CHAPTER 1: INTRODUCTION ABOUT THE INTERNSHIP

INTER NSHIP DETAILS.

As EM BA students our aim should not be only to learn theoretical concepts in the classroom, but it becomes
more im portant as how we appl y those concepts in practices. I n present scenario the world is developi ng
so fast and thus the technological and application theory is changing at a greater phase. The study inculcates
students to think out of the box, rather than emphasizing withi n the box. We are comi ng across many modern
t heories and implementation of machi neries, to start new business. We must have the knowledge of
theories and practical, through it, the student will b e able to k n o w about how to apply their mind in the
real business world . This program of internship (organization study) will create awareness about the
industrial env i ronment amongst the students. Such internship program will be a vital source of knowledge
to the corporate world during their EMBA Program. The i m portance of this internship and project report
preparation has been widely accepted in the education institutions. Thus knowing the importance of such
practical knowledge , the university and our college is providing with such program will enhance the
overall development of the students.

The Organization study in LANDMARK- MAX fashion Retail Market gives an opportunity to get
accustomed to the retail working environment in the mode of direct selling. This study is conducted to
understand the structure, function and process of various departments and their inter departments.

As it is a part of our 1st semester EMBA, the study involves the organizational structure and functioning of
various departments. It explains in practical about the functioning of various departments such as Purchase
department, Finance department. Marketing, Human resources and so on. It gives an exposure of corporate
world.

1.1 INDUSTRY PROFILE

The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the
entry of several new players. It accounts for over 10 per cent of the country’s GDP and around 8 per cent
of the employment. India is the world’s fifth-largest global destination in the retail space. It has immense
potential as India has the second largest population with affluent middle class, rapid urbanization and
solid growth of internet.

India is expected to become the world’s fastest growing e-commerce market, driven by robust investment
in the sector and rapid increase in the number of internet users. India’s direct selling industry is expected
to reach a size of Rs.23,654 crore (US$ 3.54 billion) by FY2019-20, as per a joint report by India Direct
Selling Association (IDSA) and PHD.
Indian exports of locally made retail and lifestyle products grew at a CAGR of 10 per cent from 2013 to
2016. The size of modern retail in India is expected to double to Rs.171,800 crore (US$ 25.7 billion) from
Rs.87,100 crore (US$ 13 billion) in three years.

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1.2 HISTORICAL BACKGROUND

Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its GDP. India
is one of the fastest growing retail markets in the world, with 1.2 billion people.

As of 2003, India's retailing industry was essentially owner manned small shops. In 2010, larger format
convenience stores and supermarkets accounted for about 4 percent of the industry, and these were
present only in large urban centers. India's retail and logistics industry employs about 40 million Indians
(3.3% of Indian population).

Until 2011, Indian central government denied foreign direct investment in multi-brand retail, forbidding
foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-
brand retail was limited to 51% ownership and a bureaucratic process. But in November 2011, India's
central government announced retail reforms for both multi-brand stores and single-brand stores. These
market reforms paved the way for retail innovation and competition with multi-brand retailers such
as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple. The
announcement sparked intense activism, both in opposition and in support of the reforms. In December
2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it
reaches a consensus.

In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to
innovate in Indian retail market with 100% ownership, but imposed the requirement that the single brand
retailer source 30 percent of its goods from India. Indian government continues the hold on retail reforms
for multi-brand stores. In June 2012, IKEA announced it had applied for permission to invest $1.9 billion
in India and set up 25 retail stores. An analyst from Fitch Group stated that the 30 percent requirement
was likely to significantly delay if not prevent most single brand majors from Europe, USA and Japan
from opening stores and creating associated jobs in India (Subscription required). On 14 September 2012,
the government of India announced the opening of FDI in multi-brand retail, subject to approvals by
individual states. This decision was welcomed by economists and the markets, but caused protests and an
upheaval in India's central government's political coalition structure. On 20 September 2012, the
Government of India formally notified the FDI reforms for single and multi-brand retail, thereby making
it effective under Indian law. On 7 December 2012, the Federal Government of India allowed 51% FDI
in multi-brand retail in India. The government managed to get the approval of multi-brand retail in the
parliament despite heavy uproar from the opposition (the NDA and leftist parties). Some states will allow
foreign supermarkets like Walmart, Tesco and Carrefour to open while other states will not.

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1.3 CURRENT SCENARIO:

The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the
entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product
(GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the
retail space.

Indian Retail Industry has immense potential as India has the second largest population with affluent
middle class, rapid urbanization and solid growth of internet.

