A STRATEGIC MANAGEMENT

OF
BHATBHATENI SUPERMARKET

Submitted To:
Mr.Saroj Mishra
Course Instructor

Submitted By:
Abhishek Ghimire
Bhuwan Pradhan
Karina Shakya
Pooja Khanal
Pranyata Poudel
Sujan Kumar Maharjan

In the partial fulfilment of the requirements for the degree of

Master of Business Administration (MBA)

Apex College
Mid-Baneshwor, Kathmandu
April, 2019
 ACKNOWLEDGEMENT

This report is prepared for the fulfilment of the requirement for the degree of “Master
of Business Administration (MBA)” under the faculty of Management, Pokhara
University. We would like to express our deep and sincere gratitude to Apex College
for providing us an opportunity that has given us practical exposures and the real time
experience to various activities in practical setting which will be fruitful and
beneficial for our future.

We would like to express our gratitude to Mr.Saroj Mishra, Course Instructor of

Strategic Management, for providing us the opportunities to develop our knowledge and
understanding of Strategic Management and its importance in the competitive
environment. We would also like to express our sincere gratitude all the staffs of
Bhatbhateni Supermarketfor providing their valuable time and cooperation to respond
to our questions regarding the report.

We would like to thank all the team members for showing equal participation and
enthusiasm. Lastly, we thank all those who directly and indirectly contributed in this
project.

Sincerely,
Abhishek Ghimire
Bhuwan Pradhan
Karina Shakya
Pooja Khanal
Pranyata Poudel
Sujan Kumar Maharjan

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 Table of Contents
CHAPTER I ................................................................................................................. 1
INTRODUCTION........................................................................................................ 1
1.1 Background of study ............................................................................................ 1
1.2 Company overview .............................................................................................. 1
1.3 Vision and mission ............................................................................................... 1
CHAPTER II ................................................................................................................ 3
INTERNAL ANALYSIS ............................................................................................. 3
2.1 Value Chain Analysis........................................................................................... 3
CHAPTER III .............................................................................................................. 8
EXTERNAL ANALYSIS ............................................................................................ 8
3.1 PESTEL analysis .................................................................................................. 8
3.2 Porter’s Five Forces Model .................................................................................. 9
3.3 Strategic Group Mapping ................................................................................... 13
CHAPTER IV............................................................................................................. 15
STRATEGIC CHOICE AND ANALYSIS .............................................................. 15
4.1 Generic Strategy ................................................................................................. 15
4.2 SWOT matrix ..................................................................................................... 16
4.4 Grand Strategy Matrix........................................................................................ 18
CHAPTER V .............................................................................................................. 19
LONG TERM OBJECTIVES AND SHORT TERM OBJECTIVES .................. 19
5.1 Short Term Objectives ....................................................................................... 19
5.2 Long Term Objectives........................................................................................ 19
CHAPTER VI............................................................................................................. 21
STRATEGIC CONTROL AND EVALUATION ................................................... 21
CHAPTER VII ........................................................................................................... 22
CONCLUSION AND RECOMMENDATION ....................................................... 22
5.1 Conclusion.......................................................................................................... 22
5.2 Recommendation................................................................................................ 22

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 LIST OF FIGURES
Fig No. Title Page No.
2.1: Value Chain Analysis 4
3.2: Porter’s Five Force Model 10
3.3: Strategic Group Mapping 14
4.1: Generic Strategies 16
4.2 SWOT Matrix 16
4.4 Grand Strategy Matrix 18

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 Executive Summary

Bhat-Bhateni Supermarket (BBSM) is a leading supermarket and departmental store

chain in Nepal. With an impressive growth history since 1984, Bhat-Bhateni has
developed a reputation for continuous improvements, targeting the middle income
group of customers. There are currently 14 stores. With increasing number of strikes
by different political parties, it would be hard for Bhatbhateni to operate their store
efficiently. There are various economic groups and Bhatbhateni supermarket must
bring different varieties of product to cater their demand. Products are well secured with
high tech security system installed in the products. BBSM has brought in new system
about not to use plastic bags and use alternative local bags to protect the environment.
Internal analysis includes value chain analysis, porter’s five force analysis. With the
help of value chain analysis, BBSM’s competitive advantages or disadvantages are
identified. Similarly, use of porter’s five force model identified the industry
attractiveness in Nepal.

