Romero, Roi Vincent Q.

August 25, 2018

Strategic Management Dr. Roberto Manaois

Chapter I

Thesis Title:

Efficiency of Robinsons Supermarket Corporation’s Supply Chain Management in achieving

Organization Expansion

Problem Statement:

How efficient the Supply Chain Management of Robinsons Supermarket Corporation been to

promote Organizational Expansion?

Objectives of the study:

General Objective

To assess the efficiency of Robinsons Supermarket Corporation’s supply chain management

to promote organizational expansion.

Specific Objectives

1. To make a market profile of the Retail industry

2. To make a corporate profile of Robinsons Supermarket Corporation

3. To make demographic profile of the respondents

4. To identify and discuss the indicators of supply chain management

5. To identify measures of efficiency of supply chain management

6. To assess the efficiency of supply chain management of RSC (2013-2018)

7. To identify the indicators of organizational expansion

8. To measure organizational expansion of RSC

9. To establish the relationship of organizational expansion and efficient supply chain

management
10. To recommend / create an appropriate (QMPS model) for the Robinsons Supermarket

Corporation (2019-2023)

Chapter II

Review of Related Literature

Supply chain management (SCM) practices may be defined as a set of activities

undertaken to promote effective and efficient management of supply chains. These include
supplier partnership, physical movement of goods, meeting customer demands and
information sharing throughout the supply chain. Some of the key SCM practices that impact
performance are related to estimation of customer needs, efficient and effective delivery,
integration and collaboration throughout the supply chain, sharing of information and vision
using ICT as well as informal methods and use of specialists for performing specific jobs
across the supply chain. All of these practices impact logistics and supply chain performance.
Supply chain is the network that the business develops with its suppliers and customers.
Suppliers pertain to all external entities that provide the firm resources that are needed in the
efficient operations of the business.
Supply chain management stresses the seamless integration of value-creating
activities across organizational boundaries. It enables firms in a supply chain to eliminate
waste, leverage synergies and compete more effectively in an intensely competitive global
market. Accordingly, a strategic focus on managing the supply chain represents a top-level
management initiative to integrate value-adding activities across both functional and
organizational boundaries. The specific strategy adopted depends on, among other factors,
industry, product type, and level of integration.
In the ever changing competitive environment, organizations are constantly required
to make substantial internal modifications to compete successfully in the global marketplace
(Defee and Stank, 2005; Schoenherr, 2009; Wu and Barnes, 2011). The strategic supply chain
management (SCM) literature focusses on firm reaction to this tumultuous global
environment for competitive advantage (Ronda-Pupo and Guerras-Martin, 2012). This has
led to the adage of supply chains competing against supply chains. Within this setting, key
aspects of competitiveness are encapsulated within the knowledge of logistics and supply
chain partners, making knowledge management within the supply chain an important area of
study (Craighead et al. 2009). Research now suggests that supply chain management (SCM)
can be considered a key resource for firms to obtain global superior performance (Hofmann,
2010). One reason is that SCM’s workforce is in constant contact with the organizations’
external environment and they act as knowledge gatherers for strategy formulation (Shore
and Venkatachalam, 2008).
The notion of Supply Chain management as used in many research is usually linked
with the globalization of producing and the penchant for manufacturers to source their inputs
planetary, which necessitates management of profitable ways of regulating worldwide flows
of inputs or outputs. The principal focus of market competition in such situations is not only
between goods, but between the Supply Chains delivering the goods. As competition in
international markets is progressively dependent upon the of arrival time of goods as well as
their quality, coordination between suppliers and distributors has become an important
characteristic of the Supply Chain. As the customer satisfaction is a crucial benchmark of the
success of the Supply Chain, effective management of the linking processes is crucial
(Trkman, P., Stemberger, M. and Jaklic, J., 2009). Additionally, market uncertainty
necessitates Supply Chains to be easily flexible to changes in the situation of trade. Such
flexibility in supply requires effective Supply Chain Management. Supply Chain
management is aimed at examining and managing Supply Chain networks. The rationale for
this concept is the opportunity (alternative) for cost savings and better customer service. An
important objective is to improve a corporate’s competitiveness in the global marketplace in
spite of hard competitive forces and promptly changing customer needs (Langley, C., Coyle,
J., Gibson, B., Novack, R. and Bardi, E., 2008).

