REPORT ON STRATEGIC CHOICE, IMPLEMENTATION,

RECOMMENDATIONS AND FOLLOW UP FOR BHAT-BHATENI

SUPERMARKET AND DEPARTMENT STORE BIRATNAGAR

Module code and title: 6BE003 Strategic Management

Module Leader: Hairija Dergic
Module Lecturer and Tutor: Ms. Chadani Thilakaratne
Assessment type: Individual
Student number: 1731192
Submission date: Friday 8th June 2018
6BE003 – Strategic Management – 1731192

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Acknowledgement

It is an honor to express immense gratefulness to Module Lecturer Ms. Chadani

Thilakaratne for her continued guidance, support and fruitful suggestion in
accomplishing this assignment.

I would also like to express gratitude to Mr. Pandu Poudel (chief operating officer),
Mr. Phuskal Rai (branch manager) and Ms. Sangita Rayamaji (IT Manger) for their
remarkable support in providing all the important information regarding Bhat-Bhateni
supermarket and department store.

I would like to express my intense gratitude to our module leader Hajrija Derjic for
introducing Strategic Management. Lastly, I would like to thank the University of
Wolverhampton, for providing me such a great opportunity to enhance my aptitude,
knowledge and wisdom.

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Contents
Summary ................................................................................................................... 6

1.0 Introduction to Bhat-Bhateni store and retail industry in Biratnagar ............ 7

1.1 Performance data of Bhat-bhateni store ................................................... 8

2.0 Organizational objectives .................................................................................. 9

3.0 Internal environment assessment .................................................................. 10

3.1 Porter's five forces ........................................................................................ 10

3.2 VRIN Analysis of Bhat-Bhateni .................................................................... 10

3.3 SWOT analysis of Bhat-Bhateni store ......................................................... 11

3.4 BCG matrix .................................................................................................... 11

4.0 Possible Strategies ...................................................................................... 12

4.1 Ansoff growth matrix ................................................................................ 12

4.2 Porter's three generic strategies ................................................................. 15

4.2 Bowman's strategy clock for Bhat-Bhateni ............................................ 16

5.0 Evaluation ......................................................................................................... 17

6.0 Strategy Analysis ............................................................................................. 19

7.0 Recommendation ............................................................................................. 20

8.0 Conclusion ........................................................................................................ 21

9.0 References .................................................................................................... 22

10.0 Appendices ................................................................................................... 25

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Summary
The purpose of this report is to evaluate the current strategy of Bhat-Bhateni
supermarket and department store based on SWOT analysis. Then, to propose the
best strategy by using different analysis, such as Ansoff matrix, Bowman's Strategy
clock and Generic strategy and implementation and follow up of the proposed
strategy.

The first part talks about the introduction of Bhat-Bhateni, its overall market share
and performance chart. It also explains about a retail industry analysis of Biratnagar.
The second part talks about the objectives of Bhat-Bhateni supermarket and
department store. The third part talks about, SWOT analysis, VRIN, Porter's five
forces and also BCG matrix to know the current position of Bhat-Bhateni in
Biratnagar. After knowing the current position, the Fourth part talks about, Ansoff
Matrix, Generic Strategy and Bowman's clock strategy.

The fifth part talks about the evaluation of all those three strategies on the basis of
Strategic direction, Vision and strategy of company. The sixth part talks about the
cost leadership of Generic strategy on the basis of SAF. And finally ends with,
recommendation and conclusion.

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1.0 Introduction to Bhat-Bhateni store and retail industry in

Biratnagar

Bhat-Bhateni is the leading supermarket and department store, founded by Mr. Min
B. Gurung in 1984, which offers a unique shopping experience. He first started Bhat-
Bhateni as a cold store and later on turned it into a small department store and finally
supermarket. At present, it covers almost 70% of market share (Poudel, 2018),
serving 50,000 customers daily. It has 15 outlets with more than 4500 staffs and
offers 1, 50,000 wide ranges of products. Bhat-Bhateni is not only good at selling a
wide range of products, but also making CSR as a core part of a business and
maintaining a good relationship with Customers and suppliers. It has been offering
free insurance, medical treatment, fooding and transportation to their staffs whereas
free home delivery, guarantee on products, refunds, exchange, club cards and
discounts to each and every customer (Bhat-Bhateni Supermarket and
Departmental Store, n.d.).

