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business
retailing management

Questions and Answers of Retailing Management

What are Neiman Marcus’s and PetSmart’s bases for sustainable competitive advantage? Are they really sustainable, or are they easily copied? LO-3
Assume you are interested in opening a restaurant in your town. Go through the steps in the strategic planning process shown in Exhibit 5–7. Focus on conducting a SWOT analysis of the local
The Gap owns several chains, including Old Navy, Banana Republic, Piperlime, and Athleta. What type of growth opportunity was The Gap pursuing when it opened each of these retail concepts? Which is
Identify a store or service provider that you believe has an effective loyalty program. Explain why it is effective. LO-3
Choose a retailer that you believe could be, but is not yet, successful in other countries. Explain why you think it could be successful. LO-3
Amazon.com started as an Internet retailer selling books. Then it pursued a variety of growth opportunities, including expanding to groceries, DVDs, apparel, software, and travel services;
Review the strategic objectives of a retail firm.
Contrast the two paths to financial performance using the strategic profit model.
Illustrate the use of the strategic profit model for analyzing growth opportunities.
Analyze the financial risks facing a retail firm.
Review the measures retailers use to assess their performance.
S Does TOMS’s socially responsible business model make you more likely to buy its shoes?
What are the differences in the retailing mixes used by Costco and Macy’s?
What are advantages and disadvantages of paying employees more than they can earn at comparable fi rms?
What are the benefits to a retailer of being owned by a private equity firm?
CONTINUING CASE ASSIGNMENT Evaluate the financial performance of the retailer you have selected for the Continuing Case Assignment and of another store that sells similar merchandise categories but
INTERNET EXERCISE Go to the latest annual reports, and use the financial information to update the numbers in the net profit margin management model and the asset turnover management model for Costco
GO SHOPPING Go to your favorite store, and interview the manager. Determine how the retailer sets its performance objectives. Evaluate its procedures relative to the procedures presented in the text.
WEB OLC EXERCISE Go to the strategic profit model (SPM) on the student side of the book’s website.The SPM tutorial was designed to provide a refresher course on the basic financial ratios leading
Buyers’ performance is often measured by the gross margin percentage. Why is this measure more appropriate than operating or net profit percentage?
Neiman Marcus (a chain of high-service department stores) and Walmart target different customer segments.Which retailer would you expect to have a higher gross margin? Higher expense-to-sales
What metrics should be used to measure the financial risk of a retailer? How is each metric used?
Using the following information taken from the 2012 balance sheet and income statement for Urban Outfitters, develop a strategic profit model. (Figures are in millions of dollars.) You can access an
Describe the types of retail locations available to retailers.
Review the types of unplanned locations.
Analyze the characteristics of the different types of shopping centers.
Discuss nontraditional retail locations.
Match the locations to the retailer’s strategy.LO6 Review the societal and legal considerations in selecting locations.
Among all of the potential retailers that could be interested in an inner-city location, why have Loews Cineplex Entertainment, Starbucks, and T.G.I. Friday’s been particularly interested in
What are the challenges facing Simon Properties as it pursues international growth opportunities?
Why is the Florentia Village outlet center successful while Chinese-owned outlet centers have not been?
What are the advantages and disadvantages to Subway’s nontraditional location strategy?
CONTINUING CASE ASSIGNMENT Interview the manager of the shopping center that contains the retailer you selected for the Continuing Assignment.Write a report summarizing which retailers the shopping
INTERNET EXERCISE Go to the web page for Faneuil Hall Marketplace at www.faneuilhallmarketplace.com and the online site for CocoWalk at www.cocowalk.net. What kinds of centers are these?List their
GO SHOPPING Go to your favorite shopping center, and analyze the tenant mix. Do the tenants appear to complement one another? What changes would you make in the tenant mix to increase the overall
GO SHOPPING Visit a lifestyle center. What tenants are found in this location? Describe the population characteristics around this center. How far would people drive to shop at this lifestyle center?
INTERNET EXERCISE Go to the home page for Simon Property Group, www.simon.com/about_ simon/our_business/default.aspx, and read about the businesses that Simon is in. What is the difference between
INTERNET EXERCISE Go to the home page of your favorite enclosed mall, and describe the mall in terms of the following characteristics: number of anchor stores, number and categories of specialty
GO SHOPPING Visit a power center that contains a Target, Staples, Sports Authority, Home Depot, or other category specialists. What other retailers are in the same location? How is this mix of stores
INTERNET EXERCISE Go to www.pbs.org/itvs/storewars/. This site contains information about the Ashland town council’s decision to allow Walmart to open a store in Ashland, Virginia. Summarize the
Why is store location such an important decision for retailers? LO-5
Pick your favorite store. Describe the advantages and disadvantages of its current location, given its store type and target market. LO-5
Home Depot typically locates in either a power center or a freestanding site. What are the strengths of each location for this home improvement retailer? LO-5
As a consultant to 7-Eleven convenience stores, American Eagle Outfitters, and Porsche of America, what would you say is the single most important factor in choosing a site for these three very
Retailers are locating in shopping centers and freestanding locations in central business districts that have suffered decay. As a result, these areas are rejuvenating, a process known as
Staples, Office Max, and Office Depot all have strong multichannel strategies. How do competition and the Internet affect their strategies for locating stores? LO-5
In many malls, quick-service food retailers are located together in an area known as a food court. What are the advantages and disadvantages of this location for the food retailers? What is the new
Why would a Payless ShoeSource store locate in a neighborhood shopping center instead of a regional shopping mall? LO-5
