Chapter I Introduction

1.1 About the company

In a country where agriculture is underrated, a new business organization namely Nepal Kareshabari and Research Center Pvt. Ltd. (NKRC) was established with a mission statement Green vegetables to all. The business first came into operation from 7thBaishak, 2069 and since then it has been able to keep up with the market as the first exclusive vegetable retail chain in the entire country. It has got its corporate office situated at lokanthali, Bhaktapur. The firm was initially set up by two fresh MBA graduates; Ram Raj Acharya and SushilAryal who worked together to manage and develop the market for the business. Later, the success of the firm invited two more new partners; Purnabahadur Palpali Khadka and KeshowrAcharya. At the moment, NKRC is the only private initiative concerned with retail vegetable market in Nepal. Apparently, the consumers were paying higher prices for the vegetables as it was the only option for them. Yet, the farmers werent receiving satisfactory pricing for their products and were compelled to accept lower prices for the products they were producing. Nevertheless, the establishment of NKRC focused on creating a much healthier competition in the vegetable market. As such, NKRC carries a very unique proposition that is; it emphasizes only in selling vegetables. Although the business was established primarily with a view of boosting the supply of vegetables within the valley by facilitating retail business under one roof, the main aim was to provide market access to the farmers and general consumers with reasonable price. NKRC started up its operation with 5 retail outlets which were sited around Bhaktapur district. However, after receiving the government support through self-entrepreneur loan, NKRC decided to enter a wider market in Kathmandu district from 16thAshard, 2069. At present, the business has 10 retail outlets in total around Kathmandu and Bhaktapur district. The business had its initial turnover of Rs.1500 per outlet with the flow of 200

customers daily on average. This number had been gradually increased to the annual turnover of Rs.90000 (6000-13000 per day) on average within two months of operation. The business has been very successful since its establishment and it has been providing opportunities to 16 employees including the 4 partners. Furthermore, various plans of expansion is in the process which includes setting up 9 more additional outlets within the valley and increasing the flow of customers by 200 per day in near future. According to their calculation, there has been an ongoing increment in the supply of vegetables that is worth Rs. 90,000 per day after the business came into its operation. The main features of Kareshabari and Research center are listed below: Largest vegetable market promoted by private sector in Nepal. Comparatively less expensive, fresh and quality vegetable available in the market. Vegetables price list facility is available in every retail outlet to make the price competitive in a transparent manner. Nearly 100 meter far from the Ring road with wider road Digital calculation system Proper sanitary management of the store

1.2 Present Scenario

Vegetables (tarkaari) are one of the most important foods in the daily Nepali diet, and a typical Nepali meal consists of rice, lentils, and some kind of side vegetable dish. The most common vegetables include green beans, cauliflowers, cabbage, eggplants, greens (mustard, spinach), okra, potatoes, Nepali radish, squash, tomatoes and many other seasonal local vegetables. Nepal has diverse agro-ecological zones. This is very rare in the world that within 50km sq land area, we have mountains, hills and plane land. So in every season, we can produce and export different off-season vegetables and niche vegetables. Nepal produces vegetables worth Rs 45 billion annually, according to Nepal Vegetable Crops Survey 2009-10 and, Rs 9 billion is invested in vegetable farming every year. The report says that vegetables are cultivated in 232,295 hectares of land in the country and around 70

percent of Nepals total household is involved in vegetable farming, producing 2.82 million ton of vegetable. However, of the total vegetable farmers, only 18 percent are engaged in commercial farming. We can see on many street corners, vendors set up small stands with the fresh fruits and vegetables. The vegetables are sold in the markets weighted in a hand-held local scale, known as taraaju, which comes in a variety of sizes and forms. Measurements are done in kilograms. Most Nepali households do not used store vegetables, so they are bought fresh every day. During the peak season, we also can see a local farmer balancing a bamboo pole across his shoulders, holding two wicker woven baskets full of freshly picked vegetables, heading to the market. But nowadays there is change in buying behavior of a consumer. Customer want easy in access and less bargaining as compared to earlier period. Shopping the vegetable in retail stores, malls and department stores is now a fashion and passion for high end customers in urban areas. The trend is on the rise. The biggest supermarket chain in the country -Bhatbhateni -- and other big malls have spaces for vegetable and other agro products. This shows the demand of quality vegetables and agro products has increased in the latest days. At present, the market of vegetable products has been limited to the Haat Bazar (weekly market).But if government can truly commercialize this sector it could add value to our agriculture sector as well as retail market of vegetable products.