PESTEL analysis framework guided prospecting in the political, economic, social,

technological, environmental, and legal spheres of an organization’s external
environment which is a must for formulating strategies as environment is ever changing.
While doing strategic group mapping of BBSM, it is found thatBhatbhateni stands in
front position.

BBSM follows overall cost leadership strategy to achieve competitive advantage in

the broad market segment. It is focusing on the mass selling, hence achieved the
economies of scale and able to reduce the cost. It should focus on the aggressive strategy.
The strategy can be market penetration, market development, concentrated
diversification and conglomerate diversification.

BBSM is expected to be in strategy implementation stage where we have adopted

implementation control.

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 CHAPTER I
INTRODUCTION

1.1 Background of study

Strategic management is the continuous planning, monitoring, analysis and
assessment of all that is necessary for an organization to meet its goals and objectives.
The strategic management process helps company leaders assess their company's
present situation, chalk out strategies, deploy them and analyze the effectiveness of
the implemented strategies. Every business operations need strategic plan to be
successful in the competitive market and gain sustainable advantage. On the same
way Bhat-bhateni supermarket and departmental stores is leading retail chain because
of its unique strategic management.

1.2 Company overview

Bhat-Bhateni is a leading supermarket and departmental store chain in Nepal. With an
impressive growth history since 1984, Bhat-Bhateni has developed a reputation for
continuous improvements, targeting the middle income group of customers. Today,
Bhat-Bhateni has a combined 1,000,000 sq. ft. sales area across its 15 locations and
employs 4,500 full-time employees 95 percent of who are women. Its store is spread
out in Kathmandu the capital city and economic hub and in all major cities around the
country. Bhat-Bhateni is also the largest taxpayer in the retail sector in Nepal.

1.3 Vision and mission

Vision

Vision refers to the long-term aspiration of management for its organization. It is all
about predicting the likely scenario for the next 10 to 30 years (In general)

The new vision statement for BBSM could be:

“To be a most admired retail chain by retaining our No.1 position in Nepal.”

Mission

Mission statement refers to the fundamental purpose that sets a firm apart from other
firms of its type and identifies the scope of its operation in product and market terms.

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BBSM doesn’t have formal mission statement. It is most interested in the customer
needs through providing the varieties of products and services under the same roof.
Though it does not have formal mission statement, the statement “Bhat-Bhateni
continues to be a leader in corporate responsibility and employment opportunity. It is at the
heart of our commitment to creating opportunities and bringing value to customers and
communities around Nepal. Our commitment to corporate social responsibility (CSR) could
become a key driver for the company’s success.” reflects its mission statement.

The mission statement should include the following components. They are

 Customers
 Products and services
 Markets
 Technology
 Concern for survival and growth
 Philosophy
 Self –concept
 Concern for public image
 Concern for employees

Evaluation of mission statement

Bhat-bhateni supermarket’s mission statement has components such as concern for
public image, concern for employees, philosophy, self-concept customers. As the
mission statement as clearly shown their concern for the CSR, creating opportunities
for the employment and value. Indeed the mission statement of BBSM is a good mission
statement.

If alternative formal mission statement have to be created it would be

“To be the most admired company of Nepal by providing the best quality products
and services, saving customers time and money by delivering a convenient shopping
through our competent employees with remaining the market leader and being good
stewards of our environment.”

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 CHAPTER II
INTERNAL ANALYSIS

Internal assessment refers to the study of an organization’s resources, competencies,

activities, and identification of strengths and weaknesses associated with them.
Assessment can be done against organization’s own past performance or some
standard set at present or organization’s key competitors. Identification of strengths and
weaknesses help to prepare strategic advantage profile of an organization with the help
of which an organization can be compared easily with its competitors to know its
strategic position.

There are four methods to assess the firm’s strengths and weaknesses. They are as
follows:
 Value Chain Analysis (VCA)
 Resource Based View (RBV)
 Functional approach

For the purpose of assessing the strengths and weaknesses of Bhatbhateni

Supermarket, the two methods have been used viz. Value Chain Analysis and Internal
Factor Evaluation (IFE) matrix.
2.1 Value Chain Analysis

Value chain analysis is a strategy tool used to analyze internal firm activities. Its goal
is to recognize, which activities are the most valuable (i.e. are the source of cost or
differentiation advantage) to the firm and which ones could be improved to
provide competitive advantage. In other words, by looking into internal activities, the
analysis reveals where a firm’s competitive advantages or disadvantages are. Through
the use of value chain analysis we will identify the Bhat-bhateni’s competitive
advantages or disadvantages.

