Team Project

Name

Institution

Date

APEX GROCERY STORES

After thorough market research, I have noted a market opportunity in the supply of grocery products and decided to open a grocery store. Apex Grocery Stores is meant to buy and sell grocery products such as meat, dairy and fresh farm produce. The store will also be dealing with baked goods, canned and packaged goods. Starting a grocery store will require approximately $70,000. According to the budget, there is a total of $75,000 which is more by $5000. This means that the business can be started smoothly without much problem of less money. If the money needed will be more than the one available, then we will tell our friend to lend us some $4000. In the beginning, the business will only have one main branch. After some time, when there is an opportunity to open more branches, then two more will be opened to sell even non-food items.

From the business experts consulted, Apex stores will require a total number of employees of 200. The employee will be mixed from different places, ages, gender, race and nations. This is because the Apex store is meant to promote diversity in terms of culture and social backgrounds. The business will fire from as many countries as possible. The worker will be from countries such as Saudi, Australia, Canada, the United States, and Saudi Arabia, the United Kingdom and some African nationals. However, the total number of Saudi nationals will be higher than any other country. Apex stores plan to hire seventy-seven Saudi nationals to increase the employment rate of Saudi people. When this is calculated into a percentage, then it is realized that the Saudization percentage is 35%. This is a good percentage to start from, and however, if the business expands in the next two years, the percentage will be increased to 50% of the total employees.

While starting the company, the legal process for company registration will be followed to ensure that the business follows the law. The first step is to choose the company registration name, which is Apex Grocery Stores. Secondly, the company rules will be outlined as per the Corporation Act. The rules are written and made in the form of an organization constitution. Thirdly, Apex Grocery Stores then decides on possible partners and shareholders. The names and details of possible partners are written down in a formal format to avoid later confusion. The fourth step is to write where the business will be located. Apex store is located in Riyadh and Queensland Northern Territory, which is the right place for business because many people live in the area. After all the steps, the relevant online forms will be completed. For online registration, the following steps will be followed;

• Log in to KSA connect license and registration page
• Select and entre business name
• The entry of ABN and the business name

Apex Grocery Stores employees will be hired based on fixed-term, casual and permanent contracts. One hundred out of the total, two hundred employees, will be employed on a permanent contract basis to ensure a high rate of employee retention. According to Apex Grocery Stores, permanent employee contract means that the employees are hired for an indefinite period. The permanent contract will be for regular workers who are paid a salary based on hours worked. Fixed-term contracts are different from permanent since there will be a set time to end the contract.  Employees hired on a fixed-term basis will last for one year, and then the contract stopped. Depending on the agreement with the workers, fixed-term contracts can be extended or renewed. Apex business is planning to employee fifty employees based on a fixed contract.  Lastly, the business will hire fifty causal workers for some work that may come urgently. For casual workers, the pay rate will change based on time and the type of work.

GOSi will be calculated based on the employee’s basic monthly salary and category I, which consists of Saudi national in the private sector.

For Saudi

(SCRIBD, 2020).

The employer GOSI Annuities are the rate at 9%, and employer GOSI Hazards are rated at 2%.

Non Saudi

The grocery business in Saudi presents various challenges, such as high operating costs and price fluctuations. Studies show that grocery prices in Saudi are not stable instead keep on charging, which changes in demand and supply (Catarino, 2018). The supply in the country is not stable and hardly reach the equilibrium quantity. Due to this reason, demand also keeps changing, which consequently affects the price. Given the nature of the country, high operating costs are expected. The total population in Saudi is not large meaning that there is less labour supply. Shortage in labour supply means the high cost of labour which increases the total operating cost.

Further, consumers of grocery products have changing habit and behaviour, which is not easy to predict. Change in consumer tastes and preferences may be a major challenger because Apex stores will need to brand its products to meet consumer expectations. Lastly, there is expected the problem of competition since there are some existing firms the Saudi market providing similar products. Apex intends to apply various competitive strategies, such as price and product differentiation to attract more customers. Even if there are challenges in the market, the business is prepared with good plans to overcome and start selling in Saudi. The business is expected to grow and compete with other large ones in the market.

An employee offers at Apex Grocery Stores

(Stewart, 2020).

References

Catarino, F. M. C. A. (2018). Snappy: a grispy bite on grocery retail (Doctoral dissertation).

SCRIBD, S. (2020). GOSI & Gratuity Calculation Formula in KSA. Retrieved 12 April 2020, from https://www.scribd.com/doc/303318084/GOSI-Gratuity-Calculation-Formula-in-KSA

Stewart, A. (2020). What Are the Different Types of Compensation? Direct, Indirect, Non-Financial. Retrieved 12 April 2020, from https://www.payscale.com/compensation-today/2020/01/what-are-the-different-types-of-compensation