Case Study: Retail entrepreneurship development in India: A case study of

big bazaar

The Indian retail industry has strong linkages with the economic growth and development of
the economy. India is one of the largest emerging markets. It is one of the largest economics
in the world in terms of purchasing power. Retailing in India is at an emerging stage of its
evolution. Organized retailing has become more popular in big cities in India and most of the
metropolitan cities and other big cities are flooded by modern organized retail stores. Many
semi-rural areas have also witnessed entry of such organized retail outlets. Indian retail
industry is currently estimated at US$ 490 billion. India’s retail market is expected to touch a
whopping Rs 47 trillion (US$ 782.23 billion) by 2016-17, expanding at a compounded annual
growth rate (CAGR) of 15 percent, according to a study by a leading industrial body. The
total organized retail supply in 2013 stood at approximately 4.7 million square feet (sq.ft),
witnessing a strong year-on-year (y-o-y) growth of about 78 percent over the total mass
supply of 2.5 million sq.ft in 2012. The foreign direct investment (FDI) inflows in single-
brand retail trading during the period April 2000-January 2014 stood at US$ 98.66 million.
Retailing as a whole contributes almost 14-15% of India’s GDP and employs almost 8% of
India’s employable population. Contd. in page 2 Page 1 of 2 Code: 14E00303 Big Bazaar is
credited with bringing organized mega retailing to India. The project was conceived as a
uniquely Indian hypermarket in a format that combined the look, touch and feel of Indian
bazaars with the comfort, convenience and quality that modern retailing brings. Launched in
August 2001, Big Bazaar has now become the iconic destination of modern retailing for all
sections of Indian consumers. There are more than hundred Big Bazaar stores in big cities as
well as smaller towns like Sangli, Durgapur, Panipat, Palakkad, Ambala, Meerut, Kolhapur
and Haldia. Attracting over 100 million customers every year, it has democratized shopping
in India and become synonymous with great promotions that offer quality products at
affordable prices. This typical Big Bazaar store offers over 1,60,000 products across
categories like apparel, general.

Questions: (a) What are the entrepreneurial opportunities you can find in retail sector in
India? (b) How organized retailing has become more popular in big cities in India?

(c) How Big Bazaar retail store would retain its business in today’s competitive world
among retail firms?
1.

Smart phones are everywhere today. You probably have one nearby right now. However,
access to landline phone service has not been complete for very long, and wireless service is
not as widespread as many people might think. The first phone lines (landlines) connected
Boston and Somerville, Massachusetts in 1877. The last town in the United States to receive
landline service was Mink, Louisiana, a small community 100 miles south of Shreveport,
which received landline service in early 2005. Check any major US wireless carrier, and its
maps have gaps in service. Building networks of any kind takes planning, money, and time.

A. What are some similarities between an entrepreneur starting a new business in a new
profession in a new market and a telephone service network?

B. How are the requirements for a telephone network infrastructure like those for a new
entrepreneur?

C. What are some estimated costs, not necessarily monetary ones?

D. What are some benefits to an entrepreneur who enters a market with established
networks?

E. How do established networks save the entrepreneur valuable money and time?

F. With limited resources, what criteria should an entrepreneur use to determine

priorities of spending time, effort, and money in developing networks?

G. Does each criterion have equal weight? Why or why not?

2.

The Internet Association (IA, https://internetassociation.org/) was founded in 2012 as a trade

association devoted to Internet-based companies. Founding companies
included Google, Amazon, eBay, and Facebook. These Internet-based companies founded
this new trade group because they did not have a voice in Washington, DC, with respect to
potential regulations and laws. The IA has synergy—more influence as a group than each
company would have individually.

A. What prompted the formation of the IA?

B. Was it for marketing purposes?

C. Management support?
 D. Industry advancement?

E. Regulatory influence?

F. What are some secondary purposes for the IA?

G. How might the original purpose of the organization shift as the industry matures?

H. Will small companies enjoy the same benefits of the larger founding organization?

I. Any new venture involves substantial risks and costs. How might a new Internet
startup benefit from joining the IA?

J. How else do the large corporations benefit besides having a say in the political
discussion in Washington, DC?

K. What time commitment should a new business make before expecting any positive
return on investing time and money in a trade association?

L. If joining the IA requires a membership fee, what determinants should you use to
place a value on the amount spent for dues?

M. What benefits of a trade association may be not easily linked to membership

expenses?