Supply Chain Management Practices

Supplier partnership
The relationship between focal and supplier firms can determine the supply chain
(SC) risks and the resulting success (or failure) in managing them and enhancing
organizational performance. Characteristics of relationships with industrial partners should
include the following: (a) formalization; (b) dependency: mutual or unilateral; (c) making
decisions: forced and/ or free; (d) trust: mutual or unilateral; (e) information exchange:
quantity, quality, frequency, formalized or not. Volume of activity with this partner; (g)
duration; (h) importance of this partner in the firm by turnover; (i) geographic location; and
(j) financial performance.
Formalization of the relationship with partners means removing ambiguities and
establishing rules and procedures (these rules and procedure can be formal or informal). In
this way, formalization contributes to enhanced performance. Sometimes, it may be necessary
to formalize the relationship, whether by establishing methods of conflict resolution, sharing
responsibilities or establishing common information systems or modes of communication. In
the industrial relationship, dependency refers to the influence of decision-making (one partner
imposing its decision on the other or joint decision-making) and pooling of earnings. When
examining an industrial relationship, the word ‘trust’ applies to many varied aspects: culture
and shared values, integrity, sincerity, honesty, transparency, good will, proximity,
predictability, competence and expertise of partners, and respecting confidentiality of
exchanged information.
The ‘strength’ of the relationship can influence supply chain management risk
(SCRM) through information flow and exchanges between partners: for example, with
precise forecasting, production can be levelled, risk of stock disruptions and cost of urgent
deliveries reduced, with information on delivery delays from materials suppliers the firm can
anticipate problems and change production planning. The second avenue of influence is
through volume of activity with partners, in the form of exchanges of physical flows and the
importance of turnover. The duration of the relationship can be an influential element in
SCRM and impact its efficiency. The longer the relationship between firms, the greater the
mutual knowledge and control over the processes, and with a bit of luck, the more efficient
the SCRM.
Supply chain management (SCM) requires integration and coordination of business
processes throughout the supply chain for the purpose of satisfying and responding to
changes in consumer demand. The efficiency of supplier relationship is influenced by nature
and frequency of information sharing among functional areas (Lambert and Cooper, 2010).
Gundlach et al. (2006) argued that the integration and coordination of marketing strategies
across the supply chain offers “continued opportunity” for cross-disciplinary research. The
ability to integrate and coordinate becomes paramount in satisfying the demands of the
ultimate customers of the supply chain (Green et al., 2008). Many researchers argue that
SCM creates competitive values through the active involvement of supply chain entities
(Jeong and Hong, 2007). Successful SCM initiatives require cross-functional integration and
marketing must play a critical role. The challenge is to determine how to successfully
accomplish this integration (Lambert and Cooper, 2009). Lummus et al. (2013) examined the
impact of marketing initiatives on the SCM and demonstrated that not only do SCM actions
affect marketing but also that marketing actions can have a significant impact on supply
chains. SCM operations constantly strive to increase capacity utilization, with both entities
operating on local optima. As a result, sales forecasts are not in line with the actual demand
trend and the supply chain operation is on different lines. This deviation from demand reality
leads to scenarios with inventory stock outs or huge inventory pile up (Sarangi and Srivatsan,
2009). Despite strong arguments for an integrated approach, in many businesses, the supply
side still seems to be disconnected from the demand side and supply chain managers have
only a faint idea of the drivers behind customer demand (Jüttner et al., 2007). Mentzer and
Moon (2004) concluded that many firms have failed to realize that supply chain coordination
is not possible without an adequate understanding of demand.

