Premium Essay

Retail Management Handout

In:

Submitted By nivri18
Words 4266
Pages 18
I. Major Steps in Merchandise Buying and Handling

A. Merchandise management is the analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. Exhibit 9.1 illustrates the major steps in the merchandise management process. 1. Analysis is used in the definition because retailers must be able to correctly identify their customers before they can determine the needs and wants of their consumers. 2. Planning is included because retailers must often purchase their merchandise six to 12 months in advance of the selling season. 3. The term acquisition is used because, with the exception of service retailers, merchandise needs to be bought from others, either distributors or manufacturers. 4. Handling ensures that the merchandise is where it is needed and in the proper shape to be sold. 5. Control of the large dollar investment in inventory is important to ensure an adequate financial return on the retailer’s merchandise investment. . B. Merchandising, though only a subfunction of retailing, is its heartbeat. It is the day-to-day business of all retailers. As inventory is sold, new stock needs to be purchased, displayed, and sold once again. II. Dollar Merchandise Planning A. A high build up of inventory indicates that either the retailer has too much money tied up in inventory or is not making the sales it was expecting and is heading for trouble. Likewise, a retailer who is frequently out of stock will quickly lose customers. 1. Inventory is the largest investment that retailers make. 2. Gross margin return on inventory model is used to analyze the performance of inventory. Gross margin return on inventory (GMROI) incorporates into a single measure both inventory turnover and (gross) profit. Its formula is: (Gross margin/Net sales) x (Net sales/Average inventory at

Similar Documents

Premium Essay

Tesco - Strategic Planning

...Contents 1. Strategic Review................................................................................................................5 1.1.1. 1.1. 1.1.2. 1.2. The industry.....................................................................................................................................7 Needs and Expectations of stakeholders of an organization ............................... 10 1.3.1. 1.3. The macro-environment.............................................................................................................6 External factors affecting the organization...................................................................5 Macro-environmental level: Pestle analysis is applied ...............................................12 Major Changes taking place in the external environment.................................... 12 1.3.2. Industry Level: Porter five forces.........................................................................................13 2. Review of Tesco Existing Plans ................................................................................. 16 2.1. Tools to analyze the effect of current business plan............................................... 16 2.2. Position of Tesco in its current market ....................................................................... 17 2.3. Competitive Strengths and weaknesses of current business strategy ............. 19 3. Consideration...

Words: 9652 - Pages: 39

Premium Essay

Costos Abc

...5-7 The Buckeye National Bank (Activity-Based Costing in the Service Sector) ABSTRACT: The U.S. Bureau of the Census projects that by 2006, the service sector will employ 74 percent of the workforce. This case illustrates why a major segment of the service sector—banks—needs accurate cost information to make strategic decisions, and how more refined accounting systems help fulfill this need. Buckeye National Bank is a hypothetical bank that has suffered falling profits despite a shift in customer base toward retail customers, which the current information system reports are more profitable than business customers. Following a step-by-step approach, you will develop the Bank’s average cost of serving a retail customer account and a business customer account, under (1) the Bank’s traditional single allocation base system, and (2) a (pilot test) activity-based costing system. You will analyze these results to determine how and why costs reported by the activity-based system differ from the costs reported by the traditional system, and what this difference means for the Bank’s business strategy. Finally, you will consider how the Bank’s managers can use the new, more refined activity-based cost data in strategic decision making, including controlling costs and developing more profitable business strategies. TEACHING NOTES Background and Purpose Textbook illustrations and pedagogical cases on activity-based costing (ABC) typically focus on manufacturing applications...

