Retail Mangement

Question 1

Job desc vs Job spec

Answer 1

job desc = tasks, the job itself
job spec = the perosn

Question 2

What are steps to managing employees?

Answer 2

1) recruit and select
2) socialize and trian new empl
3) motivate and manage, to acheive store perf goals
4) evaluate empl perf and provide feeback
5) compensate and reward employees

Question 3

How strategy tie into structure ? Example?

Answer 3

it follows! decide structire based on strategy
(product differentiation strategy need creativity, sharing of ideas, SO need less rigid, flatter company structure)

Question 4

What jobs might a small retailer have?

Answer 4

owner/manager
merchandise manager (merch and advertising)
store manager (store, HR, distribution)
salespeople
accounting (external)

Question 5

What jobs might large chain have?

Answer 5

CEO
Senior VPs (merchandising, planning marketing, stores, finance)
Divisionla managers, otehr sections underneath ^
buyers, planners, assistants, etc.
—w/in store—
general manager
assistant manager (1 operations, 1 HR, 1 selling)
sales manager
salespeople

Question 6

What is buying cycle for buyer role?

Answer 6

1) determine needs (what, how much, season, persishability)
2) select supplier (single vs multiple vendors, price, service)
3) negotiate purchase (when and how obtain product, price, shipments, expenses, guarantees, special purchases)
4) followup (how improve, review, better and new vendors)

Question 7

What is order point formula? What is order ceiling?

Answer 7

OP = basic stock + safety stock + leadtime

OC = OP + order interval

Question 8

What is a pro forma analysis?

Answer 8

create financial/accounting documents for hypothetical situations nad projectsion

Question 9

Steps of pro forma analysis?

Answer 9

1) select assumptions (marketing, etc)
2) project sales revenues (strategies: market build up, analogy, customer flow)
3) project costs - variable and fixed (ex: real estate, rent, employees, COGS)
4) project changes in working capital (% of sales determines stock of working capital SO calculate changes in stock)
5) summarize chnges in cash flows (breakeven, NPV, IRR)

Question 10

What is working capital?

Answer 10

% of sales
short term assets - short term liabiliteies

Question 11

What are the ways to forecast/project sales revenues?

Answer 11

• By Analogy: use stores that match yours, take average, do regression (benchmark = avg Sales Per Square Foot)
• By Market Build-Up: Customers in mkt area x Expenditure on Category x mkt share
• Customer Flow Method: Expenditure per customer visit x number of visits/day x number of days (good for services)