Movement of goods
Just-In-time and supply chain management practices argued that supply chain
efficiency is contingent on the effectiveness and ability of individual supply chain members
to connect (Olhager 2012). The author analyzed supply chain management from a just-in-
time perspective, focusing on linkages between supply chain members and the chain’s
collective efficiency. Results showed that lead-time conformity has a greater impact on
supply chain lead-time performance than processing time equivalency. The reductions in
inventory means that manufacturers must ensure that incoming materials and component
parts are of the quality and quantity expected, and that deliveries are on-time. To achieve this,
many organizations adopt relationships with key suppliers to share confidential information
and technology. Instead of relying on inspection of incoming materials and component parts,
they certify strategic suppliers’ processes and/or products. A firm with advanced just-in-time
capability is likely to place significant emphasis on such practices
Just-in-time capability and firm performance. The role of just-in-time capability as a
contributor to firm performance is well documented. It is based on the notion that simplifying
manufacturing processes and reducing variation eliminates waste, thereby reducing cost and
lead times and increasing quality. This in turn leads to improvements in measures of firm
performance (e.g., Nakamura et al. 1998, Callen et al. 2000, Fullerton and McWatters 2011).
Kim and Ha (2008) showed that optimal just-in-time delivery policies, when adopted by both
buyers and suppliers in a cooperative manner, were economically beneficial to both parties.
The growth of Just-in-Time and Quick Response inventory management and third-
party Supply Chain Management requires all participants in the Supply Chain Management
chain to consider shorter cycle time a competitive advantage. Manufacturers, distributors, and
some carriers effectively use information technology to reduce cycle times and improve the
quality of freight handling. Package handlers use the technology to great competitive
advantage.
Various just-in-time practices, including setup time reduction, process standardization
and preventive maintenance, frequent deliveries of small lot sizes, continuous improvement
efforts, and top management involvement have been observed in the manufacturing sector.
While the capability and extent of just-in-time implementation differs by firm, industry and
manufacturing environment firms that are more advanced in their capabilities can be expected
to use resources more efficiently and effectively, thereby yielding greater benefits.

Meeting customer demand

Supply chain and demand chain. Since consumers are the focus of firm’s value
chain’s existence, consumer demand should be at the core of its business strategy. In doing
so, the supply chain transforms itself into the so-called demand-driven chain (Langabeer and
Rose, 2010) or, simply, a demand chain. It means that the organizations, instead of
employing a traditional “one-size-fits-all” supply chain strategy, develop several supply chain
solutions, each one appropriate to a specific product or market condition, by combining
different supply and distribution strategies. Marketing combined with dynamic SCM provides
greater flexibility to satisfy customer demand based on the needs of individual customers and
their value to a firm. To be successful, the business organization not only needs to focus on
the supply chain, but also on the demand chain. Hence, Demand Chain Management (DCM)
provides competitive advantage to the firm by enhancing its supply chain’s ability to focus on
and respond to changes in customer demands.
In the past decade, business has learnt that the supply chain can be made more
efficient in order to decrease lead times and related sales forecast errors. But now focus is
shifted on knowing about consumers’ desires in order to decrease costs related to forced
markdowns or stock outs. As customers are increasingly becoming more demanding, firms
place more emphasis on customer service. Achieving better levels of customer service
requires working together across different departments or functions of a firm (Ellinger, 2007).
Cost efficiency is the most cited goal in SCM according to Wang and Wei (2007). The notion
that an effective supply chain alone will ensure adequate end customer satisfaction by
reducing costs and therefore prices is not necessarily an adequate model by itself.
High-speed, low-cost supply chains are unable to respond to unexpected changes in
demand or supply. Efficient supply chains often become uncompetitive because they do not
adapt to changes in the structures of markets. Supply chain efficiency is necessary, but it is
not enough to ensure that firms will do better than their rivals (Lee, 2004). SCM focuses on
the efficient matching of supply with demand but does not help the firm to find out what the
customer perceives as valuable, and how this customer-perceived value can be translated into
customer-value propositions. This suggests that a purely mechanistic supply chain approach
entirely driven by cost efficiency needs to be replaced with a broader view of overall
effectiveness. Hence, SCM efficiency by itself will not increase customer value and
satisfaction.
There is an interdependent relationship between supply and demand: firms need to
understand customer demand before they can manage it, create future demand and, of course,
meet the level of desired customer satisfaction. Demand defines the supply chain target,
while supply-side capabilities support and sustain demand. The focus of supply chain is on
supply of materials, while the focus of demand chain is on market demand (Madhani, 2013).
The difference between SCM and DCM is: SCM focuses upon the creation of offerings and
their transfer, flowing from suppliers to consumers, while DCM is based on identifying
customer needs and the transfer of demand signals from the market (Cambra-Fierro and Polo-
Redondo, 2008).
In order to improve competitiveness, companies began realize the potential of
information technology to dramatically transform their business. Instead of automating old,
inefficient processes, companies began to reengineer business processes using technology as
the enabler. This led to emerge Supply chain management models. A supply chain includes
manufacturer, supplier, transporters, warehouses, retailer, third-party logistic provider, and
customer. The objective of supply chain management is to maximize the overall value
generated rather than profit generated in a particular supply chain. The American professional
association defined the SCM, "Supply chain management encompasses the planning and
management of all activities involved in sourcing and procurement, conversion, and all
logistics management activities. Importantly, it also includes coordination and collaboration
with channel partners, which can be suppliers, intermediaries, third party service providers,
and customers"

