New Line Retail Pvt Limited (NLR) is a 12-year-old business establishment in organized retail business in Sri Lanka. Having its head office based in Colombo, the Company expanded its branch network

New Line Retail Pvt Ltd

The Business

New Line Retail Pvt Limited (NLR) is a 12-year-old business establishment in organized retail business in Sri Lanka. Having its head office based in Colombo, the Company expanded its branch network to 272 outlets on the island. NLR employs 8032 employees in all levels, in its vast operational network. The operations include sourcing, logistics, retailing, promotional, finance, HR and maintenance activities. The business is managed internally by a hierarchical divisional structure with divisional heads, executives and operational staff.

Sourcing is centralized for all the products, and the products are stored at the organizations owned central warehouse facility outside Colombo and delivered to retail stores on a planned basis.

Business Environment

A challenging year with the Easter Sunday terror attack in April 2019, weather conditions ended the calendar year of 2019 with economic growth of 2.3 per cent of Sri Lankan economy. Despite the challenging macroeconomic environment, New Line Retail grew while maintaining its leadership position in the market. The 12% growth in turnover and 10 % on profitability greatly attributed to the expansion of outlets, sourcing efficiency and internal controls.

While organizational performance has been reduced to a certain extent due to Covid-19, the organization looks at the future with a positive mind and an aggressive plan.

Strategic Focus

NLR developed and implemented its five-year strategic plan (2019- 2024). The strategy focuses on three primary areas. Growth, Cost & People

1. Growth- Business Expansion
2. Cost- Cost Management
3. People – Skills & Engagement

The strategic focus is to take the organization to be No2 in the organized retail sector in Sri Lanka with a revenue projection of 38%. In turn, the strategic focus will have an impact on the following areas of resources and activities.

Growth- No of outlets, the cost in inventory, logistics, no of people, technology

Cost- No of suppliers, technology, storage, logistics, no of people

People- Recruitment, selection, training, personal management function, motivational activities

Key Achievements in 2019

2019 is an important year in NLR history as it implemented its five-year strategic plan and achieved some of its first-year goals. The first-year goals included,

• No of new stores
• Expansion of storage & logistics
• Introduce house brands
• Improved employee retention

Challenges for Future

NLR faces and foresees a multitude of challenges in macro and microenvironments. These challenges are identified through changes in packaging, price-based competition, aggressive competitor activities, and people motivation and management. Managing internal resources and activities such as knowledge, business processes, information availability, and related technology are also critical areas of focus. These challenges dictate the organization to think through its critical, repetitive and vital functions and bring in sound and appropriate plans to allocate appropriately and maximize utilization of its energy, efforts and resources to the best use. The organization should focus on and develop an action plan for the following immediate challenges. They are,

• Price competition
• Cost management
• Logistics management
• Information – Real-time availability
• Recruitment & retention
• Skills & competencies

With the expansion, the spread of retail stores, connectivity and information gathering for management decision making become a critical and a business need. Introduction and improvement of technology to make accurate and real-time information availability will be a clear advantage. Availability and development of analytical skills and knowledge, technology- driven competencies become key factors and competitive advantage.

HR & the Organization

NLR recognizes people as its primary assets in its journey of sustainability and growth. The organization identifies the importance of all people-related activities from recruitment to retirement and all in between activities are strategized, planned and achieved through its people.

The organization`s entire HR is managed through the HR division for its day-to-day activities, payroll, performance, leave, legal and conflict issues.

The strategies are developed and driven by talented and motivated employees who are passionate about the organization. The ability to attract, motivate, and retain the best talent has been one of the Company`s key success factors. Also, continuous investment on people through training and development, and providing opportunities to grow professionally and personally may be a way of retaining talent.

Looking Ahead

The growth envisaged will have a greater impact on people requirement and people-related activities of the Company. Activities such as recruitment, training and personal management activities will take a larger time and space of HRD.

The organization`s size in terms of people in numbers and its growth of activities with expansion plan based on its strategic plan will be around 10,200 at the end of 5 years. In this scenario, HR will play an even more crucial role in the organizational day-day activity. Increased activities in various divisions will also bring new and diversified employee groups and special talents enlarging the training & development, motivational plans and activities. Critical understanding and evaluation of HR planning and HR management and its current recruiting, selecting, onboarding performance management and other activities should be re- looked to support the organization.

Questions

01. Discuss the business issues from an HR perspective in the organization.

(25 marks)

02. Identify and develop an intervention plan based on the strategic focus and its implication on the people of the organization

(25 marks)

03. Identify from a Business Process Management perspective the areas to be outsourced with sound justification

(25 marks)

04. Critically analyze at least four HR functions to be outsourced for the better use of resources on key activities

(25 marks)

CQHRM – Case Study 01 [Business Acumen [CQHRM S6]]

CQHRM – Case Study 01 [Business Acumen [CQHRM S6]]

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