1.4 MARKET SIZE:

India’s retail market is expected to grow at a Compound Annual Growth Rate (CAGR) of 10 per cent to
US$ 1.6 trillion by 2026 from US$ 641 billion in 2016. While the overall retail market is expected to
grow at 12 per cent per annum, modern trade would expand twice as fast at 20 per cent per annum and
traditional trade at 10 per cent. Indian retail market is divided into “Organized Retail Market” which is
valued at $60 billion which is only 9 per cent of the total sector and “Unorganized Retail Market
constitutes the rest 91 per cent of the sector.

India’s Business to Business (B2B) e-commerce market is expected to reach US$ 700 billion by 2020.
Online retail is expected to be at par with the physical stores in the next five years. India’s total potential
of Business to Consumer (B2C) is estimated to be US$ 26 billion, of which $3 billion can be achieved in
the next three years from 16 product categories, according to a study by Federation of Indian Chambers of
Commerce and Industry (FICCI) and Indian Institute of Foreign Trade (IIFT).

It is expected to become the world’s fastest growing e-commerce market, driven by robust investment in
the sector and rapid increase in the number of internet users. Various agencies have high expectations
about growth of Indian e-commerce markets. Indian e-commerce sales are expected to reach US$ 120
8
billion by 2020 from US$ 30 billion in FY2016.Further, India's e-commerce market is expected to reach
US$ 220 billion in terms of gross merchandise value (GMV) and 530 million shoppers by 2025, led by
faster speeds on reliable telecom networks, faster adoption of online services and better variety as well as
convenience.

India’s direct selling industry is expected to reach a size of Rs.23,654 crore (US$ 3.54 billion) by
FY2019-20, as per a joint report by India Direct Selling Association (IDSA) and PHD. Indian exports of
locally made retail and lifestyle products grew at a CAGR of 10 per cent from 2013 to 2016. The size of
modern retail in India is expected to double to Rs.171,800 crore (US$ 25.7 billion) from Rs.87,100 crore
(US$ 13 billion) in three years driven by Omni-channel retail.

The above given statistics show that the Indian economy is speeding ahead at the rate of about 9- 12% per
annum, foreign exchange reserves have shot past earlier performance; growth in private consumption
expenditure is outperforming the growth in GDP per ann um. The overall opti mistic investment climate is
creating better employment opportunities for the cou n try's predominantly young population.

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1.5 MAJOR PLAYERS IN RETAIL INDUSTRY:

Key players in retail industry.

10
 CHAPTER 2: ORGANIZATIONAL PROFILE

2.1 COMPANY PROFILE:

Founded in 1973 with a single store in Bahrain, the

Landmark Group has successfully grown into one of
the largest and most successful retail organizations in
the Middle East. An international, diversified retail
conglomerate that encourages entrepreneurship to
consistently deliver exceptional value, the Group
operates over 1,200 outlets encompassing a retail
presence of over 18 million square feet across the
GCC, Jordan, India, Egypt, Turkey, Kenya, Sudan,
Yemen, and Pakistan. The Group employs over
45,000 employees.

MAX is the international value fashion brand of the Dubai based Landmark Group, established in 2004 in
the UAE, Max has become the largest value fashion brand in India and the Middle East with over 200 stores
across 15 countries, offering customers a one stop shop for clothing, accessories and footwear needs for the
entire family.

MAX India, a division of Lifestyle International (P) Ltd, has pioneered the concept of ‘value fashion’ in
the country, thereby offering the discerning shopper a vast choice with international fashion & quality.

It offers apparel, footwear & accessories that are of the latest fashion trends at a great price, making it
affordable to many. Max has its own label merchandise of in house designs and planned color palettes for
the season. Every season Max introduces a fresh collection of international designs specially customized to
the Indian market. The brand adapts to the changing needs of the shopper every season and accordingly
introduces new designs, silhouettes & fabrics.

In India, MAX was established in 2006 with its first store in Indore. Now, Max has around 105 stores across
45 cities with over 3500 employees.

The store ambience offers an international shopping experience making shopping for the entire family an
absolute delight. Max focuses on strong visual elements at the store for engaging customers while they are
in store. The stores are designed for easy navigation with distinct category display to facilitate customers
in early locating product they are looking for.

The target audience for Max India is primarily is contemporary middle class family and the young working
couples within the age group of 25 to 35 years. As Max has positioned itself as a youth brand, it also targets
teenagers and college students within the age group of 18 to 24 years.

Max is reaching out to customers in Tier II towns through brand initiatives like Max Fashion Icon which
addresses the aspirations of the stylish youth of the city and Max Little Icon which captures the interest of
family oriented markets.

