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business
retail management
Questions and Answers of
Retail Management
3. Financial metrics facilitate the management of a company as they interpret the quantitative image of its performance capability. However, the main strength of a company is in its resources,
2. Compare the EVA concept with EBITaC and discounted cash flow approaches, and make a comparative analysis.
1. Although the Metro Group changed its management system from EVA to EBITaC, several companies such as Henkel and ArcelorMittal still use the more common EVA. Discuss the possible limits and risks
3. Which criteria would you use to measure the success of the channel partnership?
2. Why is the design of the information exchange between partners along the supply chain one of the most important challenges within supply chain management?
1. Why did P&G and Walmart establish their first channel partnership at the end of the 1980s?
3. What advantages and disadvantages are associated with the outsourcing of physical distribution processes by Sainsbury’s?
2. Factory gate pricing (FGP) is becoming increasingly popular. What are the reasons and motivations for this development? Which possible limitations and risks can be identified?
1. Sainsbury’s supply chain comprises different types of distribution facilities. Why is this distinction normally used?
3. Describe one of the two largest buying groups, EMD or AMS, and elaborate on the differences compared with Coopernic. How can the players be categorised concerning the dimensions “conceptual
2. Describe the critical success factors that affect cooperative purchasing groups and assess to what extent Coopernic meets these factors.
1. List the possible advantages and disadvantages of horizontal cooperative purchasing and evaluate Coopernic’s situation.
3. Do loyalty cards enhance loyalty? Discuss.
2. Do you think it is possible for Tesco to replicate the success of its customer loyalty programme in the home market to other countries? Discuss critically.
1. How could data be gathered via the Clubcard and then be used? Give some detailed examples.
3. Why it is it attractive for a retailer such as a department store to apply an upmarket and expensive holistic instore marketing approach, whereas discounters and category killers keep on gaining
2. For a department store, there are three basic ways to organise its floors. It can be structured either as a classic item-oriented area with traditional categories (such as trousers, books, or
1. In the case study, numerous examples of holistic instore marketing were discussed.What elements exactly constitute a holistic instore marketing approach?
3. Everyday low prices are useful to improve price image in the long run but a rather weak instrument in the short run. Promotions have a good immediate impact on sales but may deteriorate the
2. What are the long-term consequences of Carrefour’s efforts to improve price image?
1. What are the advantages and disadvantages of the store brand Carrefour Discount to improve the price image? Explain.
3. How do you evaluate the strategy to expressly open sites in markets where 7-Eleven already has a strong market position?
2. Which opportunities and risks does 7-Eleven take when executing all store leases in some cases, even if the stores are run by a franchise?
1. What significance do you attach to the site selection criterion “24 hour operation required“?
3. Would it be recommendable for TK Maxx to use different advertising strategies in different countries? Discuss.
2. Where can you identify discrepancies and potential conflicts between the brand image of TK Maxx and its everyday operative practices?
1. Differentiation, continuity and consistency are three success factors for retail brands.Use these concepts to analyse TK Maxx’s brand management.
3. In what way does the sequence of A.S. Watson’s foreign market entries conform to the theoretical concept of psychic distance?
2. What are the advantages and disadvantages of capital-intensive market entry strategies in general as well as especially for A.S. Watson?
1. The basic internationalisation decision entails the choice between standardisation and adaptation. What strategy does A.S. Watson pursue? Comment on the standardisation potential of the health &
3. What are the advantages and disadvantages of joint ventures?
2. Which problems can emerge with acquisitions?
1. Discuss the consequences for a company which arises of a poor organic growth. What are the problems?
4. In 2007, C&A decided on a long-term strategy to expand the use of organic cotton for its products. In the context of sustainability, name and explain key drivers for a higher control of the
3. C&A pursues many different activities within its sustainability strategy. Explain the concept of sustainability, name the key corporate aspects of the three dimensions of the triple bottom line
2. In recent years, C&A has significantly increased its share of active sourcing and plans to continue this. Is it advisable for C&A to start manufacturing clothes in its own production facilities
1. C&A can be classified as a “vertical retailer” in the clothing industry. Explain why, taking a closer look at upstream- and downstream-oriented value chain architectures.What are the
3. Given the company-owned retail activities of Nike, assess the contribution of the current development to the long-term success of the company.
