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business
retailing management

Questions and Answers of Retailing Management

WEB OLC EXERCISEa. Go to the s tudent side of this book’s Web site, and review the student résumés. Which résumés do you think are effective? Ineffective? Why?b. Update your résumé, and
INTERNET EXERCISE Go to the home page of the National Retail Federation Foundation (NRFF), at www.nrffoundation.com/CareersCenter/default.asp/, and click on “Experience Retail” to read about the
INTERNET EXERCISE Go to the home page of Retail Human Resources PLC at www.retailhumanresources.com/. How does this recruitment consultancy help U.K. retailers and job seekers to find the best
INTERNET EXERCISE The Fair Measures Law Consulting Group provides training and legal services for employers. Go to its Web site, www.fairmeasures.com, and choose one of the legal areas to
Why should retailers be concerned about the needs of their employees? What can retailers do to satisfy those needs?
Reread Retailing View 9.3 on The Container Store.What are the positive and negative aspects of employee turnover? How is this retailer reducing the turnover of its sales associates? How can other
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
INTERNET EXERCISE Go to www.gis.com/index.html, the home page for Esri Geographical Information Systems, and click on “Demo: What is GIS?” After watching the three-minute video, explain how
INTERNET EXERCISE Go to http://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
CONTINUING CASE ASSIGNMENT Evaluate the location of a store operated by the retailer you have selected for the Continuing Case Assignment.What is the size and shape of the retailer’s trade
INTERNET EXERCISE Go to the home page for Simon Property Group, http://www.simon.com/about_simon/our_business/default.aspx, and read about the types of shopping centers that this developer manages.
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
How does the mall near your home or university combine the shopping and entertainment experiences?
Why would a Payless ShoeSource store locate in a neighborhood shopping center instead of a regional shopping mall?
Staples, Office Max, and Office Depot all have strong multichannel strategies. How do competition and the Internet affect their strategies for locating stores?
Retailers are developing shopping centers and freestanding locations in central business districts that have suffered decay. Some people have questioned the ethical and social ramifications of this
Pick your favorite store. Describe the advantages and disadvantages of its current location, given its target market.
WEB OLC EXERCISE Go to the strategic profit model (SPM) on the student side of the book’s Web site. The SPM tutorial was designed to provide a refresher course on the basic financial ratios leading
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 Family
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
Examine Walgreens’, CVS Caremark’s, and Rite Aid’s 2009 financial performance in the table below. Evaluate Walgreens’ performance against direct external competition using the financial data
Using the following information taken from the 2010 balance sheet and income statement for Urban Outfitters, develop a strategic profit model. (Figures are in millions of dollars.) You can access an
Using the following information from Lowe’s 2010 income statement and balance sheet, taken from Hoovers, determine its asset turnover, net profit margin percentage, and ROA. (Figures are in
What differences would you expect to see when comparing Gifts To Go’s specialty store strategic profit model with that of two dry-cleaning service businesses?
What elements in the strategic model are affected if a retailer decides to build and open 10 new stores?
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
How does the strategic profit model assist retailers in planning and evaluating the performance of their marketing and financial strategies?
Buyers’ performance is often measured by the gross margin percentage. Why is this measure more appropriate than net profit percentage?
Describe how a multiple-store retailer might set its annual performance objectives.
Why does a retailer need to use multiple performance measures to thoroughly evaluate its performance?
Why does TSC place so much emphasis on training employees?
How vulnerable is TSC to competition? Why is this the case?
How does TSC’s retail mix provide the benefits sought by its target market?
Why and how has TSC’s target customer changed over time?
What is Tractor Supply Company’s growth strategy?What retail mix does TSC provide?
What can Build-A-Bear Workshop do to generate repeat visits to the store?
Describe the target customer for this retailer.
Is the Build-A-Bear Workshop concept a fad, or does it have staying power?
Walmart’s Sustainable Product Index is intended to provide consumers with a ranking of a product’s sustainability across its life cycle. Would this ranking influence your buying decisions? Why or
Walmart’s sustainability program addresses each of the criticisms leveled against it. If a company is forced to launch an initiative to prevent falling sales or public relations problems, do you
Walmart says that it creates new markets for smalland medium-size businesses and that it supports growth and innovation for these businesses. For some of these suppliers, Walmart is their primary
Is Walmart good for society? Would society be better off with or without Walmart?
What are some of the potential problems Netflix will face in the near future as the company continues its reliance on DVD and blu-ray offerings by mail?