There is only one department store named Nepal Bazaar established in 2011 AD
(Nepalbazar.com.np, n.d.). Other than that, most of the people of Biratnagar are
attracted to small retail and wholesale market because they prefer bargaining. There
is also another market named 'Jogbani' situated at India border. Most of the products
are quite cheaper and so people from Dharan, Dhankuta and Bojpur often come to
buy required stuffs (Rai, 2018).

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1.1 Performance data of Bhat-bhateni store

In Nepal, most of the business associated with retail or manufacturing does not
disclose or go public about its performance

In 2016, Bhat-Bhateni total revenue was NRS 9 billion even though sales fell by 10%
and had expected to gain more in 2017 (Rijal, 2016). Talking about Biratnagar, it has
made record of Rs 100 million in 10 days, selling Rs 1million per day (Basnet,
2018). This shows that, their performance are going outstanding. On the other hand,
its performance can also be determined from its growth of outlets in the different
major cities of Nepal.

Established year Location of Outlet

2008 Maharajgunj, Kathmandu

2011 Koteshwor, Kathmandu

2011 Boudhha

2011 Pulchowk

2012 Pokhara

2012 Newroad

2013 Baluwater

2014 Anamnagar

2014 Balju

2014 Kalanki

2016 Baratpur, Chitwan

2016 Dharan

2017 Butwal

2017 Bhaktapur

2018 Biratnagar
(Bhat-Bhateni Supermarket and Departmental Store, n.d.).

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Within just 12 years of time, it has established 15 outlets, which even their
competitors have not dreamed off. Furthermore, I have surveyed a large group of a
person from different places to know the perception of customer and performance of
supermarkets in Nepal.

4%

Source: online survey

From the above bar graph; we can easily see that, Bhat-Bhateni is loved by most of
the Nepalese people and has 46.8% votes. It means, However, Blue Bird has 21.2 %
votes, as it is the first supermarket of Nepal and has just 2 outlets
Bluebirdmart.com.np, (n.d.). If we talk about Nepal bazaar, which is the one and
only established competitors of Bhat-Bhateni store in Biratnagar, it has received only
4% votes. It means that, Bhat-Bhateni has very good number of satisfied customers
rather than any other supermarkets and department stores in Nepal.

2.0 Organizational objectives

Being a hero in the retail industry, Bhat-Bhateni supermarket and department store
has some major objectives to be fulfilled;

 To generate job opportunities for 50,000 people in coming 10 years.

 To expand its outlet in all growing cities of Nepal.
 After establishing an outlet in most of the cities, they want to go multinational in
the countries like, Bihar (one of province of India) Bhutan and Bangladesh.

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 They also want to change its payment system into Debit and credit card in
coming 5 years of time (Poudel, 2018).

3.0 Internal environment assessment

3.1 Porter's five forces

There are more than 1000 small retail and wholesale that supply similar kind of
product to Bhat-Bhateni (Rai, 2018). Nepal Bazaar is the only one competitor, but
other three malls such Centurion, Nepal Bazaar and Central mall is opening very
soon in Biratnagar (The Himalayan Times, 2018). Bhat-Bhateni buys every =thing in
bulk, so they have high bargaining power. Everything on Bhat-Bhateni is fixed price,
so no bargaining (Poudel, 2018).

3.2 VRIN Analysis of Bhat-Bhateni – appendices 7

1. Value: Bhat-Bhateni has been successful in creating value by providing product

at a lower price than its competitors like Nepal Bazaar so now it has occupied
most of the market shares of Nepal Bazaar and has created ups and down in
their operation (Poudel, 2018).

2. Rareness: It has been successful in providing customer service like free home
delivery, refundable, exchange offers and 10% discount on every product has
made its offering rare in comparing to Nepal Bazaar which gives competitive
advantage (Poudel, 2018).

3. Imitability: It has very high bargaining power, so its competitors cannot be

leveled to that position. For instance, in Biratnagar, they recently have become
single buyer of Ruslan Vodka and buying directly from factories and selling them
at wholesale price (Poudel, 2018).

4. Non-substitutable: Its brand value is one of strongest strength to attract the new
market. All the resources and capabilities that Bhat-Bhateni contains actually
have helped them to be well renowned throughout Nepal (Poudel, 2018).

