Financial Strategy Notes Day 3
Breaking Down: Asset Management Path
The information used to analyze a firms asset management
path primarily comes from the balance sheet.
Assets are economic resources (such as inventory or store
fixtures) owned or control
What is Retailing?
Retailing a set of business activities that adds value to the products and services sold to
consumers for their personal or family use
A retailer is a business that sells products and/or services to consumers for personal or
Financial Strategy Notes Day 4
Using the following information taken from the 2010 balance sheet and income
statement for Urban Outfitters, develop a strategic profit model.
Cost of goods sold
Financial Strategy Notes Day 2
Gross margin = Net sales - Cost of goods sold.
Gross margin, also called gross profit, gives a retailer a
measure of how much profit its making on merchandise sales
without considering the expenses associated wi
Financial Strategy Notes Day 1
Three types of objectives that a retailer might have are: (1)
financial, (2) social, and (3) personal.
Financial objectives and goals are an integral component in every
aspect of a retailer's strategy. Retailers can use fi
Process by which a retailer offers the correct quantity of the right merchandise in the right
place at the right time and meets the companys financial goals.
The Planning Unit
Supply chain management .
Efficient and effective integration of suppliers, manufacturers, warehouses, stores, and
transportation intermediaries into a seamless value chain.
Merchandise is produced and distributed in the right quantities; to the right l
Components of the
Strategic Profit Model
Profit Management Path for Family Dollar Stores and Nordstrom
Profit Margin Management Path
Net Sales = revenues received by a retailer related to selling merchandise during a given
Elements in Retail Strategy
the market segment(s) toward which the retailer plans to focus its resources and retail
the nature of the retailers
operationsits retail mix
an advantage ov
The Multi-Channel Retailer
A retailer that sells merchandise or service through more than one channel. By using a
combination of channels, retailers can exploit the unique benefits provided by each channel.
Why are Retailers Using Multiple Channels to Int
Variety (breadth of merchandise): wide vs. narrow
- The number of merchandise categories
Assortment (depth of merchandise): deep vs. shallow
-the number of items in a category (SKUs)
Prices and the cost of offering breath and depth of