Business economy Essay Example | Topics and Well Written Essays - 1500 words

Business economy - Essay Example This will bring them to the Sainsbury store, aside from the fact that Sainsbury is the only supermarket with all sorts of food and other available product in that area. On the other side there is Oxford Street which has a huge amount of employees and costumer. Again for the same reason people would prefer to shop in Sainsbury store. Two major determinants of demand are at work in this situation: population and absence of related services. First, we expect Sainsbury to have higher demand since the population in the area is large (Fao Corporate). Given that it is the meeting place of two major streets, the location can be conveniently reached by many consumers. Second, the absence of related services provides no rivals for the services given by Sainsbury (Mankiw). This also increases the demand for this particular store. However, the problem with the service is the absence of self-serve cashiers. Given a higher demand for the service, this would mean that people will always have to queue when paying. Queues in this particular store are usually long and given that people have to use their nectar cards, it would take long before they can finish their transactions. This is a lack of service thereby reducing customer convenience. Certainly, inconvenience is one that can possibly drive the demand down. Employees 2. Upon observation, I realized that employees are not skilled enough or properly coordinated. Apparently, the planning and design of the employees' tasks were not properly done, so that when the store gets so busy, the employees fail to help each other, thus the problem of long queues cannot be addressed. Employees were not trained enough to do the tasks of others in case some experience a problem. This makes the operation paralyzed whenever the number of customers increases beyond usual. Size 3. The size of the store is very much important in delivering the service. Given that there is a large population of buyers in this particular store, it is necessary to also expand the floor area. This is a problem with Sainsbury since the area of the store remains small, compared to the number of possible customers. This problem has many possible bad effects. First, a small store area against the number of customers will bring inconvenience to the shoppers. Instead of enjoying their shopping experience, customers might feel it a burden. Second, this prevents the store from maximizing the existing demand for the product. Third, this will be a problem if a competitor builds a bigger store in the future. Sainsbury might find them divested of customers. Part Two In today's retail market, evermore discerning customers are requiring a wider range of goods and services. Increasing competition is putting profit margins under pressure and businesses across the industry must learn to manage objectives and resources professionally, efficiently and effectively. There are many factors and circumstances affecting the industry and as a result retail executives must consider fundamental solutions to their businesses in order to secure success in the market place. In order to achieve this, a large retailer such as Sainsbury's Supermarkets Limited (SSL) must improve customer service and meet customer demands continuously taking into account