Customer Focused Ltd is a retail food store established in Ghana in 2017. Despite initial profitability, the business is now facing several challenges as it approaches its fifth anniversary. The key issues include declining sales, poor inventory management, lack of marketing information, and uncertainty about lease renewal. The case study focuses on the strategic and financial decisions the company must make to ensure sustainability, such as introducing technology for marketing, managing risks, and optimizing inventory to improve efficiency.
Key problems include the lack of a risk management policy and strategic planning, which have contributed to underperformance and declining profitability. The company’s management must also address competitive pressures in a highly dynamic market, where customer preferences are shifting toward healthier, more convenient products. In addition, the lease on its current premises is about to expire, posing risks of higher operational costs or relocation.
The case also presents an opportunity for expansion through a proposed contract with a new supplier, Look and Like Ltd, which offers fresh produce. However, this proposal comes with its own risks, including wastage, operational complexity, and ethical concerns regarding the supplier’s business practices.
To remain competitive, Customer Focused Ltd must address its technology gap, improve customer data analysis, and consider long-term financing options. The business owners are contemplating whether to sell the company or invest further for growth, and a detailed financial appraisal is required to guide their decisions. The case explores various strategies, including launching loyalty programs, reducing costs, seeking additional equity partners, and product diversification.
