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ENHANCING FINANCIAL CAPABILITIES

Background : 

Our client operates in the grocery retail industry and runs a local brick-and-mortar convenience store situated in the heart of a residential condominium. It has the potential to develop to become a leading minimart in Singapore. Their location provides them with a consumer base to focus on in order to be recognized as the go to channel for grocery shopping.

Company’s Main Objectives:

To be able to differentiate themselves from other dominant competitors in the industry
Focus on expansion in the future by replicating the same business concept in other geographic regions in Singapore

Challenges :

Larger grocery markets possess better pricing abilities due to the large cost savings they reap from economies of scale
Our client had limited product variety
Financial processes were not well documented which made it difficult to evaluate progress, sales and financial business performance 
 

Our Approach :

 

Our Recommendations :

  • Client has to perform frequent ratio analysis in order to find out its liquidity and profitability position to pre-empt the need for cash for working capital 
  • Implement  a loyalty program as part of its marketing efforts to penetrate its target customer base 
  • Develop a management reporting template in light of future expansion such that managers of potential outlets can gather a standardized, quick and brief understanding of the operations and financial performance of the store

IMPACT : 

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