Describe two criteria used to assess a market’s potential for a new product?
What is the difference between domestic and international strategic planning?
Question answered by jwishz
DOMESTIC = inside your country
INTERNATIONAL = everywhere else
EIU OVERALL RATING: EIU business environment rating.
MARKET SIZE AND GROWTH: EIU market opportunities rating,
nominal GDP, GDP per head, real GDP, growth of real GDP per head
and share of world GDP.
PRIVATE CONSUMPTION: private consumption, private consumption
per head, private consumption % of GDP.
CONSUMER SPENDING PATTERNS: consumer expenditure total,
food, beverages and tobacco, clothing and footwear, housing and
household fuels, household goods and services, health, transport
and communications, leisure and education, hotels and
restaurants, other goods and services.
INVESTMENT: total gross investment, gross fixed investment and
nominal gross fixed investment.
GDP BY SECTOR OF ORIGIN: agriculture, industry and services.
MACROECONOMIC STABILITY: EIU macroeconomic environment
rating, consumer prices, budget balance, public debt, current
ccount balance, exchange rate, The Economist Big Mac index,
real effective exchange rate.
INTERNATIONAL TRADE: goods exports and imports, share of world
goods exports, services, export and import volume of goods
FOREIGN DIRECT INVESTMENT: inward direct investment, inward
FDI flow, inward FDI stock, outward direct investment, outward
FDI flow, outward FDI stock, net direct investment flows.
Demographics and income
POPULATION: population, population growth, share of world
population, male and female % of population, population by age
categories, young- and old-age dependency ratio, birth and
URBANISATION: urban population, urban population % of
HOUSEHOLDS: households, average number of people per household.
HOUSING AND OFFICE SPACE: total housing stock, total housing stock
per 1,000 pop, new dwellings completed, EIU office space rating.
PERSONAL INCOME: gross personal income, personal disposable
income, real personal disposable income, personal disposable
income at PPP, average wages.
INCOME DISTRIBUTION: median household income, share of
household income, income distribution of households by share,
income distribution of households by income bracket.
CARS AND MOTORCYCLES: passenger cars stock, new passenger car
registrations, passenger car production, motorcycle registrations.
COMMERCIAL VEHICLES: light commercial vehicle registrations and
production, medium and heavy commercial vehicle registrations
and production, total commercial vehicle registrations and
production, bus registrations and production.
PETROL: petrol consumption.
RETAIL TRADE: retail sales (food, non-food, LCU, 1996 US$ prices,
growth % pa).
CLOTHING AND COSMETICS: sales value for clothing, footwear,
cosmetics and toiletries, perfumes and fragrances, skincare products.
HOUSEHOLD GOODS: sales value of furniture and household cleaning
products, consumer expenditure on household goods and services.
ELECTRONICS AND DOMESTIC APPLIANCES: stock and sales volume
for TV sets, number of cable and digital TV subscribers, sales
volume for personal computers, refrigerators, video recorders,
DISTRIBUTION INFRASTRUCTURE: EIU retail and wholesale
TOTAL CONSUMPTION: energy consumption (tonnes of oil equivalent
and kg per head).
BY MAJOR FUEL GROUP: coal consumption, production and imports,
motor and aviation fuel delivery, natural-gas consumption,
production and imports, LNG imports and exports, LPG delivery,
petroleum consumption, production, imports and exports, refined
products consumption, output and imports, refinery capacity,
nuclear electricity power generation.
ELECTRICITY: electricity production and consumption (total and
per head), installed electricity capacity, electricity transmission
and distribution losses.
Food, beverages and tobacco
CONSUMER EXPENDITURE: consumer expenditure for food,
beverages and tobacco (total and % of consumer expenditure).
FOOD: calorie and protein intake, meat, fruit, vegetable and fish
consumption, sales volume of confectionery.
BEVERAGES: milk, coffee and tea consumption, sales volume of
alcoholic and soft drinks.
TOBACCO: sales volume of cigarettes.
STRUCTURE: Players by Institution Type: number of banks, number of
insurance companies (all types) in market, number of mutual funds.
STRUCTURE: Employees by Institution Type: banks’ employees,
insurance companies’ direct employees, insurance companies’
intermediaries’ (branches/agents) employees.
STRUCTURE: Branches by Institution Type: number of fullservice
bank branches, number of ATMs.
STRUCTURE: Concentration of Top Ten Players: concentration of
top ten banks by assets.
MARKET SEGMENTATION: Investment Products: currentaccount
deposits (local, ex inter-bank deposits), time and savings deposits,
total AUM of institutional investors, pension funds’ financial assets,
open end investment companies’ (mutual funds) financial-assets,
insurance companies’ financial assets, other institutional investors
financial assets, local stockmarket capitalisation, excluding
investment funds, insurance companies’ total premiums, life
insurance premiums, non-life premiums.