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3.3 SWOT analysis of Bhat-Bhateni store – appendices 6

Bhat-Bhateni offers a full range of 15, 00,000 products at a lower price than its
competitors (Bhat-Bhateni Supermarket and Departmental Store, n.d.). The
growing middle income class (Sharma, 2018) and western shopping, culture have
created influential opportunities for Bhat-Bhateni to expand its outlet in the growing
cities of Nepal.

Due to unbalanced political condition, it has not been properly able to operate
business smoothly (TheGlobalEconomy.com, 2016). Cut-throat competitions are
also increasing in Biratnagar as Nepal Bazaar Mall, Centurion Mall and Central Mall,
so they should try to improve its criticisms by managing queue system, providing
good quality of products at reasonable prices and operate ethically.

3.4 BCG matrix

Biratnagar

If we considered Nepal as a single market, then, Bhat-Bhateni can be considered as

a leader and so do they make a position in Star. However, Bhat-Bhateni has recently
been established in Biratnagar, so its market share and performance cannot be
determined, so they should lie at the question mark.

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4.0 Possible Strategies

4.1 Ansoff growth matrix

By using this matrix Bhat-Bhateni would be able to determine its product and market
growth strategy to be developed.

 Market penetration:
As Bhat-Bhateni has been established in Biratnagar, so they can use market
penetration to increase their sell by doing following things:

 Buy two get one – Rather than giving discount they should use this strategy, to
attract large number of customers in Biratnagar as they love getting things for
free. Bhat-Bhateni can do this by offering other product as well. They do not have
to offer the same product as a free. A study also shows that, most of the people
find difficulties in converting the discount rate, however, free is easily under
stable, so almost 93% customers could be attracted with such provided schemes
(Roque, 2017). Below down the data has been shown, so using this data, Bhat-
Bhateni Biratnagar should try to understand how consumer perceived the given
offers.

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 Social media advertisement – The total internet users in Nepal are 16.67 million
as of 2017 with 63% of internet penetration rate. Telecommunication authority
Nepal (NTA) stated that, each hour 250 users are connected to the internet. In
this present scenario, connecting to Internet means connecting to Social media
(Neupane, 2018). There are more than 90% of people are using Facebook,
4.73% YouTube, 2.5% Twitter, 0.4% Instagram and others (StatCounter Global
Stats, 2018). Bhat-Bhateni Biratnagar should understand that, Social media
advertisement is extensively acceptable via which large number of Customers
can be attracted. They should more focus on Facebook, YouTube and Instagram
to pull the customers. Today's, Social media marketing has become one of the
cheapest ways to promote a company's brand and its product. So, by using this,
there would be an increase in sales, brand awareness, Networking and new
customers.

 Market development:

Biratnagar has only one market and it is not large in comparison to Kathmandu
where Bhat-Bhateni could establish new outlet in different. However, head office

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of Bhat-Bhateni should target the growing cities like Damak and Birtamode,
where the middle income population is growing and also new shopping trends are
increasing. This will not only help to accomplish their objectives, but as well as
revenue and market share of the company.

 Product development:

This approach basically focuses on selling new product into existing markets.
However, in Biratnagar, they should focus and effort on marketing and sales of
the product rather offering new product into market because they already have a
wide range of almost 150,000 products. They could add if the demand increases,
however, product development is not a significant strategy for market growth for
Bhat-Bhateni Biratnagar.

 Diversification:

This is the one of the most risky approach, where firms need to sell new product
into new markets. In Biratnagar, they could establish a small outlet of 2 storeys
building in the area like Puspalal Chowk – (Appendices 9). As Puspalal Chowk
has become a mini market for villagers from Ginaghat, Neta Chowk and
Haraicha. People from these areas use Bicycle, so it takes more than 2 hours to
reach main market or Bhat-Bhateni store, so they go to the Puspala Bazaar to
buy all the required stuffs. Nepal Bazaar has also established its small outlet over
there. However, Bhat-Bhateni should also target those people by supplying
essential stuffs like Kitchenware and Groceries using effective strategy.

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4.2 Porter's three generic strategies

This generic strategy will help Bhat-Bhateni to establish its profitability in Biratnagar's
market. Below down there are some ways to achieve cost leadership strategy:

 Setting operating cost low – Bhat-Bhateni owned altogether 15 stores

throughout the Nepal. High bargaining power will reduce the price of products;
however, they should also try to minimize the wages and spending in other areas
as well to keep its operating costs low, which also ultimately reduces the price of
the product. So with the help of this, they can easily maintain their price even
lower than a small whole seller of Biratnagar to attract the large number of
customers.

