...the Board of Directors on November 17, 2010) At Nordstrom, great value is placed on providing exceptional service. Nordstrom is proud of its reputation for integrity and honesty and is committed to these core values. Enhancing and maintaining Nordstrom’s reputation depends on adhering to the highest standards of conduct in all business endeavors. Nordstrom Directors have a responsibility to lead by example, acting truthfully and with sincerity, fairness and integrity in all decisions. The following section contains simple reminders to use good judgment in all situations. No code or policy can anticipate every situation that may arise. Accordingly, this Code is intended to serve as guiding principles for Directors. Directors are encouraged to bring questions about particular circumstances that relate to one or more of the provisions of this Code to the attention of the Chairman of the Board of Directors or the Chair of the Corporate Governance and Nominating Committee. Directors who serve as officers of Nordstrom must also comply with Nordstrom’s Code of Business Conduct and Ethics applicable to employees. Conflict of Interest Nordstrom values fair and honest dealings with our customers, coworkers, suppliers, competitors and other business partners. We expect Directors to uphold these values by avoiding conflicts of interest. A conflict of interest occurs when an individual’s private interest or outside economic interests interferes with his or her responsibilities...
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...NORDSTROM’S 1 NORDSTROM’S 2 Since Nordstrom’s (p. 402) competes in the US, give an example of each of the marketing environment forces (Political, Legal & Regulatory, Technological, Social and Competitive & Economic Forces). Nordstrom competes in the US, where there are several market environment forces known as macro-environment . Political, Legal & Regulatory forces are designed to protect businesses from being fined for non compliance of some regulation. Business owners may also be protected under these forces if the laws are not broken. For example, every business must not discriminate no matter the race, creed or color. If a company discriminates it may lose customers, have a law suit and or be shut down completely. Technological environments include all forces that have the ability to create new products and new marketing opportunities. Technology has advanced over the years, allowing department stores like Nordstrom’s to offer online shopping and computerized inventory to home shoppers as well as store shoppers. Social and competitive forces can influence the businesses ability to function in a competitive market by obtaining resources and anything that has the potential to engage consumers . One example is using social networking sites like Twitter and Facebook to market new products. Many businesses have an advantage over its competitors by...
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...CREATING LONG-TERM LOYALTY RELATIONSHIPS | CHAPTER 5 147 Summary 1. Customers are value maximizers. They form an expectation of value and act on it. Buyers will buy from the firm that they perceive to offer the highest customerdelivered value, defined as the difference between total customer benefits and total customer cost. 2. A buyer’s satisfaction is a function of the product’s perceived performance and the buyer’s expectations. Recognizing that high satisfaction leads to high customer loyalty, companies must ensure that they meet and exceed customer expectations. 3. Losing profitable customers can dramatically affect a firm’s profits. The cost of attracting a new customer is estimated to be five times the cost of keeping a current customer happy. The key to retaining customers is relationship marketing. 4. Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Marketers play a key role in achieving high levels of total quality so that firms remain solvent and profitable. 5. Marketing managers must calculate customer lifetime values of their customer base to understand their profit implications. They must also determine ways to increase the value of the customer base. 6. Companies are also becoming skilled in customer relationship management (CRM), which focuses on developing programs to attract and retain the right customers and meeting the individual needs of those valued customers....
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...MORALES, Marc Russel M. BSBA-MM II-C MM100 – Fundamentals of Marketing Management MABEZA, RYAN MARVIN Nordstrom’s Case Analysis Companies are everywhere. Competition in a global business world are in left and right scenarios. So companies must find the right ingredient for them to be successful. Creating loyal customers is at the heart of every business. Improving efficiency in connecting to customers, building customer satisfaction, customer value and loyalty leads to improved and better business results. Marketing experts Don Peppers and Martha Rogers say, “The only value your company will ever create is the value that comes from customers—the ones you have now and the ones you will have in the future. Businesses succeed by getting, keeping, and growing customers. Customers are the only reason you build factories, hire employees, schedule meetings, lay fiber-optic lines, or engage in any business activity. Without customers, you don’t have a business.” Companies must establish and maintain a high customer value for their products and services because consumers use customer value to make buying decisions. You make buying decisions in day-to-day life experiences. For example in buying for a bottled water drink. Should you buy the wilkins worth P15 or the evian water worth P65? In every buying decision, a consumer asks the same question: 'is what I am going to receive worth what I have to give up in order to get it?' The gain the consumer receives for the benefit is...
