• Subject Name : Management



Case Analysis.

Sustainable recovery.

Short-term actions that might weaken the business in the longer term..



Introduction to Pick n Pay Analysis

To be able to survive in the long run, a company should be able to be favored by customers and needs to win their loyalty and trust. A retail chain of stores like Pick n Pay is heavily dependent on understanding the customer's needs and make offerings that would keep them interested in the brand. Also with increasing competition and reducing margins, companies are more focused on selling volumes and reducing margins so that they can sell enough to attain desired profits. Thus the only mantra to achieve this is to expand the customer base and widen the scope of activities and ways to reach customers. In the modern-day world, such retail stores are severely hit by smaller stores in the vicinity and online sales and thus it is high time for Pick n Pay to consider its sales strategy and reconsider its new mission and vision for attaining higher sales and profitability with offering lower prices and increasing Fan Score and getting positive feedback and also rewarding franchisees and better performing stores (Islam, et al, 2016).

Case Analysis of Pick n Pay

Sustainable Recovery

The vision needs to be long term and attainment of medium-term goals so that the company is measured and there is a reality check for their performance and measuring variation if any and take steps to align them with long term goals. Many times it is important to understand what not to do equally as we wish to know what to do. Let us understand certain measures which Pick n Pay should avoid and not be doing to keep their focus on their long term objective attainments (Criticos, 2019). It is observed and understood that besides long term planning and objectives, it is important to keep the focus on attaining short term goals and targets as they eventually translate into short term and medium-term success which would be vital to achieve long term goals and help strategically. For an organization with the business model as that of Pick n Pay, wherein global giants are trying to make inroads and domestic companies are vying to eat market share and expanding their presence, it is important for the store to not only work on their long term strategy but also to focus and understand competitors plans and strategies (Battersby, 2017).

It is also important to keep on the conversion rate for short term goals and attain success in medium-term targets as well so that the momentum is there to go for a big kill. With the change in technology and e-commerce business, the store needs to act smart and explore online sales as well wherein they would be cost-effective and be in the competition as well. Also, there is a need to think, plan, and execute for smaller stores that are near residential areas to grab maximum footfall and ensure volumetric sales. Such a strategy would also discourage the competitors and new entrants and they would either not enter or exit soon from the market and thus there would be market capture by Pick n Pay stores (Madlala, 2016).

