5 April 2006). "99p Stores wins backing for 45 more outlets". London: The Independent. http://www.independent.co.uk/news/business/news/99p-storeswins-backing-for-45-more-outlets-472864.html. Retrieved 6 November 2008. "Fifteen former Woolies shops become 99p Stores". The Grocer. 23 January 2009. http://www.thegrocer.co.uk/articles.aspx?page=articles&ID=196819 "Proteus Property: 99p Stores Landslords". Proteus Property. Archived from the original on 27 June 2009. http://www.proteusproperty.com/storeslandlords.html. Retrieved 21 July 2009. "99p Stores sales up as shoppers pursue value". Retail Week. 25 September 2008. http://www.retailweek.com/NonChannelContent/2008/09/99p_stores_sales_up_as_shoppers_pursue_v alue.html. Retrieved 6 November 2008