How should management respond to the findings of an audit? What may happen if the findings are ignored?
> Describe three ways in which a consumer electronics store chain could use geographic information systems (GIS) software in its trading-area analysis.
> What is trading-area overlap? Are there any advantages to a chain retailer’s having some overlap among its various stores? Why or why not?
> If a retailer has a new 10-year store lease, does this mean the next time it studies the characteristics of its trading area should be 5 years from now? Explain your answer.
> Comment on this statement: “A poor location may be such a liability that even superior retailers cannot overcome it.” Is it always true? Give examples.
> What are the pros and cons of a net lease for the prospective retail tenant? For the landlord?
> 1. What do all Millennials have in common? Is this good or bad for retailers? Why? 2. What do you think is the most misunderstood aspect of the Millennial generation? Why? 3. As a furniture retailer, how would you appeal to “Mavens”? 4. As a consumer ele
> Under what circumstances would it be more desirable for a retailer to buy or lease an existing facility rather than to build a new store?
> How do the parking needs for a fast-food restaurant, a watch repair store, and a luggage store differ?
> What difficulties are there in using a rating scale such as that shown in Figure 10-7? What are the benefits?
> What criteria should a small retailer use in selecting a general store location and a specific site within it? A large retailer?
> Explain why a one-hundred percent location for mid-priced apparel chain may not be a one-hundred percent location for an upscale local apparel store.
> Evaluate a regional shopping center near your campus.
> What is a power center? What is a lifestyle center? Describe the strengths and weaknesses of each.
> Develop a brief plan to revitalize a neighborhood business district nearest your campus.
> Differentiate among the central business district, the secondary business district, the neighborhood business district, and the string.
> From the retailer’s perspective, compare the advantages of locating in unplanned business districts versus planned shopping centers.
> 1. Differentiate between expendable and untouchable shopping. Why is this distinction important to retailers? 2. As an independent jewelry retailer, what could you learn from Table 1? How should you adapt to this? 3. Do you think that the revenues of ret
> A convenience store chain has decided to open outlets in a combination of isolated locations, unplanned business districts, and planned shopping centers. Comment on this strategy.
> How would you supervise and motivate a Millennial Old Navy employee? A Baby Boomer employee at Old Navy?
> Are the minimum job expectations of entry-level workers and middle-level managers similar or dissimilar? What about the desired goals? Explain your answers.
> Describe the goals of a compensation plan (both direct and indirect components) in a retail setting.
> Present a plan for the ongoing training of both existing lower level and middle-management employees without making it seem punitive.
> What problems can occur while interviewing and testing prospective employees?
> Why are the job description and the application blank so important in employee selection?
> How would small and large retailers act differently for each of the following? a. Diversity. b. Recruitment. c. Selection. d. Training. e. Compensation. f. Supervision.
> How can retailers attract and retain more women and minority workers?
> Describe the greatest similarities and differences in the organization structures of small independents, chain retailers, and diversified retailers.
> 1. What can any retailer learn from this case? 2. Relate the material in this case to the concept of the total retail experience. 3. What uncontrollable factors will affect a retailer’s ability to undertake the suggestions cited in the case? How would yo
> Are the steps in setting up a retail organization the same for small and large retailers? Explain your answer.
> Why are employee needs important in developing a retail organization?
> Cite at least five objectives a large fitness center should establish when setting up its organization structure.
> 9. What is the return on assets (ROA) for the retailer in problem 6? a. 1.5% b. 5.0% c. 8.0% d. 11.5% 10. What is the financial leverage ratio for the retailer in problem 6? a. 8.8 b. 10.3 c. 12.0 d. 25.0 11. What is the return on net worth for the r
> 1. A retailer's current assets are $400,000. Its fixed assets are $250,000. Current liabilities are $75,000, and fixed liabilities are $125,000. What is the firm's net worth? a. $75,000 b. $125,000 c. $450,000 d. $400,000 2. A retailer's fixed assets ar
> 1. A retailer has accounts receivable of $80,000, total current liabilities of $40,000, and $50,000 in cash. What is the quick ratio? a. 1.40 b. 1.50 c. 2.00 d. 3.25 2. Assume that the retailer in problem 1 has total inventory on hand of $120,000. What
> How can these retailers improve productivity? a. Fitness center. b. Online bookstore. c. Discount apparel store.