3.

In 1989, the new NFL owner of the Dallas Cowboys, Jerry Jones, fired the legendary coach
Tom Landry and hired one of his former college football teammates, Jimmy Johnson, as the
new head coach. Johnson faced the same problems that a new entrepreneur has: Who should
be on my leadership team? What should be their responsibility? Out of twelve key coaching
positions, Johnson kept only three coaches from Landry’s staff in the same positions and
moved one coach to a different position. Within four years (1993), the Dallas Cowboys,
under head coach Jimmy Johnson, won Super Bowl XXVII with six of the original coaches
Johnson hired his first year still in the same positions.

A. How is a startup similar to an existing organization that needs to be turned around?

How are they different?

B. What are some reasons to surround yourself with others instead of taking the attitude
that “I can do it myself?”
 C. For any leader, what are some reasons that skills in identifying and recruiting key
people are more important than technical skills?

4.

Every four years, the United States elects a president. Although the incumbent might be
reelected, the United States is guaranteed to have a new president at least every eight years.
On winning the election, the new president must identify candidates for cabinet positions.
Some potential candidates decline the invitation and voluntarily withdraw themselves from
consideration. Those who accept the invitation are put through an intensive screening
process. The president then submits cabinet-level nominees to the US Senate for
confirmation. As in any close group, recruiting and selecting individuals to join the
presidential cabinet is critical for the president to achieve any objectives or goals.

A. What kind of experience is beneficial to members of a board of directors for a local

performing arts group? Should they be experienced in industry? Government?
Fundraising? Management? Marketing? The arts?

B. Besides experience, what other type of backgrounds should be considered? What

about board members’ ages? Education? Gender? Residency? Financial Status?
Connections to local or regional major employers?

C. What can a new entrepreneur learn from an executive director of a nonprofit about
selecting candidates to build a winning team? How important is it that some
candidates decline to join the board? How long should members be on the board?

D. How important is diversity in building a winning team? What skills must the
entrepreneur perfect? What skills can be learned and developed later by the
entrepreneur? Why is a variety of backgrounds, in the technical field and outside of
the industry, important?

E. Who is the actual team leader? (1) Entrepreneur? (2) Strongest personality? (3)
Smartest? (4) Most technically skilled? (5) Financier? (6) Most experienced in
management?

5.

Narciso Gómez has worked in the service department at an auto dealership for about twenty-
five years and has served as the service manager for the past seven years. He is qualified for
retirement through the dealership but wants to open his own business. He is looking at buying
a franchise, either a Jiffy Lube quick oil-change franchise that is for sale or a new SuperGlass
Windshield Repair franchise. Both are automotive service and repair related, where he has
plenty of experience.

A. Besides his technical skills, what does Narciso need to consider before purchasing a
franchise business?

B. How might the estimated volume of work required to generate enough sales to cover
his financial obligations affect his decision?

C. The Jiffy Lube business model requires a four-bay facility. What does Narciso need to
calculate in developing his business plan?

D. The SuperGlass Windshield Repair is an on-site repair model whereby the technicians
drive to the vehicle’s location for work. What should Narciso’s main concerns be in
developing a business plan for this business model?

6.

Han Jia-ying was an office manager for a construction company until she decided to be a
stay-at-home mother with her kids. Her former employer has called her to take over some
administrative work at home, such as payroll processing, payroll tax filings, bookkeeping,
and other general administrative work. Her employer has said that some of his customers
probably could employ her for their general administrative tasks.

A. If she works from home, what type of scheduling issues does Jia-ying face? What
might be some interruptions to her ability to meet specific deadlines, such as
processing paychecks each week?

B. If Jia-ying needs additional help, what options does she have? Would she be wise to
hire an employee or seek some support from someone else? Who might that be? What
problems might Jia-ying encounter when seeking a nonregular employee?

C. Jia-ying will need new office equipment, including a new computer, a new
scanner/printer, phone service, Internet connections, and so on. However, she is not
tech savvy. How might she best manage working from home by herself, especially is
something goes wrong or does not work?
1.

The National Association of Broadcasters launched its PILOT Innovation Challenge in 2016.
The challenge is centered around a specific challenge question aimed at helping the
association’s primary customers, broadcasters. The most recent challenge question was,
“What is an unconventional way broadcasters and other local media could serve
communities?” The PILOT organizers have contracted you to help them design their next
challenge. Using your knowledge of innovation and customer-centric entrepreneurship
processes, what would you advise? How would you go about determining the challenge
question? What questions about innovation would you have regarding the Innovation
Challenge?

