? Assignment for 4-02-09 1) Read Chapter 9 2) Do #5 under Get Out & Do It on pg 274. Be prepared to discuss your choice and reasons for it during class on Thursday. 3) Answer Discussion Questions 1, 3, 5, 7 on pg 275. Put these in Digital Drop Box.
4) Read Retailing View 10. 1 on pg 281 and Retailing View 10. 3 on pg 294. 5) Read Chapter 10 Summary on pg 302.
6) Answer Discussion Question #5 on pg 303. 7) Do the Discussion Board Question. Page 275 1. Human Resource Management is especially important in retailing due to the simple fact that it involves such a vital aspect of any and every retailing organization-the employees! What is a retailing business without people working for it, with it, and toward the productivity goals and company objectives? Employees play a huge role in performing the critical functions of any business, which is why HR management is more important in retailing than in manufacturing firms, where capital equipment such as machinery, computer systems, and robotics are often utilized to perform the jobs employees once did.
Retailing, along with service businesses stay the same in their tendency to be labor focused and intensive. Retailers depend on PEOPLE to perform the basic retailing activities, such as buying, merchandise displaying, and providing service to customers. 3. Designing the organization structure for a retail firm identifies the activities to be performed by specific employees as well as decides the lines of authority and responsibility in the firm. The four main categories include strategic, merchandise, store, and administrative management. In retail firms, the main operating managers are involved in merchandise management, and store management.
The design of the organizational structure must coordinate with the firm’s retail strategy, for example, a single-store retailer has little specialization, because the number of employees is limited and they have to perform a wide range of activites. With an increase in sales, the owner hires more emmployees, and specialization in management may occur when the this happens. The owner-manager continues to perform strategic management activities and may become responsible for administrative task associted with receiving and shipping merchandising and managing the employees. The corporate organization of Macy’s Incorporated illistrates decisions ade at the corporate office that set strategic directions and increase productivity through the coordination of the regional divisions activities.
5. All retailers are competing in a war of talent concerning employees. They want to attract the best, develop the best, and motivate these employees so they WANT to Stay with the organization. The key factor in reducing employee turnover is maintaining and continuously working to create an atmosphere of mutual committment. High turnover causes a reduction in sales and an increase in costs.
Sales go down due to the lack of experience in the skills and knowledge of current, new, less-experienced employees. They do not have the skills, knowledge, or experience to effectively interact with customers. Costs go up due to the need to recruit and the expense of training new employees. 7. I would want my restaurant to be focused on the providence of outstanding service to everyone who enters my restaurant. They will not be called customers, but guests, because I would train my employees to treat each person as if they were a guest in their own home.
I would emphasize the empowerment of employees. If they are young, college students working for extra money, I would work hard as their manager to find what motivates them as indiviuduals. I would create a welcoming, fun, atmosphere where employees are encouraged to be themselves, use their people skills and grow and mature with the company. Restaurant turnovers are among the highest of all retailers. The typical employee stays at a restaurant for about 3 months before leaving. The turnover rate is ridiculous, so I would work to relate with them in forming a professional, open-door, open-mind policy where they feel comfortable in any confrontation with me, as their boss.
I would practice management by walking around, like Sam Walton. I would work WITH them, not above them, lead by example and create partnering relationship, reducing status differences, promoting from within, making employees know they have a chance to move up if they continue to move forward, I would also realize their personal needs and work to help them in balancing their schedule with their personal lives. I would offer incentives and keep an element of surprise up my sleeve at all times with contests and motivators for each employee. I would work hard at managing diversity and realize the benefits of a diverse workforce. I would defintitly keep the concept of support groups and mentoring programs as well as carreer development and promotions in mind to diminish the glass ceiling and create equal opportunities for everyone. Discussion Question Number 5 on page 303 Fast fashion is a retail business strategy that involves using supply chain management process to introduce fashionable merchandise in a quick, timely fashion to respond to consumer demand for the merchandise rapidly. Zara’s became the pioneer of this concept, and successfully operates this method.
Due to the efficiency of its supply chain, Zara does not need to discount merchandise that isn’t selling, like other specialty store retailers. Zara’s customer’s visit the store an average of seventeen times a year. This approach is mainly successful for specialy apparel retailers who are targeting fashion consious customers who always want what’s HOT and New. Consumers who are attracted to this fast fashion buy new apparel more often, removing items that are only a few months old, making the sales of fast-fashion merchandise in second-hand stores to dramatically increase.
Zara delivers fast fashion, which gives it quite a competitive advantage over other retailers, who may be hesistant to adopt this method because of all the extra work, reluctance to discount, confusion or fear of target market changing and losing valued customers. Any change in a retailer’s approach involves taking risks and making many changes in all aspects of the company. Get out and Do It page 274 Number 5