> What factors should retailers consider when assessing opportunity costs?
> Distinguish between capital spending and operating expenditures. Why is this distinction important to retailers?
> How could a seasonal retailer improve its cash flow during periods when it must buy goods for future selling periods?
> Why do many retailers not conduct any form of retail audit? Are these reasons valid? Explain your answer.
> What is the value of a percentage profit-and-loss statement?
> What is zero-based budgeting? Why do most retailers utilize incremental budgeting, despite its limitations?
> Present five recommendations for retailers to improve their accounting and financial reporting practices with regard to disclosure (“transparency”) of all relevant information to stockholders and others.
> Differentiate between an IPO and an LBO.
> Is too low a financial leverage good or bad? Why?
> How can a convenience store increase its asset turnover?
> A retailer has net sales of $1,000,000, net profit of $185,000, total assets of $600,000, and a net worth of $225,000. a. Calculate asset turnover, profit margin, and return on assets. b. Compute financial leverage and return on net worth. c. Evaluate th
> 1. Cities A and B are 50 miles apart. City A has a population of 400,000 and City B has a population of 100,000. According to Reilly's law, what is the point of indifference for City B? a. 3.3 miles b. 16.7 miles c. 25.0 miles d. 33.3 miles 2. If City
> Describe the relationship of assets, liabilities, and net worth for a retailer. How is a balance sheet useful in examining these items?
> Outline the contingency plan a retailer could have in the event of each of these occurs: a. A shopper accidentally setting off the burglar alarm. b. A flood in the store caused by a ruptured water pipe. c. A firm’s Web site inadvertently making personal
> Are there any operating functions that should never be outsourced? Explain your answer.
> What operations criteria would you use to evaluate the success of self-scanning at a supermarket's mobile checkout?
> What potential problems may result if a retailer relies on its computer system to implement too many actions (such as employee scheduling or inventory reordering) automatically?
> A gas station does not accept checks because of the risks involved. However, it does accept Visa and MasterCard. Evaluate this strategy.
> Consider this scenario: There is considerable media coverage of recent car thefts at an area mall. Present a five-step plan for a retailer to reassure customers that it is safe to shop there. How might this impact the retailer’s channel migration strateg
> You own a sporting goods store and offer personalization services. You are planning a complete renovation of the accessories department. What decisions must you make?
> Talk to two local retailers and ask them what they have done to maximize their energy efficiency. Present your findings.
> Comment on this statement: “The quality of store maintenance efforts affects consumer perceptions of the retailer, the life span of facilities, and operating expenses.”
> Why challenges do omnichannel retailers face in job standardization and cross-training for its employees?
> What are the pros and cons of prototype stores? For which kind of firm is this type of store most desirable?
> Under what circumstances should a disguised audit be used?
> Present a brief operations blueprint for your college bookstore.
> What do you think are the risks of placing too much reliance on merchandising software? Do the risks outweigh the benefits? Explain your answer.
> What is the basic premise of category management? Why do you think that supermarkets have been at the forefront of the movement to use category management?
> Present a checklist of five factors for a chain retailer to review in determining how to allocate merchandise among its stores.
> What are the trade-offs in a retailer’s deciding how much to emphasize private brands rather than manufacturer brands?
> How could a major appliance repair service use the product life-cycle concept?
> Under what circumstances could a retailer carry a wide range of merchandise quality without hurting its image? When should the quality of merchandise carried be quite narrow?
> How could a convenience store use a basic stock list, a model stock plan, and a never-out list?
