Farmers Market Enterprise is owned and run by the Nsiah family and have over the years been known for their fresh vegetable products throughout the town. The employees of Farmers Market Ent. are mainly family
members and are not recruited based on their skills or qualification. Training is mainly on the job and is done
by senior family members with more years at the business. The business has been good and could be described
as a market leader in the town and they pride themselves in offering superior customer care. Whenever a
customer has an issue with their products they are always open to replacing the defective product at no cost to
the customer. The defective products are sold off at a discount.
Six months ago, a new shopping mall opened in the town offering fresh vegetables and providing stiff
competition to the Nsiah family business. Patrons of this mall rarely experience product defects and hence are
increasing their patronage of the mall’s products. Mr. Nsiah the head of the business is at his wits end and is
struggling to keep the family business afloat due to a decreasing customer base and rising cost of business. Upon
your return from the university you join your father, Mr. Nsiah in the family business and have to find innovative
ways to compete favorably.
i. Identify two causes leading to the decline of the business?
(5 marks)
ii. With the knowledge gained from your study of Introduction to Total Quality Management, discuss two
measures you would put in place to minimize the decline in the business.
(5 marks)
iii.
Analyze four business performance indicators you will suggest to Mr. Nsiah to help improve the
competitiveness of Farmers Market Enterprise.

The correct answer to this open question is the following.

I.-. Identify two causes leading to the decline of the business?

Two of the most notorious reasons for the decline of Farmers Market Enterprise are:

1.- The company is a family business and is still operating as a family business(traditional way).

2.- The Nsiah family has been relegated by the new and modern supermarket located in the shopping center. The new store has modern and efficient operations based on technology and processes, meanwhile, the Nsiah family's business still working like they were living in the 1960s.

II.- With the knowledge gained from your study of Introduction to Total Quality Management, I would include two measures I would put in place to minimize the decline in the business.

The two measures will be the following.

1.- Efficiency measure, which includes uniting cost and productivity.

2.- To satisfy clients' needs, which includes cero complaints and total satisfaction from the moment customers enter the shop until they leave the premises, happy for the kind of service they received.

These are two basic measures but the key here is that they can provide important data about the way the business is operating on a daily basis.

III.- The four business performance indicators I will suggest to Mr. Nsiah to help improve the competitiveness of Farmers Market Enterprise, would be the following:

1.- Client satisfaction.

2.- Revenue growth.

3.- Profit margin.

4.-  Customer retention rate.

Client satisfaction is key. A satisfied customer will be happy to return again and again, and he will recommend the business to his family, friends, and even on social media.  A dissatisfied client will do completely the opposite.

Revenue growth and profit margin are so important to keep competing once the new supermarket has opened in the mall. Otherwise, the Nsiah family's business is going to fail because it cannot compete with new supermarket's margins.

The new supermarket has a notorious advantage the Nsiah family's lack, and this is the scale economy to reduce its costs by buying large amounts of products. Something that the Nsiah family can't afford to do.

Customer retention rate will indicate the percentage of clients that continue to buy constantly to the degree of considering them loyal to the business. For this to happen Farmers Market Enterprise must create differentiators to appeal to customers. It could be the price, it could be personal or direct assistance to the customer. It could be promotions or loyalty programs.

And of course, Mr. Nsiah has to invest in technology to run a modern operation in all phases of the business.

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