Retail Chain Management In Viet Nam Commerce Essay

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Kuwaiti (2004) argues that a post responsible for the performance management process is necessary for successful performance management activities. He argues that particularly the technical performance management functions should be performed within the performance management organization although the data collection is best suited in the day-to-day activities. Data should preferably be collected and reported electronically to save effort and time and to provide consistency (Bourne et al., 2002; Gunasekaran and Kobu, 2007; Nudurupati and Bititci, 2005). Ease of data access in such systems is key (Bourne, 2005) as well as use of standard data analysis tools (Bourne et al., 2005). The performance data in these systems should be made available to operators at least at an individual level and used for reviewing performance (Johnston et al., 2002); making performance data available to operators should take place frequently (Bourne et al., 2005; de Waal and Counet, 2009; Kennerley and Neely, 2002).

In literature, the selection and definition of measures has received ample attention (Bourne et al., 2000). Throughout recent years, several extensive overviews have been published that provide good coverage of categories of performance metrics and frameworks to capture these metrics (Beamon, 1999; Chan et al., 2006; Franco-Santos et al., 2007; Gunasekaran et al., 2001; Gunasekaran et al., 2004; Gunasekaran and Kobu, 2007; Neely, 2005; Shepherd and Gunter, 2006).

In recent years, many organizations have been conducting active restructuring model to adapt to the volatile business environment in order to improve competitiveness. One of the work to be done in the process of refactoring is to restructure the organization's human resources, consider redefining the decentralization of management in an organization that seeks to improve the productivity, quality and service service and as a result a lot of positions are rearranged direct impact on people in the organization.

Therefore, one of the challenges for the management of human resources in organizations are restructuring is to address the consequences related to personnel changes and cut personnel costs. Human resource management activities to ensure the mobilization and use of resources appropriately to achieve the goal of improving: productivity, the quality and the services of the organization.

1. Productivity: measured by the number of products that a worker in the first period, but the maintenance increase productivity even more important in the current competitive situation. Labor productivity in the organization is affected by the effort, and program management system.

2. Quality: The quality of products and services is a key determinant of sustainable success of the organization. If an organization with a reputation for providing products and services of low quality, this will reduce the growth and capacity of the organization. The importance of quality requires continuous changes in order to improve the work process. Thus giving the customer value and customer satisfaction, along with other traditional methods of measurement in human resource management is the basis to assess the capability and effectiveness of the work of the employees in the organization.

3. Services: The employee in the organization is the factor directly to the products and services at the request of the organization, so as to determine the service pack and redesign production processes issues related to human resources management must be considered carefully. Need to make a change in the culture of collaboration, leadership style of HR policies and procedures to ensure production and business activities in the organization is running smoothly, efficiently.

To achieve these goals, human resource management activities must be deployed synchronously through the close functional relationship with each other.

It is generally acknowledged that structuring metrics according to a framework is advisable (Ahn, 2001; Bourne et al., 2002; Ittner et al., 2003b; Johnston et al., 2002). The use of a standard framework such as the SCOR model, the Balanced Scorecard or the EFQM model ensures a link between strategy and operations. Research shows that metrics that provide such a link, visible in e.g. a linkage between strategic intentions and actual execution, add value (Bendoly et al., 2007; Bourne et al., 2005; Braam and Nijssen, 2004; Kuwaiti and Kay, 2000). A key struggle in performance metrics definition is to develop the right indicators (Bourne et al., 2002). Ideally, the metrics should cover three key aspects of performance: effectiveness, efficiency and flexibility (Hardjono and Bakker, 2006). Once performance metrics have been defined, targets need to be set. These targets should preferably be set jointly with all relevant departments involved (Holmberg, 2000; Kennerley and Neely, 2002). Very often, these targets are the result of a negotiation process, though negotiating goals is an approach that is not preferred (Schneiderman, 1999). Guidelines for target setting, such as externally derived targets or goals derived from strategy, are necessary (Ahn, 2001).

The increase in the number of stores will make it more difficult for the manager. How retail chain management deal with the problem is not easy to answer.

In fact the world has pointed out, retailers hardly better financial results if only 1-2 business retail store. With the first store, the retailer is basically no interest because of the high initial investment cost as well as "experience curve" is not enough to be able to effectively manage the store. Look at retailers around the world were present in Vietnam such as: Metro, Big C, Parkson ... will see that they are developed in sequence. For successful retail business must be developed in sequence - which is almost inevitable method in the global retail industry.