1.3 Mission, Vision and Corporate Social Responsibility

Mission Our mission is to become leading vegetable retail chain in Nepal through the use of advance technology by utilizing resources optimally and taking care of customers satisfaction with the help of motivated and dynamic employees while operating in ecologically sound environment. Vision Fresh vegetables to all

Corporate Social Responsibility Company has multiple responsibilities to maintain. Corporate social responsibility is the continuous commitment of a firm toward its stakeholder. And Karesabari consider four type of social commitment: Economic responsibility: Karesabari is able to fulfill its good financial responsibility to its shareholder by giving them good returns. Legal responsibility: Karesabari is able to fulfill its legal responsibility by paying regular tax to the government. Ethical Responsibility: Karesabari is able to fulfill its ethical responsibility by offering quality and fresh vegetables at fair price to the customer, paying fair wages to its employee regularly. Philanthropic Responsibility: Being small scale business it has not been able to fulfill its philanthropic responsibilities.

Chapter II External Assessment

2.1 Porters five forces model
For any organization to survive it needs to understand and cope with the competition. Often, however, managers define competition too narrowly, as if it occurred only among todays direct competitors. Yet competition for profits goes beyond established industry rivals to include four other competitive forces as well: customers, suppliers, potential entrants, and substitute products. The extended rivalry that results from all five forces defines an industrys structure and shapes the nature of competitive interaction within an industry. An analysis of the structure of the industry should be undertaken in order to find effective sources of competitive advantage. Therefore, in order to analyze the competitive environment of Karesabari, Porters five forces analysis of Karesabari is as follows: Threat of substitute products There are fewer products that can replace the vegetable items. One substitute product could be meat but it is regarded as occasional food item in Nepal. Substitutes like meat have higher price compared to items of grocery. The switching cost is high i.e. switching to other products like meat is expensive and not affordable in daily life. Overall threat of substitute product is low Threat of entry of new competitors New entrants to an industry bring new capacity and a desire to gain market share that puts pressure on prices, costs, and the rate of investment necessary to compete. Particularly when new entrants are diversifying from other markets, they can leverage existing capabilities and cash flows to shake up competition. Less investment to start the business.

No such strict authorization from local government is needed. No such loyal customers are found as switching cost is low and there is no one such market leader, so demand side benefit of scale is low.

Overall threat of new entry is high Bargaining power of buyers Powerful customers the flip side of powerful suppliers can capture more value by forcing down prices, demanding better quality or more service (thereby driving up costs), and generally playing industry participants off against one another, all at the expense of industry profitability. The number of buyer is high. Products are not differentiated and are less standardized. Switching cost is low as there are a number of grocery stores and loyalty is low. Customers are attracted towards the low prices so keeping them intact with one vendor is difficult. Overall bargaining power of buyer is high Bargaining power of suppliers Suppliers capture more value for themselves by charging the higher price, limiting the quality of supplies or by shifting the cost to the industry participant. The numbers of suppliers is greater in number. Less differentiated products Suppliers depend heavily on the grocery industry for profitability. Switching cost in suppliers is low as there are numerous suppliers available within and outside the Kathmandu valley. Possibility of forward integration is less.

