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BUSINESS REPORT

Name of Institute:
Name of Student:

Introduction

Report on the history of the enterprise or destination and summarize


its strategic intent.

Knocknacarra Co Galway is a family owned Irish company that deals in the


consumer food and drinks. It was established in Headford in year 1951 and
made an amazing and well reputed food groceries stores which delivers the
best quality food, drinks and other related products. The supermarket is
passionate and committed about the work it does and tries to provide
support to the local community. The company started with a small grocery
store in Headford, Co. Galway, Ireland in 1951 by Patrick C Joyce with his
family. The business extended with a travelling shop and then developed into
a general supermarket. Later, the business also started providing the
building materials on the site of the current Headford supermarket. Because
Knocknacarra Co Galway is a family business, it was then taken over by Pat
Joyce. He moved the building materials side of the business a few kilometers
outside Headford, to the Galway Road. In this way, the supermarket was
expanded.
Moreover, Knocknacarra Co Galway has been awarded as the Best Grocery
Store in 2016 and also has a number of other titles and accolades for
maintaining the best quality of food and for giving the top class quality
service. Hence, the strategic intent of the company is to maintain the food
quality and the other services provided by the company. Moreover, they also
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want to support the local community. This is the reason that the company
supports local charities and the deserving causes throughout the Galway
area. The strategic intent of Knocknacarra Co Galway also includes the local
production of the food and the support of local suppliers. It allows them in
contributing in making the economy of the country better (Burton, A., 2001).

Information on the organizational structure of the business:


o Name of the organization: Knocknacarra Co Galway
o Type of establishment and size: Supermarket and building
material provider. It is a large- sized company.
o Name and the title of supervisor: The current supervisor is Pat
Joyce who is the owner of the company.
o Structure and organization chart: The owner of the company has
a democratic style of leadership and following is its structure and
chart.
Pat Joyce
(Owner)

Albert John
(Manager Human
Resource
Managemnet)

Subordinate

David Bentham
(Manager Finance)

Subordinate

Jermy Stewart
(Manager
Operations)

Subordinate

Nicholas Eros
(Manager
Marketing)

Subordinate

Describe the range of products or services provided.

Knocknacarra Co Galway is a supermarket and hence it has most of the Fast


Moving Consumer Goods ( FMCGs ). In addition, the company does not have
a single supermarket but there are 5 stores of Knocknacarra Co Galway.
However, we can say that the company specifically deals in the food items
and the drinks. Moreover, other than the grocery store, Knocknacarra Co
Galway also supplies the building manufacturing materials. Here, the range
of products includes all the raw materials that are needed to construct a
building. In other words, we can say that the company has two different
departments and hence 2 different ranges of products.

Analyze the physical location of the business enterprise and comment


on its internal ergonomics.

Currently, the supermarket is located at the Galway Road, a few kilometers


outside Headford. It is one of the best locations for the supermarket to be
located and it is due to the residential area which is very close to it. This
makes it easy for the customers to reach the supermarket and do the daily
grocery. Moreover, the location also has a great impact on the internal
ergonomics of the company. Hence, due to such an amazing and the
convenient location, the workers of the Knocknacarra Co Galway are also
highly efficient. It is because, unlike most of the other businesses and the
supermarkets, they do not have to go through the hassle of traveling very far
away from the city or their residential areas. This increases their ability to
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work and hence their efficiency as well. Moreover, the company makes sure
that they open the store in such places. It is evident from the fact that they
have launched a new store in Inverin, Co. Galway in July 2014.
However, when we talk about the other business of the company, which is
the construction raw material, is located on the site of the current Headford
supermarket. It is also one of the best places for the construction businesses.
It is not very close to the residential area because of the sort of work that
they have to do. Such businesses are not allowed to operate within the city
or near the residential areas just to be cautious and avoid any type of
problem for the residents. This is understood by the employees of the
company and hence they do not feel uncomfortable in traveling to that
place. This keeps and motivated and increases their efficiency as well.
Human Resource Management

Number of staff full time and part time in total and your department.