Information sharing throughout the supply chain

Level of information sharing: Information sharing has two aspects: quantity and
quality. Both aspects are important for the practices of SCM and have been treated as
independent constructs in the past SCM studies. Level (quantity aspect) of information
sharing refers to the extent to which critical and proprietary information is communicated to
one’s supply chain partner. Shared information can vary from strategic to tactical in nature
and from information about logistics activities to general market and customer information.
Many researchers have suggested that the key to the seamless supply chain is making
available undistorted and up-to-date marketing data at every node within the supply chain. By
taking the data available and sharing it with other parties within the supply chain, information
can be used as a source of competitive advantage. Lalonde (2008) considers sharing of
information as one of five building blocks that characterize a solid supply chain relationship.
According to Stein and Sweat [50], supply chain partners who exchange information
regularly are able to work as a single entity. Together, they can understand the needs of the
end customer better and hence can respond to market change quicker. Moreover, Tompkins
and Ang (2009) consider the effective use of relevant and timely information by all functional
elements within the supply chain as a key competitive and distinguishing factor.
Quality of information sharing includes such aspects as the accuracy, timeliness,
adequacy, and credibility of information exchanged. While information sharing is important,
the significance of its impact on SCM depends on what information is shared, when and how
it is shared, and with whom. Divergent interests and opportunistic behavior of supply chain
partners, and informational asymmetries across supply chain affect the quality of information.
It has been suggested that organizations will deliberately distort information that can
potentially reach not only their competitors, but also their own suppliers and customers. It
appears that there is a built in reluctance within organizations to give away more than
minimal information since information disclosure is perceived as a loss of power. Given these
predispositions, ensuring the quality of the shared information becomes a critical aspect of
effective SCM. Organizations need to view their information as a strategic asset and ensure
that it flows with minimum delay and distortion.

Supply chain and Supermarket

The retail industry specifically the supermarket is one of the largest and most
important industries in the modern marketplace. Over the past seventy years, supermarkets
and grocery stores have evolved into some of the most convenient and diverse businesses in
the world. This evolution would not have been possible without effective supply chain
management. This management must be present at all levels of the supply chain and in all
aspects of business in order for it to be truly effective and foster growth and success within
the industry. Recent technological and logistical advancements have made supply chain
management within the grocery industry even more successful. Things such as electronic data
interchange, third party logistics providers, supply chain modelling, and customer
relationship management have all helped to further the growth and success of the grocery
industry. With the increasing availability of information systems and enterprise resource
planning software, supply chain management in the grocery industry is becoming an even
more effective tool to help businesses grow. In the future, the most successful businesses in
the grocery industry will be those who manage their supply chains the most effectively.
Nevertheless, in reality nowadays supply chains especially these of Fast Moving
Consumer Goods (FMCG) conceal numerous inefficiencies existing in the collaboration with
trading partners. These inefficiencies are shown in the following figure (Figure 1).

Figure 1.