Landmark Rewards in a unique loyalty program, with current membership base of over 3.8 million
customers, has emerged as one of India’s leading loyalty programs offering customers rewards and
11
exclusive benefits. It helps the loyal customers to get more value every time they shop at Landmark Group
outlets.

Max has its footprints in Mumbai, Delhi/NCR, Bangalore, Chennai, Kolkata, Hyderabad, Pune, Bhopal,
Indore, Kochi, Lucknow, Bhubaneswar, Jaipur, Jabalpur, Nagpur, Rajput, Surat, Vadodara, Gangtok,
Ranchi, Siliguri, Agra, Allahabad, Amritsar, Bareilly, Chandigarh, Dehradun, Varanasi, Calicut,
Coimbatore, Hubli, Kannur, Madurai, Mangalore, Mysore, Pondicherry, Thrissur, Trichy, Trivandrum,
Vizag, Jammu, Vijayawada, Kanpur & Udaipur.

2.2 Business and Brands:

Landmark Group’s business can be broadly classified into Retail, Hospitality and Healthcare. Retail is
the group’s core focus area and it deals mainly with apparel, furniture, footwear, consumer electronics,
cosmetics & beauty products, home improvement and baby products. In India, the formats are different and
include grocery retail in a joint venture with Auchan and hence the list below does not apply to India.

Business Activity Brand

Apparel Baby shop, Splash, Max, Lifestyle, Iconic and Centre point (a single
store format housing Babyshop, Splash, Shoemart and Lifestyle),
kotton

Footwear Shoemart, Shoexpress, Shoemart International Footwear

Furniture & home improvement Homecentre, Q Home Décor, Home Box

Hospitality Citymax, Oasis Malls, Foodmark, Spaces, Fitness First, Fun City,
Funville

Healthcare iCare Clinics, Balance Wellness Club

Other retails E-max (Consumer Electronics), Sports one (Fitness Gear), Candelite
(Confectionery)

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2.3 Business Subsidiaries

Hospitality Brands

The Group has a diverse hospitality portfolio that includes leisure, food, family entertainment centers,
salons & spa, fitness clubs, medical centers, budget hotels and own & franchise restaurant brands:

Retail Brands

The Landmark Group provides value-driven products for the entire family through a diverse portfolio of
core retail brands:

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2.4 MISSION, VISION, CORE VALUES

 OUR VISION

TO BE AMONG THE TOP THREE RETAIL PLAYERS IN THREE OF THE FASTEST GROWING
RETAIL MARKETS IN THE WORLD (MIDDLE EAST, INDIA AND CHINA)

 OUR MISSION

 Carefully LISTEN

 Constantly ADAPT

 Always DELIVER

 OUR VALUES

 Passion for Excellence

 Integrity in everything we do

 Empowering people to strive and deliver

 Adapting to change market and customer needs.

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2.5 PRODUCTS AND SERVICES

MAX Fashion is an apparel based company providing apparels, shoes and accessories for men, women and
children.

 MAX PRODUCT LINE:

 SEASONAL CYCLE OF MERCHANDISE

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2.6 AWARDS AND RECOGNITIONS

• Max was awarded the ‘CMO Brand Excellence’ award during the 6th CMO Asia Awards for
Excellence in Branding & Marketing.

• Max was also bestowed with the ‘People’s Choice Retailer of year’ at the BOC- Retail Brilliance
Awards in November 2014.

• Max Fashion bagged the IMAGES Most Admired Fashion Retailer of the year award in the Large
Format Store Chain category.

• Max has been awarded the “Marketing Campaign of the year” for Kids festival in Summer’ 16 at the
7th CMO Asia Awards for Excellence in Branding and Marketing held in Singapore August’16.

2.7 LEADERSHIP STRUCTURE

The leadership structure followed is democratic. Every decision to be taken by the store manager is taken
through the participation of all the staffs of the store starting from the lowest level staff. Personal grievances
are heard while allocation of targets and the manager guides them in achieving it through constant
motivation techniques. The job hierarchy can be represented as below:

 STORE MANAGER

 ASSISTANT STORE MANAGER

 DEPARTMENT MANAGERS

 SR. CUSTOMER RELATION EXECUTIVE

 CUSTOMER RELATION EXECUTIVE

2.8 COMPETITION:

• Fabindia

• Shopperstop

• Pantaloons

• Reliance trends

• Westside

• Fashion at big bazar

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2.9 SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY

 Landmark International Foundation for Empowerment- LIFE Trust, founded in 2000, is an NGO
that works in collaboration with the Government to introduce various programs at the school and pre-
school level in order to improve the quality and accountability of the education system for the
underprivileged children. It believes that every child should have the right to explore his talents and
chase his dreams, and he can only do so if he is provided a platform for growth.

