Organized Retailing Case Study

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Managing Trusting Relationships in Indian Organized Retailing
Case Facts:
1) The Indian retail market is estimated to be $534 billion in 2013-14. It is expected to grow at a CAGR of 12-13 percent making it a $948 billion sector in 2018-19 (KPMG 2014).
2) Unorganized retailing accounts for over 92 percent of the business. On the other hand, organized retail is also expected to grow. It generated revenue of $41.4 billion in 2012 and is expected to generate $94.8 billion by 2019 (Crisil research estimates).
3) Luxury market is expected to be one of the largest and fastest growing segments of the retailing sector. It is expected to grow at CAGR of 20 percent over the period 2012 to 2015.
4) Online retail industry is major upcoming segment. Worth
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Uncontrollable variables is the unorganized retail sector in India
Problem Specification If we look at the defined factors above we can see that both X and Y have an impact on each other. The political situation in the country as well as the policies formulated will have an effect on how the retail industry sets its processes to interact with suppliers and customers. The policies have an impact on the investment possible in the industry. Alternatively policy formulation is also an iterative process. How retailers interact with suppliers, customers etc sets guidelines on how the govt will make policies as well as how unorganized retailers will
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alternatives high ethical moral values 1) Laws that uphold the values of ethics as established from the existing codes must be passed. Emphasis should be on tough screening and high professional level experiences to ensure trust.
2) Problem process stakeholders must become conscious of their moral duties and uphold the same. One way is to ensure “Situation Normality” to enable customers to develop initial trust.
Optimal - solution choice To have a strong legal framework and regulated hiring process. Customers will be comfortable is retailers assure “Structural Assurances” of promises/contracts/warranties & legal recourse
Optimal solution Implementation strategy 1) Start with legal proceedings. Regulatory reforms are needed to make the implementation of suggested measures possible. The onus of this is on the current government
2) The next step is that all retailers must own the issue and regulate their hiring. Regulatory reforms must be passed to facilitate this.
Optimal Implementation The optimal implementation would be nothing other than what has been mentioned above. The framework is established, now executive bodies would have to own the problem at
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