In Vietnam, the story seems to go against the trend over the world. Most retail investors are often quite effective business in the first store. From groceries, fashion, pharmaceuticals coffee, selling noodles are profitable. But when investors open first store 2.3 ... starts proved ineffective, sales of the new store opening is usually much smaller than the first store. With the increased number of stores, total sales increased the shop owners much easier to negotiate with suppliers on the number and commodity prices. However, when they buy a little cheaper, investors began to fall status "not in control" of their stores open. So where is the problem? It lays not in the ability of the shop owners that trade in "stores management skills" of investors, retail chain management. In Vietnam, 90% of the retail stores of the household and is open is listed all over the place, mostly in the state of spontaneity, lack of strategy, lesson plan from the beginning, the fall in complete scene "- larger size", when the grow shop - the shopkeeper as a loss of control is also understandable.

Dumond (1994) showed that a performance measurement system is important in guiding an individual’s performance and hence to define goals at the level of the individual. Performance management and performance targets should preferably be improvement oriented and this requires a performance improvement method (Schneiderman, 1999). Before any organization can determine what to improve, it needs to identify where and why current performance falls short (Neely, 1999).


Help retail businesses, investors and store managers with a deeper insight and retail management.

Financial Management results store

At this level, the shop owner to manage basic financial indicators. There are three groups of financial indicators that store owners to be aware of. Indicators first hole of Interest: these indicators include: sales, cost of goods sold - the amount that the shop owner to pay suppliers, gross margin, cost of goods, gross profit on sales net profit on sales of ... This indicator should be calculated for the store and each sector. The second index is the property - effectively investment: could mention a few simple indicators to manage the store, such as: inventory, customer liabilities to know, first of fixed assets from the shop, tools and instruments used in the store, total invested assets, only the total amount of the assets - to see one of the assets created pieces of sales ... The number 3 is cash flow: the shop owners need to understand cash flow; cash flow and avoid situations "always have money - but need not have."

Customer Satisfaction Management

At this level managers, shop owners have to manage objects generate revenue for them, it is the satisfaction of our customers. Most retailers have said that: "the customer is king". But God in our stores and on how, how they behave when choosing goods, factors that decide their choice of stores we do not store next to it is almost the store managers and store owners clearly do not understand or just personal judgment. Them to our store, they are satisfied with the store employees do not, they are satisfied with the price do not, they are satisfied with the product? When customers bring products to use, they are satisfied with that product. If they are not satisfied, then we have no way to know? When not answer these questions, we cannot really call retailers to call "where customers come to buy." Retail stores will fall into the "mouth open for the gun".

According to my personal experience of consulting for retail businesses, most small retail businesses and retail shops are all confused and passive in the 2nd administrative level. Currently, over 90% of food stores and FMCG households. If we do not start working on customer satisfaction management now, when the giants of the development of convenience store chains such as: 7 Eleven, Prof. Store ... in Vietnam whether we have to hand up.

So, small retail businesses, investors and the store manager started immediately on the management of customer satisfaction, start interested in what customers think, of and after leaving his shop. Meanwhile, retailers have begun to reach the second level in retail management:

In the next issue, I will share with readers the two higher levels of retail management is management of retail processes and Administrative staff in retail stores. It is considered as the two most traditional retail stores in Vietnam, but it is the strongest point of the chain of retail stores in the world when they enter the Vietnamese market.

Activity analysis and human resource planning has many facets, through planning activities, managers can predict the impact can affect the labor supply as well as demand labor in the future. To the planning of human resources be accurate, organizations need to have a human resource management information system can provide an accurate and timely statistical data on the situation of human resources in the officials. The importance of human resources in the organization must be identified and properly concern. Besides the analysis and evaluation of human resources should also be done periodically because that is part of the activities in order to maintain the competitiveness of the organization.

An effective compensation policy must satisfy three elements: fair, reasonable and competitive, want to do that when the compensation policy organization must have clear work standards systems and science (through job evaluation), to determine their ability to compete on the market in the payment of salaries to attract talent and one equally important factor is the organization's ability to pay.

Start by orientation training for new employees on the first day at work, training and development including training to improve the job skills, human relations skills ... only maintain active retraining is necessary to update the new knowledge workers to help them capture the changes in technology, new management methods ... in the work. Encourage the development of all employees, including management, supervision is very important to prepare for the organization to face new challenges in the future. Develop career-oriented help determine the path and activities for each individual to accompany the development of the organization. Perform the management activities will also help to assess the level of completion of work of the employee, determined to celebrate strengths and weaknesses for improvement in the job, identify needs training to supplement the knowledge and practical skills of work for employees.

The relationship between the employer and the employee in the organization must be dealt with effectively if the two are keen to develop together. In all cases, the rights and responsibilities of employees must be clearly defined. The building, communication and amendments update the regulations and personnel policies are essential to ensure that all employees know what their organizations expect and vice versa. In addition, in some organizations, the relationship between the employer and the unions representing the workers must also be clearly defined.