From the presented inefficiencies in the upstream side, it is worth mentioning the
problem of high out-of-stock situations, the high returns rate, and of course the general long
lead times. Accordingly, in the downstream side we should stress the low forecast accuracy,
the low on shelf availability and generally the fact that the replenishment it is not consumer
based. On the top of that, because of information problems encountered, there are
inefficiencies in the forecast and replenishment process. These inefficiencies can be
summarized as follows:
• Firstly, because of the low demand forecast accuracy the trading partners often use
increased inventory levels to address unpredictable demand, thus resulting in increased
supply chain costs.
 • Secondly, there is a high supply variability that is a consequence of unstable process
cycle times and it is compensated through time, inventory and capacity buffers in other words
more capital investments.
• Thirdly, there is limited visibility of the supply chain due to disconnected systems,
limited collaboration among trading partners and reduced information sharing. This limited
visibility is particular true for the management of promotional events.
• Lastly, inefficient use of consumer data exists; the replenishment is typically based
on estimation center level, not driven by true consumer demand data. Opportunities to change
from a “Make to Stock” to “Make to Order” environment are not realized yet.
It is evident from the previous analysis that there is lot of space for improvements and
that the inefficiencies should turn out to be opportunities for the innovators that will leverage
the information technology advances. This will enhance the supply chain with rich
information about consumer needs and behavior as well as with product identification within
the store. Moreover, it will extend the supply chain beyond in-store Point Of Sales (POS)
data by incorporating new entities, such as the consumer’s household and the consumer on-
the-move. It should be evident by now that the supermarket concept consists of value-adding
elements that emerged from real business needs and true requirements.

Organizational Growth
Most firms desire growth in order to prosper and not just to survive. Organizational
growth, however, means different things to different organizations. Indeed, there are many
parameters a company can select to measure its growth. The most meaningful yardstick is
one that shows progress with respect to an organization's stated goals. The ultimate goal of
most companies is profit, so net profit, revenue, and other financial data are often utilized as
"bottom-line" indications of growth. Other business owners, meanwhile, may use sales
figures, number of employees, physical expansion, or other criteria to judge organizational
growth. Many firms desire growth because it is seen generally as a sign of success, progress.
Organizational growth is, in fact, used as one indicator of effectiveness for small and large
businesses and is a fundamental concern of many practicing managers. (Cole,2002)
Ultimately, success and growth of an organization will be gauged by how well a firm
does relative to the goals it has set for itself. Strategic planning is a key driver of
organizational growth, Since it has to emerge as a strategic business partner helping the top
management build an organization that is good not just for today, but for tomorrow and
beyond. It is now working with the top management to propel the organization forward.
Strategic planning should be reviewed and we stopped looking at what is happening in other
strategies and start looking at best strategic planning practices in large corporates.
Strategic planning has been defined as the process of formulating, implementing and
evaluating business strategies to achieve future objectives. Ansoff (2007) viewed strategy
planning as the common thread in an Organization’s business growth and the product scope
of an organization. All managers are involved in planning but the nature of policies and plans
set out by supervisors will vary with each manager’s authority. While senior executives plan
the direction of the organization, managers at various levels prepare plans for their own
section which are part of the overall aims of the organization. Strategic planning involves
selecting enterprise goals and department objectives, then finding ways of achieving them.
Plans depend upon the existence of alternatives and decisions have to be made regarding
what to do, how to do it, when to do it and by whom it is to be done. A plan is a pre-
determined course of action which helps to provide purpose and direction for members of an
organization. Strategic planning are general and take place at a higher level in the
organization and usually have a longer time horizon ranging from three to five years or more
with annual updates when need be. (Kreither, 2006).
To develop a strategic plan, the plan should contain statement of organization mission
and goals, strategies for obtaining and utilizing the necessary technological, marketing, and
financial and human resources to achieve organization goals. Strategies for manufacturing
process and conducting research and development and utilizing organization and employee
competencies. The evolution of the field of strategic planning since its inception has been
impressive. From its “humble” beginnings as the limited content of a capstone general
management course in the business school curriculum, strategic management is now a firmly
established field in the study of business and organizations. During a relatively short period
of time, this field has witnessed a significant growth on organizations. (Barney, 2014;
Wenefelt, 2014).
Therefore it should be noted that organization growth are marked by either rapid
increases in revenues, company shares, profitability and prospects of it to sustain itself in
future. Organization growth has its basis to a larger extend on strategic planning of the
organization. It’s with this respect that strategic planning should be employed by organization
to enhance their growth (Cole, 2007).

