Exam 3: Strategic Planning in Retailing

Consumers,competition,technology,economic conditions,seasonality,and legal restrictions are all uncontrollable variables to a retailer.

Sales revenues and employee turnover represent forms of ________.

A retailer can determine how consumers and others perceive its company through use of ________.

A major risk with a differentiated retail strategy is that consumers will purchase goods in the retail operation with the lowest profit margin and forego the more costly retail facilities.

In computing a retailer's financial requirements,personal savings,manufacturer and wholesaler credit,bank credit plans,bank loans,and commercial finance companies should be listed as a source of funds.

A retailer aims efforts at two or more distinct consumer groups,with different retailing approaches for each group,in ________.

A retailer with annual sales of $5 million and operating expenses of $2 million has an efficiency rating of 40 percent.

Which retail ownership and management alternative is most likely to have limited capital and expertise?

Decision making is likely to be centralized for a retailer with a differentiated marketing strategy.

A retailer with sales of $1 million wants to increase its efficiency rating from 40 percent to 60 percent.To what must it reduce operating expenses?

A retailer with sales of $10 million and operating expenses of $2 million has an efficiency rating of ________.

Which of the following retail formats has a narrow width and high depth?

Diversified retailers generally appeal to one market segment.

Which objective is the most difficult to quantify?

A retailer attempting to improve its efficiency from 40 to 50 percent reduced its operating expense budget from $600,000 to $500,000.However,its new efficiency remained at 40 percent.What happened?

With a professional manager system,planning tends to be less formal and more intuitive than with an owner-manager system.

While a franchise offers a franchisee a well-known company name and a loyal customer following,it also typically specifies rigid operations standards and restricts the choice of suppliers.

Examples of negative feedback include consumer complaints,chronic out-of-stock situations,and declining sales.

List and describe five forms of retail feedback.

a.Prepare a checklist for purchasing an existing retail business. b.Prepare a list of possible pitfalls in purchasing an existing business.