Critically appraise the concept of retailing from various perspectives,demontrate its impact on any developing country's economy and its special characteristics
Strategic planning specifically involves adapting the resources of the retail organization to the opportunities and treats of an ever changing (retail) business environment. Assess this statement comprehensively as it relates to the basic process followed in retail strategic planning.
There are several environmental factors that affect or influence the shopping attitudes and behaviour of consumers , which the retailer should always be aware of when designing a retail strategy .Give an explanatory account of these factors in detail.
Cartyn Coats Ltd manufacturing waxed jackets in a small factory on the outskirts of cardiff.Their sole customer is a major canadian chain store , which purchases 1000 jackets each month .The factory's capacity is 1250 per month. The company charges the chain store $80 per jacket.
Fixed costs per month are: The manufacturing of each jacket costs:
rent $4 800 material $24.00
rates $3600 labour $ 26.00
a) what is the break even point output in units?
b) what is the break even in monetary terms (dollars)?
c) discuss the concept of franchising with an example
d) identify the 10 most important location factors.
e) briefly analyse the fundamental tasks of management in your opinion and provide an example of each task.
Any developing country has its own system of retailing. Organized retailing especially large retailing chains have a deleterious effect on the economy of the developing countries. Large retail chains are accused of predatory pricing by which they drive out local retailers from the market. The local unemployment level increases and there is a decrease of income. The wages provided to local employees is very low, working conditions are poor, and there is opposition to union formation. Local industry is driven out because of cheap imports. Overall any developing country and its system of retailing is adversely affected by large retailers.
Strategic planning in retail means adopting the resources of the retail organization to the opportunities and threats in the environment. When the economy becomes weak and incomes are declining, the retail strategic planning can take the opportunity of addressing the needs of lower incomes by offering low priced goods. The retail business must lower supply chain costs, low operational costs, and increase asset turnover to reduce prices. When there is change in socio-cultural factors the retail strategic planning should address the new attitudes of customers. For example, when there is a positive attitude ...
This solution explains how the resources of the retail organization are adapted to the opportunities and threats in the environment.. The sources used are also included in the solution.