TOPIC

BIG BAZAAR
SUBMITTED BY HIMANSHU MAHENDRA OZA M.COM (I SEMESTER) PROJECT GUIDE

PROF.SONAL BAPNA
SUBMITTED TO

UNIVERSITY OF MUMBAI
RAJASTHANI SAMMELANS
Ghanshyamdas Saraf College Affiliated to University of Mumbai

ACCREDITED BY NAAC WITH A GRADE

& Durgadevi Saraf Junior College (ARTS & COMMERCE) S.V.Road, Malad (W) Mumbai: 400 064 Year: 2011-2012

RAJASTHANI SAMMELANS
Ghanshyamdas Saraf College Affiliated to University of Mumbai

ACCREDITED BY NAAC WITH A GRADE

& Durgadevi Saraf Junior College (ARTS & COMMERCE) S.V.Road, Malad (W) Mumbai: 400 064

CERTIFICATE
I Prof. RASHMI BHATTACHARYA here by certify that MASTER HIMANSHU M. OZA a student of Ghanshyamdas Saraf College of M.COM (Semester 1) has completed Project on BIG BAZAAR in the Academic year 2012-2013. This information submitted is true and Original to the best of my Knowledge.

External Examiner: Date:

Principal:

Project Co-ordinator: Date:

College Seal:

ACKNOWLEDGEMENT
I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me a chance to do this Project. I express my sincere gratitude to the Principal, course co-ordinator Mrs.DEEPTI SONI, Guide Prof. SONAL BAPNA and our librarian and other teachers for their constant support and helping for completing the project. I am also grateful to my friends for giving support in my project. Lastly, I would like to thank each and every person who helped me in completing the project especially MY PARENTS.

DECLARATION
I MASTER HIMANSHU MAHENDRA OZA a student of Ghanshyamdas Saraf College of Arts and Commerce, Malad (W) T.Y.BMS (Semester VI) hereby declare that I have completed project on BIG BAZAAR in the academic Year 2012-2013. This information submitted is true and original to best of my Knowledge.

Date:

Signature of Student

INDEX S.NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. TOPIC Introduction Industry Profile Company Profile Management Functions Human Management People System Resource Management PAGE 5 7 10 12 15 19 21 29 33 35 36 38 39

HRD of Big Bazaar Employees Motivation Work Culture Customer Satisfaction SWOT Analysis Conclusion Bibliography INTRODUCTION

Future Group is Indias leading business group that caters to the entire Indian consumption space. Led by Mr. Kishore Biyani, the Future Group operates through six verticals: Retail, Capital, Brands, Space, Media and Logistics:

Future Retail (encompassing all lines of retail business), Future Capital (financial products and services), Future Brands (all brands owned or managed by group Future Space (management of retail real estate), Future Logistics (management of supply chain and distribution) Future Media (development and management of retail media.

companies),

and

The groups flagship company, Pantaloon Retail (India) Limited operates over 5 million square feet through 400 stores in 40 cities. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, EZone, Depot, Health & Beauty Malls and online retail format, futurebazaar.com. Future Groups vision is to, deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. The group considers Indian-ness as a core value and its corporate credo is - Rewrite rules, Retain values.

PANTALOON RETAIL (INDIA) LIMITED

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(Incorporated in the Republic of India with limited liability under the Companies Act, 1956) From its beginning in 1987, they have today evolved as one of the leading retailer and are among the pioneers in setting up a nation-wide chain of large format stores in India. They believe that the various initiatives taken by them have played a key role in enhancing the standards of retail in the country. They believe their focus on customers supported by systems and processes and a committed work force are the key factors that have contributed to our success and will help us scale up as we embark on our strategic growth plan. Pantaloons is the first organized departmental store format targeting the Indian middle class and upper class customers across age and gender.

BIG BAZAR
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Big Bazaar is a chain of department stores in India currently with 100 outlets. It is owned by Pantaloon Retail India Ltd, Future Group. It works on the same economy model as Wal-Mart and has been successful in many Indian cities and small towns. The idea was pioneered by entrepreneur Mr. Kishore Biyani, the CEO of Future Group. Currently Big Bazaar stores are located only in India. It is the fastest growing chain of department stores and aims at having 350 stores by 2010. Big Bazaar is the destination where you get products available at prices lower than the MRP, setting a new level of standard in price, convenience and quality.