 The Beat Diabetes- This campaign was launched in India this year among all Landmark group
companies with the ‘Take the test’ and ‘Join the Walk’ initiatives. More than 3500 participants
showed their support towards creating Diabetes awareness by participating in the walkathon on 21st
Nov. 2010.

 Max Wildlife Campaign- Max joined hands with the Bannerghatta Biological Park, Bangalore to
promote wildlife conservation. As part of the initiative, Max adopted a tigress along with carrying out
a signature campaign to spread awareness of the same.

 Blood Donation Drives- Blood Donation Drives were organized at Bangalore Corporate Office.
Employees came forward in large numbers to support the cause.

 Clothes Donation Drive: As part of the Joy of Giving week, a clothes donation drive was organized
at the Bangalore Corporate office in collaboration with the NGO, GOONJ. GOONJ is a unique
resource mobilization initiative providing clothes & other basic amenities to millions in the far-flung
villages. It turns cities wastage into a resource for rural India.

 Go Green - An Effort To Save The Environment- Max in association with BCIL organized Go
Green day, an ecological initiative to reduce global warming, at the Bangalore Corporate office.
Employees participated by planting seeds in clay balls which were then planted in and around
Bangalore, contributing to a Greener future.

 MAX participated in the SUNFEAST MARATHON 2010- Employees participated in the Sunfeast
World 10K held in Bangalore in support of LIFE Trust's cause of Creative Learning. It is also a good
team bonding exercise with each one of the participants going back with an experience to cherish and
a commitment to come back next year again.

2.10 CORPORATE GOVERNANCE

‘Leading with Respect’ is the way people at Landmark Group put Company Values into action. By leading
with respect, MAX create an environment where people feel free to our suggestions and contribute ideas to
be part of the organization’s success. Leading with respect creates an environment where people genuinely
care about each other and work together to reach their full potential. The ‘Leading with Respect’ principles
are:

 Communicate: Express ideas clearly and simply; listen to others; create an environment where people
are comfortable expressing their thoughts; promote timely and ongoing flow of information to and from
others.

 Give and seek feedback: Develop people at Landmark Group by giving and seeking constructive,
specific feedback, by providing direction and helping people stay on track and motivating positive
changes and inspiring exceptional work.
17
 Value unique contribution: Value and recognize the contribution and good work of others; respect
individually; involve others when making decisions and establishing priorities. Valuing people for their
individual differences is the key to building and sustaining success in business now and in the future.

 Promote teamwork: Create a commitment to common goals, resolve conflicts in a positive way and
build a culture of camaraderie.

 Set an example: Set a positive example for conducting business in an ethical manner, for managing
your personal behavior and for creating a pleasant and balanced work environment.

Landmark Group’s Code of Conduct serves as a guide for MAX’s daily business interactions, reflecting
their standard for appropriate behavior and corporate values. The code clearly conveys to each of them that
the manner in which they achieve the business results matters just as much as achieving them. Most
importantly, each employee is responsible for demonstrating integrity and leadership by complying with
the provisions of the Code of Conduct, Standard Operating Procedures, Company policies and all applicable
laws. By fully including ethics and integrity in their ongoing business relationships and decision-making,
MAX demonstrate a commitment to a culture that promotes the highest ethical standards. Complying with
the Code is easiest to ensure by using good judgement and seeking guidance when questions arise. Each of
them are responsible for their decision- making and for their compliance with the Code.

2.11 RELATIONSHIPS OF THE COMPANY INTERNALLY AND EXTERNALLY

 RELATIONSHIP WITH EACH OTHER:

 Dealings with each other should be based on mutual trust and dedication. We are responsible for treating
each other with respect and dignity.

 Strive to have healthy work relationships

 Landmark Group treats each and every employee equally.

 When MAX employees are communicating/ passing information (casually or not), they need to do so in
a manner that ensures that the message heard by those listening, is as accurate as possible.

o Must avoid acts of personal indiscretion or socially unacceptable behavior, for example:

o Getting drunk in a party or a social function or misbehaving in public.

o Using abusive, expletive infested language. (Swearing/cursing)

o Inflicting verbal or non-verbal abuse on anyone (including employees)

o Loud and irresponsible behavior in public which causes discomfort and embarrassment to surrounding
people.

o Manhandling or physical assault on anyone.

o Unreasonable criticism

o Undue show of authority

o Reporting to work in an inappropriate dress or presenting oneself in a shabby manner.

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 MAX strive to eliminate potential hazards from the workplace and to comply with all applicable
occupational safety and health laws and standards.

 They do not use child labor. Child labor is defined as employing any person younger than the minimum
age prescribed by law in the jurisdiction in question.

