Sour Experiences Make Waji Boutique Look for Better Ways to Run the Business

INTRODUCTION CASE

Group members: Chua Li Ying 219892 Tan Zhi Jiun 219893 Lim Fann Tyng 220064 Cheong Wei Jian 220739 Chan Lay Yong 224027

GROUP 2

Recruitment

Lack of supervision, Over trusted on a single worker

Poor inventory system

Discrepant accounts

Unknown loan transactions

Inappropriate pricing

Competition

Problem Statements

Recruitment- Simply hired Khawar without checking of his background- Over trusted others for the employee candidatesSolution:Professional Shortlisting for Potential Candidates, Formal Interview, Appointment Letter Sort through resumes and cover letters Having a formal interview and make

selection based on the knowledge, personality and professionalism of the potential hire

The appointment letter which employee has to comply with.

Lack of Supervision, Over Trusted on a Single Worker- Khawar is very clear that what time Mr.Bashir never visited the shop- Mr.Bashir trusted too much on Khawar-There is no segregation of workSolution:Regular supervision, Random Spot Check, CCTV Installation, Hire More Worker to Ensure Segregation of Duties Visit the shop regularly and randomly

conduct spot check Implementation of CCTV to inspect his worker Hire one more potential worker to ensure

segregation of duties

Poor inventory system- Two tag system- Mismanaged the inventory by selling outfits sets separatelySolution:Barcode System, Physical Count Barcode is used for inventory

management and sales tracking Assist in customers relationship

management Track loyal customers and give

discount to them Physical count may avoids

discrepancies

discrepant accounts- Physical inventory items did not match the records- Only check for the hot-selling itemsSolution:

Hire In-House Bookkeeper / Outsource Accounting Services Hire an expert bookkeeper Outsourcing accounting services to a

professional team Save time and cost

unknown loan transactions- Bought family clothes from neighbouring shops on company’s account- Loaned money from them- No any authorization rules being applied in purchasing the company inventory

Solution:

Authorisation of Inventory Purchase and Loan Approval Statements Impose clear and fair rules Prohibited worker to make loan or

purchase from neighbouring shops without his authorisation or approval statements

inappropriate pricing- Does not price his products correctly- Simply doubled up the price or just follow others suggestions

Solution:

Strategy Development to Achieve Appropriate Pricing Has to know his profit margins and

price accordingly Alternative pricing strategies –

competition pricing, bundle pricing strategies, & psychological pricing strategies.

Understand his target market by undertake market research.

competition- Faced direct competitors in the mall- Loyal customers might drove away since the shop does not operate for one week after this incident

Solution:

Promotions & Improvements in Quality and Services Attract customers by having promotions Be distinctive and having competitive

advantage Offering a superior quality in his

products and an unforgettable customer service