Overall bargaining power of supplier is low

Intensity of competitive rivalry Rivalry may take many forms including price discounts, new product introduction, service improvement and alike. Competitors are roughly equal in size and there is also no particular market leader in vegetable retail. Competition is mostly price based as customers are price sensitive and the product is perishable that should be sold within a limited time frame. All the rivals are in the same direction i.e. price competitiveness Less exit barriers

Overall intensity of rivalry is high So let us sum up the Porters five force model through this figure;

Figure 1: Porter's five forces model

2.2 PESTEL Analysis

Political Factor Political factors are basically to what degree the government intervenes in the economy. As the business of Karesabari is of small scale the change in the political ideology has less impact in its business environment. The political system of Nepal is unstable there is situation of uncertainty. Often the Banda and strikes created by the conflict of political parties highly influence the regular demand and supply of the vegetable business of Karesabari. During such situation the perishability nature of business makes it even harder. Moreover the politics within the supplying place like Kalimati also has considerable effect as this directly affects the reach to the wholesaler. Economical Factor In 2012, the GDP of Nepal was 4.63% but in 2013 GDP decreased to 3.56%. The inflation rate of 2012 increased to 8.3% due to this price of goods also increased and in 2013 it is recorded to be 9.99%. This decrease in GDP and increase in inflation rate affects the customers purchasing behavior which directly and indirectly hampers the business of Karesabari. As we know Nepal's economic condition is critical and 23.8% of the total population are under poverty due to this people having low standard of living are mainly affected. The lesser the consumption of goods the lesser will be the sales which had negative impact on its business as well as economy of the country. Having said this remittance is increasing and peoples consumption pattern is in increasing trend which has some positive signal for the firm like Karesabari. For instance due to the huge rise in price of onion has decreased its consumption Social factor The change in purchasing behavior of the customer would lead the positive/negative impact for the company. People want healthy and fresh vegetables which some chunks of people do not find in the street vendors. Karesabari have somehow tried to establish its brand by giving the stores name Karesabari with green and yellow color board because

people now a days believe on brand and quality. Also the service provided by the store makes its different from its competitors. Larger chunk of people are shifting towards the middle level whose perception of having better and hygienic food is increasing. Moreover more orientation of consumers towards being hygienic and demonstration effect of being vegetarian also have positive impact on purchasing pattern. Pressure group has increased. Technological factor Karesabari has changed the traditional techniques of weighing which was Taraju and Dhak. The use of electronic weighing machine makes it different from its competitors. Also the look of the store is different. Vegetables are kept in a table in a rectangular manner with the front part open for the customers to select the goods by taking a round throughout. Thus the ease of shopping and accuracy of weighing makes it popular among the customers. Environmental factor It is the important factor that needs to be considered because both company and its surroundings can be affected from loss. A company should not only focus to increase its profit but also have a look into its surrounding whether it is being affected by them or not. If we talk about the store then the store is green and it has a website with its home page in green color. Through this the company wants to give a fresh and healthy feeling as green color is referred to clean environment. The company has also tried to reduce the use of plastic bags by offering the customers a cloth bag. Likely, environmental factors like the outburst of bird flu has helped the vegetable retailer as the price of meat products has gone up and people are switching more towards the vegetable. These efforts are somehow impressive to become ecological as a company. Legal factor Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. It includes the government tax policies, tariffs, quotas on specified goods. These factors can affect how a company operates, its costs, and the

demand for its products. The logistics of Karesabari are purchased from Kalimati to most extent. Vegetables in Kalimati are brought form local factors as well as imported from India. Nepal has been providing subsidies for the farmers and import tax for agricultural product from India is less than other products. This helps Karesabari in reducing its cost so that it can provide products in low cost to a customer which is one of the important factors of success for a company.

2.3 External Factor Evaluation Matrix

External Factor Evaluation Matrix summarizes and evaluates the overall external environment consisting political, economic, social, technological, environmental, legal and competitive environment. EFE matrix is shown below.

Figure 2: EFE matrix From the EFE matrix the score is 3.2 which show that Karesabari is doing pretty well in terms of taking advantage of the external opportunities and avoiding the threats it is facing.

2.4 Strategic Group Mapping

Strategic Group Mapping is analytical tool used for showing the different markets of competitive positions that rival firm occupy in the industry. It is very important to analyze the industrys competitive structure and identify the strategic groups. Four strategic groups were identified namely Karesabari, Kalimati and other vegetable market, Street vendors and department and grocery stores. Questionnaire were distributed to 30 customers of different places as the result showed that they considered price and quality as the most important key success factors. On the basis of these key success factors strategic group mapping is shown below.