Words: 5536 - Pages: 23

Premium Essay

Training and Development

...and skill to provide yourself to conduct a proper lending experience for your members/clients. Strength of this course is to provide the best service to your member/client and the ability to apply this to your every day consumer lending environment. Trainees: 25 Financial/Credit Service Staff Members Time: 9 a.m to 5 p.m | * A2 – Course Outline: Time | Module Title | Module objective/s | 9:00AM – 9:30AM | Introduction * Trainer & Trainee Introductions * Housekeeping rules * Agenda | Trainer will begin by introducing herself with trainees introduction of themselves with a brief description so they are familiar with who they will be working with. | 9:30AM – 10:30AM | Module 1 - Retail Lending -Introduction to the Loan Portfolio, the definition, profitability, cross selling, 8 C’s of Credit & matching. | Trainees will listen closely to the topics discussed by taking notes of the 8 C’s of Credit. | 10:30AM – 10:45 | BREAK | BREAK | 10:45AM – 11:15 | Trainer will begin describing the lending process and reviewing the list of responsibilities assigned as a member consultant/lender. As a short group discussion will follow to identify any misunderstandings. | Participants will begin to making a list individually; they then will explain to the trainer what they would like him/her to elaborate on with a 15 min time block. | 11:15 – 12:00PM | Work Sheet – Going through the lending process in the following stages: The Inquiry...

Words: 3567 - Pages: 15

Premium Essay

Best Buy Overview

...Andrew Bornstein Mae Brana Grace Tan Meredith Walters Table of Contents Business Summary 2 Vision Statement & Corporate Values 2 Rankings 2 Market Share 3 Stock Chart – 5 Year Performance 3 Financial Highlights 4 History 5 Key Executives 6 Strategy 7 Customer Centricity 7 Value-added Services Business 9 Supply Chain and IT Systems 9 New Store Openings 10 Mergers & Acquisitions 10 Employees 11 Key Competitors 12 5-Year Performance vs Key Competitors 13 Appendix 14 Business Summary Best Buy is a specialty retailer of consumer electronics, home-office products, entertainment software, appliances and related services in a superstore format. It operates retail stores and commercial Web sites in the U.S., Canada and China, under the brand names Best Buy (BestBuy.com and BestBuyCanada.ca), Future Shop (FutureShop.ca), Magnolia Audio Video (MagnoliaAV.com) and Geek Squad (GeekSquad.com and GeekSquad.ca). As of Feb 25 2006, Best Buy operated 742 Best Buy stores, 20 Magnolia Audio Video stores and 12 Geek Squad stores in the U.S.; and 118 Future Shop stores, 44 Best Buy stores and five Geek Squad stores in Canada. Best Buy operates two reportable segments: Domestic and International. The Domestic segment is comprised of all U.S. store and online operations, including Best Buy, Magnolia Audio Video and Geek Squad. Magnolia Audio Video stores offer high-end audio and video products, and services...

Words: 23684 - Pages: 95

Premium Essay

Dasd

...Alaska Sea Grant Marine Advisory Program The Business of Fish Handout 6 Analyzing Your Financial Ratios Taken from http://www.va-interactive.com/inbusiness/editorial/finance/ibt/ratio_analysis.html Overview Any successful business owner is constantly evaluating the performance of his or her company, comparing it with the company's historical figures, with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of your company's effectiveness, however, you need to look at more than just easily attainable numbers like sales, profits, and total assets. You must be able to read between the lines of your financial statements and make the seemingly inconsequential numbers accessible and comprehensible. This massive data overload could seem staggering. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Comparative ratio analysis helps you identify and quantify your company's strengths and weaknesses, evaluate its financial position, and understand the risks you may be taking. As with any other form of analysis, comparative ratio techniques aren't definitive and their results shouldn't be viewed as gospel. Many off-the-balance-sheet factors can play a role in the success or failure of a company. But, when used in concert with various other business evaluation processes, comparative ratios are invaluable. This discussion contains descriptions and examples of the eight major...

