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INTERNATIONAL!BACCALAUREATE!!
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BUSINESS!MANAGEMENT!!
INTERNAL!ASSESSMENT!
(Higher!Level)!
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TO!WHAT!EXTENT!WOULD!OPENING!A!RETAIL!STORE!HELP!
SONJUHI!BUSINESS!ACADEMY!EXPAND!ITS!MARKET!SHARE?!
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CANDIDATE!NAME:!Ishaan!Ripudaman!Nigam!
CANDIDATE!NUMBER:!002332–0070!
SCHOOL:!Global!Indian!International!School!Singapore!
SCHOOL!CODE:!002332!
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EXECUTIVE!SUMARY:!229!Words!
RESEARCH!PROPOSAL:!414!Words!
WRITTEN!REPORT:!1,431!Words!
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Page!!2!
ACKNOWLEDGEMENT!
I!would!like!to!extend!my!gratitude!to!those!who!have!helped!me!throughout!the!
conception,!production!and!revision!of!my!Business!Management!Internal!Assessment.!
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I!would!like!to!thank!Sonjuhi’s!Baking!Academy!(hereafter!“Sonjuhi’s”)!and!their!
Management!Team!for!their!continued!and!repeated!guidance!over!the!course!of!this!
assessment,!providing!inputs!and!participating!in!discussions!with!regards!to!the!concepts!
and!issues!raised.!
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I!would!also!like!to!thank!my!family!for!providing!support!and!regularly!engaging!me!in!
thought-provoking!discussions!about!the!issues!raised!in!this!assessment.!!
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I!would!like!to!express!my!deepest!gratitude!to!my!supervisor,!Mr!Vipul!Gupta!for!his!
guidance.!His!suggestions!and!timely!feedback!allowed!me!to!develop!this!assessment!to!
the!best!of!my!capabilities.!
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Page!!3!
TABLE!OF!CONTENTS!!
Acknowledgements!……………………………………………………………………………!2!
Table!of!contents…………………………………………………………………………………………!3!
Letter!of!Confirmation!from!Ms.!Sonjuhi!…………………………………………………….!4!
Executive!Summary!……………………………………………………………………………!5!
Research!Proposal!……………………………………………………………………………..!6!
Company!Profile!………………………………………………………………………………!10!
Avenues!For!Growth!…………………………………………………………………………!13!
Analysis!………………………………………………………………………………………….!14!
Qualitative!Methods!………………………………………………………………………..!14!
Ansoff!Matrix!…………………………………………………………………………………….!14!
SWOT!Analysis!…………………………………………………………………………………..!15!
Quantitative!Methods!………………………………………………………………………!18!
Payback!Period!Method!………………………………………………………………………!18!
Net!Profit!Margin!Calculation!………………………………………………………………!18!
Conclusion!!……………………………………………………………………………………..!20!
Recommendation!…………………………………………………………………………….!21!
Appendix!………………………………………………………………………………………..!22!
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!LETTER!OF!CONFIRMATION!FROM!MS.!SONJUHI!
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Page!!5!
EXECUTIVE!SUMMARY!
The!aim!of!the!research!paper!was!to!determine!“TO!WHAT!EXTENT!WOULD!OPENING!A!
RETAIL!STORE!HELP!SONJUHI!BUSINESS!ACADEMY!EXPAND!ITS!MARKET!SHARE?”!
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The!company!on!which!I!conducted!my!research!is!a!bakery!that!is!based!online,!on!a!made-
to-order!basis,!and!is!looking!to!expand!its!market!share.!I!began!by!assessing!the!current!
business!position!as!well!as!identifying!the!market!gaps,!and!subsequently!employed!the!use!
of!the!Ansoff!Matrix!to!determine!possible!future!avenues!for!growth.!!A!Decision!Tree!was!
used!to! decide! which!of!the!two!options!–! Retail! or!Wholesale!–!was!more!feasible.! After!
having!come!to!a!decision!to!go!ahead!with!opening!a!retail!outlet,!I!decided!to!analyse!the!
option!of!establishing!a!retail!presence.!!
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In!conducting!the!analysis,!qualitative!analysis,!including!the!SWOT!Analysis,!and!quantitative!
analysis! techniques,! consisting! of! the! Payback! Period! and! Net! Profitability! Margin! were!
employed.! The! Payback! Period! gave! a! much! higher! time! for! wholesale! -! 13! months,! as!
compared!to!3!months!for!retail.!Likewise,!the!Net!Profitability!Margin!calculation!was!better!
for!retail,!at!27%,!as!against!7%!for!wholesale.!All!of!the!qualitative!and!quantitative!findings!
gave! a! clear! combined! indication! that! the! best! option! for! Sonjuhi’s!is! to! establish! a! retail!
presence.!The!conclusion!on!the!analysis!was!that!retail!presence!provided!a!greater!scope!
for!expansion,!not!just!in!the!immediate!future,!but!also!in!the!longer-term.!!
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Word!Count:!229!
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Page!!6!
RESEARCH!PROPOSAL!
RESEARCH!QUESTION!
To!What!Extent!Would!Opening!a!Retail!Store!Help!Sonjuhi!Business!Academy!To!Expand!Its!
Market!Share?!
Sonjuhi’s!Baking!Academy!is!looking!at!increasing!its!market!share,!by!exploring!feasible!
distribution!channels.!The!focus!of!this!paper!was!to!evaluate!the!following!two!options!and!
make!recommendations!as!appropriate:!
– Setting!up!a!retail!unit!
– Expanding!into!wholesale!supply!
Key!areas!of!Syllabus!
• Unit!1!–!!Business!Organization!and!Environment!!
• Unit!3!–!Finance!!
• Unit!4!-!Marketing!
METHODOLOGY!
QUALITATIVE!METHODS:!
v Ansoff!Matrix!–!to!confirm!the!growth!strategy!of!market!penetration!and!market!
development!towards!meeting!the!objective!of!increases!in!market!share!
v SWOT!Analysis!–!examining!the!business!environment!of!the!company!in!order!to!make!
suitable!recommendations!for!strategies!to!increase!market!share!!
QUANTITATIVE!METHODS:!
v Payback!Period!Method!–!determine!the!return!period!on!an!investment!on!both!retail!
and!wholesale!options,!and!recommending!the!best!solution.!
v Net!Profit!Margin!Calculation!–!to!find!the!risk!involved!compared!to!the!value!of!
potential!profits!for!both!retail!and!wholesale!scenarios!
SOURCES!
PRIMARY!SOURCES:!
v Interviews!with!the!owner!–!Ms!Sonjuhi!Malhotra!!
v Questionnaires!from!senior!management!and!employees!
SECONDARY!SOURCES:!
v Articles!on!wholesale!distribution!of!cakes!and!confectionery!
v Research!papers!on!the!cakes!and!confectionery!industry!
v Our!course!book:!Business!and!Management!2nd!edition!by!Paul!Hoang!
ANTICIPATED!DIFFICULTIES!
