Subhiksha: Managing Store Operations
by Janat Shah, Rahul Patil, Trilochan Sastry
23 pages. Publication date: May 01, 2010. Prod. #: IMB323-PDF-ENG Founded in 1997, Subhiksha had grown from one store in 1997 to more than 1000 retail outlets in 2008. It sold FMCG, grocery, pharmacy, mobile products, and fruits and vegetables (F&V). It was the largest supermarket and mobile retail chain in India with presence in 90 cities. Although organized retail was identified as a high-growth area by the middle of 2008, players had realized that organized retail in India was going to be tough business. Various players (Reliance, Bharti, Birla, and the Future Group) were experimenting with different formats and models. Subhiksha decided to come up with its own model, which in its view was suitable to the Indian context. Subhiksha targeted the middle and lower classes, not the high-end customers. IT operated with an everyday low pricing model and located several smaller stores closer to customers who lacked markets nearby. At the operational level, the company constantly increased the supply chain process efficiency to deliver goods at low prices. The Subhiksha business model is explained through a detailed description of operations of a store (Indiranagar) located in Bangalore. It also describes operations of the distribution center that served the Indiranagar store as well as 58 other stores. The case discusses the challenges of organized retail in general and specific challenges of inventory and cost management for a discount retailer. It also provides detailed data that can be used for the diagnosis of the supply chain system at Subhiksha.
The Subhiksha case is a comprehensive case dealing with retail operations and supply chain issues. Ideally this case should be scheduled after all the basic concepts in supply chain management have been covered in the course. It is also useful for discussing the complexity of introducing a unique business model in the Indian organized retail context. The case also covers a wide range of issues in supply chain management and can be used to develop skills in supply chain diagnostics. As it can be handled at various levels of complexity, it can be used as a summary case for a course or module focusing on supply chain fundamentals such as: Retail supply chain management (SCM) Supply chain strategy and performance measures Supply chain planning practices Forecasting Inventory management Transportation management Warehouse management Assortment planning IT and SCM Supply chain integration There is enough scope for the instructor to get into several degrees of detail in each of these issues. The instructor can also use this case to hone the diagnostic skills of students.
Change at Whirlpool Corp. (A)
by Jan W. Rivkin, Dorothy Leonard, Gary Hamel
17 pages. Publication date: Apr 09, 2005. Prod. #: 705462-PDF-ENG In 1998, the CEO of Whirlpool Corp. decides to change the company's strategy significantly to escape an increasingly unattractive "stalemate" in the appliance industry. The change he proposes involves a fundamental shift in the company's focus--from manufacturing to branding--and requires the development of altogether new organizational capabilities. Examines the full range of adjustments that the CEO must lead his management team to make throughout all the functions of Whirlpool. Distinguishes itself from other cases on strategic change by examining the challenge of change in a company that is not in crisis (yet).
by John R. Wells, Elizabeth A. Raabe
36 pages. Publication date: Jul 01, 2005. Prod. #: 706402-PDF-ENG For nearly 20 years (1983-2002), Gap Inc., the leading specialist clothing retailer in the United States, was synonymous with its CEO Millard S. Drexler, the "merchant prince." However, after three years of declining like-for-like sales between 1999 and 2002, Drexler's tenure was ended, and Paul S. Pressler, formerly of The Walt Disney...
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