Strategic plan of LIVeasy

LIVeasy

2014

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Executive Summary

There are very successful supermarket chains in this market; this shows that that the market is becoming more

attractive to investors. But customers felt that growing market still have a gap in providing service up to their

expectation, which is an ideal supermarket where they can do one stop shopping.

LIVeasy came into existence to fill up this gap by providing one stop shopping in a convenient environment. It

was identified from the SWOT analysis that there is a potential market for this concept of supermarket since

customers’ buying behaviour is changing from daily shopping to more planned weekly and monthly shopping

habits. Also because of their busy life, they prefer saving time by one stop shopping rather than going each and

every supermarket and corner shops to get their grocery items. By evaluating these opportunities LIVeasy came

up with their goals to provide convenient shopping experience and excellence customer service, to increase the

market share, expand the business and peak the revenue. To achieve these goals, objectives are being formed and

these objectives are grouped into five Key result areas: Store Quality, Customer Service, Staff Development,

Financial Base and Promotional Activities. Strategic options have been formed based on these five KRA’s, and

among these strategic alternatives, strategies are chosen based on the capability and resource available. Other

Strategies, which does not comply the Mission, strengths and weaknesses of the company have been rejected.

While these selected strategies will be implemented, there will be some challenges LIVeasy will face even though

they have capability and strong financial base, such as need for resources, finance and skilful knowledge and

expertise in some areas. And these challenges and changes will be evaluated and controlled.

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Table of Contents

1. Introduction ................................................................................................................................................. 4

1.1 Overview of the company ......................................................................................................................... 4

1.2 Mission ...................................................................................................................................................... 4

1.3 Vision ........................................................................................................................................................ 4

1.4 Slogan ........................................................................................................................................................ 4

1.5 Core values ................................................................................................................................................ 5

1.6 Existing Skills, Resources and Capabilities .............................................................................................. 6

1.6.1 Competitive sustainability and development ...................................................................................... 7

2. Strategy Analysis ......................................................................................................................................... 8

2.1 Strategic Environment ............................................................................................................................... 8

2.1.1 Macro environment Analysis (PESTEL) ..................................................................................... 8

2.1.2 Industry Analysis ................................................................................................................................ 9

2.1.3 Task Environment ............................................................................................................................ 12

2.2 Internal Analysis: organisational resources skills and resources ....................................................... 22

2.2.1 SWOT Analysis ......................................................................................................................... 22

2.2.2 Organizational Structure Analysis ............................................................................................. 24

2.2.4 Value chain ....................................................................................................................................... 25

3. Strategic Direction ..................................................................................................................................... 26

3.1 Strategic goals, objectives and KRAs ................................................................................................ 26

4. Strategic Options ....................................................................................................................................... 28

5. Strategic Choice ......................................................................................................................................... 35

6. Strategic Implementation ........................................................................................................................... 39

7. Evaluation and Control .............................................................................................................................. 43

8. Conclusion and Recommendation ............................................................................................................. 45

Reference ........................................................................................................................................................... 46

Annex ................................................................................................................................................................ 46

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Annex A: Meeting minutes ........................................................................................................................... 47

Annex B: Details of the SWOT Analysis ...................................................................................................... 58

Annex C: Questionnaire Form used for Customer Analysis ......................................................................... 61

Annex D: Analysis of the Customer research analysis .................................................................................. 64

Annex E: Blue print of LIVeasy after implementing the strategic plan ........................................................ 74

Annex F: Rejected strategies from each KRA ............................................................................................... 76

Annex G: Gallery .......................................................................................................................................... 77

Annex H: Details of the ways in which existing skills, resources and capabilities can be sustained and

developed ....................................................................................................................................................... 79

Annex I: Functions of each department ......................................................................................................... 82

Annex J: Details of the skills required to have in employees ........................................................................ 83

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1. Introduction

1.1 Overview of the company

LIVeasy is a supermarket in Male’, Maldives which offers variety of products for customers in order to

provide them a one stop shopping environment. Our core purpose of business is to reflect the offerings

and exchange with the changes that have come to the society in recent years. LIVeasy is based on the

model of Agora. From LIVeasy, customers would be able to choose their preferred brand of products as

there are varieties of products within each product category. This supermarket chain allows the

customers to have an easy and convenience shopping experience.

LIVeasy was founded in January 2012, 7 by Mohamed Jabir. When he moved back to Maldives after 8

years of higher studies in USA, he found that the varieties of products available in Maldivian

supermarkets are very few. Also, he noticed that there is a huge difference in the behaviour of the people

live in Male’. The people are living in a busy lifestyle and they got no time for shopping every day. He

noticed that the real supermarket where people can do one stop shopping with their families are very

few in Male’.

During the stay at USA, he used to do one stop shopping. As a result, he faced difficulty in shopping

after returning to Maldives. Maldivian supermarkets offer only few varieties of products and there is no

single supermarket with provides one stop shopping with variety of products even. Which was then he

got inspired that there is a need for a real supermarket which offers varieties of products for customers

in order to do a one stop shopping from their busy schedule

1.2 Mission

To delight our customers’ by providing unparalleled shopping experience in a friendly and professional

environment, that makes their lives easier.

1.3 Vision

To be the leading supermarket chain in Maldives

1.4 Slogan

‘Finally, the supermarket you deserve’

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1.5 Core values

Passion of knowing and understanding our customers and responding to their complaints immediately,

LIVeasy supermarket arrangements are made in such a way, that customers don’t have to waste time in

finding products. The whole supermarket is divided in to zones and product categories are differentiated

in order to make it more convenient for our customers.

Identifying the customer’s needs, LIVeasy has managed to provide a basement parking area in order to

make it more convenient for our customers. Moreover, LIVeasy location and area allows the customers

to experience one stop shopping

LIVeasy will value each and every visit of the customers. Staff will be well-informed with the needs and

concerns of the customers. We will ensure that every customer leave the supermarket with a smile of

satisfaction.

Creating and enhancing the value of all stakeholders (customers, employees, suppliers) by maintaining

good relationship and productively seeking good opportunities and implementing opportunity in order to

maximize profits and make the organization more profitable.

Customer Friendly

Convenient

Excellence service

Stakeholder relationship

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1.6 Existing Skills, Resources and Capabilities

Supermarket (6,000 square feet) with a parking area

Cold storage facility to store the vegetables, fruits, dessert such as ice-creams and meats (35’x 25’)

Warehouse (48’x 16’)

Elevator facility

Security systems with hi-tech CCTV cameras

Dynamic workforce which comprises of 58 staff:

Workers (20 staff)

Sales Staff (15 staff)

Office and Administration (10 staff)

Senior Management (5 staff)

Research and development (8 staff)

1 Delivery Van

Convenient in-store shopping

Experienced and energetic research and development team

Partnership with an international audit firm

Computerised Stock Management system using sophisticated software

LIVeasy website and Facebook page

These resources need to be sustained and other resources and skills need to be developed in order to

compete and sustain the competitive advantages of LIVeasy.

Good supplier relationship/ good bargaining power for lower prices

Skills, resources and Capabilities Need to develop Existing, but Sustainability

required

Chain of Outlets

Storage Capacity

Safety and Security

Dynamic workforce

Proper inbound logistics

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Supplier Relationship management

Internationally accepted internal auditing

Separate IT department

Computerised stock Management System

Skilful R&D team

Reliable Customer Relationship Management

Strong Financial Base

Management Flexibility

1.6.1 Competitive sustainability and development

To sustain the existing skills LIVeasy will have mechanism in which the business focuses on each and

every single skill, resource and capabilities. Also, there are some skills, resources and capabilities that

need to be developed in order to compete and sustain in the market place. Details of these strategies will

be shown in Annex H.

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2. Strategy Analysis

2.1 Strategic Environment

2.1.1 Macro environment Analysis (PESTEL)

Figure 2.1.1.1: PESTEL Analysis of LIVeasy

Interactive information sharing tools used by consumers, suppliers and

other stakeholders

Maldivians are moving from manual systems to computerised systems

Better communication and infrastructural facilities

More than 100,000 registered mobile internet users in the Maldives

Technological

Socio-cultural

Maldivians moving from daily shopping to monthly shopping

Increasing preferences for one stop shopping

More busy lifestyle especially in the urban city of Male'

The statistics published by Maldives Police Service shows that crime rate

has been increasing annually for the past four years

Political

Political rivalry involving more than 5 political parties

In 2011, Maldives was ranked as one of the most corrupt country in the

world with a score of 2.5 as Corruption Perception Index by Transparency

International

Economical

At the end of first quarter in 2014, inflation rate was 3.4% and the

average annual inflation rate was 3.34% from 2013 onwards (month by

month)

In the first quarter of 2014, the interest rate for loan and advances in

private sector was estimated to be 11.42% with no significant change

compared to previous months

In second quarter of 2014, the exchange rate was MVR.15.40/USD and is

permitted to fluctuate within the ± 20% band, from the mid-point

MVR.12.85

High unemployment rate

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Environmental

Male' city is becoming more congested

People moving for more environment friendly life style

More pressures from Environmental agencies

Government vision of low carbon emission

Climate conditions are becoming more unpredictable

Legal

GST is charged on the value of most of the goods and services

supplied, at the rate of 6%

Companies, partnerships and other residents carrying business in

Maldives are charged BPT at 15%

Except for Rice, Sugar and Flour all other food items are charged

import duties if it is not brought for re-export

Mandatory contributions to pension scheme from both local and

foreign employees

Different Laws including Consumer Protection Law, Environment

Laws, Corporate Laws, Fair Trading Laws and Employment Act of

Maldives

2.1.2 Industry Analysis

As supermarket industry is competitive and customer preferences are changing rapidly, it is important

for any business in this industry to properly assess the industry as a whole. In order to determine the

competitive intensity and therefore attractiveness of a market, porter’s five forces could be used as an

effective tool. Meanwhile, it also helps to understand the strength of an organisation’s current

competitive position, and the strength of a position that an organisation may look to move into. By

analysing the industry with the help of porter’s five forces, LIVeasy would be able to identify what are

the strategies or objectives that need to be formulated in order to successfully compete with a given

intensified competition in the supermarket industry.

http://en.wikipedia.org/wiki/Market

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Figure 2.1.2.1: Porter’s Five Forces in supermarket industry

Threat of substitute products

Buyers can easily find substitutes as many supermarkets exist

Buyers can switch from one product to another of same quality with little cost

Threat of new entrance

High amount of capital is required to start-up

Low customer loyalty to the supermarkets

No barriers to entry

Profitability of existing supermarkets

Majority of the products sold in the supermarkets are identical with other

supermarkets

High

Moderate

Bargaining power of buyers

Low switching cost, if the buyer does not like a particular supermarket, he/she tends

to buy from the other supermarket

There are many supermarkets with competing prices and quality

Buying in small quantities

Many buyers exist

Buyers are price sensitive

No threat of backward integration- customers would not find it feasible to switch

and buy large quantities from the distributors though they are dissatisfied with one

supermarket

Moderate to High

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2.1.2.1 Inference of Porter’s Five Forces

From the porter’s five force analysis it can be identified that there is intensified competition within the

supermarket industry as there are high bargaining power of suppliers, moderate to high bargaining

power of buyers, High threat of substitutes, moderate threat of new entrance and many competing

supermarkets within the industry such as Agora, VB Mart and Red Wave.