Supply Chain and Organizational growth

 The best companies around the world are discovering a powerful new source of
competitive advantage. It's called supply-chain management and it encompasses all of those
integrated activities that bring product to market and create satisfied customers. The Supply
Chain Management Program integrates topics from manufacturing operations, purchasing,
transportation, and physical distribution into a unified program. Successful supply chain
management, then, coordinates and integrates all of these activities into a seamless process. It
embraces and links all of the partners in the chain. In addition to the departments within the
organization, these partners include vendors, carriers, third party companies, and information
systems providers.
Firms have to keep abreast of their supply chain cost component and its relationship
with their profitability because to a reasonable extent, their continued growth wholly depends
on these factors. SCM integrates functions with primary responsibility of linking major
business functions and processes within and across companies into a cohesive and high
performing business model. It includes all the logistics management activities noted above, as
well as manufacturing operations. It drives coordination of processes and activities within
and across marketing sales, product design, finance, and information technology. Supply
chain management is a major issue in many industries as firms realize the importance of
creating an integrated relationship with their suppliers and consumers. Managing the supply
chain has become a way of improving competitiveness by reducing uncertainty of material
handling and enhancing customer service. SCM is a cross-functional approach that includes
managing the movement of raw materials into an organization, certain aspects of the internal
processing of materials into finished goods, and the movement of finished goods out of the
organization and toward the end consumer. As organizations strive to focus on core
competencies and becoming more flexible, they reduce their ownership of raw materials
sources and distribution channels. These functions are increasingly being outsourced to other
firms that can perform the activities better or more cost effectively. The effect is to increase
the number of organizations involved in satisfying customer demand, while reducing
managerial control of daily logistics operations. Less control and more supply chain partners
led to the creation of the concept of supply chain management. The purpose of supply chain
management is to improve trust and collaboration among supply chain partners, thus
improving inventory visibility and the velocity of inventory movement.
The business terrain in which firms operate has witnessed tremendous change in the
past in terms material sourcing, customer satisfaction, inventory management and overall
profitability. The level of globalization, which entails that many organizations find
themselves operating in a highly competitive international market and the use of highly
advanced strategy and technologies have challenged the very basic principles and ideologies
of business management and marketing Management. To compete in a global environment,
therefore, organizations have had to change in order to sustain growth and break new
frontiers. As a result, most industries have transformed completely from manual processes to
complicated, automated and computerized technologies and strategies (Minoli, 2005).
Within the organization, the supply chain refers to a wide range of functional areas.
These include Supply Chain Management-related activities such as inbound and outbound
transportation, warehousing, and inventory control. Sourcing, procurement, and supply
management fall under the supply-chain umbrella, too. Forecasting, production planning and
scheduling, order processing, and customer service all are part of the process as well.
Importantly, it also embodies the information systems so necessary to monitor all of these
activities.
Simply stated, "The supply chain encompasses all of those activities associated with
moving goods from the raw-materials stage through to the end user." Advocates for this
business process realized that significant productivity increases could only come from
managing relationships, information, and material flow across enterprise borders. One of the
best definitions of supply-chain management offered to date comes from Bernard J. (Bud)
LaLonde (2008), professor emeritus of Supply Chain Management at Ohio State University.
LaLonde (2008) defines supply-chain management as follows: "The delivery of enhanced
customer and economic value through synchronized management of the flow of physical
goods and associated information from sourcing to consumption”.
 CHAPTER III
Theoretical and Conceptual Framework & Hypotheses

The purpose of the study is to present a theoretical and conceptual framework that the
researcher will use in this study. The theoretical and conceptual framework is based on the
findings in the review of related literature earlier. This will serve as a foundation to the
proposed model of efficient supply chain management and the ensuing discussion will
highlight the relationship and the influence of these theoretical concepts in relation to
organizational expansion. This will also consist the assumptions, theoretical and operational
frameworks, hypotheses, and operational definition.

3.1. Assumptions
The study is based on the following assumptions:
 RSC will provide support and resources during the research process
 The respondents will give 100% effort in accomplishing the survey forms
and;
 Top management will also participate in the study.
3.2. Theoretical Framework

Figure 1: Conceptual Framework of Efficiency on Supply Chain Management

 The framework proposes that supply chain management (SCM) practices will have an
impact on organizational performance both directly and also indirectly through competitive
advantage. SCM practice is conceptualized as a five-dimensional construct. The five
dimensions are strategic supplier partnership, customer relationship, level of information
sharing, quality of information sharing, and postponement. A detailed description of the
development of the SCM practices construct is provided in the following paragraphs.
Competitive advantage and organizational performance are concepts that have been
operationalized in the existing literature.