 Access of sophisticated technology – Bhat-Bhateni has implemented

technology such as Customer Relation Management (CRM), Enterprise
Resource Management (ERP), Door scanner and Barcode reader (Rayamaji,
(2018). However, they should also look for the technology that will reduce their
operating cost such Supply Chain Management (SCM), Inventory Management
(IM) and other. These all should be implemented in Biratnagar's store, so that,

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they would be able to maximize operational efficiency and helps to set price even
more reasonable than Jogbani bazaar of Biratnagar.

4.2 Bowman's strategy clock for Bhat-Bhateni

Bowman's strategy clock helps to maintain a strategic position of the business, so

from the above 8 strategy, Bhat-Bhateni should use hybrid as both low cost and
differentiation is needed in Biratnagar's market.

 Low price – Bhatbhateni store Biratnagar should use low price strategy to sell
their products. As, this is necessary because if customer conceive that the price
is high than Biratnagar market, they may lose potential customers. Most of the
People in Biratnagar are middle and lower income class, so lowering the price
than market is necessary to attract large number of customers. Bhat-Bhateni
serves wide range of products, so gaining small percentage by selling larger
volume will enhance their economies of scale and ultimately generates profits.

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5.0 Evaluation
Strategic direction of Bhat-Bhateni – To maintain supply chain, operating cost, use of
advance technology, Low labor cost and minimizing extra spending (Poudel, 2018)

Vision – "To be the leader in the retail industry and the best retailers for consumers
and their employees" (Poudel, 2018)

Market strategy – To sell products at low price than competitors (Poudel, 2018)

Proposed strategy Strategic Vision Market

direction strategy

Ansoff Matrix Not Match Match

match
In Market penetration, Those suggested strategies are
rarely used in Nepal, however if they use such type of
strategy then Biratnagar market will get attracted. As of
now not even Nepal Bazaar' nor wholesaler has tried
this. In terms of Market development, establishing
more than one outlet will be costlier and not be profited
as population is just 1, 82,000 (Boss Nepal, n.d.)
almost 8 times lesser than Kathmandu. Product
development is not essential for Biratnagar, as Bhat-
Bhateni has already offered 1, 50,000 products, which
are more than enough for Biratnagar. Diversification, it
could be possible, but seems a little bit risky. Those
villagers may or may not get attracted as they are full
bargainers and may not like the fixed price system.

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Proposed strategy Strategic Vision Market

direction strategy

Generic Strategy Match Match Match

The Implementing Cost leadership strategy will

allow Bhat-Bhateni to achieve price even lower than
market. As Bhat-Bhateni strategic choices follow
their Vision and mission by keeping costs and prices
lower than its competitors. Recently they have
established new outlet in Biratnagar which will help
them to achieve economies of scale. As new
competitors like Centurion Mall, Nepal bazaar Mall
and Central Mall are going to be operated very soon
in Biratnagar, so the pressure of competition can
also be addressed through cost leadership strategy
and problem of Jogbani bazaar could also be solved.

Proposed strategy Strategic Vision Market

direction strategy
Bowman's Strategy clock Not match Match
match
Using Low cost strategy, Bhatbhateni Biratnagar will
be gaining small percentage of profit by selling large
volume. It will help them to be ahead than
competitors. As they are new in the market with a
wide range of products. So, just opening outlet will not
let costumers to be attracted, but if they provide same
product cheaper than market than customers will
overflow there. If they found such a luxury
supermarket, where everything's are under same roof
at a low price then they will be happy to shop in Bhat-
Bhateni.

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6.0 Strategy Analysis

Among the above three strategies, Cost leadership of generic strategy would the
best for the retail company like Bhat-Bhateni supermarket and department store.

Suitability Acceptability Feasibility

 The cost leadership  Cost leadership  This is quite feasible in

strategy is very suitable
especially for retail
companies like Bhat-
Bhateni because its
financial strength is
very strong to support
this strategy.
 It can easily overcome
its problems like
growing competitors,
conservative people,
Jogbani Bazaar
 This strategy is also
based on Mission and
Vision statement of
Bhat-Bhateni, so with
the help this strategy, it
can not only be able to
grab the market share
but also its growth will
be inclined.
strategy would
extensively acceptable
and could generate
high amount of return to 
the business. In
Biratnagar most of the
people want everything
at cheaper rate. They
look for quantity rather
than quality, so
lowering the cost would
let Bhat-Bhateni to be
ahead than its  Management and
competitors and
increase market share.
Biratnagar due to some
major reasons;
Logistics – They have
total almost 52 big
container trucks (Rai,
2018), which help them
to distribute goods on
each 15 stores and has
networked with more
than 1000 suppliers.
Technology – Proficient
management team and
most of them are
qualified from
international
Universities & have an
advanced technology.
(Poudel, 2018)

