Retail Op - 1465 Words

OPIM340 Retail Operations Assignment 1: Retail Valuation (45 points) Due: start of class Lecture 2 1. How does the strategic profit model assist retailers in planning and evaluating their marketing and financial strategies? (Limit your answer to 3-4 sentences max) (3 points) 2. Explain inventory turnover? Why does a low inventory turnover indicate more risk than a high turnover? Why do different products have different benchmarks for inventory turnover? (3 points) Average Inventory at Cost is $1,000. Say you have gross profit margins of 20%. If you sell $5,000 per year of this product, you make 20% of that or $1,000 in gross profit. What is your GMROI? (1 point) What is your Inventory Turnover? (1 point) What are†¦show more content†¦The average shopper on Blue Nile spends more than $1500, though the average spent on an engagement ring sis $5,500, close to double the industry average. Although Blue Nile maintains a modest inventory of diamonds, it also offers diamonds available from its wholesaler’s inventory and buys diamonds from the wholesalers after customers order them. As a result, Blue Nile minimizes the costs associated with carrying diamond inventory. | |ANNUAL INCOME STATEMENT (all dollar amounts in millions) | | |TIFFANYS |BLUE NILE | | |Jan 07 |Jan 06 |Jan 05 |Jan 07 |Jan 06 |Jan 05 | |Net Sales |2648.3 |2359.1 |2204.8 |251.6 |203.2 |169.2 | |COGS |1172.7 |1052.8 |974.3 |200.7 |158 |131.6 | |GM |1475.6 |1306.3 |1230.5Show MoreRelatedMec Business Strategy/Value Proposition/4 P1008 Words   |  5 PagesMountain Equipment Coop Introduction Mountain Equipment Co-op (MEC) is a Canadian outdoor consumer operative. In 1972, â€Å"We help people enjoy the benefits of self-propelled wilderness-oriented recreation,† became MEC’s first ever mission statement. MEC started with a niche market approach, adopting a focus strategy. Unsurprisingly, to adapt and maintain competitiveness, the organization’s business strategy has slowly shifted; since then, MEC has transitioned from a focus strategy to a growth andRead MoreManufacturessuggested Retail Price1418 Words   |  6 PagesManufactures’ Suggested Retail Price (MSRP) The Manufacturer’s Suggested Retail Price (MSRP), list price or recommended retail price (RPP) of a product is the cost at which the manufacture proposes that the retailer offer the product. Although the goal is to aid to institutionalize costs, it is not often the value the retailer use or the value the customers are willing to pay. The retailer has the freedom to sell the products at a price lower than the MSRP to move the product faster or they canRead MoreMountain Equipment Co-Op2637 Words   |  11 PagesThe following report documents 5 different areas of focus pertaining to the following company â€Å"Mountain Equipment Co-op†, Please enjoy... Marketing Management Orientation: The Societal Marketing concept is the orientation best exemplified by Mountain Equipment Co-Op (MEC). This is evident in the following ways: The company’s mission statement clearly outlines that passion is what drives their company, even over profit. The passion to continue to look for ways to protect our wild spaces and reduceRead MoreA Short Note On Marketing Decisions1298 Words   |  6 Pageswhich was not my intention. In hind-sight this would not be the best move, because the information in those reports were much the same as the information we had to begin with. The entire amount of budget was used and priced my product at the suggested retail price of $5.29, even though it was a little more than some of the other brands, I wanted to have a high or premium pricing strategy. I was targeting and older and grown families who had income. The one thing I would ve changed is that I selectedRead MoreCity Of Takoma Park Case Study821 Words   |  4 Pagesorder to revitalize th e commercial area. In 1995, the City of Takoma Park paid $483,000 for a surface parking lot in hopes of redeveloping the Takoma Junction of Carroll, Ethan Allen, and Grant avenues. The City hopes to build new residential units, retail stores emphasizing local and regional operators and a public gathering space. â€Å"The city has had conversations about doing something with the junction for almost 35 years and the very small commercial area has struggled over the years and so the communityRead MoreEssay on Functional Areas of a Business720 Words   |  3 Pages Functional Areas of a Business Subject: Roles and activities of each functional area Finance- the department is responsible for taking care of the budgets for the individual retail outlets this is to ensure that they arent over spending. They keep financial records of all of their payments which they have made to their suppliers, also the payments that the customers have made to them from their customers. This function is used also to chase up late payment of invoicesRead MoreAssociated Wholesale Grocers: Logistics’ Leviathan1121 Words   |  5 PagesWholesale Grocers: Logistics’ Leviathan Associated Wholesale Grocers (AWG) came into being more than eight decades ago when several independent retailers decided that the power of a cooperative far outweighed the influence of any one individual retail grocer. AWG provides distributor services to independent grocers in over 30 states with nine distribution centers throughout the South and Southeast regions of the country. 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Its continuous investment in retail has made the Cargills retail arm Cargills Food City the largest retailer in the island in all categories. Pursuing innovation and food safety its manufacturing brands Cargills Supremo and Cargills Finest (processed meats) Cargills Kist (processed fruits and vegetables)Read MoreCritically Evaluate the Extent to Which Customer Relationship Management Strategy and Processes Can Achieve Effective Customer Intimacy for the Mutual Benefit of Both the Organisation and the Customer, Making Reference1111 Words   |  5 Pagesthis paper is to look at the ways in which organisation use various forms of CRM strategy and processes in order create better, and lasting relationships with their customers. 2) Membership Cards One way in which many companies, especially retail, aim to increase their customer intimacy is through membership card schemes. These can come in many different forms from and offer a variety of advantages for the customer to use. The main feature of all of these themes is that the customer is rewarded