Figure 2: Conceptual Framework of Retailing - Supermarket

In this model, it is defined by Johanna Småros, Juha-Matti Lehtonen, Patrik Appelqvist,

Jan Holmström which emphasizes on the impact of increasing demand visibility in
production and inventory control efficiency in a retail – supermarket. Hokey Mina, Gengui
Zhou (2002) concentrated on horizontal and vertical structure of retail SCM with focus on
Tier 1, tier 2 and tier 3 supplier and on the other side the customers. Adrian E. Coronado
Mondragon, Andrew C. Lyons (2004) focuses on Manufacturers, warehousing, retailer and
finally the consumer. A model which focuses on stock out, inventory level, transportation
cost, replenishment cost, supply & demand planning, inventory optimization, retail
merchandise, procurement, quality in formulating the SCM practice (Technopack 2012). The
retail value chain works on how the integration happens and how the distributors,
intermediaries and retailers play a major role in the SCM implementation. In one of the
studies done by Cybage company has come out with a model emphasizing on Supply chain
planning, procurement and then execution of SCM practice in manufacturing sector which
looks on a value delivery of the product to the customer.

Figure 3: Conceptual Framework of Organizational Expansion

We further propose that operations capability is an antecedent of these supply chain

management practices, and that insight into the relationship between capability and supply
chain management practice can lead to a better understanding of the relationship between
operations capability and firm performance. As several authors have suggested, the
development of internal operations capabilities are the primary vehicle for operational
excellence within a firm (Hammer and Champy 2008, Morash and Clinton 2006). A logical
extension is that once a firm has developed its internal operations capabilities and
infrastructure, it is in a position to leverage relationships within the supply chain. While the
supply chain management literature debates extensively about collaborative, inter-firm
development of supply chain capabilities, the reality is that firms typically develop an internal
focus prior to involving external partners. The implication however, is that how a firm
manages its supply chain should be considered simultaneously with consideration of the
relationship between internal operations capability and firm performance.
3.3 Operational Framework

Figure 4

3.4 Hypotheses
Figure 4 shows the proposed conceptual framework of the current study. It shows that
there is an existing relationship between efficient supply chain management, retailing –
supermarket, and organizational expansion. More specifically, it shows how the efficiency of
supply chain management been to justify organizational expansion in a retailing –
supermarket. Therefore with these hypotheses:
H1: There is a significant relationship between efficient supply chain
management and retail practices.
H2: There is a significant relationship between retail practices and
organizational expansion.
H3: There is a significant relationship between efficient supply chain
management and organizational expansion.
References:

Bishwas, Sumant Kumar. "Critical Issues for Organizational Growth and Success: A Systems
Thinking View Using Feedback Loop Analysis." (n.d.) Retrieved from
http://www.systemdynamics.org/conferences/2013/proceed/papers/P1218.pdf

Dabic, M., Keissling, T., & González-Loureiro, M. (n.d.). Supply chain management as the
key to a firm’s strategy in the global marketplace. Retrieved from
http://yoksis.bilkent.edu.tr/pdf/files/8059.pdf

Degraut, A. M., Rangaswamy, A., & Wu, J. (n.d.). Consumer choice behavior in online and
traditional supermarkets: The effects of brand name, price, and other search attributes.
Retrieved from http://onemvweb.com/sources/sources/consumer_
choice_behavior_online_traditional.pdf

Deshmukh, A. K., & Mohan, A. (n.d.). Demand Chain Management: The Marketing and
Supply Chain Interface Redefined. Retrieved from
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=ee1fb957-d66b-4977-b4b3-
c435d4c8201c@sessionmgr104&vid=4&hid=125

De Vasconcellos, I. P., & Botelho, D. (n.d.). Factors Influencing Supermarket Store Loyalty
in Brazil and their Implications to Loyalty Programs. Retrieved from
http://gvpesquisa.fgv.br/sites/gvpesquisa.fgv.br/files/arquivos/botelho_-_factors-influencing-
supermarket-store.pdf

