And now, Reliance Retail is mulling over tying up with an international partner back-end support. Had Mukesh gone in for an international tie-up earlier, this situation would not have risen as outsourcing supply chain management is more cost effective and feasible, especially in India. Then came the news that Reliance is planning to shut down 40 of its non-performing stores and rationalising its total retail space of around 4.2 million sq. feet. Reliance Retail also axed almost 600 support jobs to manage costs.
Experts claim that the very basic structure of the company is debilitated. In the first go, Ambani invited negative publicity by removing the middlemen from the value chain. Experts also maintain that most of Reliance Retail’s ventures like Reliance Mart, Reliance Super, et al, were launched in a jiffy, without any foolproof plan of action. Floating so many retail ventures led to disharmony between business heads and each one started competing with one another, thereby leading to the fall of the parent company. Keeping up with the tradition of Reliance as being the best employer, Ambani gave huge salaries, which were incommensurate with the returns. Furthermore, as a retail consultant who worked closely with Reliance Retail said, “When the Store Operations vertical is not at the center of a retail company, the venture is doomed.”
Doomed may be too extreme a word. But surely the company needs. For even a venture with the Reliance trademark can fall apart if it’s not planned and executed properly.
Experts claim that the very basic structure of the company is debilitated. In the first go, Ambani invited negative publicity by removing the middlemen from the value chain. Experts also maintain that most of Reliance Retail’s ventures like Reliance Mart, Reliance Super, et al, were launched in a jiffy, without any foolproof plan of action. Floating so many retail ventures led to disharmony between business heads and each one started competing with one another, thereby leading to the fall of the parent company. Keeping up with the tradition of Reliance as being the best employer, Ambani gave huge salaries, which were incommensurate with the returns. Furthermore, as a retail consultant who worked closely with Reliance Retail said, “When the Store Operations vertical is not at the center of a retail company, the venture is doomed.”
Doomed may be too extreme a word. But surely the company needs. For even a venture with the Reliance trademark can fall apart if it’s not planned and executed properly.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human FaceProf. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