Words: 3880 - Pages: 16

Premium Essay

Financial Ratios

...Alaska Sea Grant Marine Advisory Program The Business of Fish Handout 6 Analyzing Your Financial Ratios Taken from http://www.va-interactive.com/inbusiness/editorial/finance/ibt/ratio_analysis.html Overview Any successful business owner is constantly evaluating the performance of his or her company, comparing it with the company's historical figures, with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of your company's effectiveness, however, you need to look at more than just easily attainable numbers like sales, profits, and total assets. You must be able to read between the lines of your financial statements and make the seemingly inconsequential numbers accessible and comprehensible. This massive data overload could seem staggering. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Comparative ratio analysis helps you identify and quantify your company's strengths and weaknesses, evaluate its financial position, and understand the risks you may be taking. As with any other form of analysis, comparative ratio techniques aren't definitive and their results shouldn't be viewed as gospel. Many off-the-balance-sheet factors can play a role in the success or failure of a company. But, when used in concert with various other business evaluation processes, comparative ratios are invaluable. This discussion contains descriptions and examples of the eight major...

Words: 3901 - Pages: 16

Premium Essay

6 Steps Cover Letter

...Covby Regina Pontow Goals How To Use This Booklet Self-Confidence and Your Job Search Before and After Resumes 6 Steps To Create A Great Resume For Computer Information Students Worksheets for Steps 1 & 2 Computer Science Degree - Skills and Knowledge Gained From College Program Skill Lists, Sample Sentences and Transferable Skills Worksheets for Steps 3 to 5 12 Questions To Help You Describe Your Functional Headings Strategies That Blow Away Your Competition Marketing The 10 Hottest Skills Selling the Benefits of Your Skills Solving Employers' Hidden Needs Using PowerBase Statements How To Edit Sentences, Use Action Verbs and Quantify Worksheet for Step 6 Why Use A Targeted Resume Templates To Type Your Resume Before and After Cover Letters Before and After Thank You Letters Scanned and Internet Resumes Page(s) 3 3 4-5 6 - 11 12 - 15 16 - 17 18 19 - 29 30 - 31 32 - 37 38 39 40 41 42 43 44 46 48 50 52 - 45 47 49 51 55 I would like to thank Renton Technical College and its students for working with me to create the examples in this booklet. All student names, employers, addresses, etc. have been changed to fictitious information to protect privacy. Notice to Instructors / Schools: Individual instructors and the institutions they work for will be held legally and financially responsible for copyright violation, resulting statutory damages and legal fees. Do not copy or cut apart to copy. The U.S. Copyright Act and HR 2223 provide teacher photocopying guidelines which...

Words: 26601 - Pages: 107

Premium Essay

Managerial Economics

...Australian Consumer Trends ACRS Secondary Research Report 2010 The information contained in this report remains the property of The Australian Centre for Retail Studies and may not be reproduced without the permission of the Executive Director. Although every effort has been made to ensure the information contained in this report is correct, the ACRS assumes no responsibility for its accuracy, reliability, nor does it necessarily endorse the organisations listed herein. Contact: The Australian Centre for Retail Studies (ACRS) Level 6, Building S 26 Sir John Monash Drive Caulfield East VIC 3145 Australia Tel: (03) 9903 2455 Fax: (03) 9903 2099 Email: acrs@buseco.monash.edu.au Website: www.buseco.monash.edu.au/centres/acrs Front Page: Dreamstime Photography The information contained in this report remains the property of The Australian Centre for Foreword The Australian Consumer Trends Report We are pleased to introduce to you the 2010 update of our Australian Consumer Trends report series. In order to understand consumer behaviour, it is crucial for retailers to monitor the major trends, dynamics and competitive forces. Consumer trends largely define the context within which retail organisations function and, as such, are key drivers of the market. The report is structured around six key trends – value, busy, green, local, bored, and digital. Each section discusses the various drivers underpinning each trend, as well as the implications these present...

