Bmgt353- test 1 outline

Bmgt353- test 1 outline - CHAPTER 1 Retailing is the set of...

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CHAPTER 1 Retailing is the set of business activities that adds value to the products and services sold to consumers for their personal or family use. Also involves the sale of services. Not always done in stores. Retailing is one of the nation’s largest industries in terms of employment Retailer is a business that sells products and/or services to consumers for their personal or family use. Retailers are the final business in a supply chain that links manufacturers to consumers. Provide important functions that increase the value of the products and services they sell to consumers: Providing an assortment of products and services- buy other products at the same time Breaking Bulk- buy in quantities what consumers want Holding Inventory- buy at a convenient place when you want it Providing services- see it before you buy; get credit, layaway Retail Strategy - should identify the target market, the product and service mix, and a long-term comparative advantage Supply Chain is a set of firms that make and deliver a given set of goods and services to the ultimate consumer. Some factors that have created differences in supply chain systems in the major markets include social and political objectives, geography, and market size. Wholesalers engage in buying, taking title to, often storing and physically handling goods in large quantities, then reselling the goods to retailers or industrial or business users. Costco and Home Depot function as both retailers and wholesalers Vertical Integration means that a firm performs more than one set of activities in the supply chain, such as investments by retailers in wholesaling or manufacturing. Backward Integration arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private-label merchandise. (ex. JCPenny sells Arizona Jeans) Forward Integration occurs when a manufacturer undertakes retailing activities. (ex. RL operating stores) Breaking Bulk is important to both manufacturers and consumers, because it provides cost efficiencies for manufacturers that can package and ship merchandise in larger quantities and it gives consumers the chance to purchase merchandise in a smaller, more manageable quantities. By maintaining inventory, retailers reduce the cost consumers would have to pay to store products Corporate Social Responsibility describes the voluntary actions taken by a company to address the ethical, social and environmental impacts of its business operations and the concerns of its stakeholders. Intratype competition is between the same type of retailers. Variety is the number of different merchandise categories within a store or department. Retailers can provide one-stop shopping to satisfy more of the needs of their target market. Scrambled Merchandising
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Bmgt353- test 1 outline - CHAPTER 1 Retailing is the set of...

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