2.

The Guidewell Innovation Center at Lake Nona Medical Center on the outskirts of Orlando,
Florida, is a 92,000-square-foot facility aimed at accelerating innovation within the
healthcare industries. Guidewell, the parent company of Florida Blue, brings in outside
companies to help with that innovation process. One of the features of the Innovation Center
is its Collaborative Resource Ecosystem. Some of the center’s strategic areas of focus are
next-generation consumer engagement, computational health, well-being and human
performance, digital health, and remote management, among other areas. How could
Christensen’s theory of disruptive innovation and jobs-to-be-done theory help guide
Guidewell’s mission? What are the prevalent business models in the strategic areas for
incumbent businesses? What are opportunities for innovation for new companies?

3.

As youth programs face severe budget cuts, many youth sports organizations respond by
raising their fees, which shifts the costs to families. Good Sports was founded in 2003, to
tackle this problem by providing new equipment, footwear, and apparel to those most in
need. The organization’s addressable markets include children ages five to eighteen living in
low-income households, as defined by poverty data, and participating in youth sports in top
fifty metropolitan service areas. This Boston-based organization has plans to expand from its
three existing markets in Dallas, Chicago, and Boston to seven total markets by 2023 with a
goal to serve 600,000 kids by that target date.
 A. What would a customer empathy map look like for Good Sports’ target user? What
about its target customer segment? Would it or should it differ in differing markets? Is
the Boston area user any different from say, an Atlanta, user?

B. Given its social mission, what are some impact measures Good Sports could use to
gauge success and impact?

4.

DoSomething.Org is a “global movement for good” among 6 million young people,

transforming their communities across the United States and in 131 countries worldwide.
This nonprofit organization constantly holds cause-based campaigns, ranging from receiving
over 1 million pairs of donated jeans from teens to clothe homeless youth to cleaning up 3.7
million cigarette butts through its Get the Filter Out initiative. A past campaign, “Don’t Be a
Sucker,” addressed the problem of Americans losing $5.8 billion annually and producing 8.7
billion pounds of carbon pollution by leaving unused devices plugged in. The campaign
sought to slay those “energy vampires” not in use by having users unplug equipment and post
a sticky note next to the outlet to remind others not to let them suck the energy dry. Further
research the problem, solution and this campaign and answer the following:

A. Identify what social impact(s) the campaign addressed.

B. What impact measures could the campaign assess?

C. Could a viable business be created around this problem?

5.

In recent years, the entrepreneurial educator and author Steve Blank began applying lean
startup principles to various US governmental agencies. Through a Hacking for Diplomacy
course, students at Stanford University began tackling problems for the Department of State.
A former US ambassador to the United Nations, a State Department representative to Silicon
Valley and senior advisor for technology and innovation, a retired US Army colonel, and
other entrepreneurial educators joined Blank in applying lean startup methods to State
Department issues. Then-Secretary of State John Kerry even visited the Stanford students and
said he was looking forward to the solutions students develop during the ten weeks. One
project that emerged was from a group calling themselves Team Space Evaders. The team
was tasked with working on the problem of satellite collision. Members charted satellite
positioning data and explored how information about potential collision was shared by
commercial operators and governmental entities ranging from the Federal Aviation
Administration to the Department of Defense.

A. Apply the lean startup methodology to identify potential customer segments and
problems and solutions that students such as yourself could identify for the State
Department on the issue of satellite collision.

B. What would a unique value proposition for a State Department solution to this issue
be? How could a high-level concept pitch work when selling the concept within the
State Department?

6.

Incorporated in 2003, Tesla declared in its mission statement that its goal is “to accelerate the
world’s transition to sustainable transport,” 56 and it has proven itself a leader in green
technology in the automotive sector. In its initial business plan, by co-founder
Martin Eberhard, the electric sports car company promised to provide the value of a high-end
sports car at a lower cost to the customer and a lower environmental cost to the planet.
Electric vehicles were seen as inferior to standard vehicles prior to Tesla’s innovations in
creating powerful cars that piqued consumer desire. The generic automotive manufacturing
business model relies on collaborative manufacturing with industry partners and a
distribution model dependent on third parties. Standard cars are aimed at people and
businesses with individual transportation needs. This model is commercially viable because
of custom-equipped add-on features to the per-vehicle prices.