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 fig 2.1 : Value Chain Analysis
2.1.1 Primary Activities
Inbound Logistics

They are placed at the first stage of the value chain as they have the earliest opportunity
to create value. The elements of this stage are referred to be upstream activities. It
includes the tasks like the receipt of goods from suppliers, storage of goods, handling &
transportation of goods internally and placing the products on the shelves. BBSM tries
to maintain the level of consumer choice in store, whilst improving the store
promotions. In applying a quality control procedure concerned with damaged goods
and products, it focuses on reducing costs unfairly incurred by the company, thereby
preventing these costs being passed on to the consumer.

Operations
Operations are the second upstream opportunities which enable services and products
to be provided as the production element of BBSM activities are service orientated. The
tasks include opening every day in accordance with trading hours, maintaining the
shelves, and the stock. It has the competitive advantage of longer operating hours and
even in the festivals like Dashain.

Outbound Logistics
It is concerned with delivering the product to the customer. BBSM currently adds
value through its parking facilities, and also return of the purchase of items on the

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provision of bills within seven days of purchase. The use of trolley collectors enable
customers to get to and from the premises quicker.

Marketing and Sales

Marketing and sales are placed under downstream elements of the value chain. Clubcard
and use of VISA debit or credit card give further discounts and loyalty for the
customers.Employees put on identity card to identify themselves. With a more customer
sophistication and their awareness of ethical business practices, it focuses on selling
environmentally friendly products. Focusing on use of paper bags instead of plastic
bags, BBSM can take it as an advantage and provide customers with more of the
recycling points and include information in their advertisements, adding value for
customers who will believe that by choosing to shop at BBSM, people are helping the
environment.

Service
The opening hours at BBSM generally range from 7.30 a.m. to 8.30 p.m. seven days a
week, and even on the occasion of BijayaDashami, it remains opens for certain hours.
It offers a convenient shopping experience where customers can save time, save money.
Sales are primarily on a self-service, cash and carry basis with the objective of
maximizing sales volume and inventory turnover while minimizing expenses.
Customers benefit from a 7-day return/exchange policy.Similarly, the replenishment
system also helps the store to adjust to customers’ demands. The stores are organized
the same way in the different places of Nepal which help customers recognize the stores
wherever they go.

2.1.2 Secondary Activities

Firm Infrastructure
There are currently 15 stores centrally located in Kathmandu, Lalitpur, Pokhara,
Dharan,Narayanghat and Butwal. Bhat-Bhateni stores offer a unique shopping
experience for customers in Nepal following the international ‘hypermarket’ format.
The ground floor offers a wide range of fresh food and vegetables and a broad range
of leading international Liquor, Toiletries and Cosmetics brands. The remaining floors
offer a wealth of choice including Kitchenware, Clothing, Sports & Toys and
Electricals, with convenient escalators and air-conditioning on all floors. Each store

5
includes a shirting & suiting service and a promotional area to display carefully selected
promotions. Parking arrangements are available free on the premises and a secure locker
system available to keep personal belongings. Restaurants, bank & cash machine and
dry cleaning services in the vicinity makes Bhat-Bhateni a one-stop shopping
destination. More than 50,000 people visit the stores daily and Bhat-Bhateni Group
operates as a private limited company. It has been a successful family business since
the establishment in 1984 and has been the largest tax payer in the retail sector since
2008 A.D.

Human Resource Management

With over 4,500 combined store staff, consistent merchandising and assured customer
service is guaranteed. The employees are encouraged to communicate openly, offer new
ideas, strive, for excellence and have fun.

Technology Development
BBSM uses Bar-coding and RFID technologies, different processes like efficient
picking, receiving and proper inventory control of the products along with easy
packing and counting of the inventories are ensured. BBSM has a point-of-sale
system, a computerized system that identifies each item sold, finds its price in a
computerized database, creates an accurate sales receipt for the customer, and stores this
item-by-item sales information for use in analyzing sales and reordering inventory.