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7.0 Recommendation

As, every suggestion has already been elaborated clearly above, but I would be
mentioning only important ones for Bhat-Bhateni Biratnagar:

 Buy 2 get – It can especially be done for expensive products. People will see
free gifts, so it is important for them to offer essential things that can be useful for
customers and setting prices for those products should also be managed
properly.

 Social media – Bhat-Bhateni does have a Facebook page, but it has not been
properly utilized. They should post different news regarding Biratnagar, new
organized program, development works of CSR activities and many more this will
show them responsible company and enhance brand image. They should also
create Instagram page where they can post pictures of new apparel products,
offers product and discounts and others. These are free to post, so they cannot
be a leader just selling range of products, they should be flexible in every aspect
of time and situations.

 Cost leadership strategy: None of the retail businesses in Nepal that has a
capacity to achieve this strategy. However, Bhat-Bhateni does have capacity for
implementing this strategy, but they need to act more efficiently in terms of
operating cost, miscellaneous cost, advance technology, logistics cost and also
on renewable energy (Solar power).

 Corporate Social Responsibility (CSR): It took almost 35 years to build the

image and reputation of Bhat-Bhateni. They should also focus more on CSR
activities because nowadays people like those companies who take care of
society and the country. As they have been involved in CSR activities, however
tomorrow's CSR will completely be different than today’s; so, Bhat-Bhateni will
have to invest more fund on the environment, Society and economic to be loved
and respect from customers.

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8.0 Conclusion

In a nutshell, as Bhat-Bhateni is leading supermarket and departmental store,

despite of being that, it has not been able to implement cost leadership strategy as a
major strategy. However, its overall performance can be seen excellent in terms of
market expansion in compared with its competitors. In Biratnagar, its market cannot
be determined as it has recently been established. In coming days, this market is
going to be huge as Biratnagar is not just the second largest city, but also the
second largest border to India. It has also been announced as a Provincial capital of
the eastern development region of Nepal (Ddnews.gov.in, 2018).

Taking this point seriously, Biratnagar is going to be a hub center of the whole
eastern region. People want goods at a cheaper price, so if Bhat-Bhateni be able to
supply goods at a cheaper rate implementing cost leadership strategy than those of
wholesaler and Jogbani bazaar's market may become null.

Total words – 3,147 (summary to conclusion)

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9.0 References

1. Basnet, B. (2018) Bhatbhateni in Biratnagar generates transactions of Rs 100

million. Inheadline.com. [online]. 20 April. [Accessed 17 May 2018]. Available at:
<https://www.inheadline.com/news/bhatbhateni-in-biratnagar-generates-
transactions-of-rs-100-million >.

2. Bhat-Bhateni Supermarket and Departmental Store. (n.d.) Clubcard [online].

[Accessed 16 May 2018]. Available at: <http://www.bbsm.com.np/customer-
service/clubcard/>.

3. Bhat-Bhateni Supermarket and Departmental Store. (n.d.) Company Overview

[online]. [Accessed 16 May 2018]. Available at:
<http://www.bbsm.com.np/corporate/company-overview/>.

4. Bhat-Bhateni Supermarket and Departmental Store. (n.d.). Facilities Overview

[online]. [Accessed 16 May 2018]. Available at:
<http://www.bbsm.com.np/customer-service/facilities-overview/>.

5. Bhat-Bhateni Supermarket and Departmental Store. (n.d.). Product [online].

[Accessed 16 May 2018]. Available at: <http://www.bbsm.com.np/product/>.

6. Bhatbhatenionline.com. (n.d.). About us [online]. [Accessed 15 May 2018].

Available at: <http://www.bhatbhatenionline.com/content/4-about-us>.

7. Bhat-Bhateni Supermarket and Departmental Store. (n.d.) Expansion Plans

[online]. [Accessed 17 May 2018]. Available at:
<http://www.bbsm.com.np/corporate/expansion-plans/>.

