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Wring profits from sales

Essay add: 28-11-2017, 10:06   /   Views: 27

Retail store operations and business management information including security and loss prevention, facilities management, human resources, financials and more for managing and operating a retail store.

If we have to choose from the given options, I think sales and margins is the most likely one for the company to know about their store. This includes every day transactions from the store. This not only tells us about the daily sales of the company but also helps to forecast the sales of the organization. Like in this kind off the organization, sales are done every day and based on that sales forecast sales is expected and then they order the amount of delivery they require and the next delivery comes according to that. Margin analysis is a great way to understand the profit ability of companies. It tells us how efficiently management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes.

Limitation:

I don't think this type of data do have any limitations in an organization and is important to all management level. Like

Useful:

I think this kind of information is used to strategic decision makers who can take decision based on these readings for future use and forecast profit and margins as well.

Category management:

Dictionary meaning:

Consumers may be willing to accept a substitute when their favourite product is not available and therefore the demand for a product depends on the availability of other products." And, "there is a limited shelf space assigned to each product category."

That's the bare essence of the challenge presented by store assortment optimization (SAO). Traditionally, retailers have relied primarily on their personal experience and comparing competitors' assortments in their efforts to meet this challenge. In a relatively uncompetitive marketplace, this approach may appear to be adequate, but in markets with stronger competition and for retailers with multiple outlets serving disparate markets, this "going by the gut" technique is no longer an acceptable approach. However, until fairly recently, store assortment optimization was, by and large, more art than science. The technology required to process and analyzes the huge amounts of data required to see historical trends and project the future on an item-by-item, store-by-store basis was prohibitively expensive, if it was available at all. But as the technology has matured, it has become more powerful and affordable, so that there are now technological solutions available to even the smallest of retailers that allow them to optimize the store assortment at both a macro and a micro level.

That's why i think assortment optimization seems to be the best choice because the only one remaining i.e vendor performance is an external source and contract with them is done on long bases and isn't related to daily store operations. Its not limited to any level of management and is bottom to up transfer of details and at the end the strategic level makes decision.

Merchandize management:

When we talk about daily store operations, the best detail comes from 'hot item reports'.

It helps to collect data from past and present as well and helps us to predict future sales based on the best item selling as well. It also helps us to record seasonal buying at the moment and calculate stock percentage and markdown percentage as well. Well it doesn't tell us anything about department contribution but when it tells us about the hot item it does tell about a part of the department it contributed.

This kind of information is used by operational and tactical level management.

Internal sources

  • Sales and margins
  • Inventory turnover
  • Front store sales
  • Sales/ square foot
  • Labour cost analysis
  • Assortment optimization
  • Market comparison
  • Role analysis
  • Hot item report
  • In stock %
  • üMarkdown %
  • Department contribution

External sources

  • Market comparison
  • Vendor performance
  • Seasonal changeover
Impact of IT on market share:

The impact of information technology (IT) on firm performance has been repeatedly asserted and is now widely accepted. Firms have found opportunities to use IT in products and processes to reduce costs and increase product value, as well as to affect organizational effectiveness, through improved coordination, communication and control. It is claimed that these uses have allowed firms to gain competitive advantages over other firms. These claims are unsupported by empirical evidence, however, and managers are concerned about whether IT investments actually result in positive value for firms. Rigorous studies are necessary, therefore, to evaluate IT performance impacts.

MIS when mixed with IT provides very useful information for the organization from which they can compete the competitors and may increase their market share.

MIS helps in measuring performance and making important changes done according to organizational change and procedure. It does encourages decentralize the authority to lower level management as well.

MIS helps in coordination of all the departments in an organization. It combines one department to the other and keeping departments aware of the needs and problems of other department.

It acts as a link between managerial controlling and planning.

This includes sufficient information transfer between the organizational members which helps in effective decision making, which is called facility training.

Researchers have proposed models and frameworks to predict the impact of IT innovations. These frameworks suggest that the first firms to exploit new technologies can gain competitive advantages. They also suggest that IT impacts are affected by firm and industry characteristics, such as size, strategy and regulation.

ATM adoption resulted in positive effects on market share, efficiency and overall business performance. Large banks gained more market share and income, but not more efficiency, than small banks.

