Ramstor Quality Analysis

OUTLINE:

1.0 Executive Abstract 3

2.0 Introduction 3

3.0 Environmental Background 4

Internal Environment 5

External Environment 5

4.0 Organizational Analysis 6

5.0 Analysis of Data Collected 7

4.1 Materials ad Methods Used to Collect Data 7

4.2 Survey Results and Data Analysis 7

6.0 Problem Identification. Solutions Proposal. 11

7.0 Summary 12

Appendices

1.0 Executive Abstract

Rambutya, a Kazakhstani limited liability company, has constructed and now operates large greenfield hypermarkets with integrated shopping malls under the name "Ramstor". The Ramstor Almaty project was the first for major established retailer in Kazakhstan. Rambutya's entry into the market raised the overall standards of retailing in the country as other chains and competitors tried working out ways to improve the efficiency of their distribution and sales networks to match Ramstor. Its success encouraged other companies to invest in Kazakhstan as the country's perceived risk began to diminish.

Benefits of Ramstor include the availability of low-cost, high-quality basic foods and consumable products offered by a volume-based enterprise of the kind taken for granted in many parts of the world. And, since half the product range is sourced locally, the company works with local suppliers to raise their quality and consistency to meet consumers' expectations. However, even with high variety of offered products and their low cost, and quickness of cashier check-outs, the personnel service, or costumer interaction seems to suffer.

The intent of this project is, therefore, to measure the quality of service in specified retailer location (Ramstor-Samal 2), analyze problems that the company is facing through SWOT and organizational analysis, estimate the costs, and propose solutions. The technique used to collect data is random sample population survey.

2.0 Introduction

Ð Ðoмстор is the largest and stably developing company not only in Almaty, but in regions of Kazakhstan as well. The founder of the company is Turkish "Migros" Company and Ram Dis Ticaret A.S. (Ram), and one Kazakhstani company, Butya Holding (Butya). The project of construction was implemented through the formation of Rambutya. 42% of the new company is owned by Migros, 28% by Ram, and 30% by Butya. "Migros" company has been working in the market of Turkey since 1954, and today shops across Turkey total more than 800. Number of Migros employees is 12,000 with annual goods circulation totaling $3.5 billions.

"Migros" Company in turn is a part of Koch Holding, which today is one of the 500 largest companies around the globe.

Ramstore shops function in Russia, Azerbaijan, Bulgaria, and Macedonia, making it in total more than 79 shops. In Kazakhstan the company has been working since 1999, and at present 5 Ramstore shops operate in Almaty, one of which is Cultural-Shopping Center (CSC) that we will be focused on, 1 - in Karaganda, and 2 operate in Astana. The other shops around Almaty are located in Tastak, Ainabulak, Atakent, and Mega Mall.

Following is the quick information about the hypermarket Ramstor-Samal, on which our focus will lay on.

Area: 4000 sq. m.

23 computer cashier systems with electronic weight measurability

25,000 of products, ranging from fresh veggies to electronic appliances

"Ramstore Club" card system

Customer may check out with e-cards Visa, Master Card, Euro Card, and others.

For customer convenience, currency exchange desk is available

The meat is controlled in "City Veterinary Service" laboratory, located inside the store

Bakery that has newest bakery technology and great assortment of flour-goods

Sea products departments

CSC on 226 Furmanov Str. has opened on May, 14th, 1999 on one of the most brisk areas and from that moment gives high-quality service, using last achievements of technology and the newest systems in this sphere, to the buyers. This center, which complies with the modern international standards, attracts customers with comprehensible prices and great assortment of the goods, thus becoming object of daily visiting of tens thousand people. CSC, on construction and opening of which more than $30 million were spent, provides 1000 workplaces and brings the contribution to development of economy of Kazakhstan.

3.0 Environmental Background

To identify factors that are important for organization's operation strategy, we have to perform the good SWOT analysis for CSC Ramstore. Measuring all the strengths and weaknesses, opportunities and threats, which affect tactical and operational decisions, made by company, is considered as fundamental step in microenvironmental research.

Typical (internal) factors that affect Competitive Strength include strengths and weaknesses of given organization. While typical (external) factors affecting Market Attractiveness comprise opportunities and threats of company.

Areas to consider:

Positive Negative

Internal Factors Strength* Technological skills* Leading Brands* Distribution Channels* Customer Loyalty/ Relationship* Production Quality* Management Weaknesses* Low customer retention* Unreliable product/service* Management

External Factors Opportunities* Changing customer tastes* Liberalization of geographic markets* Technological advances* Change in population age-structure* New distribution channels Threats* Changing customer tastes* Closing of geographic markets* Changes in government politics* Tax increases* Change in population age-structure* New distribution channels

Internal Environment

Assets and competencies