retail management chapter 4 reporting.ppt
TRANSCRIPT
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
1/31
Retail Institutions by
OwnershipCERVANTES
DIODOMINGOPERLADA
SALAC
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
2/31
Independent
Small stores with a single location or up tothree locations often owned by anindividual, a family or a two personpartnership.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
3/31
Advantages
Flexibility to choose format, location anddevice a strategy
Independents can easily sustainconsistency in their efforts because onlyone store is operated
Acts as specialists in a niche ofgoods/services
Independence
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
4/31
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
5/31
Chain
Chain retailer operates multiple outletsunder common ownership.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
6/31
Advantages
Chains have bargaining power due to theirpurchase volume
Cost efficient
Efficiency is gained by sharing warehousefacilities.
Computer- reduce increase efficiency andreduces overall cost
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
7/31
Disadvantages
Flexibility is limited
Consistent strategies must be maintained
Difficult to adapt to local markets Investments are higher due to multiple
lease and fixtures
Managerial control is complex
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
8/31
FRANCHISING
Involves a contractual agreement betweena franchisorand a retail franchisee whichallows a franchisee to conduct a business
under an established name and accordingto a given pattern of business.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
9/31
Small businesses benefit by beingpart of a large, chain-type retail
institution.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
10/31
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
11/31
The franchisee operatesautonomously.
There are certain operating rules, but thefranchisee sets the:
Store Hours
Chooses Location
Determines Facilities and Display
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
12/31
Business Format Franchising
More interactive relationship between thefranchisor and franchisee.
Receives assistance on site location,quality accounting systems, startuppractices, management training, andresponding to problems besides the right
to sell goods and services.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
13/31
Business Format FranchisingArrangement are common torestaurants and other food outlets,
real estate and service retailing
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
14/31
Ideal Potential Franchisee:
Financial Resources
High Personal Integrity
The Ability to Manage Finances A Proven Ability to Train and Motivate
People
An Entrepreneurial Spirit and StrongDesire to Succeed
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
15/31
A Willingness to Complete a DetailedTraining Program
A Willingness to Devote Full Time to
Day-to-Day Operations
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
16/31
Competitive Advantages and
Disadvantages ofFranchising
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
17/31
ADVANTAGES:
They own a retail enterprise with arelatively small capital investment.
They acquire well known names andgoods/service lines.
Standard operating procedures andmanagement skills may be taught to them.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
18/31
Cooperative marketing efforts (suchas national advertising) are facilitated
They obtain exclusive selling rights forspecified geographical territories
Their purchases may be less costlyper unit due to the volume of theoverall franchise.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
19/31
DISADVANTAGES:
Oversaturation could occur if too manyfranchisees are in one geographic area.
Due to overzealous selling by somefranchisors, franchisees income potential,required managerial ability, andinvestment may be incorrectly stated.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
20/31
They may be locked into contracts
requiring purchases from franchisorson certain vendors.
Cancellation clauses may givefranchisors the right to voidagreements if provisions are notsatisfied.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
21/31
In some industries, franchise
agreements are of short duration.
Royalties are often a percentage ofgross sales, regardless of franchiseeprofits
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
22/31
Leased Department
Leased department are in-store locationsrented to outside parties.
A retail department that is leased to, andoperated by, a separate company. Alsoknown as a franchised department
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
23/31
Advantages
Market is enlarged by providing one stopcustomer shopping
Personnel management, merchandise
displays and reordering items areundertaken by lessees.
Regular store personnel do not have to be
involved Leased department operation proceduresmay conflict with store procedures
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
24/31
Disadvantages
Inflexibility
Restrictions on items sold
Lease nonrenewal Poorer results than expected
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
25/31
Vertical Marketing System
Consists of all the levels of independentlyowned businesses along a channeldistribution.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
26/31
Independent System
Manufacturing
Wholesaling
Retailing
Independent Manufacturer
Independent Wholesaler
Independent Retailer
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
27/31
Partially Integrated System
Manufacturing
Wholesaling
Retailing
Two channel members own
all facilities and perform all
functions.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
28/31
Integrated System
Manufacturing
Wholesaling
Retailing
All production and
distribution functions are
performed by one channel
member.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
29/31
Consumer Cooperative
A retail firm owned by itscustomer members.
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
30/31
Consumer Cooperative
Managesoperations
Elects officers Group ofconsumerswho invest
Shares profitsor savings
-
7/27/2019 Retail Management Chapter 4 Reporting.ppt
31/31
Consumer Cooperative
Consumer Cooperatives exist because:
Consumers think they can operates stores better than
traditional retailers.
Retailers inadequately fulfill customer needs for healthfuland environmentally safe products.
Assumes existing retailers make excessive profits and sell itas a merchandise for lower prices.