2. Describe potential channel conflicts for a manufacturer adding a new company-owned retail channel and use Nike to illustrate some examples. Please elaborate on ways that are suited to manage
1. List the possible motivations for the implementation of secured distribution activities from a manufacturer’s perspective and apply the insights to Nike’s situation in detail.
3. Which cross-channel functionalities dos NEXT offer, and what are advantages of indications between retail channels?
2. A catalogue is an expensive medium since it needs to be printed and distributed to households. If already 70 % of the home shopping orders at NEXT come via the online channel, would you recommend
1. In 1999, the business strategy of NEXT was extended to "One Brand; Three ways of shopping". Explain the historical development of this process and the necessity for NEXT to integrate these
3. IKEA has not yet implemented online shops in every country where it operates. Assess the relevance of this retail format within the framework of the company’s future internalisation?
2. The parallel use of different retail formats and/or sales formats is referred to as multichannel retailing. What are the opportunities and risks associated with this concept in general and for
1. IKEA operates in the same market with three formats: category specialists, online shops and catalogue retailing. What are the typical characteristics and advantages of these retail formats? To
3. Ahold operates online shopping formats in Europe and in North American market.Evaluate the relevance of the company’s e-commerce and m-commerce formats for future growth in food retailing.
2. Ahold’s strategy of international growth is mainly based on the acquisition of powerful local retail brands. Discuss critically the challenges and opportunities of introducing the brand Albert
1. Ahold operates multiple retail formats. What are the typical advantages and disadvantages of each retail format?
3. Assume a manufacturer such as Sony decided to sell directly to the final consumer.Comparing that to the functions currently executed by retailers such as Best Buy, what would Sony have to do?
2. Imagine if Best Buy bought its own factories and increased its amount of store label brands. What would this mean for its relationship with manufacturers such as Apple, GE or Sony? Explain.
1. Using the catalogue of retail functions, describe Best Buy’s activities in terms of these functions.
3. Compare the EVA concept with another steering tool for valueȬbased company management within the framework of the shareholder value approach and make a comparative analysis.
2. What possible drivers or determinants can influence the economic value added in a company or contribute to its improvement?
1. Apart from the Metro group, several other companies such as Ahold or JCPenney use EVA as a group steering system. Discuss the possible limits and risks of EVA as a group steering system.
3. Critically discuss the role of power in the supply chain. What impact does the existence of a network of manufacturing subcontractors and a franchised retail network have on the quick response
2. What are the particular challenges of supply chain management in the fashion industry? Describe and evaluate the role of quick response sysȬtems as applied by Benetton with regard to the textile
1. Explain the difference between producer push and consumer pull supply chains as applied by Benetton. Explain and evaluate the role and value of information in managing the supply chain.
3. What advantages and disadvantages are associated with the outsourcing of physical distribution processes, also applied by Sainsbury’s?
2. Factory gate pricing (FGP) is becoming increasingly popular. What are the reasons and motivations for this development? Which possible limiȬtations and risks can be identified?
1. As described, Sainsbury’s supply chain comprises different types of disȬtribution facilities. Why is this distinction normally used?
3. Compare the option of direct sourcing (especially in geographically disȬtant markets) with the use, for example, of wholesalers or importers to fulfil the buying task.ȱ
2. When it comes to global sourcing, Asia is becoming increasingly popular, and China in particular. What are the specific risks and challenges facing retailers buying from China?
1. Within the scope of the proceeding globalisation, global sourcing is beȬcoming an increasingly important topic for retailers because it is a source of cost reductions. However, the limitations
3. Compare Tesco’s Clubcard programme with another CRM tool such as a stamps scheme, e.g. the one Tesco used in the 1960s and 1970s.
2. Do you think it is possible for Tesco to replicate the success of its cusȬtomer loyalty programme in the home market to other countries? Discuss critically.
1. How could data be gathered via the Clubcard and then be used? Give some detailed examples.
3. Why may it be attractive for a retailer such as a department store to apȬply an upmarket and expensive holistic instore marketing approach, whereas discounters and category killers keep on
2. For a department store, there are three basic ways to organise its floors. It can be structured either as a classic itemȬoriented area with traditional categories (such as trousers, books, or
1. In the case study, numerous examples of holistic instore marketing were discussed. What elements exactly constitute a holistic instore marketing approach?