Procurement
BBSM’s process of procurement involves reducing its purchasing cost so that it can
offer best price to its customers. Being the largest departmental store, BBSM takes its
goods from lots of suppliers and dealers. BBSM offers a full range of 120,000
products from 1000 local and international suppliers. About 30% of the suppliers are
local, and the remaining deal outside from the country mainly UK. The payment
method is “sales and pay” method which is the supplier gets their payment on certain
interval of time as per his goods is sold in the store. The payment here is also done
through the bank account.The single warehouse of Bhatbhateni is located in
Baluwatar. All those transactions are managed by the head office at bhatbhateni,
Naxal.

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BBSM notes the needs of customers. If the demand of products that are not available
in the store is very high, then the supervisor contacts other branches and warehouses.
If the product is available in the warehouse, supervisor orders it immediately and if it
is not in the warehouse, he/she contacts the suppliers and places an order. The
imported goods are stored in the warehouse at first. Later on they are moved to the
store.

In the table 3.1, total weighted score ranges from 1 to 4 (where 1 is low, 4 is high and
2.5 is average) regardless of the total number of internal factors used in the analysis.
If the total weighted score is less than 2.5, it indicates that the organization is weak
internally. On the other hand, the scores above 2.5 show strong internal position. In case
of BBSM, the total weighted score is above than average, it means that the company is
strong internally.

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 CHAPTER III
EXTERNAL ANALYSIS

External environment analysis is a key input into strategy formulation. Bhat-bhateni

supermarket and Departmental store have to consider external issues to gain competitive
edge to its competitors. External environment is ever changing and beyond the
control of the manager. Hence the manager has to analyse the environment continuously
to adapt the change. Analysis of external environment provides basic inputs for the
strategic formulation.

3.1 PESTEL analysis

PESTEL is an external environment analysis framework that helps guide prospecting
in the political, economic, social, technological, environmental, and legal spheres of
an organization’s external environment.

Political Environment
In an unpredictable political scenario of our country, where government change
occurs in an average of 2 years’ time, making it difficult in adjusting with the
government policies. Nepal has stable government now and it a good sign which
might help retailers like Bhat-bhateni to expand by providing facilities. As such,
Pressure from trade unions associated with various political parties has also
decreased. Adjusting with the political situation plays a vital role for both these
supermarkets.

Economic Environment
Bhatbhateni supermarket is planning to open new stores in various parts of the
country. For the expansion purpose it requires more capital, as the new changes in
monetary policy Bhatbhateni might have to bear some extra burden. Similarly,
inflation rate of about 6.5% as and signs of slow down of remittance will have an adverse
impact on the consumption pattern of the country. More than 70% of the products come
from India, but impact due to unpredictable pattern of terai political issues causing
strikes, stringent boarder customs impact sales.

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Socio-culture Environment
Bhatbhateni’s aim is to provide varieties of products at one place. Customers are more
conscious than ever, they want quality products at the lowest available rate. There are
various economic groups and bhatbhateni supermarket must bring different varieties
of product to cater their demand. With the increase in purchasing power and
demonstration effect people nowadays prefer to pass their leisure time by visiting
shopping mall and departmental store more often.

Technology
Technology provides more efficiency and security to the supermarket. With the
advancement in technology we have different payment system. Products are well
secured with high tech security system installed in the products. The billing system,
payment through cards, CC cameras, computers etc. are the some of the technologies
used in Bhatbhateni supermarket and Departmental store.

Environmental
Supermarket and Departmental stores must be more environments conscious. It is also
the responsibility of the business to protect the environment from pollution. Taking
environment into consideration, Bhatbhateni has brought in new system about not to use
plastic bags and use alternative local bags.

Legal
Supermarkets must follow the legal actions. There are various law such as consumer
law, labour law, quality and safety standard which the organization has to comply
with. Supermarket and departmental store should not engage in black marketing
activities and artificial scarcity.

3.2 Porter’s Five Forces Model

Porter’s five forces model introduced by Michael E Porter, is an important tool for
assessing the potential for profitability in an industry. Porter’s model considers five
forces that determine the attractiveness of your market by analyzing the competitive
intensity. These forces determine an industry structure and the level of competition in
the industry. The stronger competitive forces in the industry are the less profitable it
is. An industry with low barriers to enter, having few buyers and suppliers but many

9
substitute products and competitors will be seen as very competitive and thus, not so
attractive due to its low profitability.