 EQUAL OPPORTUNITY EMPLOYER

Landmark Group is an equal opportunity employer and does not discriminate on the grounds of race,
religion, nationality, ethnic origin, color, gender, age, citizenship, sensual orientation, veteran status, marital
status or any disability not affecting the functional requirements of the position held. Selection, recruitment,
placement, training, compensation, promotions and other conditions of employment of the employees shall
be strictly on the basis of qualification and competence required to be successful in current and future
assignments. It shall be the responsibility of the Managers to ensure that the workplace climate is conducive
for all persons irrespective of race, religion, sex or other characteristics and that the employees have the
opportunity to grow in the Organization.

 RELATIONSHIP WITH THE COMPANY

As part of the Landmark Group, they strive to adhere to the Landmark Group’s policies, while making their
best efforts to improve the Company’s performance. They recognize the trust and confidence placed in
them and acts with integrity and honesty in all situations to preserve that trust and confidence. We avoid
conflicts of interest and other situations that are potentially harmful to the Company.

 Avoid Conflicts of Interest: Judgement is one of MAX employee’s most valuable assets. One should
avoid any activity, interest or association that conflicts with or appears to compromise the exercise of
independent judgement in the Company’s best interests. Conflicts can arise in many situations. When
in doubt, they consult the manager or HR representative before taking any action.

 Family: Notify the manager and obtain approval from respective Division or Function head before doing
business on Landmark Group’s behalf with any company in which the employee or a close family
member has an interest such that they might in any way benefit from their actions. No two members of
the same family can work in the same department/ function/ concept. It must be intimated to the HR
department as soon as they come to know of such information as prior approval is required to be obtained
from the HR department before employing members of the same family. Family for this purpose means
the employee’s spouse; parent, brother, sister, or child, or a spouse of such a child.

 Other work: Employees of MAX should not work for a competitor of Landmark Group while working
for the Landmark Group or do any work for or provide assistance to any third party (dealer, customer
or supplier) that may adversely affect employee’s performance or judgment on the job. Employees
shouldn’t use Company time, facilities, materials, brands or logos for outside work that is not related to
the respective employee’s job at the Landmark Group without authorization from respective Function
head or HR.

 Personal: While MAX recognize and respect the rights of people in the Landmark Group to freely
associate with those they encounter in the work environment, they must also use good judgement to
ensure that those relationships do not negatively impact job performance, the ability to supervise others
or the work environment. Favoritism, Nepotism or making business decisions based on emotions,
allegiances or friendships rather than the best interests of the Company is prohibited. Individuals who
find themselves in a personal relationship or friendship should use tact, good judgement and sensitivity.

 Boards: One must obtain approval from the MD/ HR before agreeing to serve on a Board of Directors
19
 or a similar body for an outside business or government agency. Serving on the Board of Directors for
a professional or work- related non-profit organization must be approved in advance by respective
Division or Function head.

 RELATIONSHIP WITH OUTSIDEBUSINESS ENTITIES

All the employees of MAX is responsible for how they are perceived by the suppliers, dealers and
competitors. It is essential that they maintain their reputation for honesty and fair dealing with these groups.

 Deal Ethically with Suppliers and Customers:

MAX’s aim in conducting their purchasing operations is to ensure continuing and reliable sources of supply.
Honest dealing with customers and suppliers is essential to sound, lasting relationships. Thus, they view
their suppliers as partners and expect them to make a reasonable profit. They give all potential suppliers a
fair and uniform consideration. Decisions are based on objective criteria such as price and quality, as well
as a vendor’s reliability and integrity. Giving or receiving any kickbacks, bribes or similar payments of any
sort is prohibited. They cannot appoint or terminate a dealer or supplier at the urging of other dealers or
suppliers. They extend no personal favors to our customers on price, promotional allowances, marketing
assistance or the like; they treat all customers on the same business basis.

 RELATIONSHIP WITH GOVERNMENT AND LAW

MAX obeys all laws that regulate Landmark Group’s business. It is their policy to go beyond the letter of
the law and comply with its spirit. Employees are suggested to always consult the HR department whenever
they are in doubt.

 Do not Give or Accept Inappropriate Gifts: It is unacceptable to give or receive gifts, payments or
other personal benefits to influence or that may appear to influence, any business decision. If intended
to give or receive a gift, payment or other benefit that is more than the nominal value (1500 INR), the
employee must contact the HR Department for approval before doing so.