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...“Nordstrom: How to Succeed by Selling Just One Shoe” Principles of Marketing May 2011 1. Identify the type of retailer that Nordstrom’s is classified as. Describe the characteristics it shares with other retailers of this type. Nordstrom is classified as a department store. It sells a variety of products including clothing, jewelry, handbags, cosmetics, and home furnishing. Nordstrom started as a shoe store as time passed they diversify their product, and they opened more stores in different locations. They sell products identical to the department stores. Nordstrom like department stores have a series of permanent products such as cosmetics, hardware, jewelry, sporting goods, among others. Another likeness to the other department stores is that they have many stores in different locations of the US. Nordstrom competes with other national, regional, and local retail and departments stores. Nordstrom’s top competition comes from retail stores that sell similar lines of apparel such as Neiman Marcus, Saks Fifth Avenue, Dillard’s, and other high-end fashion retailers. Nordstrom shares many characteristic with other retailers such as their generous exchange policy, superior customer service, the product quality. 2. Describe Nordstrom's level of service on the continuum from full service to self-service. Give an example of a store that would be on the opposite end of the continuum and explain their differences. Moving from full service to self-service paid...
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...1 Nordstrom Case Study Nordstrom’s Success Fred Ware III Strayer University Marketing 100 May 29, 2011 Professor Niquelle Wright 2 Nordstrom’s is an upper echelon grand department store that retails the finest products for an affluent consumer. Similar department stores that operate on the same scale and market are Barney’s, Neiman Marcus, and Saks Fifth Avenue. Other less exclusive retailers like Macy’s, Bloomingdale’s, and Dillard’s are in competition with Nordstrom’s, but do not carry the same high quality merchandise. All of these retailers offer items such as jewelry, cosmetics, perfume, clothing, shoes, and accessories. Nordstrom’s inventory tends to be more upscale for the exclusive consumer. This consumer may be looking for the best product or shopping experience available in a retail operation. Nordstrom’s delivers this in exceptional style. Nordstrom’s carries a varied inventory on its floor, offering choices for men, women, and children. 2. Unrivaled customer service is entrenched in Nordstrom’s retail policies. Many times in order to appease the customer; a monetary loss is taken by the store. Customer Relationship Management as described in our textbook is a process that companies use to rank, sort, and group customers into categories. Once this step is done, customers are organized and a personal data file is created. With this data when the customer returns, the salesperson can view the customer profile, purchase history and...
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... handbags, jewelry, cosmetics, and fragrances. Number of location: 112 full-time stores, 69 Nordstrom Rack clearance stores, 2 Jeffrey Boutiques and 1 clearance stores Connecting with customer 1) Maintain "no question asked" return policy. 2) Sales representatives send thank-you cards to customers who shop there and have hand-delivered special orders to customer's homes. 3) Installed a tool called Personal Book at its registers that allow salespeople to enter and recall customer's specific purchases in order to better personalize their shopping experiences 4) Provides customers with multichannel for shopping, allowing them to buy something online and pick it up at a store within an hour. 5) Fashion Rewards Program, rewards customers on four different levels based on their annual spending. a. Customers who spend $10,000 annually receive complementary alterations, free shipping, a 24-hour fashion emergency hotline, and access to a personal concierge service b. Customers at the highest rewards level ($20,000 spent annually) also receive private shopping trips complete with restocked dressing rooms in the customer's specific size, champagne, and live piano music; tickets to Nordstrom's runway fashion shows; and access to exclusive travel and fashion packages, including red carpet events. 6) When a new store opens, Nordstrom connects with the surrounding community by hosting an opening night gala complete with live entertainment, a runway fashion show, and the ultimate shopping experience...
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...Identify the type of retailer that Nordstrom’s is classified as and describe the characteristics it shares with other retailers of this type. A store like Nordstrom has built a successful model on availability of knowledgeable salespeople, and other luxury or near-luxury retailers would be advised to pay attention. But a mass retailer like Target is not dependent on “high touch” customer service; rather, the most important things it can do to satisfy its shoppers are to ensure that goods are on the shelf and the checkout process is efficient. As more consumers migrate to “mission shopping” (walking into a store looking for a specific item), the self-service model becomes more important. Consumers are also becoming accustomed to more control through online and mobile shopping. But there is still a place for good CRM, even in the most hands-off models of “customer service.” Nordstrom is classified as an Upscale Department Store Chain. Today, Nordstrom is one of the nation's leading fashion retailers, offering a wide variety of fine quality apparel, shoes and accessories for men, women and children at stores across the country. Nordstrom shares the same characteristics as Macy’s, JC Penny's and Dillard's who also sells clothing, accessories, handbags, jewelry, cosmetics, fragrances, and in some locations, home furnishings. They all have built their thriving business on the principles of quality, value, selection and service. Describe Nordstrom's level of service on the continuum...