The five forces we have determined for Bhatbhateni supermarket (BBSM) are as
follows:

Fig 3.2: Porter’s Five Forces Model

Threat of new entrants

New entry of retail outlet/supermarket is easily achieved even in the presence of pioneer
like BBSM. Retailers can enter the market and compete on the basis of convenience,
location, specialty, and other factors. The forces affecting threat of new entrants are as
follows:

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  High threats of entrance

The cost of establishing and running a new supermarket is moderate. Thus,

new entrants can keep operating and become potential threats to firms like
BBSM.

 FDI policy is favorable

The Foreign Direct Investment policy of the country is very favourable and it
always welcomes the investor in the country which acts as a biggest threat for
BBSM.

 Liberal government policy

Since, our country is somehow near to free market economy; it encourages

both government and private sector for investment. The monetary and fiscal
policy of the country is business friendly that allow the entry of new
supermarket.

Threat of substitutes
The threat of substitutes has weak intensity in affecting the retail industry
environment. BBSM offers a wide variety of goods and services under one roof that
has few substitutes. The forces affecting threat of substitutes are as follows:
 Low variety of substitutes

The low variety of substitutes makes it difficult for consumers to move away
from products available from supermarket like Bhatbhateni. Also, some
substitutes are more expensive than the low cost goods available at BBSM.
Thus, the threat of substitutes has a weak intensity on BBSM.

 Location

BBSM is opened at center in every city area and customers can get variety of
products under one roof.

Bargaining power of buyers

BBSM faces the strong or high intensity of the bargaining power of buyers. The large
number of retailers in the market makes buyers to switch the product if they find it more
expensive. The forces affecting bargaining power of buyers are as follows:

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  Customers are price sensitive
BBSM offers low to moderate priced products typically focusing on their price
sensitive customers and time and again they provide various schemes offers. So,
customers want BBSM as their shopping spot. Apart from this if customers
find the product to be more expensive they can switch to other retailers.
 Availability of more choice

Customers do not have to search more for any product because BBSM offers a
diverse range of products. It saves the searching cost and time. We can get
variety of products under one roof.

 Fixed price paid by customers

Customers can’t bargain at BBSM because there is a fixed price tag on the
product. So, on the basis of that customers take his/her purchasing decision.

Bargaining power of suppliers

The bargaining power of suppliers is weak in BBSM. Every supplier wants to display
their product in bhatbhateni even at low profit margin to make customer aware of
their product. Bhatbhateni have several suppliers as its option and it offers a full range
of 120,000 products from 1000 local and international suppliers.

Rivalry among existing firms

BBSM is a single firm of this type in retail industry in Nepal but, despite of this there
are many competitors in the market like: Big Mart, Namaste supermarket, Sales ways,
CG Mart, etc. The factors affecting rivalry among existing firms are as follows:
 Competition in similar products
BBSM got more competitors that offer similar kind of products like Sales
ways, Big Mart, etc.

 Premium priced products

Competitors offer low priced products in order to increase their sales volume
in the market.

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3.3 Strategic Group Mapping
Strategic group mapping is a group of firms in an industry following the same or a
similar strategy along the same strategic factors. It is useful and important tool of
strategic management. It gives a brief about the near and far competitors and their moves
and what a firm can do to attain a competitive position in the industry. Every business
have key success factor they have to excel in these. Strategic group mapping helps to
understood who the direct competitors of chosen organization are. The key success
factor of the supermarket industry that has been selected for the group mapping
is taken out from the perception of the customer and the supermarket has to focus
accordingly.

Key success factor of Supermarket and Departmental store can be:

● Location

● Variety of Products

● Price

● Parking facilities

● Operating hours

● Customer services

● Easy payment

There are various players in the supermarket and departmental store industry who are
competing with each other in terms of above key success factors. They are:

● Bhat-bhateni supermarket and departmental store

● CG mart

● Big mart

● Salesways

● Namaste supermarket

● K K mart etc

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 Fig 3.3: Strategic Group Mapping

BhatbhateniSupermarket and departmental store is leading supermarket chain in the

country. It is at the top most position, bothin terms of varieties of availability of products
and number of stores.

Till date, BhatbhateniSupermarket has no any direct competitors. But departmental

stores like Salesway and Namaste Supermarket are the nearest competitors. They also
provide varieties of products in same roof. They have not that much of store as
compared to BBSM. However, if they expand then it will be the threats to BBSM.
Similarly, there are other competitors in terms of number of stores, but they only
focus on the grocery items. And again, if they add other products in the store then
there will be increment in competition level.