INDUSTRY PROFILE
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Retail is Indias largest industry, accounting for over 10 percent of the countrys GDP and around 8 percent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations. India has one of the highest savings rate in the world with Rs 29 of every Rs 100 of its national income being saved. These extremities leaves a lot of opportunity for marketers, both Indian and international. One of the key growth factors has been the shift to service sector, which accounts for 50% of the total GDP. Led by services such as IT, telecommunication, healthcare and retailing, the services sector is likely to play an even more important role in the Indian economy.

India has a large number of retail enterprises. With close to 12 million retail outlets India has one of the highest retail densities in the world. In terms of the structure, the industry is fragmented and predominantly consists of independent, owner-managed shops.

Some Key Facts: Retail is Indias largest industry accounting for over 10 percent of the countrys GDP and around 8 percent of the employment. The market size of Indian retail industry is about US $312 billion.

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COMPANY PROFILE
Pantaloon Retail (India) Limited is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai, the company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employs over 35,000 people. The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, Mobile Bazaar and Star Sitara (Beauty clinic). The company also operates an online portal, Futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a largeformat home solutions store, selling home furniture products and E-Zone focused on catering to the consumer electronics segment. Pantaloon Retail was awarded the International Retailer of the Year 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona.

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Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space. The groups subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing.

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MANAGEMENT FUNCTION
It was described by Henry Fayol in the year 1800 when he was the CEO of a large mining company. Fayol has noted managers at al levels operating in a for profit or not for profit organization, must perform each of the functions of :

Planning

The organizations long term goal is to capture a major pie in the market share and earn good profits. For this purpose the organization has: A Procurement plan where it procures its finished goods (apparels) from various brand manufacturers. A outlet site selection plan (to open at convenient and profitable location) A marketing plan where (Collect apparels, footwear etc from companies and allocate store space etc., Advertising.) A finance plan on revenues and expenditure and how many stores to open, how many brands to keep. Reducing inventory levels.

Directing

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 New products/ designs to be introduced (Quantity-wise and variety-wise). Identification of proper stores location

Continuous supply of inventories from suppliers (Preparation of procurement schedule) Inventory planning, monitoring, and tracking of work in process.

Coordinate and Controls

Inventory control to keep the cost at optimum level. Monitoring WIP Orders placed to the suppliers for inventories.

Volumes of the orders from the customers that the company can handle Organized reports at all levels. Competitors

APPLYING MINTZBERGS MODEL Organization Pyramid

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Where to establish productio n unit

Profitabilit y projection per store

Sales Projectio n

Personne l Planning Strategic Level

Contracting & Relocating control

Inventor y Control Establish linkages with suppliers for Raw Material How to produce

Sales region Analysi s Manage Figure 1: Organizational Pyramid g market linkages Marketin g Stores Establishin

Tactical Level

Employee Employee Recordkeepi Recordkeepi ng ng Human Resourc e

Productio n

Operation s

WHAT IS HUMAN RESOURCE MANAGEMENT?

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The effective use of people to achieve both organizational and individual goals. It is actually effective recruitment, selection, development, compensation, and utilization of human resources by organizations. Before few years H.R manager was only black box. Their role was more closely aligned with personnel and administration functions. Potent Recruiting Hiring Training Organization Development Communication New H R Role Coaching Policy Recommendation Salary and Benefits Team Building Employee Relations Leadership

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HRM HAS INCREASED IN IMPORTANCE SINCE THE 1980s. WHY?

Globalization Government regulation Stronger knowledge/research base Changing role for labor unions Challenge of matching worker expectations with competitive demands. Human resources is an increasingly broadening term with which an organization, or other human system describes the combination of traditionally administrative personnel functions with acquisition and application of skills, knowledge and experience, Employee Relations and resource planning at various levels. The field draws upon concepts developed in Industrial/Organizational Psychology and System Theory. Human resources has at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one of four factors of production although this perspective is changing as a function of new and ongoing research into more strategic approaches at national levels. This first usage is used more in terms of 'human resources development', and can go beyond just organizations to the level of nations . The more traditional usage within corporations and
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businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as `human resources management.