In the central distribution warehouse, which the company has just launched,
they are hiring new people. In total, they are now employing total of over
360 people in their various stores. Moreover, the shop department has 82
staff members including staff members and management in store EPOS
Systems. The EPOS Systems include:
o
o
o
o

Pricing
Labels
Offers
Signage
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o Shop Floor
However, it is extremely difficult to get the exact number of people who are
working in Knocknacarra Co Galway because of its size. The company has 5
stores and other than the supermarket and the grocery store, Knocknacarra
Co Galway also has a business that supplies the raw materials for the
construction businesses. Hence, they have many employees and the number
of employees fluctuates on the daily basis because a number of people join
them daily and many of them leave their job. It mostly happens daily on the
lower level.

Key duties and responsibilities of personnel in your department.

Knocknacarra Co Galway is a large sized business and hence it has a number


of departments. The departments have different tasks and the personnel
have the tasks related to their department.

Marketing department: Nicholas Eros is the Marketing Manager and his


duty is to monitor the marketing done by the company and make the
strategies. Moreover, he also has the authority to approve or

disapprove a particular marketing plan.


Finance department: David Bentham is the Manager of Finance
department and his responsibilities include production of the financial
reports, development of plans and strategies, and direct investment

activities to achieve long term financial goals of the company.


Human Resource department: The manager of the Human Resource
department is Albert John. His responsibilities include providing
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compensation and benefits to the employees, recruitment, managing


the payroll, training and development, managing the relationship

between the workers, and a number of other similar responsibilities.


Operations department: Jermy Stewart is the Manager of the
operations department. He manages the raw material and the
personnel in the company. He also monitors the inventor, its

purchasing, and its supplies.


Induction and training that took place.

The process of induction takes places after the recruitment, when the
company has selected the person. The induction process of Knocknacarra Co
Galway includes the following points:

The new employee is first made familiar to the surrounding he is going


to work in. in other words, he is brought into the comfort zone so that

he can start working efficiently.


Once he gets comfortable, the company tells him about the rules and
regulations that have to be followed. He is also shown the inside of the

super market so that he memorizes the areas and the places.


After showing him the place he will be working in, he is reminded about
his responsibilities. The new employee is also told about the jobs of
other people and the responsibilities of the other departments.

Later, if the company feels that the employee needs training, they are sent
to attend the different training sessions. These sessions teach them how to
deal with the customers and other related techniques. Moreover, the training
is also done while working in the company.
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Describe

the

process

of

recruitment,

selection,

and

training

development of staff that occurred during your placement.


The recruitment and the selection process of Knocknacarra Co Galway is as
follows:

1st Step: Career Opportunity

The potential employees search for the jobs that match their qualification
and then submit their resumes or the CVs.

2nd Step: Phone / Skype / Online Interview:

The Human Resource team goes through all the CVs they have received.
Among them, they select the ones that match or are close to the
requirement of the company. Then they contact the person for the phone,
Skype, or the online interview.

3rd Step: First Round of Interview

The selected candidates are then called for the face to face interview in the
office. It is conducted by a complete panel.

4th Step: Tests

The individuals have to take some tests so that the company can understand
their motivational and understanding level.

5th Step: Second Round of Interview

Now, the candidate is interviewed by the upper manager of the company.


They usually have the discussion regarding the future of the company, the
goals they want to achieve, and the ways they can do this.

6th Step: Reference Check

The person will be given a reference form which he has to fill from an
authorized person or form the organization in which he has worked
previously.

7th Step: Selection and Offer Decision

After passing all the previous steps, the candidate will be sent an
employment offer. At this point, the person can ask any question if he has.

Measure the labor turnover of the business enterprise and identify the
causes of these movements.

