Studies On The Improvement Of Operating Tactics Of Parknshop Supermarket Co.,Ltd.

The world famous consulting firm, McKinsey, has ever commented on China’s retail market:" We are witnessed unprecedented competitive environment in Chinese retail market, Chained Supermarkets in China are facing with special challenge which any other country has ever faced. We can never find a country where you can find all the world famous giant retailers are competing each other. So Chinese chained supermarkets are facing with the most stiff competition in the world".Parknshop China was established in1984,it is controlled by Hongkong Parknshop,one of affiliated agencies of Hong Kong Hutchison Whampoa Group.The gross margin of Park’nshop (here below we use "PNS" to replace "Parknshop") is less than10percent and net profit rate of Parknshop is less than1%.You can find the introduction of the development history of Parknshop in mainland in the first part of the Third Part of this thesis.PNS establised several dozens of small supermarkets,as same as it did in Hongkong,in some large cities, such as Beijing, Shanghai and Guangzhou,But these supermarkets were shut down in the next ten years and built Standard Supermarkets (1000square meters large) as its main business.ln2000, PNS established Hypermarket as its main business.Changing business models has wasted PNS’much precious time.Then I pointed out many shortcomings PNS had in the next part of the Third Part.of this thesis:PNS changed merchandise-positioning two times;there is no rules of estabishing stores;running six kinds of stores at the same time,which is beyond PNS’ability;to make things worse, thdse six kinds of stores are estabished by emulating PNS’competitors.In order to invest on3G Mobile phone business,all the branches must cut down operating expenses, so PNS reduce its employees’salary which leads to many empoyees’resigning;PNS is not a public firm,so its employees have no stock option which is an important motivating method.;PNS’budget process is old fashioned,as well as its competitors; The stock turnover is very low because one-in-one-out-buying-rule has not been implemented strictlyThe Fourth Part of the thesis point out how to solve these problems. My suggestion of where to establishing new stores is to build the stores in North Guangdong, West Guangdong and Guangxi; Due to eighty percent of the sales generated by Hypermarkets, concentrate resources on them is a reasonable choice; reducing repeat formats and considering increasing the new business format-the Discount Hypermarket or Food Discount Store; Commodity policy should stick to be different from its rivals; Using positive way to cut costs, such as improving rotation speed; to improve the managing ability; changing the way of evaluating system; strictly carry out the principle of one-in-one out;finally some measures which PNS can use to maintain long-term competitive advantage...