RahimAfrooz is one of the leading business groups in Bangladesh. It is doing business in the country for more than 50 years with fame and reputation. The main strength of the group is its reputation of doing ethical business practice. Throughout its business during last 50 years, it has mainly operated in the automotive industry. Recently it has extended its business in energy and retailing business. It operates in an SBU model. The SBUs of RahimAfrooz are:
RahimAfrooz Batteries Limited
RahimAfrooz Distributions Limited
RahimAfrooz Superstore Limited
RahimAfrooz Energy Services Limited
Excel Retreads Limited
Super Abrasives Limited
RahimAfrooz CNG limited
This report is made for RahimAfrooz Superstore Limited. The brand name for this SBU is Agora. It is the leading superstore in the Dhaka city. It has revolutionized the retailing industry of Bangladesh. It is established to provide quality shopping experience for its customers. With four large outlets in Dhanmondi, Gulshan, Maghbazar and Sobhanbagh, it is also the largest retailer in the country. It is offering more than 20,000 items under one roof. These items are divided into 11 categories. The categories are: Household, Grocery, Meat, Fish, Vegetable, Fruits, Fast food, Dairy, Bakery, Pharmacy, and Cosmetics.
Since the inception of Agora, the modern retailing industry is developing in the country. Now quite a number of modern retailing shops are operating in the country. All of them are mostly Dhaka based. But many of the big players of the industry are thinking going outside of the capital city. Although there are number of modern retailer operating in the country, every does not have the strength and potential to challenge superstore like Agora. But some of them are really competing. The main competition Agora is facing from the following companies:
Nandan Mega Shop
Price, Quality & Services (PQS)
Shop & Save
Ko Mart &
Almas Super Shop
Agora has formulated an ambitious plan to be realized by the year 2010. They named it vision 2010. By the year 2010 Agora dreams to be 1000 crore taka company. Presently their yearly turnover is only 70 crore taka. And they are operating with four outlets in Dhaka city. They wish to have about 43 outlets by 2010. They not only want to be in Dhaka city but also expand their business through out the country.
Agora operates with six departments. These are:
Finance and Accounts Department
Human Resources Department
The operation is divided in to parts.
Head Office based
The operation of outlet is under operations department. The operation is centered on the superstore management software agora use. The total procedure is controlled by the database in that software. The software has four modules: 1.
Flexsim Back Office
Flexsim Point of Sales
The supply chain is the key business activity of Agora. To move ahead Agora needs to improve its supply chain. This report is mainly originated to search ways of improving supply chain. The two main objectives of the report are: -
Find the solution for overstock problem Agora is experiencing -
Find the areas in supply chain where special focus is required Due to overstock situation, Agora has experiencing several problems. Some of these problems were:
Managing the items are getting difficult
Higher amount of working capital is required for supplier payment -
Payment to the suppliers are getting irregular, which resulting dissatisfied suppliers -
Wastage is increasing
In an effort to decrease SIH, they are ordering lower amount. As a result some fast moving items are getting out of stock soon. And sales are getting lost. -
Managing the self space is getting tougher, resulting lowering of...
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