Do not use one’s position at the company to privately enrich oneself or others (such as family or friends).
Never ask for a gift or favor from an individual or organization that does business with the Company,
or is actively seeking to do Business with the Company. Employees should never accept any of the
following types of gifts or favors from an individual or organization that does business with the
company, or is actively seeking to do business with the company:

 Cash, gift certificates, or a gift of packaged alcohol (including beer or wine)

 Tickets to any event that involves adult entertainment when they are on Company business.

 A loan, unless it is from a regular financial institution on normal terms.

 Discounts on goods or services, unless the supplier makes them generally available to all employees
in the company.

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 CHAPTER 3: MCKINSEY’S MODEL

MC KINSEY 7S FRAMEWORK RELATED TO MAX.

McKinsey’s 7s model was developed in 1980’s by McKinsey consultants Tom Peters, Robert Waterman
and Julian Philips with a help from Richard Pascal and Anthony G Athos. The basic Premise of the model
is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.
They are divided into two type of elements. They are:

 HARD ELEMENTS

 Strategy

 Structure

 Systems

 SOFT ELEMENTS

 Shared Values

 Skills

 Staff

 Style

21
1. Structure: The way the organization is structured and who reports to whom.

2. Strategy: The plan devised to maintain and build competitive advantage over the competition.

3. Systems: The daily activities and procedures that staff members engage in getting the job done.

4. Skills: The actual skills and competencies of the employees working for the company. Limitations of
the framework.

5. Staff: It includes the employees with general capabilities.

6. Style: The style of leadership adopted by the organization by the top level management.

7. Shared Values: These are the core values of the company that are evidenced in the corporate culture
and the general work ethics.

Mc Kinsey’s 7s Framework for LANDMARK-MAX.

 STRUCTURE:

Organizations are set up in specific way to accomplish different goals, and the structure of an organization
can help or hinder its progress towards accomplishing these goals. Organizations large and small can
achieve higher sales and other profit by properly matching their needs with the structure they use to operate.

ORGANIZATION STRUCTURE

22
Departments: There are 14 major departments in the Organization.

1. Buying and Merchandising.

2. Distribution & Logistics

3. Quality Assurance

4. Business Development

5. Store planning & Projects

6. IT Department.

7. Marketing and Communication

8. HR Department

9. Administration

10. Finance and Accounts

11. Legal

12. Operations

13. Customer Service Department (CSD)

14. Stock Controller

Functional Department structure

23
Functional Analysis

 Operations Team:

• Plan store wise budgeting and quarterly updation based on potential to achieve overall targets.

• Drive SPD (Sales per Day) and ROS (Rate of Sale) for each department.

• Ensure adherence to store operations SOP’s.

• Ensure compliance to audits and audit reports as per SOP’s.

• Ensure required resources, training and infrastructure is in place prior to store launch.

• Ensure product presentation and continuous updation of the same is done as per planogram.

• Collaborate with the marketing team to improve walk-ins and conversion for the season.

• Ensure store level profitability is achieved.

 Marketing Team:

• Understand market dynamics and be informed about market trends.

• Be aware of the products sold by competitors and the product categories that are new.

• Undertake competition benchmarking (in terms of product, pricing and process).

• Present strategy for the region/store with holistic and long term perspective.

• Proactively present ideas for business growth.

• Ensure competitive pricing.

 Planning Team:

• Finalize OTB planning.

• Analyze the product mix performance and project the demand for fulfillment.

• Undertake bottom up planning and project next year growth by analyzing existing store sales,
opportunity lost and new store sales mix.

The planogram brief across categories and ensure implementation of the same as per standards defined.

• Align the product profile to the catchment potential.

• Audit and sign off on the range presentation every season.

24
• Review the product and category performance, identify product gaps & opportunities and take required
actions.

 Store Manager & Assistant store manager:

• Take active initiatives to achieve the store targets.

• Ensure the Key performance indicators of a store is achieved and all in order.

• Ensuring stock cover and keeping shrinkage level as low as possible.

• Review and analyze the visual merchandise and planogram and control basic customer service standards.

• Engagement and training off employees and keeping a check on the attrition rate.

• Ensuring all staffs of a store are working and fulfilling their responsibilities as per their checklist.

• Ensure all the activities in the store are as per the SOP’s standards and audit parameters.

• Take corrective actions in case of deviations from standards.

 Inventory:

• To ensure all inventories related process at store is as per the internal audit parameters.

• To ensure control on outward and inward discrepancy at store.

• To minimize the loss in transit.

• Keep control on all inventory related documents both in physical form and in system.

• Monitoring and reporting and control on the negative stock on fortnightly basis.

• To control on damage stock and maximum recovery on damage stock.

• Carry bags, staff uniforms, hangers etc. are recorded as and when they are issued and keep a check on
them.