Figure 3: Strategic Group Mapping From the above Strategic group mapping we can see that the major competitor of Karesabari is department and grocery stores. So, it should closely observe the moves of department and grocery stores to be competitive in the market as their activities will directly affect Karesabari.

Chapter III Internal Assessment

Firms, regardless of nature, analyze the surroundings are supposed to be the successful. Basically, internal as well as external environments are equally important to analyze and diagnose in order to fit and fix the firm in the dynamic scenario. While talking about the internal environments, those factors and forces which affect the doing of business are taken as the internal environments. Knowing the internal facts and figures is really valuable in the sense that it gives the insights about the firms strengths and weakness. At the same time, it also gives the answer to the question where should firm move. There are so many tools and techniques to analyze the internal environments. Our business is all about the retail chain of vegetables, thus, as per the business nature, Resource Based View (RBV) and Value Chain Analysis (VCA) will be the most effective tools for the investigation of the internal part.

3.1 Value Chain Analysis

Value chain describes a way of looking at a business as a chain of activities that transform inputs into outputs that creates the value to the customers.

Figure 4: Value chain analysis

Primary activities Karesabaris primary activities start from research and development activity. In this part Karesabari, normally, conduct those activities which are really necessary to implement the basic activities of the business. Following are the basic activities: a. Research and Development The first and foremost point of different from the competitors is R&D activities. Karesabari always observe and analyse the market opportunities and threats via formal and informal research activities. In the formal process, Karesabari gives the R&D activities to the interested group outside the organisation like college students and other professional group. On the other hand, in informal process, Karesabari go through various reports, publications, observations and some other tools. b. Inbound logistic The main inbound items are green vegetables. In the process of sound and smooth inbound logistic management Karesabari follow two approaches. First, Karesabari try to buy the required vegetables directly from the farmers. The main intention of this approach is to reduce the middle men and the unnecessary costs. Second approach is to buy from the retail wholesale market like Kalimati and other local markets. The basic intention of this approach is to assure the smooth flow of vegetables. Whenever possible, Karesabari try to buy vegetables from the direct farmers. c. Operation In operation the activities range from placing the vegetables in the store to arrange the required resources. Placing the vegetables, sorting the damage pieces, supplying the vegetables in the different stores and pricing the products, are the major operational activities that is performed in the course of the business. d. Outbound logistic In this process Karesabari takes order from the customers, process the orders, deliver the order and manage the cash. So far, Karesabari is not following the home delivery system,

thus, customers come to the store and they take the products from there. That is why; Karesabari mainly focus on the order receiving and deliver of the order. e. Marketing By nature, Karesabari need not to invest huge investment in the marketing activities but we should not ignore the customer to let us know. As of today, Karesabari is marketing the company and products via indirect way. It is promoting through magazines and public cry out system. f. Service It is quite difficult to provide the after sales services to the customers. Karesabari is trying making our customer satisfied by maintaining friendly relation; it is updating the customers about the current market scenario. Secondary activities Those activities which are supportive to the business are taken as the secondary activities. In this case following are the secondary activities. a. Procurement Karesabari purchases the vegetables, assets, raw materials, and other required supplies from the suppliers to assure the smooth operation of the business. b. Information management system Karesabari do not have resourceful MIS. It has online portal to aware the stakeholders about the company and products. c. Human resource management. Karesabari has highly motivated and satisfied human resources. At the same time, Karesabari always try to upgrade them via various training and development activities. d. Infrastructure

Right now Karesabari have moderate level of infrastructure. Due to the customer friendly decoration, customer can see almost all vegetables from the entry gate. Similarly, we are trying to enrich the level of infrastructure so as to meet the customer flow. The main concern in the vale chain system is to satisfy the customer by the generating unique values. Karesabari is trying to generate the profit by adding values to the all stakeholders.