The supermarket industry can be said as a monopolistic market structure with many dominant firms

who provide supermarket service to the customers. In the supermarket industry it is identified that

large amount need to be spent on fixed costs to buy the required equipment and facilities such as

refrigerators and cold storage facilities. Also, a considerable amount of money need to spend on daily

operations of the business such as continuously motivating staff to ensure that excellent service is

being provided to the customers. The industry has potential to grow at a faster rate as people

behaviour changes with globalized forces and stimulus.

Competitive Rivalry

Many dominant competitors such as Agora, Red Wave and VB mart

Exit barriers are low as the firms can sell the products at the cost of purchase

Products are not differentiated and can be easily be substituted

Competitors are of equal size

Low customer loyalty: buyers are not loyal to the supermarkets, but to the brands

(products)

High

Bargaining power of suppliers

There are few suppliers but many buyers

Suppliers hold exclusive distribution of some products (Drypers – ADK company

pvt. Ltd, Red bull – Euro store)

Cost of switching to other brands of products is high as the customer has high

demand for these products

High

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2.1.3 Task Environment

2.1.3.1 Competitor Analysis

As LIVeasy in very competitive market with many dominant competitors, it is vital to analyse current

and potential competitor in depth in order to gain and maintain a competitive advantage in the market.

From the exploratory research, it is identified that there are many competitors who provide same service

(supermarket) in Male’. However, it is a challenging job to analyse each branch/store of every

competitor that exist in the market. So, strategic grouping is being done to make the analysis easier on

the assumption that these competitors will have more or less same kind of strategies when it comes to

different areas of operation in the market. Whole supermarket industry is being divided into three

strategic groups: High quality-High price, Medium quality- Medium price and Medium quality- low

price. In High quality-High price group, there is only one supermarket, ‘Fantasy’ which provides the

service to customers.

However, there are many other competitors who fit into the category, Medium quality-medium price

which includes Agora, VB mart, All 2, Shop and Save, Galleon Store, Evening mart and STO super

mart. These competitors strive to achieve competitive advantage over other supermarkets which is

similar in nature. Figure 2.1.3.1 shows the detailed analysis of competitors where both strengths and

weakness are been identified. The strengths and weaknesses of each supermarket or supermarket chain

is been analysed using the information obtained through observation, experience and in depth analysis

of each supermarket and branch.

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Figure 2.1.3.1: Competitor Analysis

Strategic Group: High quality-High price (Fantasy)

Stren

gth

s

Five cash counters (separate for cash and card)

Easy navigation as the name of the products are clearly displayed

Wide range of fresh fruits, vegetables and meats

Quality and branded products

Special corners for fruits, vegetables, meats, ice-cream, dairy products and frozen foods

Good in-between shelf space

Good displaying of products on the shelf

Wide range of products in every product category

Good customer service as the staff have good knowledge about the products

Availability of trolley and baskets to make easier for the customers

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esses

Focus only to high income earners

Location of the store is not very attractive

The supermarket currently has only one outlet

Strategic Group: Medium quality-Medium price (Agora)

Stren

gth

s Attractive location. Agora has its supermarket chains/branches located in very crowded

locations (Majeedhee Magu, Sosun Magu and near ISkandhar School) where crowds of

people are normally found in all times of the day.

Ability to research and development. Agora’s supermarket chains have ability to

improve the service through research and development. Special corner for ‘Coca-Cola’,

red bull, milk and juice packets, bread, milo packets and tins, Anlene which is special

for elder women who have bone problems. Also, there are other important concepts

which have been applied. Agora’s supermarket chain has ‘today special offer’ corner to

display the products which are available for cheaper prices than normal.

Supermarket has name of the products and category which enabled the customers to

navigate the products within the store.

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Wea

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esses

Fruits and vegetables are not of good quality

Stocks are not managed well in some special corners such as Milo.

The staff cannot be said as friendly as they usually concentrate on personal things such

as chatting with each other though customers ask for assistance. Also, it was found that

many staff was not aware about the availability of items in the store or not. So this

indicates that staff are not well informed about the products and services available at

the store and which are not.

Prices of goods are normally very high when compared to other supermarkets such as

VB mart.

All the goods are displayed well in the shelf which helps the store to have an attractive

look

Offers wide variety of products within each product category. From the supermarket

most well-known are available from each product category.

In the store, there is good in-between shelf space where the customers would be able to

move around the store easily for shopping.

Have an exclusive distribution of world famous brand of ice cream ‘Baskin Robins’

which helps the store to increase sales through spill over effect.

Have a cold storage facility to store the meats, fresh fruits and vegetables

Availability of trolley and baskets for shopping

Experience in the market place

Strategic Group: Medium quality-Medium price (VB Mart) S

trength

s

Good in-between shelf space which helps the customers shop easily without facing

difficulty to carry their goods with baskets.

2 supermarket chains (one at Majeedheemagu, Maafannu and another at

Lonuziyaaraiymagu, Henveyru). Both locations seem attractive due to the presence of

crowd and Henveyru branch is located near some offices and a school.

Some extent of marketing principles applies. There is special corners for corn flakes,

Safa, Chocos)

Fresh fruits and vegetables compared to Agora

In-store promotional advertisements on different products such as Mammy Poko pants,

Gernier men, snickers, L’Oreal.

Cold storage facility within the same building

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Strategic Group: Medium quality-Medium price (Shop & Save)

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gth

s

Good in-between shelf space where customers can easily move around the shelf to

search for different products.

2 cash counters and it is placed in a way that it reduces crowding near the counter.

In-store advertisements about different types of chocolates and drinks.

Special corner the brand ‘nestle’ and stock are well managed.

2 branches, one located in Sosun Magu and other one is located in Lonuziyaaraiy Magu.

The location is attractive as there are crowd of people normally found in all times of the

day.

Wea

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esses

Product labels are not placed which leads difficulty for the customer to navigate the

products.

The store has cash counters near the entrance which makes the store crowded with little

customer base than usual

Even though staff are friendly, it was noticed that these staff are roaming around the

store sometimes which makes the customer difficult for shopping.

Special offer corner is located near the cash counter

Wide variety of well-known brands from each product category are made available

from the store

The supermarket is exclusive distributor of Brand reputed ice cream brand ‘Move en

Pick’.

Product are well displayed in the shelf

Staff are friendly and has adequate knowledge about the products offered in the store

and where it is located. Also they know the terms and conditions of the trade of each

and every item which is sold.


Wea

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esses

No product labels on the shelf been placed. From the research, it identified that

customers find it difficult to navigate the products within the store while shopping.

Limited variety of fruits and vegetables. Also, there is limited space to keep fruits and

vegetables. These products are found as not fresh

Limited marketing and research ability as there is very little marketing concepts applied

within the store such as special corner only for the brand ‘Nestle’.

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Strategic Group: Medium quality-Medium price (Evening Mart)

Stren

gth

s

Fresh fruits and vegetables compared to other supermarkets such as Agora

Good arrangement of goods and tightly placed due to wide variety of products within

each product category.

Special corner for red bull

Wea

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esses

Limited in-between shelf space and customers find it difficult to shop with baskets

especially

No display is been placed in the shelf to make the customers easier to navigate the

products within the store

Staff are not customer friendly and skilful. Staff are not aware about the products which

are available and are not. Meanwhile, the customers are not aware and well-informed

about the location of the products.

Cash counter is located near the entrance which makes difficult to move around the shop

for the customers

Strategic Group: Medium quality-Medium price (Galleon Store)

Stren

gth

s 2 Large cold storages which is designed to keep fresh fruits, vegetables, meats and

frozen products.

Separate entry and exit

Staff are very customer friendly and show the concern for the customer complaints.

Wear uniforms which makes them identified among large crowd of customers

Products are arranged in an attractive way.

Separate corner for the brand ‘Enzi’, red bull and milo

Product labels are placed on the shelf to make the customer easier to navigate the

products within the store while shopping

Good in-between shelf space which makes the customer easier to move around the store

Wide variety of product within same product category

Availability of trolley and baskets to make the customer shopping environment easier

Arrangements of the products are not so attractive for the customers.

Limited awareness about the market due to lack of experience about different aspects of

the environment

Staff are not friendly and busy with their own activities such as chatting with each other.

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Wea

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esses

2 cash counters are located near the entrance which blocks the path

Lack of awareness in the market place

Strategic Group: Medium quality-Medium price (STO supermart)

Stren

gth

s


Location is attractive. It is located near the guest shops where there are many tourists

normally found

Government subsidiary

Wide variety of product, especially meat

Special corner for chocolates and yogurts

In-store promotional offers such as ‘Chocolate week’.

Wea

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esses

Stock are not managed well

Tight in-between shelf space which makes the customer difficult to move around

Staff are not customer friendly

Fruits and vegetables are not fresh

The labels are not placed on the shelf

Strategic Group: Medium quality-Medium price (All 2)

Stren

gth

s 3 outlets

Location is attractive. It is located near some offices such as election commission and

Fanaka Corporation

Good in-between shelf space

Products are arranged in an orderly manner

Wea

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esses

Staff are not friendly (no local staff)

Lack of experience in the market since supermarket were opened this year

Less variety of products within each product category

The labels are not placed on the shelf

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Strategic Group: Medium quality-Low price (Red Wave)

Stren

gth

s

Products or goods are arranged in an orderly manner in the shelf

4 supermarket chains located in near Maldives Islamic Bank (MIB), Majeedheemagu,

and Chaandhanee Magu and near Dhiraagu Also, there is proposed supermarket chain

just near the main Agora located in Middle of the Majeedheemagu.

Market research and development abilities as some marketing concepts and principles

are being applied.

Has wider variety of products in each product category than other supermarkets in

Male’.

Wide range of kitchen and electronic products such as ovens, refrigerators, stoves and

appliances

Baskets are made available for the customer for easy shopping

Wea

kn

esses

Poor staff quality. Staff does not pay attention to the customers, rather they are

involved with their own works and business such as chatting and talking to each other

Vegetables and fruits are not fresh

The store is not applying the concept of customer orientation. They do not consider the

customer feelings, attitude and perception while providing the service. From the

observation it was found that staff was asked the customer to pay MVR 15 for a

product cost MVR 14.65. Stores that consider the customer feelings will adjust the

balance of MVR 0.50 after charging the customer with MVR 14.50.

There is little or in-between shelf space in some branches of Red Wave such as the one

located in Galolhu National Stadium.

