Business Plan of Millennium Mart-Free-Samples-Myassignmenthelp.com

Question: Discuss about the Business Plan of Millennium Mart. Answer: Millenium Mart is the first automated retail store in Australia which provides services to the customers round the clock. The retail store is trying to capture the market by providing the products to the customers at a discounted rate. Customers will get a chance to shop their everyday items at a much-reduced price. The company is a joint venture startup company and it will be one of the most successful food retailers in Australia (Cao, 2014). Millenium Mart will initially be set up by the private share of the owners and it is expected to expand in other countries in the future. The company will initially be set up two senior manager i.e. the owners of the company and 30 employees. It has planned for further expansion in other cities of Australia. The startup cost of the company will be financed by the two owners of the company and short term borrowing from some a financial institution. Millennium mart has planned to sell the same products like other retail stores in same quantity, p ackaging and quality like the other stores in Australia (McKeever, 2016). The company was set up with the objective that it will be able to open up more than five stores in different locations of Australia within two years of its inception. Capital will be invested in such a way so that the owners will be able to provide the customers the same variety of the products at a comparatively lower cost than other retail stores. Moreover, the successful operation of the store will also help in the provision of huge customer base so that they can be self-sufficient. The company has also targeted to achieve profitability within the first three years since its inception. The products sold in the store will be nationally or locally branded and there will be an automatic vending machine in the store for purchase of items such as chocolates, chips, cold drinks and many items. The customers can also create personal account and thus they can see their previous shopping list that will make their purchase of grocery items cheaper.Millenium Mart will also have the provision of automated interactive customer service representative that will solve or answer the queries of the customers. Moreover, this customer service representative will also pass their queries to the management if they are not able to solve it (Coglianese, 2016). As Australia is an important hub for retail stores, it will be beneficial for Millenium Mart to start up its business venture in this country and other neighboring cities of Australia. The country has a huge competitive base and educated workers that will help in the development of the company in a short span of time. The government of Australia also encourages the retailers to provide job opportunities to the local people. There are certain economic factors, which are important for Millenium Mart and this, are likely to affect the price, profit and demand of the products in the long run. These economic factors are beyond the control of the company; however their effect lays an important contribution on the development of the company (Fayolle Lin, 2014). On the other hand, the cultural trends of the people of Australia also affect the operation of Millenium Mart. The supply chain and the value added products must be developed which will help in the smooth operation of Millenium Mart (Hair, 2015). As the consumers are becoming aware of the quality of the product and the related health benefits, it is challenging for the company to accommodate to the demand of the customers. Moreover, technology is also an important macro-environment variable which has influenced the operation of Millenium Mart. The new technology which is adapted by the company has benefitted the customers as well as the company. The launch of vending machine in the stores has benefitted the customers to a large extent. Environmental issues are threatening the management committee of Millenium Mart and thus the company is trying to act in a more responsible way towards protecting the environment. The corporate social responsibility of the company is farmed in such a way so that it will not exceed the minimum obligations that are imposed on the stakeholders (Ward, 2016). The grocery market in Australia is dominated by several supermarkets and becomes challenging for Millenium Mart to capture the market . It is important to develop the operating efficiency and cost advantageous position. The threat of new entrants is comparatively high in this industry. The suppliers of Millenium Mart are threatened by the large suppliers who provides the product at a much cheaper price. Moreover, the forces of competitive rivalry has reduced the profit margin of the company (Shabanova et al., 2015). The threat of substitutes in the retail market of Australia is high. The bargaining powers of the customers are also high because the customers are more aware of the issues related to retail stores in Australian market. The consumers are also increasingly demanding good quality products at an affordable rate and in a highly competitive market, the bargaining power of the competitors is high in this industry (Le et al., 2013). Millenium Mart has a strong customer base and deliver better service to the customers which are regarded as the strength of the company. The profitability of the company is excepted to decline with the lower level of efficiency cost. The company is providing the service to cater to the needs of the people and thus enjoy high growth rate. However, the threat of Millenium mart can be the highly competitive retail market in Australia. In Mac Kinsey 7-S Farmework, the strategy of Millenium Mart is to expand the business in other international market. There are certain guidelines for the managers of Millenium Mart and the business process can be referred to as decentralized business. The IT team in the company can manage the flow of information and follow a differentiated human resource policy. Millenium mart also ensures customer satisfaction. The human resource professional of the company practice strategic human resource management in hiring the employees. Thus, it can be said that the company must introduce loyalty card in order to ensure customer satisfaction in the organization (Hassan, Sistani Raju, 2014). In every business organization or business industry, there are certain risks which it has to overcome in order to become successful. As there are huge competitors in the retail industry of Australia, Millenium Mart will have to overcome different types of risks if it does not carry out proper market research before setting up their stores in Australia. The supply chain management and the inability of the organization to analyze the government rules and regulations are aso considered as an important risks which affects the functioning of the organization. The political conditions, economic conditions, legal obligations and other financial risk must also be overcomed by the organization (Ferraro Briody, 2017). Millenium Mart must try to design the best practices for its rapid expansion in the domestic as well as in the global market. The company will focus on hiring the employees, operation managers and the business development managers who can help in the successful working of the organization. The company while taking important decisions related to pricing and other strategies must involve its employees who can convey the market demands and the grievances of the customers for the development of the organization (Yilmaz Flouris, 2017). Millenium Mart must also have the provision of providing rewards and recognitions to the employees who played successful role for increasing the profitability of the organization. The company must also design an appropriate cost saving strategy for the business so that it can earn more profit and save its financials for the development of the organization. Therefore, it can be said that the company must try to develop strategies for employee motivation and employee engagement to maintain high performance in the organization (Rajaram, 2014). Thus, it is vital for Millenium Mart to conduct proper survey of the market conditions and the demands of the customer in order to be successful in the long run. The company must also try to introduce unique range of products at an affordable cost which will make it easier to compete in the retail market. Millenium mart must focus on improving the packaging style so that it will attract the customers. It must try to develop more in-house products to carry out the competitive pricing system in the economy. Moreover, attractive discounts must also be provided to the customers so that they visit the store and also refer their friends and relatives. The company must employ the staff who are more efficient and quick in dealing with the requests of the customers. The company must also start using the digital space through the introduction of digital image, 360 degree imagery and video content that will help in improving the online as well as the offline shopping mode. This will also make i t visually appealing for the customers. The company must also try to develop the mobile payment app that will help the customers to make payment in a quick span of time. Thus, it can be said that Millenium Mart have to deal with tough competition and maintain higher profitability in the market. References Cao, L. (2014). 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