Key functions
Human resource management serves these key functions: 1. 2. 3. 4. 5. 6. 7. 8. 9. Recruitment & Selection Training and Development (People or Organization) Performance Evaluation and Management Promotions Redundancy Industrial and Employee Relations Record keeping of all personal data. Compensation, pensions, bonuses etc in liaison with Payroll Confidential advice to internal 'customers' in relation to problems

at work 10. Career development

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In a business where individuals comprise the principal asset, the structure of the people pyramid influences the quality of knowledge captured, the speed with which decisions are made and the morale of the organization. Human Resource is one of the critical support functions and forms another key element of the corporate backbone. We have 7,379 employees as on September 30, 2005. We are a very young and energetic organization with average employee age being 30 years. We believe that service is our core philosophy and people are our most important resources. Our attempt has always been to create an environment where our employees feel pride of being called Pantaloonians. Our Human Resource philosophy is driven through our The BIG BAZAAR People Management System.

BIG BAZAAR People Management System

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BIG BAZAAR People management system is built on 5 pillars of people based growth: a. Culture Building b. Performance Management through Balanced ScoreCard c. People Processes d. Management Processes e. Leadership Excellence

Organisation Structure
Our organization is headed by our Managing Director. We follow an inverse pyramid structure; as a result decisions are taken closest to the point of customer action. Sales executive are encouraged to think customer first. They are empowered to run their respective departments like small siness owners.

Inverse Pyramid Structure

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QuickTime and a decompressor are needed to see this picture.

QuickTime and a decompressor are needed to see this picture.

HUMAN RESOURCE DEPARTMENT OF BIG BAZAAR

The HR department of Big Bazaar is very dynamic. Employees are the biggest strength and asset of any organization and the HR dept realises this very well. This is very evident from the way the HR department handles all
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its employees. They take utmost care to select, train, motivate and retain all the employees. They have continuous developmental programmes for all the employees. Currently Big Bazaar Banashankri is employing 220 full time and 60 part time employees. There are two shifts for the employees. The first shift employees arrive at 10AM in the morning and leave at 7.30 in the evening, while the second shift employees report at 12.30 in the afternoon and leave at the time of Store closing (10pm). For any hr activity one of the major activity is recruitment of the employee. the following are the main sources through which big bazaar recruit it employees.

Sources of Recruitment
a) Consultancy Services:

For top

level

management,

employees

are

recruited

through

private consultants. They are

usually appointed as Departmental Managers.

b) Walk-ins: This is the main source through which Big Bazaar

recruits its employees. People seeking job usually themselves approach the HR department for job vacancy. Employees usually selected from this source are appointed at the entry level as team members.
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c) Employee Referrals: This is the other main source through which

employees are selected. Candidates who have given their previous employer as referrals are first interviewed and from their previous employer, opinion is taken about their behaviour and performance in the job. If they receive a positive opinion from their previous employer they are selected. d) Campus Recruitment: Young people bring new ideas and fresh enthusiasm. Therefore Big Bazaar visits some of the reputed educational institutions to hire some of the most talented and promising students as its employees.Selection ProcedureThe following is the selection procedure that the HR department practices to hire its employees.

i) Interview: For entry level jobs, the candidates are interviewed by a HR person. They are asked a few basis questions about their education, previous work experience if any, languages known etc. This is done to evaluate the candidates ability to communicate freely and also other skills. ii) Psychometric Tests: For higher and top level jobs, candidates are asked to answer a few questions which basically test their sharpness, analytical ability, ability to handle stress, presence of mind etc. This is done as Managers are required to work under stress all the time and still maintain a cool head to make some vital decisions. iii) Group Discussion: In campus recruitment students are involved in
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a Group Discussion, where they will be given a topic on which the group has to deliberate, discuss and arrive at a solution or a decision which is accepted by the whole group.Along with the G D they are also given a written aptitude test. Finally a formal interview will be conducted to assess the overall skills of the student.

Induction
New employees selected will be given a 13 day induction and training program. They will be given information about the companys business, different departments etc. They will be informed of their roles, duties and responsibilities. They will also be informed about the HR policies and rules of the company. The new employees will be on probation for a period of 6 months. After this period the HR period along with the department manager will review the performance of the employee. If the employees performance is good and encouraging, the employees services will be confirmed.

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Compensation & Rewards

The employees are rewarded suitably with attractive pay packages. The salary of an employee includes basic pay. HRA, special allowance, PF,ESI, Mediclaim etc. Annual bonus will be given at the time of Diwali. The employees and their dependents are also entitled for medical treatment in recognised hospitals with cashless hospitalisation with whom the company has tie-ups.