Should Netflix charge for streaming content or continue to provide it without limit as part of its physical media offerings? Why or why not?
In exchange for greater amounts of streaming content, Netflix has begun making deals with major movie studios that delay the release of DVDs and blu-rays by 28 days. This gives bricks-and-mortar
Outline the decision-making process for each of the Sanchezes’ bicycle purchases.
How important is it for consumers to buy conflictfree diamonds? Why?
What are the advantages and disadvantages of stores operated by licensees rather than by the company directly?
What are the pluses and minuses of offering a limited assortment from the perspective of the consumer and the perspective of the retailer?
How do the elements in the strategic profit model for Save-A-Lot differ from those of a traditional supermarket?
What is Save-A-Lot’s retail strategy—its target market, format, and bases of competitive advantage?
Do you think Royal Ahold should have divested its food service divisions? Why or why not?
What are the advantages and disadvantages of Walmart’s and Carrefour’s more centralized decision making compared with Royal Ahold’s decentralized decision making?
Should Royal Ahold use its name on all of its stores, as Walmart and Carrefour do? Why or why not?
What are the advantages and disadvantages of the growth strategies pursued by Royal Ahold, Carrefour, and Walmart?
Which retailer(s) has (have) the stronger competitive position?
List other specialty apparel retailers that target the same customers as A&F and AE. How do these brands differentiate themselves in the competitive retail environment? Construct a product
What are the brand images of A&F and AE? What words and phrases are associated with each retailer’s brand name?
What, if any, are the differences in A&F’s and AE’s retail strategies?
Does every merchant team have a merchandise strategy? Why or why not?
Why is a mission statement so important to a merchandise strategy?
Which of the main components of a merchandise strategy are most valuable? Why
Assess which chain has better overall financial performance using ROA. Why is ROA a good measure of each of the retailers’ financial performance?
Explain, from a marketing perspective, why the ratios calculated from question 2 (gross margin percentage, expenses-to-sales ratio, net profit margin, inventory turnover, and asset turnover) are
Calculate the gross margin percentage, expensesto-sales ratio, net profit margin (after taxes), inventory turnover, asset turnover, and return on asset ratio for Tiffany and Walmart using the
Using Exhibit 2, construct strategic profit models for Tiffany and Walmart using data from the abbreviated income statements and balance sheets in Exhibit 1. You can do these calculations by hand or
What type of store would be most appropriate for each location?
List the pluses and minuses of each location.
Which location would you select? Why?
What values have helped Avon to be a successful company even after 125 years?
Select another retailer that also values diversity. How does this commitment affect its financial results?
Why is Avon so committed to diversity?
What do you see as the strengths or weaknesses of loyalty programs such as Nordstrom’s Fashion Rewards or InCircle at Neiman Marcus?
Are luxury consumers more drawn to reward/loyalty programs than are those in other economic groups? Are they drawn to different types of programs?
Is the Nordstrom program worth what it spends to reward customers? Why or why not? Explain.
Whom should Nordstrom target for its loyalty program?
How effective is Nordstrom’s program in terms of developing customer loyalty?
What are the design characteristics of an effective loyalty program?
What would you recommend Active Endeavors do to get more business from each group?
Describe the type of customers in each group.
How should Hughe’s distribute the allotted opento-buy dollars among the available sizes, colors, and fabrics?
Work up a buying plan to use when purchasing merchandise from Ghuman’s.
Forecast sales for PenAgain in the 30-day trial.
If you were one of PenAgain’s small retail customers, how would you react to the company’s selling its products through Walmart?
What are the key steps that PenAgain took to get Walmart to stock its products?
What do you think Jason should do concerning his decision? Defend your answer.
How is Jason’s target market more or less attractive than other markets JCPenney serves?
Describe the basic difference between a private brand, co-brand, and national brand. What are the benefits of each, and how do they affect one another?
What effect does an exclusive co-brand have on customer perceptions of the retailer or designer?Does this perception change if the co-brand is discontinued?
What are the key financial considerations in developing exclusive co-brands? How does the current economic environment benefit or hinder this strategy?
What price would you charge, and how many units would you order?
What other factors should Courtney’s consider?
Which price would result in the highest profit?
What prices caused Courtney’s new charges?
Work out the dollars to be devoted to each medium. Justify your plan.
Work out the daily scheduling of all advertising.
Would you want to work for Enterprise? Why or why not?
What are the pros and cons of Enterprise’s human resource management strategy?
What would you recommend? Why?
Do you have any other suggestions for improving the store’s sales?

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