8. Bluebirdmart.com.np. (n.d.) Welcome to Bluebird Mart. [online]. [Accessed 17

May 2018]. Available at: <http://www.bluebirdmart.com.np/>.

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9. Boss Nepal. (n.d.) Biratnagar, the second biggest city of Nepal [online].
[Accessed 17 May 2018]. Available at:< http://bossnepal.com/biratnagar-biggest-
city-nepal/>.

10. Business Study Notes. (2016) Low Cost Leadership Strategies [online].
[Accessed 17 May 2018]. Available at:
<http://www.businessstudynotes.com/finance/strategic-managment/explain-the-
cost-leadership-strategies/>.

11. Ddnews.gov.in. (2018) Nepal government announces Provincial Capitals and

Chiefs [online]. [Accessed 15 May 2018]. Available at:
<http://ddnews.gov.in/international/nepal-government-announces-provincial-
capitals-and-chiefs>.

12. Nepalbazar.com.np. (n.d.) About Us [online]. [Accessed 15 May 2018]. Available

at: <http://nepalbazar.com.np/about-us>.

13. Neupane, N. (2018) Nepal added over 250 internet users per hour. The
Kathmandu post [online] 20 January. [Accessed 17 May 2018]. Available at:
<http://kathmandupost.ekantipur.com/news/2018-01-20/nepal-added-over-250-
internet-users-per-hour.html>.

14. Poudel, P. (2018) Bhat-Bhateni Supermarket overall operations [Interviewed].

Biratnagar, 1st May 2018.

15. Rai, P. (2018) Bhat-Bhateni Staff recruitment and performance [conversation].

Biratnagar, 1st May 2018.

16. Rayamaji, S. (2018) Information on Technology [conversation]. Biratnagar, 1st

may 2018.

17. Rijal, P. (2016) Bhat-Bhateni announces plan to IPO in two years. The
Kathmandupost [online]. 16 April. [Accessed 17 May 2018]. Available at:

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<http://kathmandupost.ekantipur.com/news/2016-04-16/bhat-bhateni-announces-
plan-to-ipo-in-two-years.html>.

18. Roque, C. (2017) How to Use Discount Pricing Strategies to Make More Sales
[online]. [Accessed 17 May 2018]. Available at:
<https://business.tutsplus.com/tutorials/how-to-use-discount-pricing-strategies--
cms-28611>.

19. Sharma, R. (2018) 22pc of population in middle-class category. The Himalayan

Times [online]. 30 June. [Accessed 3 May 2018]. Available at:
<https://thehimalayantimes.com/business/22pc-population-middle-class-
category/>.

20. StatCounter Global Stats. (2018) Social Media Stats Nepal [online]. [Accessed 17
May 2018]. Available at: <http://gs.statcounter.com/social-media-
stats/all/nepal/#monthly-201704-201804-bar>.

21. The Himalayan Times, (2018) Three shopping malls coming up in Biratnagar.
The Himalayan Times [online]. 20 February. [Accessed 5 May 2018]. Available
at:<https://thehimalayantimes.com/nepal/three-shopping-malls-coming-
biratnagar/>.

22. TheGlobalEconomy.com. (2016) Political stability by country, around the world

[online]. [Accessed 3 May 2018]. Available at:
<https://www.theglobaleconomy.com/rankings/wb_political_stability/>.

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10.0 Appendices

Appendix –1

Implementation of proposed strategies in Bhat-Bhateni Biratnagar

Every organization should fulfill three criteria to apply for cost leadership strategy.
They are given below:

1. Massive market share – Bhat-Bhateni has almost 70% market share

2. Access to raw material effectively – It has contact with more than 1000 suppliers
3. Important inputs and labor are beneficially accessed – low wage labor can be
done

Here, Bhat-Bhateni covers all the three criteria to apply for cost leadership strategy
in Biratnagar. Then, Bhat-Bhateni would be requiring five important components to
implement proposed strategy:

1. People – They should select the right person having skills, knowledge and
tactics, for instance, skilled driver in logistics, good negotiator for barraging,
proficient supply chain manager others

2. Resources – They can use their own transportation for the country like India, as it
is nearest and essay to access which would reduce cost of transportation. Use of
sophisticated technology to reduce the cost. They should have sufficient fund to
buy the stuffs in huge volume.

3. Structure – A clear structure is needed like, smooth flow of communication

between all the staffs who are engaged in operation. Meeting should be
organized every week to get the best way to perform the job.