How does the mall near your home or university combine the shopping and entertainment experiences? LO-5
Summarize the factors considered in locating a number of stores.
Review the characteristics of a particular site.
Understand how retailers analyze the trade area for a site.
Determine the forecasted sales for a new store location.
Illustrate the site selection process.
Explain the different types and terms of leases.
What are the opportunities and threats Stage Stores faces?
S For what types of retailers is being on the right side more important during afternoon commutes? For which types of retailers is it more important during the morning commute? Are there any types of
CONTINUING CASE ASSIGNMENT Evaluate the location of a store operated by the retailer you have selected for the Continuing Case. What is the size and shape of the retailer’s trade area? Describe the
INTERNET EXERCISE Go to www.esri.com/library/fliers/pdfs/tapestry_segmentation.pdf and identify five segments that you would expect to find in your zip code. Then go to
INTERNET EXERCISE Go to http://www.esri.com/what-is-gis, the home page for ESRI Geographical Information Systems, and read about GIS. Afterwards, explain how retailers can make better decisions with
INTERNET EXERCISE The U.S. Census Bureau tracks key population characteristics, such as age, gender, disability, employment, income, language, poverty, and race. Go to the U.S. Census Bureau home
GO SHOPPING Go to a shopping mall. Get or draw a map of the stores. Analyze whether the stores are clustered in some logical manner. For instance, are all the high-end stores together? Is there a
GO SHOPPING Visit a jewelry store in an enclosed mall and one in a neighborhood strip shopping center.List the pros and cons for each location. Which location is the most desirable? Why is this the
WEB OLC EXERCISE Go to the student side of the book’s website, and click on “Location.” You will see an Excel spreadsheet that contains the sales for 45 retail locations of a sporting goods
True Value Hardware plans to open a new store. Two sites are available, both in middle-income neighborhood centers. One neighborhood is 20 years old and has been well maintained. The other was
Under what circumstances might a retailer use the analog approach for estimating demand for a new store? What about regression analysis?
What retail locations are best for department stores, consumer electronics category killers, specialty apparel stores, and warehouse stores? Discuss your rationale.
If you were considering the ownership of a Taco Bell franchise, what would you want to know about the location in terms of traffic, population, income, employment, and competition? What else would
A drugstore is considering opening a new location at shopping center A, with hopes of capturing sales from a new neighborhood under construction. Two nearby shopping centers, B and C, will provide
Review the objectives of human resource management.
Discuss the major issues facing human resource managers.
Summarize the activities retail employees undertake and how they are typically organized.
Present activities undertaken to win the talent war.
Identify the legal issues involved with human resource management.
Why did Macy’s make such a large investment in social media?
If you were considering a job at Starbucks, would its social media campaign influence your decision?
What does Pret A Manger do to build employee engagement?
What are the advantages and disadvantages of REI’s executive blog from the perspectives of the employees and the executives? What features would you change? Why?
CONTINUING CASE ASSIGNMENT Meet with the store manager of the retailer you have chosen for this Continuing Case Assignment. Ask the store manager which company HR policies he or she feels are very
INTERNET EXERCISE Go to the Society of Human Resource Management’s home page, www.shrm.org. An organization of human resource professionals, SHRM publishes HR Magazine , with articles available
INTERNET EXERCISE The Fair Measures Law Consulting Group provides training and legal services for employers. Go to its website, www.fairmeasures.com, and choose one of the legal areas to
NTERNET EXERCISE Go to the home page of the National Retail Federation Foundation (NRFF), at http://nrffoundation.com/content/retail-careers-center, and click on “Experience Retail” to read about
LIBRARY EXERCISE Go to one of your college’s or university’s library business databases, and find a recent newspaper or journal article that discusses human resource management in the retail
OLC EXERCISEa. Update your résumé, and prepare for an interview for a manager training program with a large lumber and building supply retailer. This fulltime position promises rapid advancement
Why is human resource management more important in retailing firms than in manufacturing firms?
How can retailers use hiring, selecting, training, and motivating employees in their human resource management practices to gain competitive advantage?
Some retailers have specific employees (merchandise assistants) assigned to restock the shelves and maintain the appearance of the store. Other retailers have sales associates perform these tasks.
How can national retailers like Best Buy and Victoria’s Secret, which both use a centralized buying system, make sure that their buyers are aware of the local differences in consumer needs?
Reread Retailing View 9.4 on REI’s internal use of social media. What are the positive and negative aspects of this internal use of social media in general and, more specifically, REI’s use of an
To motivate employees, several major department stores are experimenting with incentive compensation plans, although compensation plans with a lot of incentives often don’t promote good customer
Assume that you’re starting a new restaurant that caters to college students and plans to use college students as servers. What human resource management problems would you expect to have? How
What HR trends are helping meet employees’ needs, increase job satisfaction, and lower turnover?
Understand the strategic advantage generated by a supply chain.
Describe the information and merchandise flows in a supply chain.
Consider the activities that are undertaken in a distribution center.
Review the considerations in the design of supply chains.
Explain how retailers and vendors collaborate to make sure the right merchandise is available when customers are ready to buy it.LO6 Discuss RFID and its implications for retailers.
What are the benefits and costs of Walmart’s efforts to make its supply chain greener?
What are some of the ways that Zara’s supply chain management system has helped create value for its customers? Provide specific examples.
What benefits and risks face West Marine as it engages in CPFR with its vendors?

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