Strategic Group: Medium quality-Low price (Ihusaan Fihaara)

Stren

gth

s

Lower prices compared to other stores

Many in-store promotional offers

There is always some promotional offer in any one of the product sold in the store such

as soft drinks and cakes

3 cash counters were located in a way that it does not makes the store block

Staff are friendly and show concern for the complaints of the customer

Experience in the market

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Even though the dominant competitors are grouped strategically, there are other direct competitors for

the supermarket through other means such as corner shops. Corner shops gives the customers

opportunity to get the product in convenient locations, allows credit and delivery service for their

regular customers. So, this will reduce the customer base for the supermarkets where the locations may

not be convenient for all the customers. However, for the customers who seek the lower priced products,

the corner shops may not be attractive.

2.1.3.2 Customer Analysis

Recent globalization and advancement of technology has brought many changes to our life, which made

the people busier than before with day-to-day tasks. Furthermore, most of the people are living in Male

‘and working continuously for many hours to support their families. Even though it is the case, there is

no perfect solution for this problem. In Male’ there are many dominant competitors who offer the

service of supermarket for customers. However, these stores differ from each other in terms of quality,

price and variety of product offered. So, some people find it difficult to afford the products normally

sold in supermarkets.

2.1.3.2.1 Market need and expectation

From the research it shows that customers have a need for a convenient shopping experience where they

can do one stop shopping for their groceries. Among the target market, 54.55% of the people work 6-8

hours a day and the rest work even more. So, 40.26% of those questioned says that lack of time is a

major difficulty in their shopping. This is because 33% of the respondents needed to spend more than an

hour to do their shopping and a further 26% spent at least half an hour.

Some of the other difficulties faced by research participants are high traffic, queues in stores and

unavailability of some products due to being out of stock. In addition, as the respondents usually live in

Wea

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Location is not attractive as it is located in very narrow road

Display of the goods are not attractive

Name tags are not displayed in the shelf to make the customers easier while shopping

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a household with 4 or more people (82% of research participants) they have to do the shopping for

others as well. Also, 70.13% of the respondents said that they are ready to use delivery service if it is

provided by a supermarket and further 27% said they may require using it in future.

From the research conducted among 70 respondents, on average the customers have similar expectations

when it comes to the features to be present on a good supermarket or ideal supermarket. Some of the

factors include friendly staff, availability of products, displaying of products, location, good in-between

shelf space, low price, high quality, wide variety of choices, fresh vegetables and fruits, easy to check-in

and check-out.

2.1.3.2.2 Buying Behaviour

Research shows that there are four types of shoppers amongst the market. They are those who buy each

item when needed, shoppers who buy daily, shoppers who buy weekly and those who buy monthly.

Shoppers who buy as required showed different buying behaviour from the latter three.

Those who buy each item when needed represent the highest percent (41%) of research Participants and

daily, weekly and monthly shoppers hold 9%, 15% and 35% respectively. The respondents who fall into

the categories daily, weekly and monthly displayed similar buying behaviour as these three groups do

their shopping after planning and at regular intervals. From the exploratory research, those people who

buy monthly answered that they previously buy the items when it is needed without planning on regular

intervals. Also, 37% of the respondents said that they do the shopping, while 19% said they sometimes

do the shopping list and rest of the 44% answered that they do not required doing any shopping list.

Considering the demographic factors of planned shoppers, 17% of these shoppers are 26-33 years old

and 33% gets a monthly income of MVR 11,000 to 17,000. Also, majority of the respondents (83%)

shop from a supermarket and only 17% buy the items from the corner shops. In addition, respondents

were asked about ‘which supermarkets do you shop usually?’ Majority (83%) said that they frequently

shop at Agora (83%) followed by Red Wave with 68% and VB Mart holds 65%. From the research it

was found that 92% of the respondents do not get the required items from one supermarket and only 8%

of the respondents answered that they are able to get all the necessary items from one supermarket.

Meanwhile, the research was also to see the awareness level of existing supermarkets among the

customers. From the respondents, 100% said that they heard the supermarkets such as Agora, VB Mart,

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Red Wave, Ihusaan Fihaara, Shop and Save, Evening Mart, Fantasy, STO supermarket. However, other

supermarkets existed in Male’ are not aware by the respondents. Among the respondents 33% said that

they hear the supermarket name ‘All 2’ and 50% said they know the existence of Galleon store in the

market place. Meanwhile the customers have different perception and attitude towards the supermarkets

that existed in Male’. Agora is positioned in the minds of the customers as the supermarket which has

exclusive distribution of world famous ice-cream ‘Ben & Jerry’. Other positioning includes VB Mart as

‘ Green Apple’, Red Wave as ‘Cheap’, All 2 as ‘ less variety’, Shop and Save as ‘Cheap’, Evening Mart

as ‘congested’, Fantasy as ‘high quality and high class’, Galleon Store as ‘affordable’ and Ihusaan

Fihaara as ‘Cheap or promotion’.

Also from the customer analysis it is identified that customers have some criteria while choosing a

supermarket like other consumer products. Most important criteria for the customers are availability of

products with 41% followed by price (27%). Also, they consider location of the supermarket and

friendly staff which represents 23% and 9% respectively.

2.1.3.2.3 Market Growth

As the number of people living in Maldives grows (including foreigners) the number of people in the

target market will also keep growing. And as the population of Male’ increases some problems such as

traffic and queuing in stores will keep increasing and so the need for LIVEasy will grow as well.

(Ministry of Planning and National Development, 2007)

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2.1.3.3 Labour Market Analysis

In the environment of Maldives it is easy to find suitable labour’s to work in supermarkets because

unemployment rate is very high in here and also lots of graduates are here in need of jobs. There are lots

of people who have the skills that are required for the supermarket jobs. Moreover due to lack of jobs in

Maldives the turnover rate will be very less. There will be less cost incurred while finding suitable

labour’s to work. Details of the skills required for each personnel will be shown in Annex J.

2.2 Internal Analysis: organisational resources skills and resources

2.2.1 SWOT Analysis

Strengths

Professional and trained labour force

Easy navigation within the store

Environmental friendly (shopping bag

provided)

Located in an attractive place

Parking Area within the building

MIB ATM at the entrance and BML ATM

in front of the supermarket

Wider choices within each product

category

Computerised Stock Management System

Weak relationship with financial

intermediaries such as banks

Weaknesses

Lack experience in the market

One outlet located in Majeedheemagu,

Henveyru

Not well-established inbound logistics

Insubstantial Supplier Relationship

Management

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2.2.1.1 Inference of the SWOT

Previously, customers buy the items when it is needed; no planning of purchases is being done prior.

However due to the globalized forces and marketing stimulus, customers’ behaviour is now shaped

towards having a planned weekly or monthly shopping from a supermarket. This would be a real

opportunity for a supermarket like LIVeasy which provides one stop shopping for the customers to save

their valuable time spent on shopping from different supermarkets or corner shops. The political

instability in Male’ emphasis more on saving their time, thus customers would prefer one stop shopping

for their items. Also, the well-established and dominating supermarkets does not normally employ the

concept of customer orientation where the every single visit by the customer is being taken as valuable

sales for the business. However, LIVeasy is practicing the concept of customer orientation in every

service encounter; staff are well trained and informed with the needs of the customers. For the available

opportunities in the market place, the main weakness to capture these would be lack of experience in the

market when compared to other dominant and competing competitors such as Agora, VB Mart and Red

Wave.

Opportunities

Maldivians are moving from daily

shopping to weekly and monthly shopping

Customer preferences towards one stop

shopping

Increase in need for security for

customers’ safety

Majority of customers are aware of latest

technologies

Long queues and other shopping

difficulties due to busy life style

Increase in number of migrants into Male’

Increase in working population

Weak positioning of existing supermarkets

in the minds of the customers

Threats

Political instability – blocking roads and

protests

Rise in inflation rate – Reduces purchasing

power of customers

High unemployment rate

Fluctuation in the exchange rate – imports

become expensive

Increase in dominant and potential

competitors with many outlets

Customers are not loyal to a single

supermarket, rather loyal to brands

Business Profit Tax (BPT) of 15%

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Managing

Director

Senior

Management

(5 Staff)

Accounting and

Finance

(19 Staff)

Human

Resource

(12 Staff)

Sales and

Marketing

(22 Staff)

HR

Division IT Division Accountin

g

Procuremen

t Marketing

Division

Sales

Division

Public

Relation

Manager (1)

HR Assistant

(2)

Data

Administrato

r (2)

Manager (1)

IT Assistant

(1)

Data

Administrato

r (1)

Manager (1)

PR Assistant

(2)

Data

Administrato

r (1)

Manager (2)

Assistant

Accountant

(2)

Budget

Officer (2)

Data

Administrato

r (2)

Manager (1)

Secretary (2)

Manual

Workers (8)

Manager (1)

Marketing

Assistant (3)

Data

Administrato

r (2)

Manager

(1)

Sales

Assistant

(10)

Manual

Workers (5)

2.2.2 Organizational Structure Analysis

LIVeasy has major three departments, working together to deliver the best value for the customers.

Detail of each department is shown in Annex I.

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25

2.2.4 Value chain

Primary Activities

Inbound logistics

The procurement division tries to locate the supplier with the most attractive incentives to

place the order. Thus, this involves careful analysis of the potential suppliers of different

products

Inbound logistics

A High capacity warehousing facility including a cold storage mechanism in place allows the

stock to be kept in good conditions for longer periods.

The careful supervisory control of the stocks enables to reduce defects.

Outbound logistics

The procurement division tries to use the company van as much as possible in order to reduce

costs

The Sales Division tries to place the products in the most eye-catching way with the advice

from the marketing division.

Sales

Sales assistants help customers to resolve in store difficulties

Friendly Point of Sale staff enables customers to have an enjoyable shopping time

Up to date customer records enables customer and sales staff to verify previous purchases

Service

For certain products sales assistance provides aftersales services like delivering the product

and sometimes assembling them in customer’s house

Warranties are provided for most of the expensive products. The customers are compensated

with a new product, if they return the faulty product within the warranty period.

Support Activities

Organizational systems/Infra structure

Convenient parking areas for customers

Lift facilities are provided for the ease of the customers

Human resource Management

Creation of a motivated work force by organising barbeque outings in every two months and

conducting other recreational activities

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Giving Overtime pays. If they meet certain sales target set by top management they get

bonuses

In order to improve service quality customer service trainings are given occasionally with

recognised certificates

Technology support

Online supplier and customer order system

Computerized stock management

Procurement

Building and retaining good supplier relationship by arranging different meetings

occasionally

Marketing

Collaborative work of marketing division with others in order to build customer value and

buy quality products

Each department tries to reduce the unnecessary costs incurred in their department, done in a

continuous manner

Marketing department tries to reach as much customers as possible through interactive tools

like Facebook and twitter

3. Strategic Direction

3.1 Strategic goals, objectives and KRAs

To fulfil our mission, vision, and to comply with our core values, LIVeasy is devoted to achieving the

following strategic goals over the next five years. The direction of the business is to provide

supermarket which provides the products that are affordable to all customer groups and which has a

standard of quality.