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...philosophy was based on exceptional service, selection, quality and value, which ended up becoming a retail legend, also allowing them to build a customer base, and open their second store in 1923. In 1928, John Nordstrom sold his share of the company to his sons, and in 1933 Carl retired and sold his shares to the Nordstrom brothers. Nordstrom’s began building their reputation becoming the largest independent show chain in the U.S. In 1960, the company expanded offering customers shoes and fine apparel, called Nordstrom Best. Then in 1966, they offered men’s clothing and children’s wear. The company went public in 1971 just after the sales passed $100 million mark, and the company was recognized as the largest volume West Coast fashion specialty store. This same year, the name was changed to Nordstrom, Inc. Nordstrom’s today focuses on catering to customer’s needs, and individuality. They do not categorize their merchandise by departments, but by individual’s lifestyles. Nordstrom’s now offers generous size ranges and a selection of the finest apparel, shoes and accessories for the entire family, along with renowned service. Nordstrom’s mission statement is, "At Nordstrom, we value the richness that diversity brings to our workforce - it makes our Company better and the communities we serve stronger." This is also exactly how they do business. The process a customer goes...
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...Nordstrom, Inc. Comprehensive Overview Davenport University BUSN520 Management and Marketing Professor Philip Shaps Shyla Allers August 12, 2015 Table of Contents Introduction 3 Organization, subsidiaries and business units, history 4-5 Scope of the business and current products or services provided 5-6 Scope of market distribution-are they local, regional, global 7 Leadership and management structure and individuals 7 Current issues that may affect the future of the organization 7-8 Description of Strengths 8-9 Description of Weaknesses 9-10 Description of Opportunities 10 Description of Threats 10-11 Description of External Factors Impacting Decisions 11 Description of Possible future scenarios 12 Recommendations for changes in culture, leadership and/or structure 12 Description of project company’s primary market 12-13 Description of project company’s secondary market 13-14 Description of one target group and demographic profile 14-15 Description of project company’s market position 15-16 Recommendations for leadership and organizational structure 16-17 Recommendations for placement 18-19 Conclusion 19-21 References 22-23 Appendix A 24 Introduction/Overview Nordstrom, Inc. is an upscale fashion retail company that approaches a broad variety of fashion clothing, shoes, accessories and cosmetics. It started out...
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...Saks Company Nordstrom DIRECT COMPETITOR COMPARISON Comparison Years Years HBC JWN M DDS Industry 2013 2012 2013 2012 Result Market Cap: 3.50B 13.73B 20.22B 4.52B 795.76M JWN Better Short-term Liquidity Employees: 29,000 62,500 172,500 21,600 5.00K JWN Better Current Ratio 1.14 1.13 2.20 2.33 N Qtrly Rev Growth (yoy): 0.87 0.06 0.03 - 0.07 HBC Better Quick Ratio 0.33 0.40 1.69 1.90 N Revenue (ttm): 7.02B 12.92B 28.02B 6.69B 954.90M M Better Days Receivable 0.00 0.01 69.32 71.91 S Gross Margin (ttm): N/A 0.37 0.40 0.37 0.46 M Better Days Inventory 150.77 142.42 61.59 58.83 N Oper Margins (ttm): 0.03 0.10 0.10 0.08 0.05 HBC Better Days Payables 25.41 20.88 60.16 59.55 S Net Income (ttm): 52.30M 728.00M 1.50B 316.10M - M Better EPS (ttm): 0.23 3.74 4.03 7.19 0.23 DDS Better Winner N P/E (ttm): 84.21 19.07 14.21 14.61 17.99 HBC Better PEG (5 yr expected): 1.26 1.83 0.98 0.98 1.13 JWN Better Profitabilty P/S (ttm): 0.49 1.07 0.69 0.69 0.81 JWN Better Sales Growth Years 2012-2013 1.1% 3.0% N Gross Profit % 40.6% 40.8% 38.8% 39.3% S Hudson's Bay Co (formely known as SAKs Inc)= HBC EBIT % 3.2% 3.4% 11.1% 11.5% N Nordstrom = JWN ...