Employee Turnover Rate = ( Number of employees leaving the company


during the year / Total number of employees ) 100
Employee Turnover Rate = ( 55 / 800 ) 100
= 0. 069 or 6. 9 %
The employee turnover rate of Knocknacarra Co Galway is 6. 9 % which
means that 6. 9 % of the total number of employees leaves the company
every year. This includes resignations, retirements, and terminations.

Following are some of the reasons behind the employee turnover of the
company:

They could not maintain the balance between professional and

personal life.
Sometimes, the Managers did not have a good behavior with them.
They did not meet the requirements of the job.
Violation of the rule was done by them.
They do not have the decision making quality.
They found a better opportunity somewhere.

Finance

Understand the stock taking process and operational control functions


including the security of cash and the prevention of fraud.

Following is the stock taking procedure that is followed in Knocknacarra Co


Galway:

Counting and valuing the appropriate items: The direct cost stock
items are valued and counted. These stocks include the items that that
cannot be reused by the company. For example, the direct cost stock
items include beverages, food, packaging, and other similar items.
However, the company cannot include furniture, crockery, or any other

item that is reusable.


Establishing the record system: Among a number of stock taking
systems in the market, Knocknacarra Co Galway makes different
groups and put the relevant products in them. For example, the
company makes the groups: dry food items, frozen food items,
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beverages, packaging, and others. Later, in the spreadsheet, the units


are assigned to each product and their stock count is calculated.

Finally, the comments are written.


Time of stock take: The Company has fixed Monday as the stock time.
It means, the stock is counted on the weekly basis on every Monday. It
is necessary to fix any one of the days of the week. In this way, the
company is able to maintain the consistency of the stock take and get
the most accurate result. Moreover, it also helps the company in taking
the accurate handle not only on the stock movement, but also on the
gross margin value. Hence, Knocknacarra Co Galway gets the

maximum amount for the gross profit margin.


Start of the counting of stock: Most of the companies start counting the
stock from the above and then they work their way down; this is not
the correct approach. Knocknacarra Co Galway has a different way of
counting their stock. Most of the stocks are listed in the software of the
company; however, to make sure, the company makes it employees to
manually count the stock. In this process, the workers are asked to
start counting from the back of the premises and then they come to
the front. In this way, the chances of missing any stock is the lowest

and they can also populate their stock.


Teams are made to do stock take: Because Knocknacarra Co Galway is
a large sized business and has a number of branches; it is not possible
for one person to do the counting of the stock. So, the branch is
divided into portions and different teams are made. Later, each portion

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is allocated to each team so that less time is consumed and least

mistakes are made.


Explain how the enterprise does or can adjust its operating costs in
relation to different patterns of demand.

There are a number of operating costs that are incurred by the company. The
company manages these costs depending upon the demands and the profit
it is earning.
Following are some of the costs and the ways through which the company
adjusts the particular operating cost:

Insurance cost: It is one of the operating costs that the company bears
and in return, this cost gives them the security that, in case of fire or
nay other damage, they will be able to recover the amount of their
asset. Unlike other costs, it is not possible to fluctuate this cost
because no matter what profit you are making, you have to get your

assets insured and have to pay the insurance installments.


Office supplies: It includes all the stationery items that are used in the
company including the pen, pencil, papers, and other related items.
The office supplies are important for the company because we still use
the pen and pencil to write on the paper even in the presence of
computer. It is because it is not possible to write everything in your
computer all the time. In case of low profit, the company buys less
office supplies and work on cost cutting method.

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Advertising cost: It is essential to tell the customers that you are still in
the market and are here to give them best services. In this era of
increased competition, this is extremely necessary because everyone
is ready to take away your customers. Moreover, the customers are
also ready to switch brands if they face any difficulty. Hence, the
company spends a good amount on the advertising. This cost increases
when the company makes good profit; however, it may decrease in the

case of low profit.