Hamili, A., & PRIYADHARSHINI, E. (n.d.). IMPACT OF SUPERMARKETS ON

UNORGANIZED RETAIL. Retrieved from https://www.google.com.ph/url?
sa=t&rct=j&q=&esrc=s&source=web&cd.
Hsu, C. C., TAN, K. C., KANNAN, V. R., & KEONG LEONG, K. (n.d.). Supply chain
management practices as a mediator of the relationship between operations capability and
firm performance. Retrieved from http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?
sid=43e05b04-affb-4059-801e-98848ff51585@sessionmgr103&vid=7&hid=125

Ivanova, D., Skolovb, B., & Dolguic, A. (n.d.). The Ripple effect in supply chains: Trade-off
‘efficiency-flexibility-resilience’ in disruption management. Retrieved from
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=43e05b04-affb-4059-801e-
98848ff51585@sessionmgr103&vid=11&hid=125

Kanagal, N. (n.d.). Role of Relationship Marketing in Competitive Marketing Strategy.

Retrieved from http://www.aabri.com/manuscripts/09204.pdf

KUMAR, Rajeev. "SUPPLY CHAIN MANAGEMENT PRACTICES IN RETAILING: A

CONSUMER PERCEPTION STUDY IN VARANASI REGION." (n.d.): Retrieved from
http://indianresearchjournals.com/pdf/IJMFSMR/2012/December/7.pdf

Lavastrea, O., Gunasekaranb, A., & Spalanzania, A. (n.d.). Effect of firm characteristics,
supplier relationships and techniques used on supply chain risk management (SCRM).
Retrieved from http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=6d697374-01e1-
4d41-997b-449e41a1f058@sessionmgr103&vid=1&hid=125

Lia, S., Ragu-Nathanb, B., Ragu-Nathanb, T. S., & Raob, S. S. (n.d.). The impact of supply
chain management practices on competitive advantage and organizational performance.
Retrieved from http://mcu.edu.tw/~hyu/paper/4.pdf

Madhani, P. M. (n.d.). Demand Chain Management: Enhancing Customer Lifetime Value

Through Integration of Marketing and Supply Chain Management. Retrieved from
http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=673f7772-e7f6-4a76-aeb8-
406b74b223d0@sessionmgr4010&vid=8&hid=4106

Muogbo, U. S. (n.d.). The Impact of Strategic Management on Organizational Growth and

Development. Retrieved from http://iosrjournals.org/iosr-jbm/papers/Vol7-
issue1/D0712432.pdf
Njoku, M.E. & Alexanda,k. *n.d). Effective Supply Chain Management: A strategic too for
profitability enhancement in the competitive marketing environment. Retrieved from
http://www.ejbss.com/Data/Sites/1/vol3no12march2015/ejbss-1536-15-
effectivesupplychainmanagement.pdf
Sharma, K. M. (n.d.). The Study of Changing Buying Behavior of Consumer in Growing
Economy of India, Specific to FMCG Segment, and Its impact on Unorganized Retailers.
Retrieved from: http://www.marketing-trends-
congress.com/archives/2012/Materials/Papers/ConsumerBehavior/SharmaBhattacharyaSona
waneyKulkarni.pdf

Schoenherr, T., Griffith, ,. A., & Chandra, A. (n.d.). Knowledge Management in Supply
Chains: The Role of Explicit and Tacit Knowledge. Retrieved from
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=43e05b04-affb-4059-801e-
98848ff51585@sessionmgr103&vid=4&hid=125

Shunda, J. P., Ganamotse, G., & Marobela, M. (n.d.). Large chain supermarkets competition
and innovation of small retail shops in Botswana. Retrieved from
http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=60a236a9-4f68-4149-adbe-
c868666510fd@sessionmgr4009&vid=1&hid=4209

Sophia, Odongo Melen, and Datche Owuor. "Effects of Strategic Planning on Organizational
Growth."  Retrieved from http://www.ijsrp.org/research-paper-0915/ijsrp-p4542.pdf

Yan, B., & Baldwin, J. R. (n.d.). Market Expansion and Productivity Growth: Do New
Domestic Markets Matter as Much as New International Markets? Retrieved from
http://www.statcan.gc.ca/pub/11f0027m/11f0027m2012078-eng.pdf