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... make follow up calls about satisfaction with products, have large well lit stores and fitting rooms, have a price match system, as well as a very lenient no questions return policy, all combined to keep their customers as satisfied as they can. (http://wwwiebe.com/nordstrom-customer-service-first/) * Nordstrom has different brands and product lines to reach different market segments and keep up with trends. These include: Rack, Haute Look, Treasure & Bond, and Trunk Club. This offers mid price markets opportunities to join with regular high price markets, online exclusive shoppers to join the Nordstrom network and fashions, appeal to “give-back” shoppers, and gives men a new online shopping experienced linked to the perks of Nordstrom’s inventories and in store tailors. This is a strength of the...
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...department meetings and saw the sign—”Do Not Punch the Clock”—she assumed the managers were telling the truth when they said the clock was temporarily out of order. But as weeks went by, she discovered that on subsequent Saturdays the clock was always “broken” or the time cards were not accessible. When she and several colleagues hand-wrote the hours on their time cards, they discovered that their manager whited-out the hours and accused them of not being “team players.” Commenting on the variety of tasks that implicitly had to be performed after hours, Ms. Lucas said, “You couldn’t complain, because then your manager would schedule you for the bad hours, your sales per hour would fall, and next thing you know, you’re out the door.”1 Patty Bemis, who joined Nordstrom as a sales clerk in 1981 and quit eight years later, told a similar story: Nordstrom recruiters came to me. I was working at The Broadway as Estee Lauder’s counter manager and they said they had heard I had wonderful sales figures. We’d all heard Nordstrom was the place to work. They told me how I would double my wages. They painted a great picture and I fell right into it. . . The managers were these little tin gods, always grilling you about your sales. . . . You felt like your job was constantly in jeopardy. They’d write you up for anything, being sick, the way you dressed. . . . The girls around me were dropping like flies. Everyone was always in tears. . . . Working off the clock was just standard. In the end, really...
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...meetings and saw the sign—”Do Not Punch the Clock”—she assumed the managers were telling the truth when they said the clock was temporarily out of order. But as weeks went by, she discovered that on subsequent Saturdays the clock was always “broken” or the time cards were not accessible. When she and several colleagues hand-wrote the hours on their time cards, they discovered that their manager whited-out the hours and accused them of not being “team players.” Commenting on the variety of tasks that implicitly had to be performed after hours, Ms. Lucas said, “You couldn’t complain, because then your manager would schedule you for the bad hours, your sales per hour would fall, and next thing you know, you’re out the door.”1 Patty Bemis, who joined Nordstrom as a sales clerk in 1981 and quit eight years later, told a similar story: Nordstrom recruiters came to me. I was working at The Broadway as Estee Lauder’s counter manager and they said they had heard I had wonderful sales figures. We’d all heard Nordstrom was the place to work. They told me how I would double my wages. They painted a great picture and I fell right into it. . . The managers were these little tin gods, always grilling you about your sales. . . . You felt like your job was constantly in jeopardy. They’d write you up for anything, being sick, the way you dressed. . . . The girls around me were dropping like flies. Everyone was always in tears. . . . Working off the clock was just standard. In the end...
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...operating in Canada and the United States (Nordstrom, 2015). They operate through two different segments: retail and credit. The retail segment, which will be the focus of this study, consists of: full line stores, rack stores, its online store, and other retail channels. The credit segment consists of providing a private credit card, two visa cards and a debit card through its wholly owned federal savings bank (Reuters). Nordstrom pioneered the concept of department store commission selling, introducing it in the 1960s. The company prides itself on creating a culture that enables their employees to be extremely entrepreneurial while remaining intensely loyal to the company (Baker, 1990). Most of Nordstrom customers, along with their competitors, recognize that Nordstrom has top-tier customer service and a very competitive return policy. That same return policy comes with a cost, particularly for the sales associates as their commissions are negatively impacted by clients returning items in the future. In addition, the high emphasis placed on customer service by management requires sales associates to spend extra time catering to their clients needs. Given that associates are measured on the number of sales they make compared to their hours worked, some associates have been under reporting hours worked. This led to Nordstrom facing at least one class-action suit for allegedly pressuring sales associates not to document all of their hours worked....
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