Comprehensive Analysis of Shoe Mart's Business Operations and Growth

This report presents a comprehensive analysis of Shoe Mart Limited, a retail business specializing in children's shoes and accessories in Trinidad. The study investigates the company's operational challenges, including a lack of formal documentation, limited customer service training, and the impact of competition. The research employs both quantitative and qualitative methods, including questionnaires and SWOT analysis, to assess the company's strengths, weaknesses, opportunities, and threats. Key findings reveal issues related to customer service, employee satisfaction, and the need for strategic planning. The report concludes with specific recommendations, such as improving store appearance, developing an online presence, implementing employee training programs, and creating a strategic plan to enhance profitability and market competitiveness. The analysis also considers external factors like currency shortages and competition from larger retailers.

An Investigation into the Business Operations of Shoe Mart
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[Company name]
[Company address]

Executive summary
Shoe Mart Limited is recognized as one of the growing business organization dealing in kid’s
shoe along with accessories throughout van in central part as well as various parts of
Trinidad. The primary purpose of the paper is to provide in-depth business operation analysis
of Shoe Mart Limited and evaluation of the number of issues related to its development and
growth. It is vital for the firm to enhance the customer service department and he strategic
direction in order to boost the overall productivity and profitability of the organization to a
great extent. SWOT analysis will help in identifying the strengths, weaknesses, threats as
well as the opportunities of the organization throughout the concerned business market
segments. There are few of the issues such as the lack of the formal documentation as well as
the formulation of the effective strategic measures and the efficient growth strategy which
has restricted the development of the organization. Review of few literatures will also be
provided in order to evaluate the key findings about the researchers that will help in
evaluating the desired growth of the firm throughout the concerned market areas. The
research method used for carrying this research is quantitative and qualitative.
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CHAPTER 1
INTRODUCTION
1.1Background
Shoe Mart Limited was founded in 2009 by Mr. Thomas. Initially the company started out
selling kid’s shoes and accessories in the back of van in the central and southern parts of
Trinidad. After three years of operations the company transitioned from the van to a fixed
retail location in order to compete directly with competitors in the industry. Since the
transition, the company has encountered a number of difficulties as it relates to growth and
development, turnover in sales were low as a result of major competitors such as Payless
which led to Mr. Thomas not able to purchase a larger variety of products from suppliers.
Profitability was limited as a result of a small number of customers as well as the low mark-
up on kid’s shoes and accessories. After opening the retail branch for more than four years,
Shoe Mart have realized profits only in the sum of $ 20,000.00 in the financial year 2017.
1.2 Statement of the Problem
After an in-depth analysis into the operations of Shoe Mart, the following problems have
been identified.
i. Lack of formal documentation such as a strategic plan, marketing growth strategy,
standard operating procedures and no customer service training for employees
ii. No accounting information system in place
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1.3 Significance of the Research
This research will not only be beneficial to Shoe Mart’s business operations but will also be a
catalyst for other small business in the industry. According to Scarborough & Zimmerer,
1987 cited in Gaskill & Van Auken, 1994, “Through long-term strategic planning, businesses
create a plan for market differentiation and positioning leading to greater levels of success”
(p. 21).
1.4 Scope of the Research
This research considers the viability of the business in a broad operational and managerial
perspective, it does not cover a comprehensive financial analysis of the business. Due to the
time constraint, the research was restricted to only a few businesses operating in the same
strip mall as Shoe Mart.
1.5 Review of Related Literature
Bracker, Keats & Pearson (1988), identified eight planning components that should be clearly
present for small business strategy sessions. These include objective setting, environmental
analysis, SWOT analysis, strategy formulation, financial projections, functional budgets,
operating performance measurement, and control procedures.
Kotler & Murphy (1981), both describes strategic planning as a guide for organizational
decision making to align strengths and opportunities in order to maximize performance.
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Jennings, Banfield & Beaver (1996), describes key elements of training as it relates to small
businesses. The authors affirm that effective training play a key role in the expansion and
growth of small businesses. The authors further explains that the owner or manager is in a
critical position to support training, engaging the company or business in relevant training
will allow for employees‟ to gain knowledge and ultimately allow the business to improve its
profitability. For example, Telstra Corporation has enhanced the measures of employee
engagement by 79% and this is because of the effective training programs and guidance
arranged and delivered to all of the employee (Picture & Serie, 2018).
Dong-Hun (2010), noted four key values of social media for businesses. These include: 1.
Time: Speed and Durability; 2. Audience: Plurality and Diversity; 3. Cost: Feasibility and
Effectiveness; 4. Relations: Friendliness and Credibility. The author also states that social
media present new opportunities for businesses as there is an increasing emergence of diverse
social media.
1.6 Methods of the Research
In the investigation of these problems, the SWOT analytical concept were used. Data for the
research was collected via questionnaires and industry research reports. According to
Zikmund et.al. (2013, p.134), “quantitative business research can be defined as business
research that addresses research objectives through empirical assessments that involve
numerical measurement and analysis approaches. Qualitative research is more apt to stand
on its own in the sense that it requires less interpretation”. For example, in this study,
questionnaires (quantitative) will be used to gather data and market statistics, which can be
backup with in depth selected interviews (qualitative).
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CHAPTER 2
FINDINGS, CONCLUSION AND RECOMMENDATIONS
2.1Introduction
This research was designed to determine the growth and strategy problems of Shoe Mart and
make recommendations. Fifty questions were distributed to the employees and customers and
another questionnaire with forty questions were given to management of which the response