• To publish monthly inventory with the targets.

• To ensure maintaining safety standards in the stores.

• To keep proper record of the goods exchanged and altered.

• To minimize and control case of shop lifting and theft.

 Customer relationship executives and senior customer relationship executives:

• Ensure sales target is achieved on daily basis and monthly basis both in terms of value and quantity.

25
• They are properly groomed.

• Maintaining floor discipline within a store.

• Follow the visual merchandise and planogram in arranging the merchandise.

• Damage control and clearance.

• Basic customer service standards are followed as per the store norms.

• Keeping a track of without bar code garments and merchandises.

 Visual merchandising:

• Focus on the focal point and the window outside the store. It should be according to the planogram given
by the planning team.

• Focusing on wall props for the wall look.

• To ensure everything in the floor is as per the planogram. It includes floor fixtures, displays, signage,
and mannequin displays. This should create an attractive look for the store.

• To check all signage are as per plan. It includes product signage, price signage and best deals signage.

• All floor fixtures properly arranged. Fixtures used in MAX stores are:

Price Signage Deals signage

Wall fixtures Browsers

Feather wall Six way browsers (having 6 sides to hand garments).

Techno wall Four way browsers.

Slat walls (having slots for detachable pegs) Sixteen way browsers

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 Rails Tables

A rails Cluster tables.

D rails Wooden tables.

Mannequins rails Double sided tables

Nesting tables.

Arms

Straight arms.

T arms

Step arms

 Head Cashier & Cashiers:

• Ensure till arrangement activities are as per order. It includes that amount is given to all tills before
opening the billing counter. Collection of 100% collection of proceeds. Ensure correctness of all
activities related to employee discounts, gift vouchers credit note and issues related to membership
rewards.

• All SOP’s related to cash is adhered to.

• Petty cash expenses are recorded as per order and vouchers maintained with proper signatures for audit
purpose.

• To undertake all the banking and cash deposit activities of the store in correct order.

• To maintain all documents for the cashiering process including the back ground verification of the
cashiers, all cash memos and other documents.

 STRATEGY

 Low priced merchandises targeting youths.

 Landmark reward membership programme. Customer gets reward points on their purchases which can
be encashed.

 Gift vouchers on special occasions to drive sales.

 Fashion shows on MAX Apparels at colleges and stores before season launch.

 Selfie contest sporting MAX apparels.

 Find your size (If a customer does not get the size, Max promises to deliver it at door step within 48
hours without any extra charges).

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 Various spot offers at stores.

 Bundled merchandise offer (buy 2 get 1 free).

 SYSTEM

 Various systems are used in MAX store. They are as follows:

o RAMCO IT TOOL: This is used for the attendance of employees in entire Landmark Group.

o IBM iConnect: Used as a mailing tool for interdepartmental and intraorganizational communication
purpose.

o ORPOS: Orpos stands for Oracle Point of Service. It is used for cash management and cash related
issues.

 SHARED VALUES

 Passion for excellence: MAX stay committed to setting benchmarks, be it our products or practices.
The doctrine is to strive and excel and maintain the lead in whatever we do with strict adherence to
quality and delivering value for money.

 Adapting to changing customer needs: They keep ourselves abreast with industry trends and dynamic
consumer preference. The offerings keep evolving to address changing and growing consumer trends.

 Empowering people to strive and deliver: Their core strength is their employees and they believe in
giving the personnel an opportunity that is integral to the professional development & out group success.

 Integrity in everything we do: MAX’s whole business success depends on the integrity of knowledge
and hard work in everything they do.

 SKILLS:

 All employees are trained at regular intervals through professional trainers for best customer service.

 Written and psychometric test conducted before recruitment.

 Training is given on English language.

 Concept of MGD (M: Meet, G: Greet, D: Direct). It should be done within 30 seconds a customer enters
a store.

 Product training given during new product launch.

 Human resource team reviews and audit these skills at regular intervals.

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 STAFFS

 All employees are given induction training on their joining. They are also trained if management finds
their actions or behavior not at par with the organization needs. Managers and department managers
give regular briefings as and when require to keep all employees informed about their targets and actions
to be taken. Staff motivation techniques used are:

o Month wise birthday celebration.

o Productivity score are maintained for each employee based on sales, punctuality, floor discipline,
grooming, winners are given gift vouchers based on their results.

o Annual rewards and recognition programme organized.

o Mediclaim facility for employees.

o Staff outings are organized.

 STYLE:

 Complete democratic style of leadership is followed. The store targets and all other decisions are taken
through discussion across all levels of staff starting from customer relation executives to the managers.
Personal grievances of employees are considered while decision making.