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 CHAPTER IV
STRATEGIC CHOICE AND ANALYSIS

4.1 Generic Strategy

Generic strategies describe how a company pursues competitive advantage across its
chosen market scope.

The Michael Porter's Five Generic Strategies has a focus on creating strategies that
helps to gain competitive advantages from three different bases: Cost leadership,
Differentiation and focus.

There are three main streams for the Michael Porter’s Generic Strategies which are:
● Cost leadership
● Differentiation
● Focus
These main strategies are divided in 5 types:
● Overall cost leadership
Offers products or services to a large range of customers at lowest price
available on the market

● Broad differentiation
Development of a product or service that offers unique attribute that are
valued by customer

● Narrow cost reduction

Offers products or services to a small range of customers at lower cost
available on the market

● Focused Differentiation
Aim to meet customer taste & requirements better than rivals product do.

● Best cost Provider

Combination of all

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 Cost Reduction Differentiation

Overall Cost Broad

Broad
Leadership Differentiation
Market

Best Cost
Provider
Cost Focused Focused
Narrow Differentiation

Fig 4.1: Generic Strategies

Porter’s five generic strategies

In the above figure x-axis shows the competitive advantage and y-axis shows the market
segment. The competitive advantage can be achieved through cost reduction and
differentiation.Bhatbhateni supermarket and departmental store has currently following
overall cost leadership strategy to achieve competitive advantage in the broad market
segment. Bhatbhatenisupermarket is focusing on the mass selling, hence achieved the
economies of scale and able to reduce the cost.

4.2 SWOT matrix

The analysis of the strengths, weakness, opportunity and threats of BBSM as shown
by EFE and IFE matrix helps to form SWOT Matrix.

Fig 4.2: SWOT Matrix

Promising Opportunity

Turn Around “BBSM” Aggressive

Critical Weakness Substantial Strength

Defensive Diversify
Deadly Threats

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Fig 4.2 shows that BBSM should focus on the aggressive strategy. The strategy can be
backward integration, forward integration, horizontal integration, market penetration,
market development, product development, concentrated diversification and
conglomerate diversification.

Some of the strategies that BBSM could adopt are:

 Market Development

Bhat-bhateni Supermarket is adopting market development strategy. Bhat-

bhateni supermarket is currently have 14 store located in different city area of
Nepal. Bhat-bhateni is exploring the new market and should engage in the
same strategy further too. As the income level and living standard is
increasing in the city area, people felt uneasy to travel different shops for
purchase, hence there is still scope for the market development in the new
emerging city area.

 Concentric diversification

Bhat-Bhateni supermarket can also adopt the concentric diversification; here the
supermarket can utilize their expertise and resources in the establishment of
shopping mall in different part of Kathmandu valley, Pokhara,
Dhangadi,Butwaletc.

 Conglomerate diversification

Bhat-Bhateni Supermarket and Departmental store can also follow conglomerate

diversification through investment in agro-business, farmer’s cooperatives
and multiplexes.

 Market penetration

Bhat-bhateni supermarket and Departmental can also focus on the increment

of market share for present Bhat-bhateni stores through greater marketing
efforts.

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4.4 Grand Strategy Matrix
Grand strategies refer to the mean by which objectives are achieved. Key factors of
this strategy may include market, product, and/or organizational development through
acquisition, divestiture, diversification, joint ventures, or strategic alliances. We have
used “Grand strategy cluster matrix” to formulate alternative strategies.
Fig 4.4 Grand Strategy Matrix

Rapid market growth

Market Development
Market penetration
Concentric
Diversification

Weak Competitive position

Strong Competitive

Low market growth

Bhatbhateni supermarket and departmental store has strong competitive position and
there is rapid market growth. Bhatbhateni supermarket and departmental store can adopt
market development strategy, market penetration and concentric diversification.

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 CHAPTER V
LONG TERM OBJECTIVES AND SHORT TERM
OBJECTIVES

5.1 Short Term Objectives

 Increase sales and revenue: Targeting people who are already interested in
company’s products and services and attracting the new ones.

 Suffocate the competition: Psychological pricing and special event pricing

strategy can be applied to be competitive in the market

 Promotional campaigns: BBSM offers a Bhat-Bhateni Club Card, “a loyalty

card” to its customers. However, customers are not aware about this facility
provided by the supermarket. The strategy could be to create awareness about
the facility through different social media sites like Facebook, Instagram, etc.