1. To provide unparalleled customer service

2. To provide a convenient shopping experience

3. To increase market share

4. To Expand the business operation

5. To peak the revenue

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These goals form the fundamental of our Strategic Plan and represent our long-term strategic

commitments. They recommend the targets to aim for in areas concerning LIVeasy development. Still

no single goal has priority over the other goals rather it is interconnected with each other. In such as

interrelated goals in the hand, success in one depends on the success of others. Hence, Strategic Plan

cannot be implemented as a progression of sequential steps, rather implementing in an all-inclusive

manner moving forward all the areas simultaneously.

For the purpose of achieving the goals which in turn help to achieve the LIVeasy mission, vision and

core values. Since the strategic goals are too broad to use as a guide to formulate strategies, specific

objectives to achieve each goals need to be formulated carefully. So, strategic objectives are formulated

based on the view that success in achieving the objectives will lead to the achievement of strategic goals

and hence the overall purpose of the business described in the company’s mission and vision statement.

The following are the strategic objectives for each of the following strategic goals identified for the

success of LIVeasy in the next five years of its operation in its competitive environment.

Strategic Goals Objectives

1. To provide a convenient shopping

experience

Improve the navigation within the store

Provide augmented services to the customers

Maintain good stock availability

2. To provide Unparalleled customer

service

Keeping a good customer relationship

Management

Maintaining staff quality

Effective complaint System

Improve and sustain quality of the store

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3. To increase the market share

Effective Promotional Campaign

Providing Augmented services

4. To Expand the Business operation

Increase the outlets

Have sufficient liquidity

5. Continuously Peak the revenue

In-store promotions

Cheaper prices

Friendly and helpful staff

Key Result Areas

KRA I: Store Quality

KRA II: Customer Services

KRA III: Staff Development

KRA IV: Financial Base

KRA V: Promotional Activities

4. Strategic Options

As LIVeasy is said to be the corporate and business unit, the corporate strategies and the business level

strategies does not show much of the difference. There are essentially three options when it comes to

competing in a given market. As per the porters generic model, a firm or business could choose either

overall cost leadership, differentiation and focus.

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1. Overall cost leadership Strategy:

It is the strategy available for the firm when it wants to become the low cost provider of supermarket

service in the industry for the customers. It includes the firm ability to search for ways to achieve the

economies of scale, proprietary technology, preferential goods required for the supermarket. The firm

seeking to possess cost leadership strategy should be able to gain this advantage from all the areas of the

business operation such as getting the goods at very cheap prices from the distributors or dealers, getting

professional and friendly staff at low cost and the ability to minimise the cost within the business

operation. Most of the time this strategy is best suited to those supermarkets which have broad scope of

its operation such as many branches all over the market or geographical location.

2. Differentiation Strategy:

Each and every supermarket within the industry may not be able to possess uniqueness within the

operation or products provided. In this strategy the supermarket selects one or more attributes that many

buyers in an industry perceive as important, and uniquely positioned itself to meet the needs of the

customers. By providing the uniqueness to the customers the firm will be able to charge premium prices

from the customers. Differentiation can be achieved in many ways: providing a high quality and branded

products, differentiating the packaging of the product and differentiating the way the business is

operated or the value is been delivered to the customers.

Differentiation Overall cost leadership

Focus

Uniqueness perceived by the

customer

Low Cost Position

Particular

Segment Only

Industry Wide

Strategic Advantage S

trate

gic

Targ

et

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3. Focus Strategy:

This is the strategy available for the supermarkets when it wants to offer the service to a particular group

which is normally regarded as niche market. This strategy is normally implemented when the

supermarkets find it resource limitations and the intensified competition within the mass market. The

supermarket targeting to particular segment may implement focus differentiation or focus cost

leadership within the operations of providing the service to the customers.

Analysing the alternative strategic options for LIVeasy, different view need to employed in the minds of

the management. After formulating the generic alternatives, it also needs to formulate alternatives based

on Ansoff matrix. By using this model the firm would be able to formulate the strategic alternatives for

growth available.

Market Penetration

LIVeasy is currently located in Male’

allowing the customers experience a

one stop shopping

Opening new outlets in other

locations of Male’ such as Maafannu.

Product Development

Provide augmented services such as

delivery service to the customers

Price comparison and sales promotion

awareness website

Introduce world’s famous ice-cream

brand ‘Ben & Jerry’s’

Digital Map in the entrance which

helps the customer to navigate the

product easily

Market Development

Open a LIVeasy supermarket outlet in

other developed regions with higher

population such as

H.Dh.Kulhudhufushi and S. Feydhoo

Diversification

Wholesale electronic items to

businesses and retail outlets located in

Male’

Products and services

Existing New

Mark

ets

Exis

ting

New

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Also, there are strategic alternatives available when it comes to the achievement of strategic goals and

objectives identified. For each goal there are many objectives identified and similar objectives are

grouped into KRAs where LIVeasy needs to perform better in order to compete within the industry. The

following indicates the available strategies for each KRA.

Key Result Area I: Store Quality

Rationale: Maintain and sustain the store image by delivering excellent service in terms of wide

variety of quality product where customers get a real feel of convenience through one stop

shopping.

Strategies Time Frame Expected Outcome

1. Increase in the variety of

products available from

each product category

Continuously

Increase in the sales and market share as

there are customers who seek variety of

products. Also, customers prefer to have

one top shopping to save their valuable

time spent on shopping.

2. Renovate and maintain

the building (including

painting)

Once in every three

months

It will enhance the store’s outlook both

internally and externally. So, this will

create a positive perception and good

brand image in the minds of the

customers.

3. Cleaning the shelf Every day

Customers will feel that products

available are of good quality and the

atmosphere is excellent to shop.

4. Arrangement of the

products and checking for

stock outs

Every hour

Customers will find that the store

maintains the professionalism in all the

activities of the operation.

5. Separate cash counter for

fruits and vegetables Within 6 months

Easy for the employees to maintain the

store. For instance, all the fruits are sold

according to its weight. So, LIVeasy will

find it easy to handle these sales.

6. Sell some products with Within 3 years Enhance the brand image of the store.

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LIVeasy brand name Hence customers will form a positive

perception towards the store.

7. Change the interior design

of the store according to

the preferences of the

customers.

Once in every 2

years

Increase the sales as the customers find

that the store value the customer feelings

and concerns.

8. Change the uniform to a

more professional one Within 6 months

Customers will perceive that the staff are

professional and well-informed about

products available and the needs and

wants of the customers.

9. Introduce price checking

system

Within 1 year after

expansion

Customers will find it easier to check the

prices of each and every item sold in the

supermarket. So, the store image and

brand reputation will be increased.

10. Introduce self-

checkout system

Within 3 years after

expansion

It will reduce the staff requirement and

checkout for customers. Hence, it will

improve the customers’ service and

perception towards the store.

Note: The time frame will start to count from the date of submission of this strategic plan.

Key Result Area II: Customer Service

Rationale: Valuing each and every visit of the customers by continuously delivering the total

satisfaction to ensure that every customer leaves the store with a smile.


1. Introduce LIVeasy

website (including

feedback, availability of

products and different

promotions of the store)

Within 2 years

Customers find it easier to express their

feelings and concerns with LIVeasy.

Also, they will find it easier to plan for

their purchases. Hence, it will increase

the awareness among the customers.

2. Provide trollies for the Within 6 months It will enhance the store’s outlook both

2014

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customers to make their

shopping easier.

internally and externally. So, this will

create a positive perception and good

brand image in the minds of the

customers.

3. Collect the contact

information to greet the

loyal customers on special

occasions.

Continuously

Customers will feel that they are valuable

part of the business and increase the

number loyal customers.

4. Help customers to carry

their purchased items up

to their vehicles.

Continuously

Customers will find that staff are helpful

and value their single visit. So, the

perception towards the store will be

enhanced.

5. Introduce a service centre

of LIVeasy Within 3 years

Customers will find it easier to repair and

maintain the electronic items such as

ovens, refrigerators and mixtures in good

conditions. So, the brand image of the

store will be enhanced.

Key Result Area III: Staff Development

Rationale: Create a learning environment to motivate, encourage and empower the employees to

work within the supermarket while maintaining friendliness and professionalism while dealing with

customers and other stakeholders.


1. Continuous training and

development for every

staff in each department

Within 1 year after

the expansion

Employees will be well informed about

different marketing and other techniques

that need to be employed in the working

environment. Also, it will enhance the

performance level of the employees and

be more professional when dealing with

customers and other stakeholders.

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Key Result Area IV: Financial Base

Rationale: Making the business to stand out in the crowd by continuous management of liquidity

and profit to ensure future development of the supermarket.

2. Revise and Develop

employee recognition and

rewarding system

Within 1 year

Employees will be motivated and

committed to express their ideas with the

management. Also, it will enable the

organisation to get good strategic options

before expanding the business in different

locations of Male’.

3. Develop a staff committee Within 2 years

It will be working as an intermediary

between the employees and top

management regarding different issues

raised by the staff. So, the commitment

from employees will be increased and

they will feel that they are valuable part

of the organisation.


1. Negotiations with the

supplier to extend the

credit period and other

terms and conditions of

purchase

Continuously

Improve the cash flow within the

business which helps to expand the

supermarket outlets in other locations of

Male’

2. Increase the sales by

providing value added

services

Within 1 year

Customers find it easier to shop for their

required items and feel the real

experience of convenience.

3. Make partnership with an

existing supermarket

which has strong financial

base

Within 3 years

It will enhance the financial availability

for LIVEasy to expand the supermarket

outlets in different locations of Male’.

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Key Result Area V: Promotional Activities

Rationale: Enable to concrete the brand image by delivering up to date and reliable information to

our valuable customers.

5. Strategic Choice

Among the available strategic alternatives, there are some strategies that do not comply with LIVeasy

strengths and weaknesses. However, others are appropriate for LIVeasy to enhance the performance of

the supermarket and achieve competitive advantage. All these strategic options are difficult to evaluate

in terms of monetary value that each strategy will generate. So, evaluation of the strategies is based on

the strengths and weaknesses that LIVeasy has. These choices are based on strategic analysis and

strategic direction. The following are the Strategic choices that best suits to LIVeasy.


1. Use electronic marketing

through SMS, Facebook,

Twitter and other social

Medias

Continuously

Increase awareness of the customers

about LIVeasy. Hence, it will increase the

sales.

2. Conduct a promotional

campaign to increase the

awareness about price

checker

One month before

the introduction of

the system

Customers find it easier to check the

prices without approaching to the cash

counter every time.

3. Conduct a promotional


awareness about self-

checkout system.

One month before

the introduction of

the system

It will reduce the labour cost and help the

customers’ easy check out.

4. Sponsoring national

famous events such

Dhivehi League and Bride

fair.

Within 1 year

It will increase the awareness among the

customers and general public as a whole.

Also, customers will have a positive

perception towards the supermarket as a

corporate social responsible business.

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Among the generic strategic alternatives available, LIVeasy is practicing differentiation strategy where

the business differentiates the supermarket by the way service is being delivered to the customers.

LIVeasy is providing customers the opportunity to experience one stop shopping where they are able to

get wide variety of products from each product category. The growth and other strategic choices are

based on this concept as a fundamental.