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 CHAPTER 4: SWOT ANALYSIS- MAX

 STRENGTHS

 Value for money products. Quality goods at economical prices.

 Customer friendly staffs.

 Shop is centrally located so foot fall even on week days stays quite high.

 The pricing strategy helps to attract to youth segment of the society.

 The shop achieves its sales target very easily due to large customer base.

 Majority of the customer visiting the store re members of the loyalty programme which is a good sign.

 WEAKNESS

 Now-a-days customers prefer single stop stores where they can find everything at a single place. So
MAX lacks in that feature.

 Formal wears for men lacks collection.

 Women formal wear is very less.

 Ambience of the store is not so good compared to other stores.

 Although the staffs are customer friendly, numbers of available staffs are less. So during rush times
customers are found searching for staffs in order to find correct product.

 The store runs out of stock most of the times for the merchandises.

 Their online website has very less collection.

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 OPPORTUNITIES

 More formal collections can be added to the stock to attract the customers looking for customers.

 The ambience of the store can be improved by proper designing of the store layout and efforts of the
visual merchandising team.

 More marketing can be done compared to the present scenario, this can increase the customer base.

 The footwear section although have a good number of collection but has a very low conversion rate. So
efforts can be made to increase its sales.

 In the recent trend, online shopping has been the trend and seeing rapid growth. So, they need to increase
their varieties and stocks in online shopping.

 THREATS

 All the major competitors like Pantaloons, Westside, Shoppers stop is present just some hundred meters
away from the store. This is a very big threat.

 As the store is recently located in HSR Layout, they need to increase their promotion to attract new
customers. Otherwise they may not catch attention of the store.

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 CHAPTER 5: FINDINGS

5.1 TARGETS: MAX Fashion’s business concept is to offer fashion and quality at the best price. It targets
men, women, children jeans and dividends since India is very strong in niche segment and short run fashion
garments.

5.2 STORE AMBIENCE AND ANALYSIS

 Total floor area: 13000 sq. ft.

 Wall color: White

 Lighting: Bright

 Employee Uniform: Based on rand hold, bright and attractive

5.3 PRICING STRATEGY

 Value pricing: Best products with most reasonable price.

 Promotional pricing: Psychological discounting, Special event pricing.

5.4 CONTRIBUTION OR PROFIT ON GARMENTS ACCORDING TO THE DEPARTMENTS:

Western wear department 20%

Ethnic wear department 14%
Footwear department 7%
Men’s wear department 21%
Accessories department 4%
Kid’s wear department 22%

5.5 GENERAL FINDINGS

 Visual display in store changes as per season and latest arrival in the store.

 Some apparel available in display was not available due to stock out. So stock should be maintained.

 Music was not so happening to attract customer moods.

 Assortment planning needs improvement. The products which are not moving are also kept on the store.
This reduces place for the stocks which are selling out fast.

 Fast moving products were found to be out of stock. So planogram could not be followed due to less
stock. This hampered the attractiveness to some extent.
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 Inventory management and assortment planning in store from corporate office is poor. Like in kids and
men’s department people were looking for more ethnic and party wear dresses.

 MAX lacks in men’s ethnic wear. This section is not present in MAX.

 No resting area in the stores, which is major problem.

 Department maps should be placed for customer convenience. They have to ask the sales person to help
out in finding what I there in part of the store.

 Accessories and footwear departments are very slow moving. Very few customers make purchases
from these departments.

 Designs and color style are monotonous. There is very few variations in the merchandises.

5.6 RECOMMENDATIONS

 Stores should be made much more appealing visually to create brand image in the mind of the
customers.

 There should be proper relation between the season and the products displayed. The store environment
should be warm, welcoming and friendly giving a customer a memorable shopping experience.

 Number of customer relation executives on floor should be present during rush hours.

 Music is played in the retail store not with the objective of entertainment but for influencing customer
buying pattern. This should be taken care of.

 This store should be organized logically like proper groups and categories should be mentioned so that
all merchandise of one type, color and the size is positioned together helping the customer to make a
clear choice.

 Do proper assortment planning from corporate to store level as per trend and past sale.

 Max running stock in many categories on moving stock stored in stock. It needs improvement.

 In accessory department introduce more variations. Improve consumer and sales people interaction.
Way of interaction must be different from shopping basket.

 There can be some fabric knowledge, washing pros and cons how to improve life of ferment, something
interesting.

 Introduce resting area in the stores for aged people visiting the store.

5.7 CONCLUSION

 The Indian customer is still very need oriented.

 In emerging markets, selling and keeping the customers happy is more challenging.

 They are targeting only higher middle class & higher level customer so they left people from lower
middle class.

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