Success factors CAP Markets

1 success factors

1.1 political support
1.2 generous financial framework
1.3 market segment
1.4 integration philosophy

success factors
political support

the concept has 3 attractions policy-makers:

(a) labour market policy: land of baden-württemberg, cap märket started, wishes ensure equal opportunities disabled citizens. labour market policy therefore encourage creation of integration enterprises, , target reach total of 2,000 jobs disabled people 2010. has successful programme including financial incentives employers , career support services has succeeded in reducing unemployment among disabled people 20%.

(b) regeneration policy – quality of life in towns falls when retailers close down, there support residents empty sites reused. properties available @ affordable prices.

c) sustainable development policy: shops close customers, , can reached on foot, particularly valuable people without cars. capitalise on advantage, shops offer delivery service.

a generous financial framework

germany s social security law provides firms must employ quota of severely disabled people. not obliged pay ‘compensation fund’ instead. fund used pay wage subsidy integration enterprises (integrationsbetriebe) employ disabled people. allows higher staffing levels maintained, both compensates lower productivity of workers, , allows atmosphere created in people have time each other. makes jobs sustainable disabled people.

the investment required open shop reduced fact sum of between €10,000 , €15,000 per job created disabled person available, half of loan , half grant. private foundations make grants of as €100,000 towards start-up costs.

an important forgotten factor relatively generous – in european context – subsidy regime applies sheltered workshops allowed them accumulate working capital needed develop business idea in first place.

a market segment

the concept offers many advantages shoppers:

- customers have money mission

- service in demand 2 stakeholders: local communities unemployed disabled people. gives access multiple sources of support

- culture of friendly , helpful service: staff can take time advise , chat customers, , customer suggestions welcomed

- wide range of products – 7,000 lines – makes ‘one stop’ alternative out-of-town supermarkets. while four-fifths of sales must cap market range, remaining fifth can sourced elsewhere, suit local , regional tastes.

- developing new services gain customer loyalty – instance delivery

- ecology: going trend energy-saving , against out-of-town shopping

- industry experience: managing director has long working history in retail

- connections , market intelligence comes experience

- fairness: balanced license agreement combines local autonomy central discipline

- solidarity , mutual aid: structured decisions , information system based on regular meetings

- critical mass: cap group has built sufficient size has negotiating power suppliers, , edeka, whom gets small discount on prices available member retailers generally; in return provides edeka significant boost sales, without headaches of giving detailed support each customer

integration philosophy

- acceptance of disability: employers know , accept employees’ health circumstances, , tolerate level of mistakes, gives employees sense of security.

- time people: staff expected work best of abilities, not excessively pressurised.

- people first: shops not need maximise profits; sufficient break , make small surplus.