Words: 1989 - Pages: 8

Free Essay

Russell Simmons

...TEXAS WOMAN’S UNIVERSITY SYLLABUS (v. 2014 02 05) Semester: Spring 2 | Year: 2014 | Course Prefix: BUS | Course Number: 5433.62 | Course Title: Managerial Accounting | Course Description and Overview:The success of all business organizations requires the use of accounting concepts and practices. Accounting provides key data to managers for planning and controlling as well as for costing products, services and customers. In order to be an effective manager, one must understand the basics of both financial and managerial accounting. This course is designed to help the manager better understand the basics of financial statements and how managers use accounting data to plan, control and make decisions.Per TWU Graduate Catalog 2012-2014: Use of accounting information in decision-making; statement of changes in financial position; budgets, responsibility accounting, and quantitative techniques. Three lecture hours a week. Credit: Three hours. http://www.twu.edu/gradschool/graduate-catalog.aspSee TWU Web Advisor for officially published Location and Dates for this course: Click on the "Class Schedules" link found at the TWU Home page. Then at the bottom click on “Search for Classes”. Then enter the identification information for this class. Click “Submit”. Official Location & Meeting dates are found printed in Red Ink there. | ------------------------------------------------- Meets Core Curriculum Requirements Faculty Contact...

Words: 4007 - Pages: 17

Premium Essay

Deliotte Bricks and Mortar

...Deloitte United States Services Audit & Enterprise Risk Services Consulting Financial Advisory Services Tax Deloitte Growth Enterprise Services Featured Services Industries 2014 Industry Outlook Aerospace & Defense Automotive Banking & Securities Consumer Products Federal Government Health Care Providers Health Plans Insurance Investment Management Life Sciences Media & Entertainment Oil & Gas Power & Utilities Process & Industrial Products Real Estate Retail & Distribution State Government Technology Telecom Travel, Hospitality & Leisure Insights Deloitte University Press Browse by Content Type Browse by Role Innovation Centers Email Subscriptions Careers About Press Events Alumni Clients Contact Global > United States > About > University Relations > Deloitte Foundation Global site selector Go Search Search Top searches Top searchesBookmark Email Print this page Increase font Alliances Catalyst for Innovation Community Involvement Corporate Responsibility Deloitte’s sponsorship of the U.S. Olympic Committee Inclusion Deloitte University Ethics & Independence Deloitte Life Growth Through Acquisition History Investor Confidence Leadership University Relations Deloitte Foundation Faculty Resources Faculty and Ph.D. Support Life, Inc. Student Events The Trueblood Case Studies DOWNLOAD For a complete index of Cases and Addendum summary please click the download button above. The Trueblood Series cases...

Words: 2280 - Pages: 10

Free Essay

Real Estate

...Assignment Real Estate Law Due in Turnitin Drop Box by 8:00PM on Sunday September 28, 2014 Instructions: This Assignment is based on the reading, handouts and topics discussed in class. 1. Olivia owns her property in fee simple, can she build her property as high as she wants? Can she put an amusement park on it if there is room? Explain to Olvia why or why not. No, she won’t be able to build the property as high as she wants and can’t put an amusement park in it. This is because of the government restrictions. Even with having absolute and complete ownership for the property, there is still government restrictions for it. 2. Erik does not understand what zoning means. Please explain to him what “Zoning Means.” Zoning is the control by the government for the use of land. Areas are divided by authorities into zones where you are permitted to enter. 3. John likes the retail shopping uses allowed in Midtown Miami. John does not like the type of people he thinks will shop at Walmart. Does the Zoning regulate the types of people that may shop? If yes, please explain. If, no, what does it regulate? I think it does regulate the type of people that shop. If there is a numerous amount of less fortunate people living there, you will definitely be seeing more of them. 4. What are the 4 goals of the Growth Management Process of a City? (Hint: Look in your Florida Book) * To plan future land uses that allow the highest and best use of the maximum number...

Words: 1102 - Pages: 5

Premium Essay

Adnvacne

...Lecture Handouts for Chapter 5 Chapter 5 is covered in lectures 31 and 32. Risk and Return The return from an investment is the change in market price, plus any cash payments received due to ownership, divided by the beginning price. The risk of a security can be viewed as the variability of returns from those that are expected. Measurement of Risk The expected return is simply a weighted average of the possible returns, with the weights being the probabilities of occurrence. The conventional measure of dispersion, or variability, around an expected value is the standard deviation σ. The square of the standard deviation σ2 is known as the variance (σ2). The standard deviation can sometimes be misleading in comparing the risk, or uncertainty, surrounding alternative investments if they differ in size. To adjust for the size, or scale, problem, the standard deviation can be divided by the expected return to compute the coefficient of variation (CV) – a measure of “risk per unit of expected return.” Investor’s Attitude towards Risk Investors have different attitudes while deciding between the risk and return in an investment. Investors are, by and large, risk averse. This implies that they demand a higher expected return, the higher the risk. The expected return from a portfolio The expected return from a portfolio (or group) of investments is simply a weighted average of the expected returns of the securities comprising that portfolio. The weights are equal to the proportion...