If a hospital is not recognised, the amount spent by the employee will be reimbursed. Along with these all the employees are given a card known as Employee Discount card (EDC) through which they can buy any product at Big Bazaar at a special discount of 20-30 %.

Leaves and other rules

An employee during his probationary period is entitled for 7 days of leave. A confirmed employee is entitled for 30 days of leave in a year. There is only one type of leave the employees can take which is known
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as All Purpose Leave (APL). All the employees will be given identity cards which they have to wear and also swipe while at the time of entering and leaving the Store.

Performance Appraisal
The HR department conducts performance appraisal of all the employees annually in the month of April. Based on their performance increments will be given in their pay. In addition to this if an employee achieves or exceeds the target given to along with their team members will be provided with attractive cash and other incentives.

Training & Development

Future group has its own training division for all its employees, known as Future Learning & Development Limited (FLDL). All the employees are given training for 20 days in a year spread over different periods. Gurukul which is a part of FLDL gives training to all the employees on various skills like team work, dedication discipline improving customer service etc to make them more knowledgeable and productive.

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Retention Strategy
We strive to foster a feeling of well-being in our employees through care and respect, we have several structured processes including employee mentoring and grievance management programmes which are intended to facilitate a friendly and cohesive organisation culture. Off-site activities are encouraged to improve interpersonal relationship. We also acknowledge the efforts exerted by our employees by organisation an annual celebration called Pantaloon Day where we recognize employees who have shown exceptional talent, sincerity and dedication. We have implemented an employee suggesstion programme called Prerna wherein the employee can give their suggestions. Every quarter the best suggesstion received per zone per format is awarded prize called Golden Cap.

Internal controls and Risk Management

The company uses the services of Ernst & Young for
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process audit and risk management and the scope of their work covers all the companys formats i.e. Pantaloons, Big Bazaar, Food Bazaar and Factory Outlet. The objectives are to:

Gain an understanding of the various Business Processes Identify the strengths and weaknesses in the existing systems and procedures. Review use of technology in the function Identify key business process risks and review the adequacy of the controls and mitigate them. Test the effectiveness of controls the most significant risks and provide recommendations to improve controls.

Identify

potential

areas

for

improving

process

efficiency Broadly develop on improvement portfolio and raise the level of awareness of how business is impacted by inadequately controlled risks inherent in the business
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process. Internal audit of our each store is also undertaken by an independent audit firm on monthly/quarterly basis.

WHAT MOTIVATES EMPLOYEES?

The main issue that every manager talks about relating to his employee is, that he might have better-motivated employee. In big bazaar the scenario is different. Here employees are motivated through various ways and some of the ways are discussed below. Feeling in on things. Good wages. Good working conditions Job security Full appreciation of work that is done Tactful disciplining Employer loyalty to employees Interesting work
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 Promotion and growth in the organization The above-discussed methods can be related to various motivation theories and the implication of such theory can be found in the success of the ways that big bazaar use. Some of the theories of motivation are Maslows need hierarchy theory, Bureaucracy and Two Factor theory.

Maslows says that human beings are motivated to satisfy their needs. These needs can be classified under various heads such as : Physiological needs, Safety needs. Love needs, Ego needs, and Self-actualization needs. Physiological needs - basic needs like hunger and thirst. Safety needs - security of all kinds. Love needs - need to relate closely to others. Ego needs - need for status and recognition. Self-actualization needs - relate to achieving ones potential. The motivation activities which can be classified within the maslows theory are:Good wages. Job security.
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Appreciation of the employee for the work done. Beside the maslows theory the motivation activities can be classified on the basis of Two Factor model and the bureaucracy theory. Two factor theory is based on two factors: 1. Those factors that led to extreme dissatisfaction with the jobs. 2. Those factors that led to extreme satisfaction with the job.

Factors giving rise to satisfaction he called motivators. Those giving rise to dissatisfaction he called hygiene factors. Eliminating the causes of dissatisfaction (through hygiene factors) would not result in a state of satisfaction. Satisfaction (and motivation) would occur only as a result of the use of motivators. In the motivating activities of big bazaar the good working condition is the factor that lead to extreme satisfaction. The employee loyalty toward the employee is related to the bureaucracy relation and the interesting work is related to the behavioral theory.

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WHAT MOTIVATES EMPLOYEES?