Salary cost: It is one of the main operating costs that the company
incurs. If the company fails to give the salaries to the workers, they will
end up losing their workers. They may also face inefficiency from the
workers` side. To avoid these, the company gives the salary on time
and before the due date. In case of low profit, the company does not
lower the salaries because they cannot take any risk in terms of
efficiency. It is because the inefficient workers will lead to loss of

customer base. In addition, timely bonuses are also given.


Utility bill: The utility bills include the electricity bill, water and
sewerage bill, gas supply bill, and a number of other bills. These are
the mandatory bills that the company has to pay regardless of the
profit it is earning. So, these utility bills do not vary with the amount of

profit that the company earns.


Depreciation cost: Similar to some of the previous costs, it is not
possible to control the depreciation of the fixed assets. It is because,
no matter whether you are using the machine or any other fixed asset
or not, they are being depreciated. However, the good part about the
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depreciation cost is that, unlike other costs, the company does not
have to pay any amount agonist the depreciation cost. It is the nonmonetary cost that the company incurs and does not vary with the
change in the profit. However, the company has to buy the new asset
once the old asset gets fully depreciated.
Operations

IT system used and identify its strengths and weaknesses.

Similar to all the other business, the supermarkets also need the Information
Technology. It is because the dimensions of the works that has been changed
and now everyone is moving towards the technology. Different supermarkets
use different Information Technology systems. In case of Knocknacarra Co
Galway, the company uses Electronic Point of Sale ( EPOS ).
The Electronic Point of Sale ( EPOS ) till is located at every checkout in the
Knocknacarra Co Galway supermarket. The till of Electronic Point of Sale
( EPOS ) consists of a digital display, a scanner that scans the bar codes, a
keyboard, a printer, a set of scales, a till drawer, a credit reader, and a debit
card reader. All of these are attached to the till via its base unit and this has
connections with the branch computer, which is set in the IT system office of
the supermarket, with the help of the cables. The bar code, which is at the
back of the products, is actually its identification mark and is different from
all the other products. These bar codes are basically a set of black lines with

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the white back ground. Although they are unreadable by the humans, the
computers and the EPOS can easily identify them.
Following are some of the strengths of the EPOS:

Accuracy of Finances:

The EPOS system helps the company in achieving the financial security when
making the

payment list for the customers. In most of the other

supermarkets, they still use the traditional method calculating the sales
transactions and it can lead to many omissions or mistakes. In other words,
the manual calculation can lead to over charging or lower charging of the
customers, causing the customers to get attracted towards the other brands
(McDougall, G. H, & Levesque, T. J. 2000). However, the EPOS systems
remove the possibility of any error, it makes sure that the write calculation is
done, and the profits increase.

Liability and Accountability

With the help of the Electronic point of sale systems, the company can easily
monitor the staff activity and can record them as well. In this way,
Knocknacarra Co Galway can understand the efficiency of each of its
employees and can take the suitable actions. If one of the employees is
working exceptionally well, he is given bonus or any other reward. On the
other hand, if someone does not work up to the mark, he is either sent to the
training sessions or penalized depending on the situation.

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Efficiency & Speed

One of the best parts about the IT is that, it reduces the time consumption.
Similarly, the EPOS systems do not only improve the efficiency of
transactions, they also enhance the speed of transactions. In this way, it
attracts the customers and every employee can serve more people in less
time. Moreover, it also increases the overall experience of the customers and
encourages them to come to the store again.