Words: 4121 - Pages: 17

Premium Essay

Case Study of Beta Management Co.

...Beta Management Company In early January 1991, Sarah Wolfe was in her office considering new goals and directions for her company forth coming year. Ms. Wolfe was the founder and CEO fo the Beta Management Group, a small investment management company based in a Boston suburb. She dealt with a growing number of high-net-worth individual clients and had $25 million in assets under management. Beta’s investment success during the past year had brought in a steady stream of new clients and additional money from existing clients. At the same time, Ms. Wolfe had inquiries from some small institutions, and was hoping to expand her business in 1991. Beta Management Company was founded in 1988. A wealthy couple had become fed up with their investment losses stemming from the October 1987 crash and had asked their friend, Ms. Wolfe, to manage a portion of their money. While business was slow at first, she gradually developed a client base through good performance and word of mouth. She considered herself a market strategist, and Beta Management’s stated goals were to enhance returns but reduce risks for clients via market timing. Given the small size of her accounts, the easiest way for her to maintain and adjust equity market exposure was to “index”. She would keep a majority of Beta’s funds in no-load, low-expense index funds (with the remainder in money market instruments), adjusting the level of market exposure between 50% and 99% of Beta’s funds in an attempt to “time the...

Words: 1243 - Pages: 5

Free Essay

4 Ps of Marketing

...4 Ps of Marketing Product Analysis CATC is a wholly owned subsidiary of CAT which is providing research and development expertise in genotyping in Fortune, Prince Edward Island. Genotyping services can be provided in breeding programs, traceability, research and management/regulations of aquaculture. CATC has six qualified scientists who are providing aquaculture genotyping around the world. The Centre for Aquaculture has one Canadian customer which is Aqua Bounty Technologies and their corporate head office is located in Boston. Genotyping helps aquaculture farmers effectively assess the genetic diversity of their stock. They can also maintain or increase diversity in their brood stock. Genotyping in salmon is the largest industry in Canada. This sophisticated DNA technology is also expanding into Arctic charr and in trout. This service can also help to trace the fish to its origin due to high import in Canada. This technology can help to implement food safety in retail stores. Genotyping technology can also be used by government researchers and other regulatory associations to manage wild fish, tracking and tracing the movement of fish. Furthermore, this technology can also help to regulate recreational fisheries. CATC is in the process of enhancing genotyping technology using SNPs for selective breeding of sea bass and sea bream. This technology would help consumers to find more refined and healthy products in the grocery stores. As the world population is increasing...

Words: 957 - Pages: 4

Premium Essay

Udgfdu

...whole or in part through a grant awarded by the Wood Education and Resource Center, Northeastern Area State and Private Forestry, U.S. Forest Service. In accordance with Federal Law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. (Not all prohibited bases apply to all programs.) To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326W, Whitten Building, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (202) 720-5964 (voice and TDD). USDA is an equal opportunity provider and employer. TABLE OF CONTENTS Topic Executive Summary Business Description Products/Services Management and Personnel Business Strategy Elements Page 2 2 3 3 4 4 4 4 4 4 4 4 4 5 5 Marketing Sales Goals Product Lines Target Markets Main Marketing Strategies Competitive Strategy Promotional Strategy Pricing Strategy Market Budget Financial Plan Equipment Facilities Executive Summary The design and build business strategy for value-added wood products combines a showroom design center with an adjoining wood products manufacturing operation. Resorts Design & Build, Inc., or RDB, Inc, is such a wood products manufacturer...

Words: 1716 - Pages: 7