Short-Term Actions that Might Weaken the Business in The Longer Term

  1. Think customer: Due to ever-increasing competition and reducing margins, the retail store is bound to witness a drop in profits and sale slump for a certain period maybe spanning more than three quarters. However, the store needs to believe its lineage and keep faith on its history and not lower its quality and keep winning customers heart by rolling out offers and be content with lower profits or maybe bear losses for some time as such new and smaller forms do not sustain for long and they tend to disrupt the market for a few time and then close or get sold off. Thus it is important to stay committed to customer service and deliver products at lower prices. Such an act would give a competitive edge to the store in the long run with an increase in customer's loyalty and trust in it (Mutero, 2017).
  2. Study and research changing trends: in today's fast-changing world, one cannot keep his eye off from the modern-day techniques and changing trends and thus the store needs to be watchful of the changing trends domestically and in the international market. The research and study cannot stop and needs to understand international practices, regulations, and their impact on the vision of the store and effect they could have on store policies. It is important to understand a major change that could have an impact on long term vision and also it is important to realign the goals in case of any such policy in place. Thus t the team needs to keep their eyes and ears open all the time (Schoen 2019).
  3. Keep in touch with regulators, government officials: due to sharp changes in the global work environment and rise of NGO's and other regulators such as Green Tribunal and raising awareness, it is advised that the team remain in close contact with regulators and concerned ministries as there should not be a sudden change in government policy which might disrupt the sustainability of the store. For example, due to rising protests by PETA and other organizations, a significant number of people have gone vegetarian and countries have discouraged meat import and shut slaughterhouses. Also, some countries have stopped the production of certain fabrics due to the killing of moths and insects or animals. Thus, it is important to be nearby of policymakers to understand their concerns and put across views.
  4. Effective sourcing: to be price competitive, the procurement team should explore new avenues and also keep backward integration as a tool to reduce costs in the long term. The focus should be there to produce or manufacture one's product rather than outsourcing the same. This would help in cost reduction and will provide a pricing edge.
  5. Employee retention: to be able to achieve their long term growth, the store should have a strong policy to retain its staff as attrition would dent their pace as new staff would take time to understand and adjust to a new organization and its culture. While new talent should also be introduced as they bring fresh ideas and strategies, an effort should be made to retain employees and provide them opportunities to feel excited and relevant at the workplace (Battersby, 2017). Thus, to achieve long term results, the team should be well versed with each other and understand each other well so that everyone could work in harmony and develop synergy. Despite certain losses or being overstaffed, effort should be to adjust the staff to new roles or give them newer avenues to work.
  6. Study competition: in their quest to achieve long term targets, the staff could be too occupied to understand the moves of their competitor brands and their strategies and thus it should not be ignored and all effort should be kept to understand their moves and planning. Such an act would help the company to be at top of others and attain a numero uno position (Chikwanha, 2017). With the advent of online platforms and smaller stores in the proximity of customers' homes, it is advised to make e-commerce sales and the presence of small stores close to customers society or apartment a possibility and would help in maintaining market share and boost sales. A smaller store could ensure delivery on items form bigger stores to residents' homes or act as pick up point for online orders as well and thus could serve customers and cut competition and win over customer trust and faith and be seen as a better service provider.
  7. Customer-Centric: Last but not the least, the team could not lose sight of customers and things they desire. Many times it happens that while chasing long term goals, the groundwork and reality is ignored. The team should keep customers engaged and try and understand their requirements and also keep them informed of new things happening or upcoming events or deals. It should not be the case that team is focussed on long term commitments and no one is thinking of the customers’ needs at present. Such a situation would take customers away from the store and their loyalty would shift to competitors (Schoen, 2017).

Conclusion on Pick n Pay Analysis

To conclude, that multiple dynamics both internal and external could change while teamwork for long term goals, it is important to focus on short term priorities and strategies a swell and team cannot be ignorant of them at any point of time. It is also important to realign long term strategies from time to time and with feedback from the team so that the company stays relevant to the customers and win over their loyalty and trust at all times. It is to be noted that customer loyalty would take any company afloat as many times, a loyal customer would purchase only from Pick n Pay and would not explore any other avenue irrespective of the fact that there possibly could be better offers elsewhere. Such practices and approaches would help Pick n Pay to reach their long term plans and strategies and help them stay afloat and sustainable and in the business

References for Pick n Pay Analysis

Bashala, W. (2016). The Brand extension of the Pick N Pay supermarket into Pick N Pay clothing (Doctoral dissertation).

Battersby, J. (2017). Food system transformation in the absence of food system planning: The case of supermarket and shopping mall retail expansion in Cape Town, South Africa. Built Environment43(3), 417-430.

Chikwanha, K. (2017). The impact of internal marketing on non financial indicators of business performance: a case of TM Pick n Pay Bindura (Doctoral dissertation, BUSE).

Criticos, L. (2019). The Effect of Pick n Pay Westville’s Customer Relationship Management on their Customer Relationships (Doctoral dissertation, The IIE).

Islam, M. T., Abdullah, A. B., Shahir, S. A., Kalam, M. A., Masjuki, H. H., Shumon, R., & Rashid, M. H. (2016). A public survey on knowledge, awareness, attitude and willingness to pay for WEEE management: Case study in Bangladesh. Journal of Cleaner Production137, 728-740.

Madlala, T. T. (2016). Do large retailers displace small informal retailers? The case of a Pick n Pay store in KwaMashu, Durban, South Africa. Economic and Social Development: Book of Proceedings, 163.

Mathekga, J. M., & Maciko, L. (2018). The retail sector growth, expansion, employment and income inequality: a case study of Shoprite and Pick N Pay in South Africa and Namibia.

Mutero, V. V. (2017). An analysis of effects of retailer-supplier relationships on company competitiveness: case of TM Pick ‘n Pay Gweru.

Schoen, E. J. (2017). The 2007–2009 financial crisis: An erosion of ethics: A case study. Journal of Business Ethics146(4), 805-830.

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