Rank Feeling in on things Good wages Good working conditions Job security Full appreciation of work that is done Tactful disciplining Employer loyalty to employees Interesting work Promotion and growth in the organization
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8 1 4 2 5 9 7 3 6

Work Culture at Big Bazaar

At Pantaloon Retail, Empowerment is what you acquire and Freedom at Work is what you get. We believe our most valuable assets are our People. Young in spirit, adventurous in action, with an average age of 27 years, our skilled & qualified professionals work in an environment where change is the only constant. Powered by the desire to create path-breaking practices and held together by values, work in this people intensive industry is driven by softer issues. In our world, making a difference to Customers lives is a Passion and performance is the key that makes it possible. Out of the Box thinking has become a way of life at Pantaloon Retail and living with the change, a habit. Leadership is a value that is followed by one and all at Pantaloon Retail. Leadership is the quality that motivates us to never stop learning, stretching to reach the next challenge, knowing that we will be rewarded along the way. In the quest of creating an
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Indian model of retailing, Pantaloon Retail has taken initiatives to launch many retail formats that have come to serve as a benchmark in the industry. Believing in leadership has given us the optimism to change and be successful at it. We do not predict the future, but create it.

At Pantaloon Retail you will get an opportunity to handle multiple responsibilities, and therein, the grooming to play a larger role in the future. Work is a unique mix of preserving our core Indian values and yet providing customers with a service, on par with international standards At Pantaloon you will work with some of the brightest people from different spheres of industry. We believe its a place where you can live your dreams and pursue a career that reflects your skills and passions.

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Measurement of Customer Satisfaction

We have devised a model called CEM- Customer Experience Management Model to measure customer satisfaction in our stores. The Customer Experience Management Model focusses on the customers experience at every touch point in the store ranging from their first impression of the store, to their experience at the trial rooms, toilets, with our staff through various processes such as billing and exchanges. We have hired a research agency called MACRO-Market Analysis and Consumer Research Organisation. This agency sends people who are called Mystery Shoppers to visit the stores and then their experience is documented on a feedback form, which is then sent to us. Based on the feedback formed analysis is done and the stores are given scores. This allows us to track performance on customer expectation at overall, format and store levels, determine critical improvement areas are all levels and also identify opportunities that we can leverage upon. Besides, we have also started an in-house initiative called Pragati whereby one person from the head office operations team visits the
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stores and observes the stores with respect to certain pre-parameters like store exteriors, baggage window, customer service, store ambience etc. This activity is done on a quarterly basis and three best stores under each format are announced. This encourages the stores to improve the efficiency of their store operations.

SWOT Analysis
Strengths

Better understanding of customers helping the company to serve them better. Vast range of products under one roof helping in attracting customer and their family to shop together and enjoy the experience. Benefit of early entry into the retail industry. Diversified business operating all over India in various retail formats. Ability to get products from customers at discounted price due to the scale of business.

Weaknesses
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 High cost of operation due to large fixed costs. Very thin margin. High attrition rate of employees.

Opportunities

Lot of potential in the rural market. Can enter into production of various products due to its in depth understanding of customers tastes and preferences. Can expand the business in smaller cities as there is a lot of opportunity.

Threats

High business risk involved. Lot of competitors coming up to tap the market potential.

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Margin of business reducing all the time.

CONCLUSION
Big Bazaar is undoubtedly the number one retailer in India. It has built a very emotional and cordial relationship with its customers. It is also very intending to build long-term relationship with all its stakeholders, which is very essential for a successful business venture. It is observed that the organisation hierarchy is professional as all the departmental Managers directly report to the Store Manager who in turn reports to the Zonal Head. Big Bazaar, with 25 years of experience in the field of weaving fabrics, is the leading Apparels and fashion design Fabric Company. There exist a healthy and positive relationship between employees and managers.The employees accept their responsibilities wholeheartedly, accept that it is their responsibility to carry out a part of the activities of the company and they will be held accountable for the quality of their work. It is found that more than 60% of employees are of the age group of 20-35. From this it reveals that company is having young and energetic workforce who are very creative,
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enthusiastic and also very determined to grow in their career and in turn helping the company to grow. Working environment is good and also the various facilities provided helps in motivating the employees. The company is reaching out to all the sections of the society as it is creating a hypermarket where not only the rich people shop but also the middle and the lower class customers come to enjoy the whole shopping experience.

REFERENCES

http://www.pantaloon.com/ http://en.wikipedia.org/wiki/Pantaloon_Retail_India www.scribd.com www.google.com

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