LIVeasy has chosen market penetration and product development from the available growth strategic

alternatives. To penetrate the existing market, LIVeasy will be expanding the business into other

locations of Male’ such as Maafannu. It is because LIVeasy has only one outlet located in Henveyru and

it is not able to capture the majority of the market share without expanding into different locations. It is

because customers have tendency to buy the goods from the supermarkets which are convenient for

them. Also, from the SWOT analysis it was identified that the people who are coming to Male’ is

increasing day by day. Besides, the option of product development is very suitable for LIVeasy

considering the current situation analysis. From the customer analysis it was identified that people face

many difficulties while they shop and there is potential for augmented services such as delivery.

Meanwhile, to compete within the industry LIVeasy needs to introduce world famous ice cream brand

‘Ben & Jerry’s’ as other supermarkets such as Agora has ‘Baskin Robins’.

Moreover, to strengthen the position of one stop shopping and make the customers to feel convenient, a

digital map will be placed near the entrance. Through this map customers will be able to locate the

product easily. This strategy would be very important to a supermarket such as LIVeasy where the

customers will find it difficult to locate the product from such a huge shopping area.

Apart from these strategic choices, specific strategies need to be selected from the alternatives that have

been identified for each KRA. The following table 5.1 shows the strategies chosen from strategic

alternatives available from each KRA. The strategies which are rejected will be shown and explained in

Annex F.

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Table 5.1: Strategies Chosen

Strategies # Justification of the choice


Increase in the variety of

products available from

each product category

1

It supports the overall generic strategy, differentiation of

LIVeasy. Also, currently the supermarket has strength as

being the supermarket who provides wide variety of

customers to make their shopping easier through one stop

shopping.

Renovate and maintain

the building (including

painting)

2

LIVeasy has professional and trained labour force to take

advantage of this strategy which enhances the store

quality.

Cleaning the shelf 3

Professional and trained staff are available to ensure that

the shelf is always clean. This will show the quality and

professionalism of the store to the customers.

Arrangement of the

products and checking for

stock outs

4

Currently the store employs the concept of easy

navigation within the store and has professional and

trained labour force.

Change the uniform to a

more professional one 8

It support the overall mission of LIVeasy and the store

has the ability in terms of finance.

Introduce price checking

system 9

Professional and trained staff to help the customers to use

this system and financial ability to support the system.

Introduce self-checkout

system 10

Professional and trained staff where the customers can

seek help and the store has financial capability to install

such a system.

KRA II: Customer Service

Introduce LIVeasy

website (including

feedback, availability of

products and different

promotions of the store)

1 LIVeasy has professional and trained staff who are well-

informed with the needs and wants of the customers.

Provide trollies for the 2 Financial ability to purchase.

2014

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customers to make their

shopping easier.

Collect the contact

information to greet the

loyal customers on special

occasions.

3

Professional and trained staff who are friendly when

dealing with customers. LIVeasy employs the concept of

customer orientation where the supermarket concerns

with every single comment or complain of the customer.

Introduce a service centre

of LIVeasy 5

LIVeasy possess professional and trained staff who are

capable of repairing the items such as washing machine,

oven and other electronic equipment when it is demanded

by the customers.


Continuous training and

development for every

staff in each department

1

LIVeasy strongly believe that proper value can only be

delivered to the customers by encouraging the employees

to develop their carrier. Also, the expected cost of the

strategy would be able to afford by the business.

Revise and Develop

employee recognition and

rewarding system

2

As the supermarket industry is very competitive, LIVeasy

needs to find the way to sustain in the market place. So,

by rewarding and motivating the employees the business

would be able to generate creative ideas.


Negotiations with the

supplier to extend the

credit period and other

terms and conditions of

purchase

1

Even though LIVeasy has strong financial ability, the

relationships with suppliers are not that strong. However,

in this competitive industry a good deal and terms and

conditions are essential to survive.

Increase the sales by

providing value added

services

2

LIVeasy has its own vehicle, profession and trained staff

who are capable of providing augmented services such as

delivery. This strategy was taken to capitalize the

opportunity and potential that the market exists for such a

service.


Use electronic marketing 1 Great opportunity to capitalize as Maldivians is very up

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6. Strategic Implementation

Even though the selected strategies have ability to outperform and gain competitive advantage in this

industry, the success depends on the ability to implement it. Among these strategies, some can be

implemented with little or no changes to the current operation, resources and capabilities. However,

there are other strategies which require additional resources that need to be employed and changes that

need to be made within the operation of the business. The following are the strategies which will bring

some changes to the operation, required resources and capabilities from each KRA.


Strategy 1: Increase the variety of products available from each product category

Changes and Challenges: LIVeasy needs to increase the number of shelves and some changes need to

be made in the arrangement of products in the shelves. Also, the business needs to have financial

capacity to support this strategy.

through SMS, Facebook,

Twitter and other social

Medias

to date with technology and social medias. Moreover,

LIVeasy has little experience when compares with other

dominant competitors such as Agora, VB Mart and Red

Wave. So, this strategy is mainly to overcome one of the

weaknesses of LIVeasy through awareness.

Conduct a promotional



checker

2

Customers are not familiar with these types systems as it

is not currently used in any supermarket located in Male’.

So, to capture the market share and gain the competitive

advantage this strategy was selected to best use the

available financial resources.

Conduct a promotional



checker self-checkout

system.

3

Customers find many difficulties while they shop for

their items. So, this strategy will enable the business to

gain a competitive advantage over other rivals within the

industry.

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Strategy 9: Introduce price checking system

Changes and Challenges: Additional Financial resources are required. Also, it will enhance the

operation of the business as it will indicate any product which is not entered to the system.

Strategy 10: Introduce self-checkout system

Changes and Challenges: LIVeasy may have to conduct passive awareness campaigns to make the

customers informed how to use the system. To implement this strategy LIVeasy may face many

challenges since there are differences in the knowledge and technology used among the customers.

Additional capital will be required to install the system even though LIVeasy currently possess strong

financial base.


Strategy 2: Provide trollies for the customers to make their shopping easier

Changes and Challenges: Some changes need to be made within the store to have a separate space to

keep the trollies. LIVeasy needs to consider that this arrangement should not interrupt the customers’

shopping experience.

Strategy 5: Introduce a service centre of LIVeasy

Changes and Challenges: Separate area need to be rented or built near the supermarket. Also,

additional employees who have technical knowledge and expertise need to be recruited. LIVeasy might

face difficulties in recruiting employees as the recruitment process usually takes time.


Strategy 1: Continuous training and development for every staff in each department

Changes and Challenges: Changes will come to the duty and schedule of staff. LIVeasy might face

communication difficulties in selecting the staff to be trained in a given period. The business needs to

maintain and solve conflicts that may arise due to this.

Strategy 2: Revise and Develop employee recognition and rewarding system

Changes and Challenges: Changes will come to the way business is managed and operated. Staff may

get confused and conflict may arise due to the resistance by some employees to the changes. Hence,

LIVeasy might face difficulty in managing and convincing the staff. Also, there might be possibility of

high turnover.

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Strategy 2: Increase the sales by providing value added services such as delivery

Changes and Challenges: Additional resources such as labour and vehicles. So, the financial capacity

needs to be improved. LIVeasy might face difficulty in handling the orders at the same time managing

the sales within the store.


Strategy 2: Conduct a promotional campaign to increase awareness about price checker

Changes and Challenges: LIVeasy will incur additional expenses. There will be changes in the

arrangement of the items in the store.

Strategy 3: Conduct a promotional campaign to increase awareness about self-checkout system

Changes and Challenges: There will be changes within the store in terms of arrangements of the items.

LIVeasy needs to consider that the placement of this system should not interrupt the customer who

wants experience a convenient one stop shopping. Also, LIVeasy will be able to reduce the cost on

labour, but the investment on this system requires additional finance which might be difficult.

Note: Even though LIVeasy has strong financial base, some strategies such as introduction of self-

checkout system requires additional finance. This is because available finance needs to be used for the

purpose of enhancing the daily operations.

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Chart 6.1: Strategy by strategy Implementation process (Gantt chart)

Note: The Square indicates the starting date (Month) of the implementation of a given strategy. Some

strategies are continuously implemented throughout the strategic plan period 2015 to 2020.

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Chart 6.2: Formal Implementation process

7. Evaluation and Control

In practice, the effectiveness of a right strategy depends on the ability to outperform the business or gain

a competitive advantage. This can only be achieved by having a proper mechanism to monitor, evaluate

and control the strategies that have been selected. Also, it is important to note that implementation

requires all the peoples’ commitment, some obstacles and difficulties will be encountered. However,

ability to the business to overcome these obstacles by a proper mechanism defines the real success in a

competitive environment such as supermarket industry. In reality it is difficult for any business to

monitor, evaluate and control each and every strategy selected. Considering this, LIVeasy will be

focusing to evaluate and control each Key Result Area separately.

Evaluation Control


Continuously monitor and evaluate the

behaviour of the customers within the store.

Also, duration they stay within the store. It is

assumed customer behaviour will reflect true

Identify the reasons why customers behaviour

seems changing compared to the past. After,

analysing those reasons LIVeasy will be

committed to improve the store quality (interior

Stretegic Assessment

(Managing Director)

Strategic Analysis

(Departments)

Strategic Direction

(Senior Management)

Strategic Option

(Departments & Senior Management)

Strategic Choice

(Senior Management)

Strategic Implementation

(Staff)

Evalu

ation

and

contro

l

2014

44

value and quality of the store when it is

successfully achieved.

design, displaying of goods, navigation, etc.) as

per the customer expectations.


Evaluating the satisfaction level of each and

every customer through proper feedback

mechanism. This mechanism will include all

those convenient ways such as suggestion

box and LIVeasy website where customers

can share and express their feeling s and

concerns with LIVEasy.

The performance of this KRA can be controlled

by providing the customers with reliable

information regarding the products available,

procedures within the supermarket and others.

Also, staff will be well-informed and encouraged

to deal with customers’ concerns.


Performance and ability of the staff will be

monitored continuously through performance

evaluation by respective department

supervisor.

Identifying the variation between expected and

actual performance of the staff at a given point in

time. Meanwhile, LIVeasy will continuously

adjust the training and development schedule to

ensure that those staff are retrained.


Continuously monitoring the pattern of cash

flow and profits comparing with previous

months.

Proper communication and maintaining the

relationship with suppliers and financial

intermediaries. Also, proper book keeping and

monitoring daily transactions.


Effectiveness of the strategies in this Area

will be evaluated on the basis of increase in

Change the promotional activities as per the

customer expectations. Also, the business

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customer base compared with previous

period. Moreover, through proper research

the level of awareness can be evaluated and

how people perceive the store after

implementing those strategies. Furthermore,

customers can be evaluated whether they

perceive LIVeasy as ‘One stop shopping’.

identifies the strategies that best work in the

supermarket industry.

8. Conclusion and Recommendation

In conclusion, LIVeasy was able to maintain the concept of one stop shopping while competing with

dominant competitors. To allow LIVeasy continuity all the stakeholders will be given the priority to

same level. The LIVeasy might face difficulties and challenges while implementing the selected

strategies. So, implementation should be carefully scheduled and monitored regularly.