The earliest adopters gained more than later early adopters, in terms of all three performance measures. Among this group, the largest banks gained more in market share and income. Only the earliest adopters showed efficiency gains.

The results indicate that a single IT application can affect market share, efficiency and overall business performance for the firm. In addition, firm characteristics help determine whether firms can make use of first mover advantages.

Understanding which products are selling:

It helps managers to make timely decisions based on the sale which usually comes from sources like hot item report and inventory changeover. Product selling tells us

Developing strategies to mitigate and detect fraud.

Current identity fraud models have conceptualized identity fraud and related crimes in the context of activity-based costing like in this retail business, identity risk management and profiling. From an organizational perspective, conceptual and functional fraud models have been developed, empirically tested, and have made important contributions in the areas of general fraud and fraud crimes and abuse across interconnecting fields, such as computing ,auditing and accounting , identity risk management , e-fraud and corporate and internal fraud prevention, that will help managers taking appropriate decisions. This will help organizations to prevent loss happening through frauds.

Analysing effectiveness of promotions:

There are a great many advantages that encourage marketers to incorporate sales promotion activities for promoting their products. Firstly the high cost of traditional media (above the line promotions) becomes quite a colossal burden for advertisers that makes them seek for a more economical way of promoting the brand - sales promotion activities consequently becomes the answer to their prayers.

In addition to that, sales promotion activities have a very straightforward and convenient mode of evaluation that the marketer can use to gauge the results of his promotions. Moreover the application of sales promotion activities generates instant results, something that saves time and therefore is an attractive prospect for many marketers. Not only has that but sales promotion activities strengthened the relationship between manufacturer and retailer, which proves to be beneficial for the brand as well as for the retailer. Amalgamating these advantages, sales promotion becomes quite an attractive option for many marketers.

Altering managers to potential lost sales.

Lost sales can be due to a lot of reasons like,

  1. Insufficient product knowledge of salesman.
  2. Uninviting displays.
  3. No point-of-purchase material.
  4. Failure of salesman to meet prospect.
  5. Salesman's lack of confidence.
  6. Salesman's sloppy personal appearance.
  7. Demonstration models not working

This kind of information can be used by the managers to, Know why customers are lost and how to bring them back.

Next garments are the retail company I wish to compare these answers with.

  1. Understanding which products are selling.
  2. Next retail use the information of which product is selling the most for future sales forecast and to order that product in bulk the next time they order. Depending on these, retail companies take a gamble and order that product enough to meet the demand the number of customers need. They do even look at the competitor's most selling product and then try to launch the product of the same kind or even if they do have, order that product to the manufacturing department to compete the competitor.

  3. developing strategies to detect and mitigate fraud.
  4. Next retail have developed a lot of strategies to detect and mitigate fraud like, starting from the internal customers, regular checkups have been made during the ending shifts of the employees. Even once a month their lockers are been checked without the knowledge of the employees.

When we talk about external customers, employees have been trained to check the payments and transactions done through cards especially the credit cards.

Even they are trained to check the fraud bank currency, and are provided with important instruments to reduce it.

Analyzing the effectiveness of promotion:

Next retail introduced, gift cards, gift vouchers, free home delivery, free catalogues, and even prepare the clothes and accessories on order, which encourage employees to come back to the store and make them brand loyal with these facilities.

Altering manager to potential lost sales.

Daily reports to managers, about the sales, help managers to reduce potential sales.

Staff training program:

The above information can be used to train employees which will help in,

  1. Technical issues that will arise during the project.
  2. Technical processes and decisions to be made.
  3. Models for suitable workflow for the particular project.
  4. Quality Assurance procedures.
  5. Evaluation techniques.
Methods of training:
  1. On job training
  2. Mentoring
  3. Computer based training
  4. Projects
  5. Simulations
  6. Case studies etc
Mis solution

Easy and expensive to install (the least amount of cable required)

  • If the main cable fails, all the computers will be affected
  • The performance of the network slows down when there are more users
Star topology:

There is much less impact on performance when there are a lot of users on the network+ A cable failure will only affect one workstation- Lots of cable is used, which is expensive

    It requires a "hub" at the file server to control all the cables

Article name: Wring profits from sales essay, research paper, dissertation