Reports

Other than all of these, the EPOS systems also produce a number of reports
on the performance of the business. These reports include the very basic
analysis of profit margins, the identification of the most common product in
the store, and a number of other similar reports. It helps Knocknacarra Co
Galway in analyzing the overall performance of the business and also tells
the areas where the company has to pay more attention.
Following are some of the disadvantages of the EPOS systems that are faced
by Knocknacarra Co Galway:

High Cost

Although the EPOS systems are one of the best systems that can be used in
any supermarket, the overall cost of this system us very high. The buying
costs, the running costs, and all the other costs are just more than all the
other software. Moreover, because it is a software system, it is essential for
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the company to hire an educated person who can understand it. Secondly,
the person must be trained so that he can operate the software. The
packages of the standard EPOS include the cash register, digital touchscreen,
and other peripherals. The total cost of these packages, in the UK, is about
2000 or more.
Hence, it can be said that the EPOS systems are quite expensive and it is not
possible for the small businesses or less profitable businesses to buy this.
Because Knocknacarra Co Galway is a large business, it can afford these
systems. Moreover, the above mentioned costs are only some of the major
costs that are incurred; there are many other costs that are associated with
the EPOS systems. On the other hand, Knocknacarra Co Galway has tried to
lower the costs by leasing and renting some of the systems.

High Need of Maintenance

Similar to all the other Informational Technology systems, the EPOS systems
also have the need of maintenance. However, they have the need of regular
maintenance. There are some of the suppliers that give after purchase
service in which they offer free maintenance for a period of time but after
this period ends, the company has to do the maintenance which is disruptive
to the operations and very time consuming.

Updates Required

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The world of technology is changing very quickly. Today, all the applications
that we are using have to be updated so that they can give the maximum
performance. The same is the case with the EPOS systems which require
regular hardware and software updates. So, these updates are also a part of
the expense that Knocknacarra Co Galway has to bear. However, as
mentioned above, some of the systems are either rented or leased, the
money earned from the leasing and renting cover up some of the costs.

List the technologies employed by the enterprise and identify how


other technologies could be employed and understood the impact
these could have.

Knocknacarra Co Galway is a large sized company and hence uses many


different technologies.

Products are located: The products can be traced out with the help of

mobile phones.
Self- serving scanning: The products can be scanned immediately

telling the amount that you have to pay.


Knocknacarra Co Galway mobile application: The company has its own
mobile application that people can download. This application keeps
the users updated regarding all the things in the company.

A number of other technologies can also be employed such as the system


that can notify the manager when more registers are required, the
application that can inform when the inventory level goes down, and other
technologies. These technologies will cost a lot to the company but they will
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also bring long term benefit. More people will like to go the Knocknacarra Co
Galway`s super store.

Health and safety procedures followed.


Knocknacarra Co Galway identifies the hazards that can harm
customers and workers and try to remove them. The company also

does the risk assessment.


The monthly medical checkup of workers is done.
Experts are appointed to check the safety standards.
The employees have the emergency contact numbers.
Best arrangement for the first aid is present.
Layout of department and analysis of the flow of work.

Knocknacarra Co Galway is a superstore and this is why the flow of work


starts with the upper management. The management orders the products
when the stock level goes down. The products are then stored in the go
downs and the stock, which is already in the go downs, are set in the shelves
of the store. Now, this is the place which is visited by the customers and they
buy the products from here. This is how the work is flowed in Knocknacarra
Co Galway.

Take one product or service through the process of production; include


all of the resources requited to achieve the end product i.e. human,
physical, and financial.

Because Knocknacarra Co Galway is a superstore, there is no production like


other businesses. However, the service provided by the company is that the
customers get the products that they are looking for.

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In this service, the very first resource used is the human resource

because the inventory is calculated by the workers.


Then, one of the managers places the order for the new inventory and

here also, the human resource is used.


Later, after the products are delivered, the payment is done after some

days; this step uses the financial resource of the company.


After the customers buy the products, the invoices are made with the
help of EPOS systems where the physical and technological resource of

the company is used.


State the key services standards that the business enterprise has
adopted and evaluate their implementation and their relevance to the
markets served.

Following are the standard of services that are implemented by Knocknacarra


Co Galway:

The customers are greeted warmly at the entrance and the exit. This
attracts more customers and hence makes the company more

profitable and reputable.