rate was 85.0%. This section includes the Findings, Conclusion and Recommendations.
2.2Findings
The findings will present information about the business internal and external environment
through a Data Analysis and SWOT analysis.
2.2.1 Data Analysis
Questionnaires were given out to seventy-five (75) customers, the following were
revealed:
i. More females shopped at Shoe Mart who were aged between 26 to 40 years
with an average monthly income of $10-15k
ii. 75% agreed the store is located in a convenient location
iii. The majority agreed to an online store
iv. 50% found the staff to be disconnected and unfriendly
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Questionnaires were given out to all six (6) employees, the following were revealed:
i. 100% expressed unhappiness with the workplace
ii. 75% indicated they didn’t have the tools needed to do their job effectively
iii. 100% felt the need for a salary increase and stated the store is always
understaffed
iv. 75% indicated they were willing to listen more about the business goals and
future goals
2.2.2 SWOT Analysis
Strengths
i. Location
Shoe Mart is located in a strip-mall which is located in on High Street, San-Fernando
one of the busiest streets in the city. The mall is easily accessible which also offers
parking and security.
ii. Product
Shoe Mart offers high quality items by offering limited number of selections which
shows the business uniqueness. Compared to Payless Shoe source, which offers mass
produced items.
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2.2.3 Weaknesses
i. Size (Layout and Design)
The store occupies only two hundred (200) square feet. The limited square footage
creates a clutter and as such no more than five (5) customers can be attended to at
once. Also, the limited square footage limits the layout and design options for the
business.
ii. Customer Service Training for Employees
Forbes contributor stated, “people who interact directly with a customer must have a
skillset and mind-set to meet or exceed a customer’s expectations. Some of the more
important traits and abilities might be friendliness, empathy, communication skills,
problem solving, patience and more” (Hyken, 2017). An underpinning weakness of
Shoe Mart is the lack of employee customer service training and development which
is an integral part of the business operations.
iii. Lack of Vision and Mission statement, Core Values
Development of a vision, mission statement and core values is important to a business
for strategic direction and a move towards change. Articulating these components will
help communicate management’s goals and plans which will help employees stay
motivated and engaged (Hawthorne, 2018). For example, successful companies who
truly exemplify these components are Disney, Amazon and Google.
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2.2.4 Opportunities
i. Growing an Online Presence
We live in a digital world where with a click of a button, we can make purchases quite
easily. In Vmoksha blog the author stated that businesses will experience significant
gains with having an online presence due to having (1) a greater exposure, (2) reduced
marketing cost, (3) brand development and (4) higher revenues (Devarajan, n.d.). In
order for Shoe Mart to reach a wider market, increase its market share and generate
revenue the creation of an online presence is inherent
2.2.5 Threats
i. Competition
International brand like Payless Shoe source have been the main competitor to Shoe
Mart. It is located opposite the strip mall but is very spacious and has a wider variety
of kid’s shoes and accessories which caters to boys, girls and babies. Payless also
offers credit card services and online shopping. Also, the company in December 2017
contributed to the Shoes4Kids initiative giving four hundred (400) new pairs of shoes
to children most in need of footwear (LOOP News, 2017).
ii. Rent
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Shoe Mart suffers from yearly rent increases which eats away at their small profit
margins.
iii. High Staff Turnover
The results of the questionnaires showed, Shoe Mart having a pool of employees
who work on a part-time basis meaning, someone may only work four hours
which puts a strain on the remaining personnel. Despite having access to a pool of
employees, some days the store is ran with the manager and one (1) other person.
Furthermore, these employees have less than three (3) months service with the
company which means they are either not motivated in the job or bored. For
example, the workers at the McDonald Corporation criticised the senior
management and posted a rating of 2.7 out of 5 for issues related to career
opportunities, culture as well as the work life-balance and this increased the
employee turnover ratio for the firm (Burn-Callander, 2015).
iv. Shortage of USD currency
According to the UTC Advisory Services (2017), due to the decline in oil prices
“availability of foreign exchange (FX) has been drastically reduced, which is a
major concern for most people in Trinidad and Tobago. The FX market has been
tight since 2015 and the demand for FX is outstripping the supply, with no signs
of improvements in the near future. This greatly affects the availability of US
dollars”. The shortage in US currency is greatly affecting the operations of Shoe
Mart because suppliers can’t be paid.
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2.3 Conclusion
This report looked at an in-depth analysis of Shoe Mart’s business operations and identified
that a number of difficulties arose as it relates to growth and development. The findings of
the report indicated Shoe Mart operations lacked vital strategic planning elements which can
take the business to a next level. For this report, it can be concluded that to improve customer
service, strategic direction and profitability, management needs to quickly address the
problems by implementing various policies and action plans.
2.4Recommendations
Based on the findings and conclusion of this research, the following recommendations are
made:
i. Upgrading the appearance of the store
ii. Implement policies focused on, creating an online presence, the development and
coordination of a quality customer service employee training workshop, the
development of a strategic plan and installation of free Wi Fi at the stores location.
iii. Devise a loyalty program plan
iv. New hiring of an experienced store manager and contracting a few of the employees
on a full-time bases
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BIBLIOGRAPHY
Bracker, J., Keats, B. and Pearson, J. (1988). Planning and financial performance among
small firms in a growth industry. Strategic Management Journal, 9(6).
Burn-Callander, R. (2015). Employees send McDonald's to bottom of top 10 ranking of fast
food chains. Telegraph.co.uk. Retrieved 3 May 2018, from
https://www.telegraph.co.uk/finance/jobs/11786866/Its-official-Flipping-burgers-at-
McDonalds-is-the-worst-fast-food-job-in-the-UK.html
Devarajan, N. (n.d.). How important is it for a business to have an online presence?. [Blog]
Vmoksha. Available at: https://vmokshagroup.com/blog/how-important-is-it-for-a-
business-to-have-an-online-presence/ [Accessed 30 Apr. 2018].
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