MASTER IN BUSINESS ADMINISTRATION MBA RETAIL STORE MANAGEMENT
MASTER IN BUSINESS ADMINISTRATION MBA RETAIL STORE MANAGEMENT AND SUSTAINABLE DEVELOPMENT IN THE RETAIL STORE SECTOR IN GREECE. THE CASE OF LIDL HELLAS KOUKOU E. ALEXANDRA Supervisor: Dr. Liroudi Aikaterini Co-Supervisor: Dr. Mandilas Athanasios
CONTENTS Ø GENERAL INTRODUCTION Ø OBJECTIVES OF THE RESEARCH Ø METHODOLOGY Ø RESULTS ANALYSIS Ø CONCLUSION Ø RECOMMENDATIONS 5/12/2020 2
GENERAL INTRODUCTION • WHO? Lidl Hellas is the local subsidiary of the German global supermarket chain Lidl Stiftung & Co KG. Lidl Hellas is a successful chain of grocery stores in Greece since 1999. 5/12/2020 KOUKOU ALEXANDRA 3
• WHAT’S THE STORY? Ø Lidl Hellas has created over 5000 Greek jobs in 220 stores all over Greece. Ø Lidl Hellas cooperates with over 2000 Greek producers and service providers. Ø A big percentage of their turnover comes from Greek products. Ø Lidl Hellas has seen relatively a positive growth both pre- and post- crisis. 5/12/2020 KOUKOU ALEXANDRA 4
OBJECTIVES OF THE DISSERTATION The main focus on this research is : v To find out the significance of strategic management in retail store managing in Lidl Hellas. v To determine what types of leadership style framework exist and which exist in Lidl Hellas. v To determine all acts that Lidl takes to achieve sustainable development 5/12/2020 KOUKOU ALEXANDRA 5
METHODOLOGY Ø HOW? 1 2 3 5/12/2020 • Direct information through : Interviews with store managers , area managers and sales managers. • Information of the company's website and other economic nature websites. • Other sources like journals, on-line books and articles from the internet. • Leaflets, books and educational seminaries KOUKOU ALEXANDRA 6
• Principles and values: Customer satisfaction , Superior quality for the lowest price , constant improvement , Fairness and respect. 7 P’s Analysis • Product: Super market products, 90% Private label, exclusive brands. • Price: Penetration pricing policy → low prices • Place : 220 Lidl stores all over Greece • Promotion : Integrated promotional campaigns • People : Over 5000 Greek employees • Process : Primary process • Physical : Stores are made in a very linear, traditional manner and with the brand colours , yellow-blue and grey code. • Vision : emphasizes in enhancing the lives of their customers, by providing quality products at market leading value. • Mission : deliver outstanding customer satisfaction and market leading quality. ↓ Porter's Generic Strategies : Lidl is utilising a cost leadership strategy. 5/12/2020 7
SWOT ANALYSIS Strenghts : A FIRST LOOK : Ø Parent Com: Schwarz Gruppe Ø Category : Retail Industry- Grocery Retailing Ø Sector : Lifestyle and Retail Ø Tagline-Slogan : Where quality is cheaper ØUSP: Quality goods at low prices • Has private labels and a good range of other branded • • Ø Segment: Price sensitive customers who usually have a limited budget whilst shopping or choose to buy quality products. • • Ø Target Group : Households • Ø Positioning: A go-to shop for any grocery needs. 5/12/2020 products too. Wide range of private labels gives them exclusivity and security Strong online presence. Online presence that showcases the products they have and any deals they may be running. Placement, they build in deprived areas where cheap food is required. They sell reasonable food that appeal to all incomes. Open on Sundays and holidays in the touristic areas. Has over 220 stores across Greece giving Lidl great exposure. Strong business structure allows them to sell their products at an incredibly cheap price 8
SWOT ANALYSIS Weaknesses : Threats : • Still relatively small as compared to other brands. Does not quite have the market share of the other big supermarkets in Greece. • Hasn’t been able to impact globally as there a few other chain stores. • As their products are so cheap consumers can often think that the quality is not good enough • Opportunities : • To gain a further strong hold in Greek market. Potential to expand acquire a higher share of the Greek grocery market. • Expand their website to actually accept orders and sell products International expansion of other brand would increase competition. ” • “Price war with other retail chains brands. If Lidl were to engage with a price war with other major grocery retailers then they could force competitor's prices down • Change of Government policies and regulations in the retail industry. • A competitor (Sklavenitis or A. V. Vasilopoulos) surpassing their market share and becoming the dominant discount grocery retailer • Competitors : A. V. VASILOPOULOS PENTE S. A. (GALAXIAS) SKLAVENITIS VEROPOULOS MASOUTIS MARKET IN METRO S. A. KRITIKOS INKA 5/12/2020 9
Leadership style and Lidl Hellas • Leading through straightforward and direct communication • Developing team members • Dynamic and high performance through the creationxof change and innovation • Establishing trust and being fair • Being a role model and leading by example 5/12/2020 10
Leadership style and Lidl Hellas LIDL HELLAS LEADERSHIP PRINCIPLES 5/12/2020 • Lidl Hellas adapted a democratic style of leadership to empower its employees. • Lidl is capitalizing on democratic and laissez-faire leadership style to ensure that it motivates employees and enhance their productivity and performance. • Lidl Hellas has adapted a transformational style of store managing which helped the company in managing and instilling change. 11
Sustainable Development in LIDL Lidl Hellas is focusing on the areas that are most relevant to the company and where they can have the greatest impact : Ø Sourcing: sourcing responsibly means offering goods that are produced to the highest quality, environmental and social standards allowing producers to choose sustainably sourced options at affordable prices. Ø Environment: focusing on reducing the environmental impact through : Carbon Trust , ISO 50001 Energy Management Standard in all new concept stores, an award-winning recycling and waste management programme. 5/12/2020 12
Sustainable Development in LIDL Ø Team – Lidl Colleagues : developing sustainable relationships by engaging leaders, implementing consistent and transparent communication and prioritising employee wellbeing Ø Work Safe. Live Well : Lidl designed to take an holistic view of employee health and wellness, the strategy focuses on 3 core areas; physical safety at work, physical and mental health, and financial wellbeing Ø Community: works with local authorities and NGO’s, support a series of actions in Greece, contributing actively to inform and encourage towards a healthy” lifestyle, works on solutions to protect the climate and the environment within its operational spectrum. 5/12/2020 13
RECOMMENDATIONS Ø Lidl should utilise a combination of long term strategies: 1. Extend the usability of their website to accept click & collect orders or even delivery 2. Construct firm barriers of entry to deter other organisations from entering the Greek grocery market 5/12/2020 3. Develop and implement upper -class branded products Ø Encourage transformative leadership in the company. More transformative leaders are needed. Ø Less delegation of duties of a manager and engage more in decision making. Ø Encourage employees to select their leaders among themselves. Management Recommendations 14
RECOMMENDATIONS ØActivities should change from closely held independent efforts to more transparent and integrated efforts. ØInternal and cross boundary collaborations ØSustainability and energy management needs to be recognized more by employees, partners and customers 5/12/2020 SUSTAINABILITY RECOMMENDATIONS 15
THANK YOU 5/12/2020 16
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