3.2 Resource Based View

Resource Based View(RBV)approach to competitive advantage contends that internal resource are more important for a firm than external factors in achieving sustaining competitive advantages. RBV of the firm provides a rigorous model for analyzing firm's strengths and weakness. As for Karesabari is concerned analyzing and evaluating its resources helps us to find out our core competencies and gain competitive advantage among our competitors. Basically, internal resources include human resource, technical know-how, marketing, operational, MIS and production. RBV is analyzed through three basic categories: Tangible resources, Intangible resources and Company capabilities. Tangible Resources Wide variety of products: Organic and other Well-equipped office and outlets Favorable location Low cost of capital and full utilization of capital

Intangible Resources Expert and educated investors Simple and formal organization structure Use of corporate color green which give the feeling of freshness Good corporate image

Positioning by creating image of freshness and green vegetable Reliable source of suppliers Highly satisfied and motivated workforce

Company capabilities Low cost of capital as compared to competitors by acquiring goods through reduction large distribution channel Low price as compared to competitors High quality customer service Possible technical and operational collaboration with malls

3.3 SWOT Analysis

The analysis of SWOT of Karesabari is done so that it will be known what are the strengths and weakness of the firm along with the opportunities it is having with the possible threats. This analysis along with the SWOT analysis diagram presented below will help to know the strengths that Karesabari has to exploit the opportunities and the possible threats that may come along due to its weakness. Strength (S) Loyal human resource who are ready to work in minimum facilities Technology use i.e. electronic weighing machine ensuring that customers get the exact weight and use of website to inform the customers Corporate image of being freshness, charging reasonable price Competitive price i.e. Karesabari has low cost vegetables Dynamic team of investors Direct contact with farmer i.e. supplier adding to the cost competitiveness and freshness

Weakness (W) Financial position is weak which has resulted in less number of outlets. The layout of the store is congested Documentation of the financial matter has not been done Less promotional work and poor utilization of webpage

Opportunities (O) Consumers consciousness towards hygienic and fresh vegetable is increasing Popularity is growing so there is chances of getting new customers Opportunity for e-portal shopping using the existing web page and possibility of adding home delivery Threat (T) Large number of competitors competing for the customers Low customer loyalty due to low switching cost Concentration of outlets in Baneshwor and Bhaktapur area making it chances of overlooking the other market Uncertainty in transportation due to banda, strikes, jams, thereby resulting in untimely delivery of the goods affecting the perish ability of the product. After having the SWOT analysis, series of managerial discussion takes place which becomes the insightful place for discussion and information sharing which will help to improve the quality of choices and decisions managers can make. This diagram helps the manager to identify one of the four distinct patterns in the match between firms internal

resources and external situations.

Figure 5: SWOT analysis diagram

Seeing the SWOT analysis of Karesabari and analyzing with the diagram it falls in the quadrant of having numerous environmental opportunities and having substantial internal strength which gives Karesabari the option of aggressive strategy which could be vertical integration, horizontal integration, Market concentration and Market development. Since Karesabari does not have much substantial strength but numerous opportunities, Karesabari will vie for concentrated growth.

3.4 Internal Factor Evaluation Matrix

Internal Factor Evaluation Matrix is strategic management tool for auditing of evaluating major internal strengths and internal weakness in functional areas of an organization. Internal Factor Evaluation Matrix of Karesabari is shown below.

Figure 6: IFE matrix As from the matrix above we can see the weighted score is 2.63 which show that Karesabari has strong internal position and it can formulate the strategies as per it.

Chapter IV Strategic Analysis and Choice

4.1 Porters Five Generic Strategies
Any organisation before formulating the long term strategy, should know how it will compete in the market. For that generic strategies needs to be formulated so that they can have competitive advantage and sustain in the environment .Any organisation can use any of the strategies or combination of strategies if firm is in multibusiness, as mentioned below. Striving for the overall cost leadership Create and market unique products for varied customer group through differentiation Have special appeal to one or more groups of consumers or industrial buyers, foocusing on their cost or differentiation concerns. Let us see the Porters generic strategy and what Karesabari is doing to compete in the market through the below matrix.

Figure 7: Porter's five generic strategies

From the above figure we can say that Karesabari is currently adopting the differentiation strategy and catering the broad range of customers through different outlets. But the competition is getting severe and competition is on price due to which Karesabari will have to compete to be the cost leader also which will ultimately take it towards being the best cost provider in the long run.

