Retail Management Powerpoint Assignment III

RETAIL MANAGEMENT ASSIGNMENT 2

Heather Ureno

Dr. Gillian Martin

Retail Management MKT310

November 20, 2018

Introduction

Starting and running a business is not always easy as it demands a significant investment of time and resources. In other words, it requires effort, hard work, determination, and perseverance, as there are many obstacles likely to be encountered on the road to success. Opening a retail shop and being in business can be very rewarding but if not taken seriously it can easily go downhill. Similar to any other milestones in life like getting married or owning a home, the same applies to the establishment of a new business. Therefore, much has to be considered before launching any business venture regardless of its nature. For that reason, it is very important for one to be prepared for entrepreneurship. Below is a discussion the development, management, and operation of a retail store that will compete with Amazon Inc.

How to Leverage Retail Trends

The retail industry has always been competitive and in order to emerge victorious, businesses need to stand out from their competitors outdoing them in their operations. Simply put, this could only be possible by constant reinforcement of differentiation point through expanded capabilities aiming at making the most of every opportunity. Businesses that want to stand out from a crowd of competitors, therefore, should be aware of the fact that lack of differentiation is one major reason for failure amid others (Chenet, Dagger, & O’Sullivan, 2010). Failure to put the concept of standing out into practice would render the business crippled, as it would always lag behind its competitors.

Amazon Inc. has been attractive to investors and remains to be dominant ever since its establishment in 1994. The company has succeeded over the years due to its commitment to long-term goals, strong values and culture, and seeing open doors instead of failures. Moreover, Amazon has a competitive business model the offers creative services and innovative features thus gaining a foothold in nontraditional e-commerce. In light of this, coming up with a retail store that will compete with such a company will only succeed in setting the above-named standards higher in order to stand out from the competition.

The retail industry has been significantly shaped by technology that is forcing companies to adapt in order to be at par with the current trends. In order to make the most of the retail trends, the retail store should operate in an open mindset that is receptive to change even if it means stepping out of the comfort zone in order to accommodate the digital natives who are driving change in the retail landscape. Offering shoppers the experience they want at their own convenience would require going a step further in identifying the consumer trends, tastes, and preferences that change from time to time.

Almost everything we do, whether online or offline is a source of data. One key factor to consider in leveraging retail trend data in a business is data that serves to be of great importance in making informed decisions. Opportunities to fill gaps and pull the right levers in businesses can only be identified through evidence and validation of data that is an eye-opener in making the right decision for growth ideas and strategies (Soysal & Krishnamurthi, 2015). Leveraging data in techniques such as online surveys, fuels growth in e-commerce businesses since the insights gained from the data helps businesses align their operations with consumer’s feedback and expectations.

Strategies for targeting customers

Like shooting without aiming, so is the case with any venture with the assumption that its product is for everyone. Defining ideal customers with as much detail as possible is very essential. Therefore, having a good understanding of the target audience should not be an option. In this context, I would ensure that search engine optimization (SEO) tools are employed to assist in attracting potential consumers. SEO saves much time in reaching out to a broader audience thus significantly saving the traditional marketing energy that reached a bigger but less interested audience.

Reaching out to a larger audience is one thing and knowing the specific audience is another. I would embrace the constant use of data mining software and techniques that extract useful information from the consumers’ data. Pattern mining helps to discover trends and patterns for predicting the market in line with consumers’ preferences and taste. Bearing in mind that consumers want to spend the least time possible looking for their desired products recommendation would save them hours of search time. Moreover, they would be confident in purchasing reviewed products based on other customers’ past experience with similar products.

Staff Recruitment, Training, and Employee Management

Finding candidates who are talented and equal to the task in the context of recruitment is not easy. It is important to recruit the best staff to avoid frustrations, loss of customers, time, resources, and at times the damage of reputation. Wrong employees create havoc at the workplace that might lead to consequences such as the loss of productivity, lower staff morale, and unnecessary re-hiring costs, amongst others. Thus, I would develop criteria for the perfect retail employee comes to play. In order to implement this successfully, I would ensure that the retail store adopts the form of a retail job title and description. Job description assists in knowing the type of employee to look for in regard to their experience or qualifications, daily responsibilities and duties, personality traits, and physical requirements (Chwo, Lai & Loi, 2015).

Hiring the right staff members is not the final step of the recruitment process. Rather, it is a new beginning training as another milestone to success. Employees are important assets to any organization since they act as brand ambassadors. Training, therefore, is very crucial in presenting opportunities to expand the knowledge base of employees. In addition, training improves employee performance, satisfaction, and morale, increases productivity and adherence to quality standards, addresses weaknesses, and enhances consistency that is very relevant for a company’s basic procedures and policies. Ensuring things fall into place, breaking up the training into modules ensure an easy-to-absorb learning environment where everyone learns at their own pace. In addition, mixing up training methods would not only make sessions interesting but would accommodate everyone in the company in the learning process. In addition, I would offer behavior-based retail training specifically on consequences and antecedents for employees to learn how to rid of habits that might damage the reputation of the business.

