Improving Productivity of Ghanaian Supermarkets through Strategic Management Decision-Making, Budgeting and Product Pricing
1.0 Provisions for Topic
Strategic decision-making simply refers to the long-term direction of an organisation. By means of the configuration of the resources of the organisation, the organisation strategises to achieve sustainable competitive advantage while also fulfilling the expectations and aspirations of all the stakeholders. Budgeting, as the foundation of all financial plans, refers to the process of determining planned expenses and revenues. It is also planning for investments either long-term or short-term. Product pricing, on the other hand, means to establish a selling price for a product. Prices of the products have a direct effect on the success of the business. As such, prices should cover costs and profits and must be established to assure sales.
Today, the Ghanaian food retail industry is made up of convenience stores and small groceries, traditional open-air markets and large supermarkets. However, there is a virtual monopoly held by foreigners in the supermarket business in Ghana. The supermarket industry therefore is gradually expanding especially since supermarket chains of between 5 and 10 square meters in size are usually clustered in one location. In fact, Mr. Kwamena Bartels, Minister for Private Sector Development (PSD) called for Ghanaian supermarkets to break the monopoly through breaking the monopoly and setting up chains of supermarkets countrywide. The Minister also demands the sale of made-in-Ghana goods to stimulate local production and generate wealth and poverty.
There are only three supermarkets which have branches in more than one city or urban center. Adade (2005) states that three large supermarkets with only one outlet are located in the capital city Accra although there are several medium-sized independent supermarket units were opened in the urban centers. Supermarkets served 10% of the market size with full-line stock level and self-serve service method. There are several areas therefore that Ghanaian supermarkets could be improved such as strategising for better services for the customers, for instance, and by means of effective budgeting and product pricing.
3.0 Problem Statement
The key problem question that will be given answer to is: how Ghanaian supermarkets' productivity could be improved? Other questions are:
1) In what specific ways doe strategic decision making could improve the operation of supermarkets in Ghana?
2) To what extent does product pricing could improve the operation of supermarkets in Ghana?
3) Under what circumstances does budgeting could improve the operation of supermarkets in Ghana?
4.0 Aim and Objectives
The main of this study is to determine how the productivity of Ghanaian supermarket could be improved. In lieu with this, the following research objectives will be addressed:
· To evaluate how strategic decision-making, budgeting and product pricing could contribute in better productivity of Ghanaian supermarkets
· To recommend specific processes and practices to Ghanaian supermarkets on how they can possibly improve their productivity
The research strategy that the study will utilize is the descriptive method. A descriptive research intends to present facts concerning the nature and status of a situation, as it exists at the time of the study (Creswell, 1994). It is also concerned with relationships and practices that exist, beliefs and processes that are ongoing, effects that are being felt, or trends that are developing (Best, 1970). In addition, such approach tries to describe present conditions, events or systems based on the impressions or reactions of the respondents of the research (Creswell, 1994). This research is also cross-sectional because of limited time. This research is a study of a particular phenomenon (or phenomena) at a particular time. (Saunders et al, 2003) Accordingly, cross-sectional studies often employ the survey strategy, and they may be seeking to describe the incidence of a phenomenon or to compare factors in different organizations.
In this study, primary and secondary research will be both incorporated. The reason for this is to be able to provide adequate discussion for the readers that will help them understand more about the issue and the different variables that involve with it. The primary data for the study will be represented by the survey results that will be acquired from the respondents. On the other hand, the literature reviews to be presented in the second chapter of the study will represent the secondary data of the study. The secondary sources of data will come from published articles from books, journals, theses and related studies, newspaper and magazines.
Adade, R. (2005). Grocery Retail Environment in Ghana. International Market Research Reports.
Best, J. W. (1970). Research in Education, 2nd Ed. Englewood Cliffs, N.J.: Prentice Hall, Inc.
Creswell, J.W. (1994). Research design. Qualitative and quantitative approaches. Thousand Oaks, California: Sage.
Ghanaian supermarkets are told to sell made-in-Ghana goods. GhanaNews Agency.
Saunders, M., Lewis, P. and Thornhill, A. (2003). Research Methods for Business Students, 3rd Ed. London: Prentice Hall Financial Times.