What are the factors in planning and assessing a retail organization?
When planning and designing a retail organization,3 principal categories of needs must be considered:
1. Target market needs: services must match what customers value
2. Employee needs: fair treatment and clear responsibilities
3. management needs: clear authority and reporting relationships must exist
What is a satisfaction mirrior? Why is it vital?
It states that employee satisfaction and loyalty translate into high levels of customer service and customer loyalty.
It’s vital because they are the ones directly interacting with customers. when they are treated fairly, they are more motivated, provide better service
What are the 5 steps to the process of organizing a retail firm?
- Determine tasks to be performed.
- Divide tasks among channel members.
- Group tasks into jobs.
- Classify jobs.
- Develop an organizational chart and assign authority.
What are the retailer’s tasks as a channel member?
- Customer contact and selling
- Pricing
- Displays and merchandising
- Billing and handling receipts
- Customer follow-up
What is the manufacturer’s tasks as a channel member?
- Buying and producing merchandise
- Shipping goods
- Inventory storage
- Forecasting
What is a specislists tasks as a channel memeber?
- Advertising agencies
- Web development firms
- Consultants
- Repair services
What is a consumer’s task as a channel memeber?
- Self-service
- Assembly (example: IKEA furniture)
- Transporting purchases
What factors do you need to keep in mind when dividing the tasks among channel members?
- A task should only be performed if desired by the target market.
- A task should be done by the party with the best competence.
- Costs and efficiency must be considered.
- retailer must ensure coordination and control
What is span of control?
There is a limit to how many employees a manager can directly supervise effectively.
What is employee empowerment?
Employees responsible for objectives must be given the authority to achieve them.
What is informal organization structure?
Besides the formal structure, informal relationships exist within the company and may influence decision-making and communication.
What is a flat and tall organization?
A flat organization has many employees report to one manager, faster communication, but has a risk of overload for managers.
A tall organization has several managment levels, close supervision, slower communication an dless flexibility.
What is a mazur plan and its 4 functional areas?
The mazur plan structures medium and large retailers into 4 areas:
1. Merchandising – buying, selling, stock planning.
2. Communications/Publicity – advertising, displays, events, social media.
3. Store Management – operations, customer service, HR, maintenance.
4. Financial Accounting and Control – budgeting, credit, inventory management, auditing.
What is centralized control?
head office makes major decisions for all stores.
What is main store control?
Headquarters manages buying, advertising and financial controls
What is separate store control?
Each branch buys merchandise independently and has autonomy.
What is equal store control?
buying is centralized but stores manage selling and operations locally.
What is the meaning of recruiting, selecting, training, compensating, supervising?
- Recruiting: Attracting job applicants.
- Selecting: Choosing the best candidate.
- Training: Teaching employees how to perform their jobs.
- Compensating: Paying employees (salary, commission, etc.).
- Supervising: Overseeing employee performance.
What is the difference between recruitment and selection?
Recruitment generates a pool of applicants, while selection matches applicant traits to job requirements and chooses the best candidate.
What is used in selecting retail personnel?
Job analysis: gathering information about job duties and requirements
Job description: outlines job title, responsibilities and reporting relationships.
testing: evaluating candidates through assessments after interviews.
What are the direct and indirect costs of employee turnover?
Direct costs are separation costs, advertising and hiring and training new employees.
Indirect costs are customer dissatisfaction, pricing errors, reduced morale, and lower productivity
What are some labor law considerations?
Retailers must not:
Hire underage workers, discriminate, violate safety regulations, disobey disability laws, require illegal acts, work with suppliers violating labor laws
What are the types of compensation?
straight salary where you have a fixed payment per hour
straight commision where your earnings are tied directly to sales performance.
salary plus commision is the combination of fixed salary and performance-based pay
Profit sharing where employees receive a percentage of company profits.
What are some methods to motivate retail workers?
provide training
offer promotion opportunities
pay above minimum wage
empower employees
involve employees in decisions
