Project Materials

PROBLEMS AND PROSPECTS OF AN INTERMEDIATE BUYER

ABSTRACT

This study focusses on the issues and potential of an intermediate buyer, using a case study of Sabiz supermarket to guide supermarkets and entrepreneurs. The challenges that prompted this study include, among other things, the fact that most supermarket managers lack proper procedures for funding their businesses and that experienced hands are hard to come by to run the supermarkets’ operations. The study’s aims include, among other things, helping supermarkets to adopt acceptable business funding approaches and encouraging supermarkets to preserve accurate records. The research methodology, which aided in data collection, included an oral interview. In fact, the main research findings are that the supermarket’s self-service system improves purchases and that the supermarket’s accounting system is not excellent. It was recommended, among other things, that management make the store large enough to accommodate customers at all times and that the supermarket’s accounting system be improved to excellence. However, it was determined that the supermarket only sells items that are popular in the area.

Chapter one

Introduction

1.1 Background of the Study

Over the years, most enterprises, especially the Sabiz supermarket ikeja, have been subjected to a high level of unproductiveness, inefficiency, and unpredictability, owing to the inability of the management of such enterprises to evaluate their problem to them with the view of proposing solutions to them in a way that may have wonderful prospects.

According to Ogu (2001:42), a supermarket is a huge self-service shop that is smaller than a department store that stores both household and food items under one roof. Njokwu (1999:23) believes that supermarkets are retail businesses that only sell household goods.

They normally operate on the basis of quick turnover with a modest profit margin. Supermarkets primarily sell home products and items in high demand; the items are displayed in such a way as to stimulate impulse purchases, and they are professionally repacked with price tags.

Baskets and trolleys are also available to aid clients in selecting the things they want to buy. In fact, Anyanwu (2003:68) points out that “counters are arranged in the supermarket in such a way and manner that customers are generally led back to the centre of the shop rather than to he exit door” .

According to Anyanwu, “supermarkets provide customers with a great deal of convenience because they can acquire all of their needs under one roof, and the lower prices supplied result not just in high turnover but also in customer savings.

Because of its self-service approach, the supermarket requires fewer assistants to run, and customers are discriminated against in terms of pricing charged for things purchased. Every item has a price tag or label.

But Ibeto (1997, p. 25) believes that “shop-lifting is rampant in supermarkets as customers walk around unguided and customers are denied the opportunity to ascertain alternative prices for the goods as the supermarket environment suggests one seller:” Nwachukwu (2000:60) is primarily interested in the elements influencing store management standards.

According to him, “management of different supermarkets do look at such factors as the location of business ability for proper demand management skills for strategic pricing and techniques for reduction of theft as well as motivation of employees” Indeed, most supermarkets face funding challenges, which appear to endure since the management of such businesses does not explore the various business finance strategies available to them.

According to Igbo (1996:24), supermarket financing might take the shape of profits, borrowing, loans, credit purchases, securities investments, or asset sales. Targets should also be set and evaluated.