3. How could competitors potentially gain a competitive advantage over WalȬMart?
2. What are the drawbacks of WalȬMart’s EDLP and EDLC policies that might ultimately erode its cost advantage?
1. How did WalȬMart facilitate the adoption of an EDLP policy, i.e. what are the prerequisites for adopting such a policy?
3. As mentioned, Coop also has a chain of DIY stores. Develop two different positioning strategies for a DIY retailer and suggest what products the retailers should carry in their assortment and how
2. Even though Coop has very strong store brands, about half of its sales come from manufacturer brands. Discuss the benefits and drawbacks of an extensive range of manufacturer brands in this
1. Coop introduced the budget store brand Coop Prix Garantie and thereby clearly connected those products with the retail brand Coop. Discuss the advantages and disadvantages of this strategy.ȱȱ
3. Why was it attractive for ECE to enter Central and Eastern European countries? What are the future growth prospects in these countries and in general?
2. What are the advantages and disadvantages of greenfield vs. innerȬcity locations for different retailers?
1. Why is it not uncommon for citizen activist groups to protest against large shopping centres as built by ECE? What are the most frequently expressed fears and anxieties associated with such
4. What are IKEA’s chances of achieving sustained success over time?
3. Which principles of successful retail branding can be identified in IKEA‘s business model?ȱȱ
2. Where can you identify discrepancies and potential conflicts between IKEA’s brand image and its everyday operative practices?ȱȱ
1. As demonstrated, IKEA’s main target group comprises young couples and families. How could the retailer try to retain this clientele for their second or third furnishing, which is often not
4. Ideally, it is possible to differentiate between a firstȬmover (pioneer) and a secondȬmover (successor) strategy in the course of entering foreign markets. What are the prevailing advantages and
3. Market selection: Does the sequence of foreign markets entries conforms to the theoretical concepts of psychic distance? Can patterns be detected regarding an explicit evaluation of foreign
2. The basic decision, within the framework of the internationalisation of a company, entails the choice between standardisation and adaptation. The standardised marketing (the strategic attributes
1. Within the context of its internationalisation, Aldi enters new markets through organic growth and its own branches. What are the advantages and disadvantages of this market entry strategy in
3. While franchising is the growth strategy used in Germany, Fressnapf also chooses other growth strategies in other country markets. Why does Fressnapf select different strategies in different
2. The franchising literature sometimes refers to “two markets” from the perspective of a franchisor: the consumer and the market for/of franchise partners themselves. Explain why prospective and
1. Fressnapf has focussed its growth strategy on franchising. An alternative option would have been to multiply the concept by opening companyȬowned branch stores. Discuss the advantages of
3. Discuss the prospects of a (future) reinforced secured distribution stratȬegy, given Esprit’s planned further global expansion?
2. From a retailer’s point of view, such as a department store, what are the potential advantages and disadvantages if a manufacturer uses forward integration, i.e. opens its own equity stores in
1. Why is it attractive for apparel manufacturers such as Esprit also to disȬtribute their products via secured channels? What elements of Esprit’s global brand strategy reflect and enhance this
3. Media Markt has online shops only in Italy and Germany. Assess the relevance of this retail format within the framework of the company’s fuȬture internationalisation.
2. The parallel use of different retail formats and/or sales formats is referred to as multiȬchannel retailing. What are the opportunities and risks assoȬciated with this concept in general and for
1. Media Markt operates in the market with both category killers and online shops. What are the typical characteristics and advantages of these retail formats? To what extent do these characteristics
3. In some country markets, Carrefour is pushing its expansion through convenience stores. Discuss the general characteristics of convenience stores, analyse the development of convenience stores of
2. Since 2004, Carrefour has been in a relaunching process, because of a growing competition both on a worldȬwide level and in many specific country markets. Conduct a SWOT analysis for the group
1. Is it possible for Carrefour to extend the success of its multiȬformat conȬcept worldwide? Discuss critically and give examples.
Could you increase expectancies (E) or instrumentalities (I)related to your new plan to help increase the motivation of the architects? How would you do so?
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