4.2 Grand Strategy Cluster Matrix

Often firm comes across with the question on what to do next when they grow over the period of time. Karesabari also has been in such situation on which strategy to employ so that they will be in better position than now. For this dilemma Grand Strategy cluster is useful which is defined in terms of growth rate of the general market and the firms competitive position in the market. With this four quadrants are possible as: Strong competitive position in a rapidly growing market Weak position in rapidly growing market Weak position in a slow growth market Strong position in a slow-growth market

Talking about Karesabari on what it should peruse it falls in the quadrant of strong competitive position with rapid market growth as illustrated in the figure below.

Figure 8: Grand Strategy Cluster Matrix

It is because Vegetable market is growing and Karesabari has financial and process competency to fall in the quadrant as mentioned above and pursue concentrated growth in future too.

4.3 Internal External Matrix

Figure 9: Internal External Matrix After doing internal evaluation matrix and external evaluation matrix we got the total weighted score from these matrices which help us to locate where we fall in the Internal External matrix. In this case the EFE total weighted score is 3.2 and that of IFE is 2.63. When these two scores are plotted in IE matrix Karesabari falls in second cell as represented by circle in the above IE matrix. It shows that Karesabari needs to adopt grow and build strategy. Karesabari needs to adopt concentrated growth or market development but concentrated growth will be the best option as Karesabari have numerous opportunities and strength that can utilize those opportunities.

4.4 Quantitative Strategic Planning Matrix

This technique helps to clear the confusion and makes it able to choose from the alternatives of strategies. This tool allows strategists to evaluate alternative strategies objectively, based on previously identified external and internal critical success factors. Quantitative Strategic Planning Matrix of Karesabari is shown below.

Figure 10: Quantitative Strategic Planning Matrix From the initial period there was the dilemma of whether choosing concentration growth or market development. Result supports concentrated growth over market development as total attractiveness score of concentrated growth is higher than market development.

Chapter V Strategic Implementation and Control

5.1 Organizational Structure
Karesabari currently has five investors who are in Board of Director. The firm has one chairman and under him is one Chief Executive Officer and under him there are four functional manager namely Holistic Manager, Purchase/Operation Manager and Human Resource/ Finance Manager. And twelve employees are working under three functional managers. Right now Karesabari is pursuing the Functional Structure as it is concentrating in definite geographical area and few numbers of stores. Since it is a small company the functional structure suits the best for its current strategy of concentrated growth. Karesabari in short period of time not grabbing another near strategy which is market development should maintain its functional structure currently. If it gets stronger in financial term and is capable of expanding to far geographic region then it must slowly pursue the Divisional structure by geographic area.

Figure 11: Organizational Structure

5.2 Matching strategy with organization culture

The core culture of Karesabari directly supports the company mission. The quality service has become a deep rooted culture among all the employees. And Karesabari is continuously following its strong culture since its establishment period. Away from that, the culture of predefined roles and responsibilities helps in minimizing the probable conflict appearing among the employees. Since in Karesabari there is little change required to implement the strategy of concentrated growth, the compatibility of existing culture with the new strategy greatly resembles. Hence, Karesabari needs implement synergistic culture.

Figure 12: Matching strategy with organization culture

5.3 Matching Leadership with Strategy

Every organization needs a leader (and preferably several leaders) to "show the way" to others as the organization strives to define and achieve its goals. At Karesabari the three investors are equally enthusiastic and self-motivating. The main work of leaders here is to instill a sense of purpose and passion to the work that the organization undertakes. The performance of leaders in Karesabari is very satisfactory. A strong blend of knowledge,

skill, capabilities and creativity of the leaders of Karesabari has proved to be very effective for the company. Right now Karesabari must concentrate in penetrating the current market more effectively therefore changes required to implement this strategy are few. Karesabari needs to maintain its current leadership style and go with stability.