> Interview a local store owner and determine how he or she makes merchandise decisions. Evaluate that approach.
> What are the advantages and disadvantages of a centralized buying organization?
> Distinguish among these auditors. Under what circumstances would each be preferred? a. Outside auditor b. Company audit specialist c. Company department manager
> Is micromerchandising a good approach? Why or why not?
> What is the distinction between merchandising functions and the buying function?
> Describe and evaluate the merchandising philosophy of your favorite online retailer.
> Present a seven-item checklist for a retailer to use with its reverse logistics.
> What is vendor-managed inventory? How do both manufacturers and retailers benefit from its use?
> How could a neighborhood pizzeria be prepared for the variations in customer demand for home delivery during the day?
> Why are some retailers convinced that distribution centers must be used as the shipping points for merchandise from manufacturers while other retailers favor direct store distribution?
> What are the benefits of quick response inventory planning? What do you think are the risks?
> Distinguish between these two terms: logistics and inventory management. Give an example of each.
> Which is more difficult, implementing a merchandise plan for a small bookstore or Costco? Explain your answer.
> What are the attributes of good retail auditing?
> Under what circumstances should a retailer try to charge slotting allowances? How may this strategy backfire?
> Devise a checklist a retailer could use to negotiate opportunistic buying terms with suppliers.
> Cite the advantages and disadvantages associated with these merchandise sources for your regular ice-cream store. How would your answers differ for a global shoe chain? a. Company-owned. b. Outside, regularly used. c. Outside, new.
> What are the pros and cons of a retailer’s relying too much on a want book?
> What information should a department store gather before adding a new jewelry brand to its product mix?
> 17. A health food retailer has $120,000 in monthly operating expenses and planned monthly sales of $400,000. Reductions are planned to be $10,000. A profit goal of $40,000 is established. What is the required initial markup? a. 24.5% b. 36.6% c. 37.0% d
> 9. A toy store has average monthly sales of $80,000. Its sales for December were $120,000. What is the monthly sales index for December? a. 153 b. 67 c. 150 d. 400 10. If the October monthly sales index is 200 for the company mentioned in problem 9, wh
> The store in question 10 and 11 knows its cost complement for all merchandise purchased last year was 0.61; it projects this to remain constant. It expects to begin and end December with inventory valued at $140,000 at retail and estimates December reduc
> If the planned average monthly stock for the discount store in question 10 is $420,000 (at retail), how much inventory should be planned for August if the retailer uses the percentage variation method? Comment on this retailer’s choice of the percentage
> The sales of a full-line discount store are listed. Calculate the monthly sales indexes. What do they mean?
> Distinguish between horizontal and vertical retail audits. Develop a vertical audit form for an auto repair retailer.
> Which method of promotional budgeting should a small retailer use? A large retailer? Why?
> Describe the compensation structure of top Canadian executives.
> The Business Development Bank is willing to loan Su Mei the $ 25,000 she needs to start her new business. The loan will require monthly payments of $ 556.11 over five years. a. What is the effective monthly rate on this loan? b. With monthly compounding,
> To start a new business, Su Mei intends to borrow $ 25,000 from a local bank. If the bank asks her to repay the loan in five equal annual instalments of $6,935.24, determine the bank’s effective annual interest rate on the loan transaction. With annual c
> An investment promises to pay you $100 per year starting in five years. The cash flow from the investment is expected to increase by 3 percent per year forever. If alternative investments of similar risk earn a return of 9 percent per year, determine the
> A 20‐year semi-annual bond has just been issued with its coupon rate set at the current market yield of 6 percent. How much would the price of the bond change (in percentage terms) if the market yield suddenly fell by 50 basis points? How much would the
> Felix will need $ 10,000 per year for four years to pay for tuition. How much will Felix ’ s parents have to invest at the end of each year for the eight years before he begins his studies if their savings earn compound interest at 7 percent per year? As