As both macro and micro environment is very dynamic, the strategies need to be continuously revised

based on it in order to succeed. The selected strategies many not be suitable for the circumstances that is

unpredictable. Some strategies such as introduction of price checker and self-checkout system need to

monitored and controlled well when compared to other strategies. More emphasis should be given to the

motivation and staff development as it is a key to success in delivering the required value to the

customers.

Meanwhile, LIVeasy should consider the option of e-commerce as the majority of the population is

aware and familiar with the latest technologies available to supermarket industry. Hence, LIVeasy

should closely observe and evaluate the actions of dominant competitors in order to capture the market

and achieves the goals identified.

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Reference

Ministry of Planning and National Development. (2007). Population and Hosuing Census of Maldives.

Retrieved April 23, 2014, from www.planning.gov.mv:

http://www.planning.gov.mv/publications/Population%20and%20Housing%20Census%202006/

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Annex

Annex A: Meeting minutes

Meeting 1

Date: 16thMarch 2014 (Sunday)

Time: 12:00am-13:30pm

Members present: Mohamed Jabir (33686), Nashifa Abdullah (33671), Shassa Naseer (30581),

Ahmed Shiaar (25692) and Ahmadhulla Mauthoof (33380)

Details:

Meeting was held on Faculty of Management and Computing classroom B3-21

Purpose of this meeting was to discuss on which company/ model we will choose in order to do

the strategic plan

First everyone contributed their ideas and those were taken into consideration.

The members were asked to bring more ideas for the next meeting.

This meeting was ended by announcing that next meeting will be held on 18 March 2014

Meeting 2

Date: 18 March 2014 (Tuesday)

Time: 15:30pm-16:30pm

Members present: Mohamed Jabir, Nashifa Abdullah, Shassa Naseer, Ahmed Shiaar and

Ahmadhulla Mauthoof

Details:

Meeting was held at Faculty of Management and Computing study room

Purpose of this meeting is to finalize an idea to do our assignment

We have agreed on Jabir’s idea of making a model on Allied Insurance.

This meeting was ended by announcing that next meeting will be held on 22nd March 2014

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Meeting 3

Date: 24th March 2014 (Saturday)

Time: 10.30am to 12:00am


Ahmadhulla Mauthoof.

Details:

Meeting was held on Faculty of Management and Computing library

Purpose of this meeting was to discuss the questions which will be asked for the interview with

Allied Insurance.

The members were asked to bring additional questions for the next meeting

We ended this Meeting by announcing that next meeting will be held on 23rd March 2014

Meeting 4

Date: 23rd March 2014 (Sunday)

Time: 12:30pm-13:30pm



Details:

Meeting was held on Faculty of Management and Computing Library

Purpose of this meeting is to finalize the questions which will be asked in the interview

This meeting was ended by reminding that the interview with Allied Insurance will be held on

tomorrow at 11:00am. Group members were asked to be there before 10 minutes.

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Meeting 5

Date: 24th March 2014 (Monday)

Time: 10:50am-12:30pm

Members present: Mohamed Jabir, Nashifa Abdullah, Shassa Naseer and Ahmed Shiaar.

Members absent: Ahmadhulla Mauthoof (He is working in an office and the interview was held

during office hours)

Details:

Interview was held on Fen Building 3rd floor

Purpose of this interview was to get the required information in order to our strategic plan

We were not able to get enough information due to their company privacy policy

All the members were informed that there will be a meeting soon and the time of the meeting will

be informed later through SMS.

Meeting 6

Date: 26th March 2014 (Wednesday)

Time: 10.00am to 12.30pm



Details:

Meeting was held on Faculty of Management and Computing bench

purpose of this meeting was to finalise on whether we do a strategic plan on allied insurance or not

due to the difficulties on the sector we have chosen and due to lack of information we received

We ended this meeting on agreeing that it will be discussed with lecturer and after that we will

think of doing the strategic plan on it.

Group members were asked to think of other companies for which we can do our strategic plan

and contribute their ideas on the following meeting

Meeting was ended by announcing that the next meeting will be held 29th March 2014.

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Meeting 7

Date: 29th March 2014 (Saturday)

Time: 13.30pm to 15.30pm



Details:

Meeting was held on MNU Business Library study room

Purpose of this meeting was discuss about other options available for us in order to do the

strategic plan.

Group leader, Jabir contributed the idea of making a modelled supermarket in the name of

LIVeasy based on the concept of Agora.

All members supported the idea

The meeting was ended by finalizing that we will be doing strategic plan for LIVeasy supermarket

Also it was announced that next meeting will be held on 31st March 2014

Meeting 8

Date: 31st March 2014(Monday)

Time: 16:30pm- 18:15pm



Details:


Purpose of this meeting is to formulate and finalize the structure of the strategic plan

We ended the meeting by announcing that next meeting will be held on 02nd April 2014

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Meeting 9

Date: 02nd April 2014 (Wednesday)

Time: 17:45pm-19:00pm



Details:

Meeting was held on Faculty of Management and Computing second floor

Purpose of this meeting is to assign the task for group members

Tasks assigned:

Jabir: introduction of the company

Nashifa And Shassa: think about the Mission and vision statement for the company

Shiaar and Mauthoof: think about slogan and core values for the company

We ended the meeting by announcing that next meeting will be held on 05th April 2014

Meeting 10

Date: 04th April 2014 (Friday)

Time: 16:00pm- 19:00pm



Details:

Meeting was held on Shassa, group member’s house

Purpose of this meeting is to finalize the introduction of the company, mission and vision

statement, slogan and core values for the company.

we ended the meeting by announcing that next meeting will be held on 06th April 2014

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Meeting 11

Date: 06th

April 2014 (Sunday)

Time: 13:30pm -15:30pm

Members present: Mohamed Jabir, Nashifa Abdullah and Shassa Naseer, Ahmed Shiaar and

Ahmadhulla Mauthoof

Details:

Purpose of this meeting was to visit the stores in order to analyse the strengths and weaknesses of

the competitors


Meeting 12

Date: 07th

April 2014 (Monday)

Time: 10:00 am -11:45am

Members present: Mohamed Jabir, Nashifa Abdulla and Shassa Naseer, Ahmed Shiaar and

Ahmadhulla Mauthoof

Details:

Purpose of this meeting was to visit the remaining stores in order to find the strengths and

weaknesses of competitors.

We ended the meeting by announcing that the time of the next meeting will be informed later

by sending a SMS

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Meeting 13

Date: 09th

April 2014 (Wednesday)

Time: 13.30pm to 16:00pm

Members present: Mohamed Jabir, Nashifa Abdullah, Shassa Naseer and Ahmed Shiaar

Members absent: Ahmadhulla Mauthoof (office working hours)

Details:


Purpose of this meeting was to compile the competitor analysis

This meeting was ended by announcing that next meeting will be held on 10th April 2014

Meeting 14

Date: 10th

April 2014 (Thursday)

Time: 14:00- 16:00

Members present: Mohamed Jabir, Nashifa Abdullah, Shassa Naseer, Ahmed Shiaar

Members absent: Ahmadhulla Mauthoof (office working hours)

Details:


Purpose of this meeting was to assign the task for group members

Tasks assigned are:

Jabir: Organizational structure analysis

Shassa: SWOT analysis

Nashifa: Industry analysis

Shiaar: Labour Market

Mauthoof: PESTEL analysis

Group members were asked to finish the assigned tasks for the next meeting

The meeting was ended by announcing that next meeting will be held on 14th April 2014

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Meeting 15

Date: 14th

April 2014 (Monday)

Time: 16:00pm- 18:00pm



Details:


Purpose of this meeting was to finalize the SWOT analysis, Industry Analysis, PESTEL analysis

and Labour market analysis.

Also in this meeting we prepared and finalised the survey questionnaire in order to do the

customer analysis.


Meeting 16

Date: 16th

April 2014 (Wednesday)

Time: 13:00pm- 16:00pm

Members present: Mohamed Jabir, Nashifa Abdullah and Shassa Naseer

Members Absent: Ahmed Shiaar and Ahmadhulla Mauthoof (Because of some sickness)

Details:

Purpose of this meeting was to conduct the survey in order to do customer analysis


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Meeting 17

Date: 17th


Time: 14:30pm to 18:00pm

Members present: Mohamed Jabir, Nashifa Abdullah, Shassa Naseer and Ahmed Shiaar

Members Absent: Ahmadhulla Mauthoof (he was sick)

Details:


Purpose of this meeting is to compile the customer analysis

Also task was assigned to Mauthoof as he was absent. The task assigned was to do the value chain

analysis

This meeting was ended by announcing that next meeting will be held on 19th April 2014

Meeting 18

Date: 19th

April 2014 (Saturday)

Time: 13.00pm to 18.00pm



Details:


Purpose of this meeting was to identify and finalize the resources that LIVeasy possess and need

to be developed in order to successfully compete in the market.

Also we have formulated ways how to sustain existing resources and how to develop the needed

resources.


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Meeting 19

Date: 20th

April 2014 (Sunday)

Time: 12:30pm to 17.00pm



Details:


Purpose of this meeting was to formulate and finalize the strategic direction of LIVeasy

We ended the meeting by announcing that next meeting will be held on 21st April 2014

Meeting 20

Date: 21st April 2014 (Monday)

Time: 09:30am- 18:00pm



Details:


Purpose of this meeting was to formulate and finalize the strategic options for LIVeasy

The meeting was ended by announcing that next meeting will be held on 22nd April 2014

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Meeting 21

Date: 22nd

April 2014 (Tuesday)

Time: 09:00am to 16:00pm



Details:


Purpose of this meeting was to formulate and finalize the strategic choice for LIVeasy

We ended the meeting by announcing that next meeting will be held on 23rd April 2014

Meeting 22

Date: 23rd April 2014 (Wednesday)

Time: 09:00 am- 16.00pm



Details:


Purpose of this meeting was to write up the parts “implementation and control” and “conclusion

and recommendation”.

Also during this meeting the report had been finalized and given for group members to proof read

the finalized strategic plan.


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Meeting 23

Date: 24th


Time: 09:00am to 18.00pm



Details:


Purpose of this meeting was to correct any mistakes found out during proof read and finalize the

strategic plan after proof reading together.

We ended the meeting by submitting the strategic plan

Annex B: Details of the SWOT Analysis

Strengths

Unlike all other supermarkets LIVeasy is very different in service wise. LIVeasy labour force is

professional and trained, after recruitment all it is compulsory to take part in the training before joining

the work officially. This will help the company to provide total customer satisfaction, and employees to

have full knowledge about their working environment.

In addition, the store will have navigation boards to represent the product category at the shelves. Unlike

some dominant supermarkets, this feature will help the customers to find the item easily without wasting

much time. LIVeasy is very concerned about the environmental issues facing in Maldives. Therefore

LIVeasy encourage people to buy cloth bags from the store, and use them for the next visit to the store.

If the customer brings it on his/her next visit, the store offers bag discounts.