Their issues and complains are listen carefully. In this way, the
company also gets to know about its weaknesses and brings

improvement.
The workers are shown that they are vital for the company and this

makes them more effective and motivated.


The workers are told about the processes so that they can do their

work effectively.
Any phone call, email, or message is given appropriate attention and
they are also replied. This gives the impact to the customers or the
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suppliers that they are important for the company and they become

more loyal.
Critically consider incidents and be able to describe their cause and
effective management.

One of the incidents that happened in the supermarket is that, a customer


was caught in the CCTV camera while stealing some products. He was trying
to hide them in his bag and pockets. The management instantly ordered the
security guards to get hold of that customer and he was brought to the
control room. The manager met him there and asked the reason, which he
told that he is a needy person and cannot afford the basic necessities for his
toddler. If the Manager wanted, he would have called the police and given
him to them; however, he used the cost and effect theory and sent some of
the workers with him. They made sure that whatever he was telling was the
truth. Later, the Manager helped him and also offered the job; this is how he
solved the cause of the incident.

Identify the formal and informal channels of communication.

Formal channels of communication:

Emails
Reports
Board meetings
Circulars

Informal channels of communication:

Personal messages
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Calls
Social media communication
Face to face conversations
Describe the different styles of leadership that you have observed
being used within the business enterprise.

The style of leadership, which is followed in Knocknacarra Co Galway, is the


democratic style of leadership. It is because the Managers want the
employees to work in an easy and balanced environment. However, they
may follow the autocratic style of leadership when any of the employees
does not give the expected return without any genuine reason.
Marketing

Explain the markets served by the enterprise or destination and


critically consider the needs of these markets.

The aim of Knocknacarra Co Galway is to provide the best food to the local
community. It means that the company aims to serve the lower income
group as well. Knocknacarra Co Galway serves the entire market and also
considers the lower income groups. These people need the average quality
with the most reasonable price. Whereas, the upper income group wants the
best quality and they are willing to pay the amount for it as well. Hence, the
company has different policies for each group.

Understand the fluctuations in demand experienced by the enterprise


and suggest action that could be taken to smooth demand over time.

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The demands of different products vary with the season or the trend. The
company takes care of this issue by ordering the products that are
demanded by the customers. For example, the cartons of coffee are ordered
more during winters and less during the summer time. The case is same with
the clothing and attires, accessories, FMCGs, and all the other product so
that the company can maximize profit and minimize the costs.

Evaluate the marketing activities of the enterprise over the duration of


the placement period.

During the placement period, Knocknacarra Co Galway markets its securities


so that the investors get interested in them. They send advertisements in the
newspapers, post pictures and statuses on the social media, and information
are also provided in via the Knocknacarra Co Galway application. All these
are done to attract the investors who are willing to buy the securities.

Discuss key competitors.

The biggest competitor of Knocknacarra Co Galway is SuperValu, which has


the headquarter in Cork, Republic of Ireland. This superstore also sells the
fresh meat, vegetables, fruits, and other products like Knocknacarra Co
Galway. SuperValu gives different schemes and offers to attract the
customers such as 3 great value meats in just 10 and other deals.
Conclusions and recommendations

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In order to maximize the profit, the company must employ new technologies;
some of them are mentioned above. The use of technologies will give a
competitive edge to Knocknacarra Co Galway, more customers will be
attracted, and the company will generate more profit. The company should
also give more importance to the customers and it will increase their
customer base. Moreover, new products should be placed in the store to
fulfill the requirements of the people. The workers must also be given more
attention to improve their effectiveness and make them motivated.

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References
Burton, A., 2001. Knowledge capitalism: Business, learning, and work in the new economy.
OUP Catalogue.
McDougall, G. H, & Levesque, T. J. (2000). An experiment: Recovery strategies and service
problems. Canadian Journal of Administrative Sciences/Revue, 17 (2), 21- 49.

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