4. System – They should use latest technology to track the progress of proposed
strategy.

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5. Culture – Bhat-Bhateni should create such an environment where their employee

and staff should be connected with the same mission of the company (Business
Study Notes, 2016).

Bhat-Bhateni will be able to implement cost leadership strategy to enhance its

performance in Biratnagar by following the required things:

1. They should be able to control the cost very tightly.

2. They should focus on low cost labor.
3. They should implement advance technology to control the system.
4. While buying stuffs from third party, head office should buy all the required stuff
simultaneously, so that huge volume can be obtained which will reduce the price
of cost.
5. Logistic should be effectively managed

Appendix – 2

Follow up the implemented Strategy

After implementing strategy, there are many tools that can be used for measuring the
performance and give continuity to the set of action. One of the best measures is
balanced scorecard; Bhat-Bhateni should also use such measures to follow of any
implemented strategy in proper manner. Rather than rely on traditional measures
such as ROI and EPS, balanced scorecard is the effective way that can easily
handle all the financial operation of the business. With the help of balanced
scorecard, Bhat-Bhateni main operator who is responsible to manage cost
leadership will easily be able to know the overall operation of the business. It
basically focuses on 4 things of the business, which have shown below:

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 6BE003 – Strategic Management – 1731192

Source-https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2

So, by using Balanced Scorecard, Bhat-Bhateni will not only be able to measures
Cost leadership strategy, but also be able to create customer value, Improvement on
innovation and technology, shareholder satisfaction and others.

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Appendix – 3

This page was having problem while referencing as well as opening, so it is a screen shot
picture of webpage as a proof in case if reference does not work.

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Appendix – 4

This is a replied mail by Mr. Pandu Poudel, chief operating officer of Bhat-Bhateni.
I personally mailed him on the behalf of my entire team member.

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 6BE003 – Strategic Management – 1731192

Appendix – 5

Source:

https://docs.google.com/forms/d/1lmJXIQnMpQ1T6qrTKBf7oMlJ0sxCTYHFjSrLk03r
hxs/edit

This is a surveyed screenshot questioner. I did this because, I was lacking of

performance data. Actually, none of retail industry in Nepal discloses
performance data. However, I tried it via mail, but COO did not respond.

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 6BE003 – Strategic Management – 1731192
Appendix – 6
Bhat-Bhateni Supermarket
and Department store
Opportunities – O
 Rise in Middle income
 Increasing western
shopping trends
 Expansion of outlet in the
growing cities like Damak,
Birtamod and Hetauda.
Threats – T
 Political unstable  Use of Cost leadership
 Rise in Inflation
 Cut throat competition, for
instance, Nepal Bazaar
mall, Central Mall and
Centurion mall in
Biratnagar.
 Increase in Operating cost
due to black out problem
Strength – S
 Brand value
 Robust management
 offers 1.5 m products
 Cost leadership strategy
 Good customer service
 Well established network
with 1000 suppliers.
SO strategies
 Use of Brand value
would be a fruitful idea
for further expansion in
the developing cities of
Nepal.
ST strategies
strategy with high value
to customer would be an
effective idea to make
kneel down those
coming competitors.
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Weakness – W
 Unmanaged queue
 Accused for supplying
poor quality products
 Often failed to pay
taxes on time.
WO strategies
 Managing queue
system properly
avoids criticism
improves customer
service and
companies reputation.
WT strategies
 Should avoid being
deceptive and offer
good quality of product
at a reasonable price
to compete against
coming competitors.
6BE003 – Strategic Management – 1731192

Appendix – 7

Resources/Capabilities Value Rare Imitability Organization

Marketing & sales

Online store

CSR program

Employee
relationship
Compensation

Inventory
management
Store location

Bargaining power

Brand

IT sector

Financial Strength

Pricing strategies

H R managment

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6BE003 – Strategic Management – 1731192

Appendix – 8

Social media data of Nepal 2018

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 6BE003 – Strategic Management – 1731192

Appendix – 9

This is the map extracted from Google. The red indictor is Puspalal Chowk of
Biratnagar, which has already been explained in diversification part.

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Appendix – 10

Photos were taken via Camera. These are Upcoming competitors of Bhat-Bhateni in
Biratnagar (Centurion mall, Central Mall and Nepal Bazaar Mall)

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6BE003 – Strategic Management – 1731192

Appendix – 11

Letter of confirmation given by Mr. Phuskal Rai, manager

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