The current outlet of LIVeasy is located in Henveyru near ADK which is considered as a very busy area

since there is a hospital including shopping area and a college nearby. For the purpose of convenience

LIVeasy have a basement parking area for the customers who visit the store, this will save the customers

time in finding parking space.

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The store also has an ATM of MIB (Maldives Islamic Bank) at the entrance and ATM of BML (bank of

Maldives) in front of the supermarket. Moreover, LIVeasy have a wide selection of grocery and home

care products in order to provide all the needed products for the customers at same place. LIVeasy

manages using computerized stock management system. This will help to identify the product out of

stock and the most demanding products. Moreover, to make sure that no product is out of stock, the

sales people check the stock daily and update the store managers.

Weaknesses

Since LIVeasy is new to the market, the awareness is low compare to other existing supermarkets. Due

to this, LIVeasy faced difficulties at the beginning in contacting the suppliers and going through legal

procedures. Also this affects the inbound logistics. But LIVeasy will hire employees from different

markets to make sure that the supermarkets gets the best offered deals in the market and to deliver the

finest and fresh products available. Also this will make the inbound logistics more effective and

efficient. Moreover, LIVeasy face difficulties in building relationships with financial intermediaries.

Since LIVeasy business came into existence recently, the public image and the strength of financial base

will be unknown. This will lead difficulties in getting required finance. In addition to that, supplier

relationship will be weak compare to the existing firms.

Unlike the growing supermarket chains in Maldives at the moment, LIVeasy has only one outlet. This

will minimize the reach of customers.

Opportunities

According the survey conducted, the shopping habits of Maldivians are moving from daily shopping to

weekly and monthly shopping. This is an opportunity to LIVeasy. LIVeasy came with the promise of

providing ‘one stop shopping to customers’. This survey also shows that customers prefer to have one

stop shopping which isn’t available in Maldives at the moment. Customers prefer one stop shopping

because of their busy life styles.

Moreover, the statistics shows that Crime rate is increasing in Maldives. Because of this customers

hesitate to go to corner shops since most of them do not have security surveillance unlike supermarkets.

LIVeasy has 24 hours CCTV monitoring including the surrounding area of the shop.

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It’s vital to note that Large proportionate of population is using latest technologies with more than

100,000 mobile Internet users. This shows that the community is aware of latest technology, which

helps in promoting the business via social network and Internet.

Threats

Due to unstable political situations in the past six months, there have been lots of protests and political

activities in different areas of Male’. During the period, people used to block the roads, have parties and

meetings. This created major difficulty for people to travel from one place to another, although the

location of LIVeasy isn’t a spot for this, Majeedhee Magu is major focus for such activities.

Raising inflation is also a very big issue for the economy. It is been increasing rapidly in the past few

years. This reduces the purchasing power of people. Moreover, the unemployment rate has increased in

Maldives, which eventually decreases the purchasing power of customers.

As LIVeasy imports most of its goods, the fluctuation in the exchange rate is also a very big concern for

the business. Even though there is a specific permitted exchange rate, it is very difficult to get the dollar

at that rate which will incur extra expenses to the business.

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Annex C: Questionnaire Form used for Customer Analysis

Survey Questionnaire

This survey is done to explore and study the shopping behaviour of customers and whether

there is potential market for a supermarket which offers one stop shopping. LIVeasy

supermarket will provide customers with an easy and convenient shopping environment.

“Your views and comments are welcomed and it will be used for the purpose of this

study only.”

1. Gender

a. Male

b. Female

2. Age

a. 18 - 25

b. 26 - 33

c. 34 and above

3. Income (MVR)

a. Less than 5,000

b. 5,000 to 10,000

c. 11,000 to 17,000

d. 18,000 and above

4. How many hours do you work in a day?

a. 3 to 5 hours

b. 6 to 8 hours

c. 9 to 11 hours

d. 12 hours or more

5. Number of people at home?

a. 1 to 3

b. 4 to 6

c. 7 to 9

d. 10 or more

6. How much time do you spend on shopping?

a. Less than 0.5 hours

b. 0.5 to 1 hour

c. 1 to 2 hours

d. More than 2 hours

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7. What are the difficulties in shopping?

a. Traffic

b. Lack of time

c. Out of stock

d. Waiting in queues

8. How Frequent do you shop for your groceries?

a. Daily

b. Weekly

c. Monthly

d. Others

9. Which one You prefer most?

a. Corner Shops

b. Supermarkets

10. Do you make shopping list before you shop?

a. yes

b. No

c. Sometimes

11. Do you think it is possible to get all your necessary goods from one store?

a. Yes

b. No

12. Will you use delivery service if it provided by a supermarket?

a. Yes

b. May be in future

c. No

13. Which supermarkets do you usually shop at?

a. Agora

b. Red wave

c. Fantasy

d. All 2

e. Galleon Store

f. Ihusaan Fihaara

g. Evening Mart

h. Shop & Save

i. VB Mart

j. STO

k. Others

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14. Have you heard of these store names?

a. Agora

b. VB mart

c. Red Wave

d. All 2

e. Giant super store

f. Shop & Save

g. Evening Mart

h. Fantasy

i. STO

j. Galleon Store

k. Ihusaan Fihaara

15. What factors you determine before choosing a particular supermarket to shop?

a. Price

b. Location

c. Availability of Products

d. Friendly staff

16. What comes to your mind when you see or hear the name (s)

a. Agora

b. VB mart

c. Red Wave

d. All 2

e. Giant super store

f. Shop & Save

g. Evening Mart

h. Fantasy

i. STO

j. Galleon Store

k. Ihusaan Fihaara

17. In your view which of the shop is?

a. Low priced

b. Quality

c. Friendly staff

d. Enough in-between shelf space

e. Displaying of goods

18. What features you expect to be in an ideal supermarket?

_____________________________________________________________________________

_____________________________________________________________________________

Thank You!

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Annex D: Analysis of the Customer research analysis

Figure 1: Frequency of shopping

Figure 2: Behaviour about making shopping list

9.00%

15.00%

35.00%

41.00%

How frequent you go for shopping?

Daily Weekly Monthly Buy when needed

37.00%

19.00%

44.00%

Do you make shopping list while you go for shopping?

yes no sometimes

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Figure 3: Age

Figure 4: Gender

50.00%

17.00%

33.00%

Age

18-25 26-33 34 and above

47.00%

53.00%

Gender

Male Female

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Figure 5: Income level of the people

Figure 6: Attitude towards supermarkets

40.00%

17.00%

33.00%

10.00%

Income (MVR)

less than 5000 5,000-10,000 11,000-17,000 18,000 and above

17.00%

83.00%

Which one you prefer most?

cornershops supermarkets

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Figure 7: Preferred supermarkets among the respondents

Figure 8: Perception of the customers about shopping from current dominant supermarkets

83

68

0 0

17

33

17

65

50

2

17

0

10

20

30

40

50

60

70

80

90

Agora Redwave

Fantasy Galleonstore

IhusaanFihaara

EveningMart

Shop &save

VB mart STO All2 Other

Which supermarkets do you shop usually?

8.00%

92.00%

Do you think it is possible to get all your necessay goods from one store?

yes no

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Figure 9: Awareness of the existing supermarkets

Figure 10: Number of working hours

100 100 100

33

50

100 100 100 100 100

Agora Redwave Fantasy All2 GalleonStore

Ihusaanfihaara

EveningMart

Shop &Save

VB Mart STO

Awareness among the existing supermarket

8.00%

54.55%

31.00%

6.45%

How many hours do you work in a day?

3 to 5 hours 6-8 hours 9-11 hours 12 or more hours

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Figure 11: Difficulties face while shopping

Figure 12: Duration spent on shopping

11.24%

40.26% 36.20%

12.30%

What are the difficulties in shopping?

Traffic Lack of time Out of stock Waiting in queues

30.00%

26.00%

33.00%

11.00%

How much time do you spend on shopping?

less than 0.5 hours 0.5 to 1 hours 1 to 2 hours more than 2 hours

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Figure 13: Household size

Figure 14: Potential for augmented services such as delivery

18.00%

55.00%

22.00%

5.00%

No.of people at home

1 to 3 4 to 6 7 to 9 10 or more

70.13%

27.00%

2.87%

Will you use delivery service if it provided by a supermarket?

Yes May be in future No

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Figure 15: Factors considered while choosing a supermarket

No Description Categories No %

1 Gender Male 33 47

Female 37 53

2 Age

18-25 35 50

26-33 12 17

34 and above 23 33

3 Income

Less than 5000 28 40

5,000 to 10,000 12 17

11,000 to 17,000 23 33

18,000 and above 7 10

4 Hours worked/day

3 to 5 hours 21 30

6 to 8 hours 18 26

9 to 11 hours 23 33

12hours or more 8 11

5 People at home 1 to 3 13 18

4 to 6 38 55

23%

27%

41%

9%

What factors you determine before choosing a particular supermarket to shop?

Price Location Avalability of products Friendly staff

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7 to 9 15 22

10 or more 4 5

6 Time spent on shopping

Less than 0.5 Hours 21 30

0.5 to 1 hour 18 26

1 to 2 hours 23 33

More than 2 hours 8 11

7 Difficulties faced while shopping

Traffic 8 11.24

Lack of time 28 40.26

Out of stock 25 36.2

Waiting in queues 9 12.3

8 Frequency of Shopping

Daily 6 9

Weekly 10 15

Monthly 25 35

Buy when needed 29 41

9 Preferred type of shop Supermarket 12 17

Corner shop 58 83

10 Make shopping list

Yes 26 37

No 13 19

Sometimes 31 44

11 One stop shopping Yes 6 8

No 64 92

12 Delivery by supermarkets

Yes 49 70.13

May be in future 19 27

No 2 2.87

13 Supermarkets usually shop

Agora 58 83

Red Wave 48 68

Fantasy 0 0

All 2 1 2

Galleon Store 0 0

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Ihusaan Fihaara 12 17

Evening Mart 23 33

Shop & Save 12 17

VB Mart 46 65

STO 35 50

Others 12 17

14 Awareness

Agora 70 100

Red Wave 70 100

Fantasy 70 100

All 2 23 33

Galleon Store 35 50

Ihusaan Fihaara 70 100

Evening Mart 70 100

Shop & Save 70 100

VB Mart 70 100

STO 70 100

15 Factors which determines the choice of

supermarket

Price 19 27

Location 16 23

Availability of

products 29 41

Friendly staff 6 9

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Annex E: Blue print of LIVeasy after implementing the strategic plan

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Annex F: Rejected strategies from each KRA

Strategies # Justification for rejection


Separate cash counter for

fruits and vegetables 5

Since it will difficult for the customers to pay for the

fruits and vegetable separately if they are shopping for

other grocery items as well.

Sell some products with

LIVeasy brand name 6

The existing brands of products are well positioned in the

consumer’s mind, so it will be a challenge for LIVeasy to

position their brand products. And it will incur a lot of

advertisement and promotional costs. Overall a lot of time

to achieve this strategy.