Training staff members is a continuous process and hiring new employees would mean procedures, products, and inventory will change. Therefore, it is very necessary to assess and manage the overall performance. Some employees in an organization are more proficiency in certain areas than others. At the same time, some are weak in other areas as compared to others. Employee management comes to play in ensuring that employees live up to their full potential. In order to excel, I would ensure that both the strong and weak employees are identified so that task delegation could be done with respect with an individual’s area of proficiency. Pointing out the employees would help identify the specific type of training to be offered in order to suit the respective areas that of weaknesses that need to be worked on. I would ensure employees are given tools that will help them excel with the customers and the business itself. In regard to disciplinary cases, I would treat them as responsible adults employing tactics not threaten them or make them feel inferior or intimidated.

Operational Management Strategic Plan

Operational management strategic plan is a defining factor for successful online retail stores (Gallino & Moreno, 2014). I would enforce well-defined operational strategies to address key sales elements in great depth and precision. To be specific, the operational strategic plan would focus on inventory management and order logistic and fulfillment. I would ensure flexibility in systems and operations in order to recognize other channels and customers that might be different from similar ventures. Developing new techniques of service delivery is very crucial for companies to remain competitive. Proper inventory management is cost-effective and efficient as it reduces overstocks and backorders.

Using cloud-based systems that increase flexibility, track inventory and manage labor efficiently is a worthwhile pursuit in fitting plans to improve productivity. IT operational responsibilities and monthly costs based on usage are eliminated thus creating opportunities for replacing systems. The business would also adopt continuous process improvement for cost reduction, improved, and capacity increases. Many companies are aware that consistent teams striving to meet improvement objectives are game changers in the retail industry. Undoubtedly, well-defined operational strategies keep customers happy since order logistics and fulfilments are delivered in a timely manner.

Retail Store’s Name, Mission, Philosophy, and Location

Name: Hureno Inc.

Mission: To make the shopping experiences enjoyable, hassle-free, and affordable to everyone at their convenience anywhere, anytime.

Philosophy

· Always put the customer’s needs first

· Connect with customers

· Do exploits

· Use technology at its best

· Do the impossible – the sky is the limit

Location: The retail company’s headquarters will be located in Seattle. Other stores will be located in Los Angeles, San Francisco, and Denver.

Store Atmosphere Plan and the Corresponding Window Display

Competing with a company like Amazon, encouraging mobile device use in-store for successful Omni channel operations would is not an option (Gao & Su, 2016). More than ever, people have become comfortable using their mobile phones. Therefore, this means that the only way to provide personalized customer services better would be through the optimization of the store’s website on smartphone or tablet devices for easily browsing anytime or anywhere they wish. To engage them even more, coming up with in-store technologies that encourage smartphone use like scanning QR codes for checking available items, product review, price comparisons, and so on would be worthwhile.

Using virtual reality (VR) technology can be another way of providing a high level of customer service as it offers a more customized consumer profile for both online and in-store shopping. Virtual dressing rooms, for instance, could help relieve people from some anxiety usually felt when trying on clothes. Piloting touchscreen mirror which has scanners help save time and effort as people are able to track what they are wearing in other styles, sizes, and colors without having to change every time. Similarly, employing the Internet of Things (IoT) in stores can ensure customers have a hustle-free experience in-store by tracking their movements that help in the optimization of the floor layout and the identification of customers who need assistance.

Conclusion

Consumer trends are among the key factors that reshape the retail industry whether in-store or online. Retails stores, therefore, should emphasize leveraging trends in order to make the most of every opportunity for success. Leveraging mobile technology, virtual reality, and the Internet of Things (IoT) draws consumers since they are met at the point of their needs at their convenience. Incorporating consumer trends ensures a business is well positioned for success in the retail landscape. Data mining is an effective strategy in discovering trends and patterns for predicting the market in line with consumers’ preferences and taste.

In the recruitment process, developing criteria for the retail job title and description is very significant. Breaking up the training into modules and mixing up training methods present opportunities to expand the knowledge base of every employee regardless of their personality. Moreover, effective management helps employees live up to their full potential. Using cloud-based systems increases flexibility, track inventory and manage labor efficiently. Without a doubt, well-defined operational strategies keep customers happy since order logistics and fulfilments are delivered in a timely manner. Finally, encouraging the use of mobile devices in-store, using virtual reality technology and the Internet of Things gives customers a hustle-free shopping experience.

References

Chenet, P., Dagger, T. S., & O'Sullivan, D. (2010). Service quality, trust, commitment and service differentiation in business relationships. Journal of services Marketing, 24(5), 336-346.

Chow, C. W., Lai, J. Y., & Loi, R. (2015). Motivation of travel agents' customer service behavior and organizational citizenship behavior: The role of leader-member exchange and internal marketing orientation. Tourism Management, 48, 362-369.

Gallino, S., & Moreno, A. (2014). Integration of online and offline channels in retail: The impact of sharing reliable inventory availability information. Management Science, 60(6), 1434-1451.

Gao, F., & Su, X. (2016). Omnichannel retail operations with buy-online-and-pick-up-in-store. Management Science, 63(8), 2478-2492.

Soysal, G., & Krishnamurthi, L. (2015). How Does Adoption of the Outlet Channel Impact Customers’ Spending in the Retail Stores: Conflict or Synergy?. Management Science, 62(9), 2692-2704.