Figure 13: Matching Leadership with Strategy

5.4 Short term objectives and Functional tactics

Short Term Objectives Formulating only long term objectives will not do much of the work. In order to achieve and comply with the long term objectives short term objectives have to be developed. These objectives are designed to be achieved within 10 months period. Following are the list of short term objectives: To increase the number of outlets from 10 to 15 To increase the number of customer from 100 to 200 through the use of promotional activities To provide better service to customer by increasing the number of trained employees from 12 to 29 To advance with the IT by decorating and maintaining the website.

Functional Tactics As soon as short term objectives are made they need to be translated to functional tactics which are the routine works that needs to be done so that short terms objectives can be obtained in a concrete manner. Some of the specific functional tactics Karesabari is doing are: Tie up with Jyoti Group for the functional and operational management. For customers retention and attracting new customers providing membership card to the customers, offering some goods/service to those customers who buys beyond the limit of Rs.500. Flyer, Pamphlets and social network will be used for grabbing customer attention. Home page of the website will be made attractive which will include updated price list of the vegetables. So, with the functional tactics in place, there will be need for the control mechanism so that the implementation of the strategy will be in the right direction. Control mechanism will ensure that we do not deviate from the strategy that is being implemented. Feedback will be taken on how the activities are being done to be intact with the strategy.

Chapter VI Conclusion
Karesabari is one of the first of its kind in vegetable retail vegetable store started by the private sector. With the vegetable market growing and the consumer consciousness in having fresh and hygienic vegetable the prospect of the market seems to be very promising. With the mission to be the leading vegetable retail store and vision of fresh vegetables to all, Karesabari has been fulfilling its promise in socially responsible manner. Through the Porters five force model it seems that the competitive situation is very fierce due to which differentiation is necessary and the margin is decreasing. The environment seems to be much confusing due to the instability in the political scenario. But due to the strength of Karesabari it has been able to cope with the opportunities that have come in the way. As per internal analysis it was seen that Karesabari has internal resources that can help to overcome its weakness and pursue concentrated growth strategy which will help it to cater the larger base of customer. In case of strategic it adopts the differentiation strategy which is a sound strategy for the time being but as the number of outlets will increase and more competition will be on price it should also look for the cost leadership and the combination of these strategies will make it even more competitive in the market. Also organization culture leadership and structure are in synchronization with the current strategy but they will have to be reviewed as the concentration will occur in the coming periods. From all these we can say is the vegetable retail market is growing, is facing stiff competition and Karesabari is doing good and needs to closely watch the competitors move opt for concentrated growth strategy to be more visible in the market and satisfy more consumers.

List of figures
Figure 1: Porter's five forces model Figure 2: EFE matrix Figure 3: Strategic Group Mapping Figure 4: Value chain analysis Figure 5: SWOT analysis diagram Figure 6: IFE matrix Figure 7: Porter's five generic strategies Figure 8: Grand Strategy Cluster Matrix Figure 9: Internal External Matrix Figure 10: Quantitative Strategic Planning Matrix Figure 11: Organizational Structure Figure 12: Matching strategy with organization culture Figure 13: Matching Leadership with Strategy 7 10 11 12 18 19 20 21 22 23 24 25 26

Table of Content
Chapter I Introduction 1.1 1.2 1.3 About the company Present Scenario Mission, Vision and Corporate Social Responsibility 1 1 1 2 3 5 5 5 8 10 11 12 12 12 15 16 18 20 20

Chapter II External Assessment 2.1 Porters five forces model 2.2 PESTEL Analysis 2.3 External Factor Evaluation Matrix 2.4 Strategic Group Mapping Chapter III Internal Assessment 3.1 Value Chain Analysis 3.2 Resource Based View 3.3 SWOT Analysis 3.4 Internal Factor Evaluation Matrix Chapter IV Strategic Analysis and Choice

4.1 Porters Five Generic Strategies 4.2 Grand Strategy Cluster Matrix 4.3 Internal External Matrix 4.4 Quantitative Strategic Planning Matrix Chapter V Strategic Implementation and Control 5.1 Organizational Structure 5.2 Matching strategy with organization culture 5.3 Matching Leadership with Strategy 5.4 Short term objectives and Functional tactics

20 21 22 23 24 24 24 25 25 26