Change the interior design

of the store according to

the preferences of the

customers.

7

LIVeasy has an interior decoration, which represents the

store image and quality. And if this design is changed

according to the customer’s preference the brand image is

destroyed, also it will not be possible to change the design

according to the preference of individual customers.


Help customers to carry

their purchased items up

to their vehicles

4

Since LIVeasy is a very large supermarket a lot of

customers visit the store each every day. If this service is

to provide for each and every customer’s, a large

proportion of labour is required. This will incur an extra

cost without any extra earning.


Develop a staff committee 3

As there is a store manager and HR manager it will be

easy for the staff to communicate and raise their concerns

to the top management easily at any time. So developing a

separate committee will be of no use.


Make partnership with an

existing supermarket

which has strong financial

base

3

LIVeasy mission and vision clearly states that the purpose

of LIVeasy is to provide one stop convenient shopping for

customers. And at the moment there are no existing

supermarkets, which have the same core business as

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Annex G: Gallery

1. Self-checkout system

2. Price checker

LIVeasy; this will mislead the customers with the nature

of LIVeasy business.


Sponsoring national

famous events such

Dhivehi League and Bride

fair.

3

Since LIVeasy is new to the market, the business is

unaware about the real impact of sponsor. And it will not

be possible in terms of finance to sponsor such a big event

in three years of existence.

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3. LIVeasy Uniform

(Before the implementation of the Strategy 8, KRA I: Store Quality)

(Before the implementation of the Strategy 8, KRA I: Store Quality)

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Annex H: Details of the ways in which existing skills, resources and capabilities can be sustained

and developed

Chain of outlet need to be developed

Currently LIVeasy have only one outlet located in Henveyru. The company is planning to locate a new

outlet by the end of this year in Maafannu. Likewise, the company will be focusing on expanding the

business by opening new outlets in the coming years. This is to cater more market. In addition to that,

the current outlet will be modified with additional floors in order to accommodate more varieties of

products.

Proper inbound logistics

As there is no proper inbound logistics in the company, LIVeasy need to develop proper inbound

logistics. As for now products are delivered from the dealer abroad. But since LIVeasy is new to the

market it is very difficult to get the dealers. So, in future LIVeasy will hire employees to make the

inbound logistics more fast and efficient. This will lead to continuous availability of fresh products and

to maintain a proper stock management of all the products.

Separate IT department

As LIVeasy expands its capacity in terms of additional equipment within the store, such as self-checkout

system and price checker, a separate IT department will be required. This will help to monitor and

manage the systems more efficiently which ensures the customers a convenient shopping environment.

Reliable Customer Relationship Management

Maintaining a good relationship with customers is an important factor for the success of any business.

Likewise, LIVeasy will be focusing on enhancing the value of customers. In order to achieve this, the

employees will be provided with a special training. So, they will have enough knowledge about the

products if the customers inquire about the products. Also they will be able to deal with customer

compliances and they will understand the needs and wants of customers.

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Management Flexibility

LIVeasy will be focusing on creating a more flexible communication system within the company. The

company will provide opportunities for the employees to communicate directly with the top

management. This will create good employee relationship within the company, since the lower level

employees can also suggest the areas which require improvement to the business. As a result, this will

lead to more effective decision-making.

Strong Financial Base

LIVeasy is a company which started the business with a high capital. However, the company need to

have a strong financial base by forming partnership with existing companies, in order to expand the

business to compete in the market. Moreover, the company will be looking for opportunities to gain the

trust of banks in order to have a good business relationship.


Although currently LIVeasy provide convenient easy shopping for customers, the company needs to

continuously improve the service to cater the changing customer preferences. In a near future, LIVeasy

will introduce trolley facility inside the supermarket in order to provide a more easy and convenient

shopping for their customers. In addition, the supermarket will have a digital map at the entrance, which

will help the customers to locate the product. Likewise, LIVeasy is focussing on modifying the current

outlet with additional floor to locate more varieties of products with in each product category, so that

customers will be able to get their preferred brand of products. Also, the company focuses on expanding

the business by introducing new outlets to provide the service for different customers in their convenient

location.

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Storage Capacity

LIVeasy has a warehouse specific for fruits and vegetable including frozen foods. Also the company has

a huge warehouse for other goods. LIVeasy will maintain these warehouses by building a good

relationship with their contractors.

Safety and Security

Work environment safety is very important. LIVeasy uses latest technologies in order to maintain a high

security for the customers and employees of LIVeasy. At the moment LIVeasy has a security detector

gate located at the entrance and lockers to keep the customers belongings. Also, 24 hours CCTV

monitoring inside and outside the store area will be there. As the store expands, LIVeasy will have a

separate IT division with required expertise and knowledge in order to make sure that the store

environment is secure for customers and workers.

Dynamic workforce

As the customer’s preferences are changing, companies need to have a dynamic workforce to cater these

changes. LIVeasy need to have a dynamic workforce in order to be leading supermarket in the industry.

LIVeasy will be focusing on hiring the employees, who are committed to their jobs. This means they

will hire employees with require knowledge and expertise which will be required for a supermarket.

And the company will give a special training to all the staffs they hire in order to be successful in the

supermarket industry by providing professional and friendly customer service.

Supplier Relationship management

In order to keep a good relation with the suppliers, it is important to have a good understanding between

both parties. The first major thing is to settle the payment on time, and response to suppliers promptly.

Also in order to build a good relationship with LIVeasy suppliers, the company will gain supplier trust

by building reciprocal relationships and by negotiating them.

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Internationally accepted internal auditing

LIVeasy will create internationally accepted internal auditing by maintaining good relationships with

external auditing firms. The company will also focus on maintaining a good book keeping system in

order to make it easy for auditors.

Computerised stock Management System

To keep the stock updated, it is important to check the stock daily. LIVeasy store managers will make

sure that the stock is checked daily by the sales person. Computerised stock management system allows

LIVeasy to identify the goods which are out of stock. Likewise, it helps them to identify the products

which are going to expire soon.

Annex I: Functions of each department

1. Human Resource Department: HR department has three divisions;

a. HR Division: Human Resource staff are mainly responsible for dealing with the day to

day needs of the human labour. It involves preparing salary sheets, organising staff

meetings, conducting training workshops and other related activities which results in

building a committed and motivated workforce.

b. PR Division: Public Relation staff normally has to deal with complaints and the needs

of the customers. They must share information about the supermarket and its activities

to clear their doubts. The complaints can be in the form of phone calls, e-mails, fax, and

website or Facebook comments. The PR staff are responsible to give the relevant

feedback.

c. IT division: The IT staff supervises and maintain all the hardware and accessories

including Fax machine, Printers, Computer devices, Telephone lines and network

cables. At the same time, they are also responsible for managing and updating software

and its requirements.

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2. Accounting and Finance Department: All the accounting and financial works of the supermarket are

done by Accounting and Finance department. This department has to prepare and maintain all the

account details and financial records. Moreover, budget forecasts are also done by these staff. At the

same time, in order to confirm accuracy and transparency in their work, they are responsible to

provide assistance to auditors. Procurement process is also carried out by this department. In short,

procurement division carries out the work of inbound logistics, operations and outbound logistics.

They deal with daily entries involving the purchase and ordering of goods and services, carriage

inward or delivery of the goods, needed stationaries for administration and other internal and

external requirements. Moreover, they are also responsible for managing the stock and placing at

the shelf with the help of Sales department.

3. Sales and Marketing Department: The Sales and Marketing Department is divided into two major

divisions.

a. Sales Division: The staff in this department has to directly interact with the customers.

They are responsible to give sales assistance and Point of Sale (POS) services. They are

also responsible to maintain daily sales and customer records.

b. Marketing Division: The activities that require increasing potential sales, demand and

goodwill are managed and carried out by this division. This division mainly carries out

two works; Advertising/promotional activities and CSR programs.

Annex J: Details of the skills required to have in employees

Managers

Should be able to set priorities, delegate, motivate and develop their people and couch them

to become top performers and able to communicate objectives and goals. In other words

able to have management and leadership skills

Inspire others to achieve better results and demonstrate emotional intelligence. Need to

have good excellent communication skills

Need to have collaboration skills

Need to have critical thinking skills

Need to have finance and project management skills

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Cashiers

Highly skilled in providing prompt and customer friendly service

Should be able to have in-depth knowledge if operation cash register and maintaining cash

drawer

Well familiar in performing monetary transactions

Able to maintain clean and neat in the working area

Ability to balance all transactions

Able to maintain knowledge of current product locations

Fluent in English and Dhivehi

Skilled in work related software’s

Able to answer telephone and perform light housekeeping tasks

Supervisors:

Supervisor has to have good listening skills

They should be available tangibly and intangibly

Supervisors should always focus on organizational mission

Supervisors need to be transparency on what they do

Able to delegate decisions when it is needed

Take responsibility of the things that he/she do

Make commitments that they can do

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Sales representatives:

The sales representatives should have qualification Talent such as they should be able to

speak in English and Dhivehi properly.

They should have a positive can do Attitude

They should be able identify the needs and wants of customers and they should assist

customers in searching the products.

They should be willing and able to do multi task

They should be able identify the needed products for the business

They should have good Listening Skills in order to understand the customer well. Only by

listening intently they can understand the buyers’ needs and emotions.

They should be able to attract and retain customers (customer friendly)

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Annex K: 6 Components of the LIVeasy mission statement

Fundamental Purpose

To Provide unparalleled shopping experience in a friendly and professional environment.

Stakeholder promises

Provide unparalleled shopping experience in a friendly and professional environment with

varieties of products within each product category.

Public image

To be the supermarket which provides ‘one stop shopping’ for customers

Standards and behaviours

Professional and trained – employees will have enough knowledge about the products and have

‘know-how’ regarding the customer satisfaction

Loyalty – all the departments will work cohesively and ensures that customers get the real feel of

one stop shopping

Customer friendly- employees will always be available to customers to accept the concerns and

complaints of every visit of the customer.

Values and Beliefs

Customer Friendly- Passion of knowing and understanding our customers and responding to their

complaints immediately, LIVeasy supermarket arrangements are made in such a way, that

customers don’t have to waste time in finding products. The whole supermarket is divided in to

zones and product categories are differentiated in order to make it more convenient for our

customers.

Convenient- Identifying the customer’s needs, LIVeasy has managed to provide a basement

parking area in order to make it more convenient for our customers. Moreover, LIVeasy location

and area allows the customers to experience one stop shopping

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Excellence service- LIVeasy will value each and every visit of the customers. Staff will be well

informed with the needs and concerns of the customers. We will ensure that every customer leave the

supermarket with a smile of satisfaction.

Stakeholder relationship- Creating and enhancing the value of all stakeholders (customers, employees,

suppliers) by maintaining good relationship and productively seeking good opportunities and

implementing opportunity in order to maximize profits and make the organization more profitable.

Strategic distinctiveness

Super market which provides one stop shopping.

Strategic plan of LIVeasy

Business

cold storage facility

basement parking area

develop employee recognition

00pm members present

strong financial base

high bargaining power

giant super store

30pm members present