A. Tesla’s business model is different. Identify at least three ways in which the Tesla
model differs from the traditional automotive business model.

7.

In the mid-1990s, at least one newspaper company, the now-defunct Knight-Ridder chain,
created the prototype for a tablet newspaper that very much resembles the present-day iPad.
A 1994 video titled “The Tablet Newspaper: A Vision for the Future” shows off the design of
a futuristic newspaper designed at the Knight Ridder Information Design Lab in Boulder,
Colorado. The video went viral in 2011 after it was posted on YouTube and numerous
websites and blogs. The person behind the tablet vision, Roger Fidler, had even published an
essay describing a tablet future as far back as 1981. The Knight-Ridder lab shared a wall with
its neighbor Apple, with executives swapping ideas and visitors. The newspaper company,
focused on content creation and not the hardware side, decided to not patent its tablet design
and scrapped the project because screens took too much energy, and it was too expensive.

A. Using the components of a feasibility study, consider how the newspaper company
would stack up on go-or-no-go decisions for each component of the feasibility study.

B. How did the newspaper company in the 1990s fare in terms of management prowess,
resource capabilities, financial viability, and market analysis?

C. Do you think the newspaper made a wise decision to abandon the project when it did?
Why or why not?

8.

Founded in 2013 primarily as a coding boot camp, Tech Talent South offers both part-time
and full-time courses on topics like Ruby on Rails and Big Data Analytics. Most of the
camp’s programs are run out of cooperative working spaces and temporary locations
throughout the cities it has a presence in. The primary focus of the Atlanta-founded and now
North Carolina-based company as branded in the name was on coding in the South, but the
company to date has expanded to eleven markets with plans to expand even more. The
founder, Betsy Idilbi, jokes that she wouldn’t have named the company Tech Talent South if
she had known its full potential and growth, including being plugged into the entrepreneurial
ecosystem in places such as Columbus, Ohio. The company even has offices in the
northeastern city of Hartford, Connecticut.

A. Could a feasibility analysis have helped Betsy from the start?

B. The company has expanded its business to offer corporate trainings at existing
companies, rather than teaching classes directly to student enrollees. How would you
identify a new potential market for Tech Talent South to enter?

C. What could be done with its existing business?

D. How would you advise the company on making go-or-no-go decisions for entering
new markets?

9.
You were introduced to The Cut Buddy, a plastic hair and beard grooming tool that began
selling on Amazon in 2016, in The Business Plan. Following funding from the Shark
Tank investor Daymond John, the company plans to expand into retail and extend its product
line.

A. How would a business plan for the company’s ecommerce business differ from a
retail distribution outlet?

B. Discuss how changes to aspects of the original business plan affected the outcome of
the success of The Cut Buddy.

C. What do you think should be the key markets and strategies moving forward for the
company?

10.

Pretty Young Professional, discussed in The Business Plan, failed because of disagreements
among its four founders that emerged shortly after launch.

A. If you were to launch the venture today, outline what steps you would need to take in
formulating a business plan.

B. What do you think the total addressable market would be, which industry
classification would it fall under, and who would be the primary competition?

Case Study 1: Khana Khazana

Bhavik and Ratul were two students studying hotel management course in a city college.
Theyhailed from Kolkata a metropolitan city and Pune respectively. They became good
friends duringthe course of their education. Bhavik hailed from an upper class family with his
parents ininfluential Government jobs. Ratul hailed from a lower middle class family with his
single parentswhich means his mother depend on farming for their livelihood. They both
shared a long ambitionto become successful in their life working independently.They both
were intelligent and were creative compared to others and both were intent on startinga
restaurant in one of their respective places by the name Khana Khazana. Bhavik was against
theidea of Ratul starting her clinic in a Pune. He felt that people of pune already have so
many options
of restaurants that they won’t explore new one. Bhavik had a strong view that people of pune
are

more into fast food as majority of the population of pune are out-station students and the
concept

which they have for their restaurant which is homemade food won’t be accepted by the
population

of pune. But Ratul was strong in his view that because he crowd is youth and most are away
fromhome so they will love to have homemade food.

Questions

Q 1. What are the characteristics of a good entrepreneur bhavik and ratul are missing because
ofwhich it is taking time for them to come to conclusion about the venture?