 Facilitate every customer by providing discount while making the payment

through all visa and SCT debit and credit card

 Technological advancement: Installation of Inventory tracking system

software to decrease the inventory cost and provides the information about fast
movement products. It also helps to track the products which will expire in the
near days.

 Employee training: Most of the employees are unaware about product and its
variety and place of location in the store due to which customer face the problem
during purchase. Employee should be trained to help customer during purchase.

5.2 Long Term Objectives

 Profitability: New supermarket in new cities will help BBSM reach to

potential customer and increase sales will help increase profitability in the
long run.

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 Improve brand recognition: By having the logo appeared all over the
television channels within the country andaward shows which allow brands to
develop strong brand associations among the potential clients.

 Increase market share: Maintaining a very good public relation by focusing on

locality and their culture. Providing products based on the purchase behavior
and festivals celebrated there. This will lead to increase the popularity of the
company among the competitors of the market.

 Employee retention: Employee performance evaluation and reward system

should be encouraged in order to increase employee retention rate and provide
prospect for employee growth in the job

 Public responsibility: BBSM aspires to be the top most tax payer in the
country and increase employment opportunity by serving the society

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 CHAPTER VI
STRATEGIC CONTROL AND EVALUATION
Strategic evaluation and control plays a crucial role in keeping the BBSM on right track.
It involves continuous monitoring of the internal as well as external factors that are
affecting the Bhatbhateni and make necessary adjustments. BBSM is expected to be
in strategy implementation stage where we have adopted implementation control.

Through our analysis we have chosen market development strategy for BBSM
because it is the only one pioneer business of this nature in Nepal and it can increase
its market share through market development. It has opened outlets in different areas
inside Kathmandu, Lalitpur, Pokhara, Dharan ,Narayanghat and Butwal. There are
altogether fourteen stores opened by Bhatbhateni and it is further planning to expand
in some other parts of Nepal too. Therefore, considering this implementation control
is the best control for Bhatbhateni. Implementation control is the type of strategic control
that puts plan into action. Implementation control is designed to assess whether
the overall strategy should be changed in light of unfolding events and results associated
with incremental steps and actions that implement the overall strategy. There are two
types of implementation control:

● Strategic Thrusts

It provides the information that helps BBSM to determine whether the overall strategy
is shaping up as planned. It focuses on increasing the horizon of business that includes
increasing volume and market size.

● Milestone Reviews

Managers monitor the progress of strategy at various intervals or milestones. It measures

the work performance.

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 CHAPTER VII
CONCLUSION AND RECOMMENDATION

5.1 Conclusion
Bhat- Bhateni is one of the biggest supermarket chains in Nepal. The meteoric growth
of Bhat-Bhateni has shown the strength of the company. With the growth of retail
industry in Nepal it has opportunities. Bhat- Bhateni’s business strategy of opening its
branches in different places all over Nepal and in approachable location has given it
competitive advantage by attracting customers. Similarly, providing all kind of varieties
of product under a same roof for newly born babies to the old people has enable Bhat-
Bhateni to gain thousands of loyal and satisfied customers. The supermarket is in an
aggressive expansion phase. It has more expansion plans.
5.2 Recommendation

 Instead of keeping stocks of those goods that are likely to sell it has to store
few goods which are also purchased rarely by the customers.

 Since there is a single warehouse of BBSM at Baluwatar, it should open its

warehouse outside Kathmandu valley to support its expansion policy.

 As many customers complaint about the incompetency of employees, BBSM

should focus on training programmes to the customers, and hire the competent
employees who are capable to deal with the customers’ queries, respect each
customers, and be capable to handle the problematic situations if any.
Similarly, BBSM should hire the competent employees to support its
expansion plans.

 BBSM should be active in its promotion activities through social media sites
so that the customer will be aware about the various facilities provided by it.

 BBSM should also open its branches in those locations where people are
marginalised of getting such types of facility.

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BIBLIOGRAPHY

Books

Pearce II, J.A., Robinson, R.B.&Mital, A. (2009). Strategic Management.India: Tata

McGraw Hill Education Private Limited

Websites http://www.bbsm.com.np/
http://www.slideshare.net/prakashghimire752/bhat-bhateni-group

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