MARKET SEGMENTATION: Credit Products: total lending (loans
plus debt securities purchased) by banking institutions, lending
to the private sector (bank loans toplus securities purchased
from- the private sector), lending to businesses (non-financial
intermediaries), lending to government (central), lending to
individuals, including residential mortgages, consumer and other
personal credits including credit-card balances, excluding
mortgages, residential mortgages and other housing lending.
MARKET POTENTIAL: Basic Indicators: population, urban
population, households, labour force, GDP, private consumption
expenditure, national savings (%), disposable income, M1 money
supply, quasi money supply.
MARKET POTENTIAL: HH Income Stratification: number of
households with nominal disposable income socioeconomic grade A
(>US$50K), socioeconomic grade B (US$35K-49K), socioeconomic
grade C (US$10K-34K), socioeconomic grade D (<US$10K), HNWI
adults with liquid financial assets >US$1 mn, bankable households
What rights do you have with a fault domestic appliance?
My mum bought an Hotpoint washing machine less than a month ago. We had to call them back to take a look at the machine as there was a problem with it, just a week after it being installed. Its having problems again so we need to call them out again. Can we demand a replacement or our money back? Or are we stuck with the thing? What rights do we have? This is in the UK guys!!
Question answered by proud walker
Write to the people from whom you purchased the machine. Tell them that you are rejecting it under the terms of the sale of goods act. Give them about 10 days to remove the machine and refund your money. Send it recorded delivery. You can find sample letters at http://www.consumerdirect.gov.uk/ you have extra protection if you bought it with a mastercard, or hp
What was life like for a women in the late 1850s?
I'm writing a short story for my L.A class and I need some help with what life would be like during the time period. I'm guessing that life might be a little difficult because some families were still suffering from World War II, but I don't really know.
Question answered by Louise C
i think you mean the 1950s?
most single women worked for a living, jobs typically done by women included nurse, teacher, secretary, typist, bookkeeper, telephonist, sales clerk, seamstress, waitress, cook, hairdresser, librarian. some women were still employed as domestic servants, though this was an occupation that was declining in importance. there were some women doctors and lawyers, though far fewer than there are now.
most women expected to give up work when they married, although many poor women did keep working after they married. it was quite common in this era for people to marry young, and the increased prosperity of the era meant that a family could live on a single salary quite easily in many cases. even girls who went to college often left college early to get married. many young people were eager to start families, and families were often large (hence the 'baby boomer' generation).
it was different for black people, who often earned less than whites, Allthough relatively few bkack women went to college, virtually all who did graduated. One black woman who was a schoolteacher in the 50s said 'The one thing you didn't do was quit college or quit work - you were not going to raise a family on one black man's salary.'. but there was economic improvement for some black people as well, the magazine Ebony featured a cover story 'Goodbye Mammy, Hello Mom' that celebrated the ability of black women to stay in their own homes rather than cleaning someone else's. the 50s of course was a turbulent era for black people, with the Civil Rights movement gaining momentum after Rosa Parks made her famous gesture of refusing to give up her seat on the bus to a white man, thus starting the Montgomery Bus boycott.
it was an era when family togetherness was much emphasised, and the idyllic image of the happy family was in many cases true. Although many modern authors have painted a bleak picture of 50s housewives as oppressed and miserable, the fact is that many women were satisfied to be wives and mothers.
housekeeping was getting easier. manufactuers had perfected the automatic washing machine and the dryer, meaning washing no longer took up much of a woman's time. everyone wanted the best new appliances. betty Furness, who became a celebrity due to her talent for demonstrating refrigerators and dishwashers on television, noticed that the appliances were getting larger. fridges got bigger, with bigger cimpartments for storing the new frozen foods. More and more people were getting television, and the most popular show of the 1950s was I Love lucy, a sitcom about a scatty housewife getting into various crazy situations, and trying to break into show business.
What goods and services does korea produce?
What goods and services does korea produce and how is it related to the country's national resources?
ed) cars, fridges, microwaves
and what do those items have to do with national recources?
Question answered by George
Alcohol & Liquors
Korea has a long tradition of drinking. As part of an agrarian society, many farmers developed grain alcohols from their local specialties. Korea's most famous drinks are all made from rice: soju, dong-dong-ju, and makkolli.
Popular antique items include Silla (668 - 935) paintings, ceramics, pottery, and metal craft work; Goryeo (918-1392) ceramics; and Joseon (1392-1910) wooden chests, furniture, and white celadon (pottery). Korean Cultural Properties Preservation Law forbids the exporting of designated "important cultural properties."
Koreans turn bamboo into a number of products, including beds, chairs, pillows, blinds, and ladders. Bamboo mats create a small pocket of air between the person and ground, offering a cooler environment from sitting directly on the ground.
Brush Paintings & Supplies
Calligraphy and brush painting are popular hobbies among the young and old. Brushes of all different sizes, inks of various colors, and traditional paper of many types of textures can be found at specialty shops, especially in Seoul's Insadong area.
Cloth & Clothing
Many different types of tailor-made and off-the-rack clothes can be bought in Korea. Korean tailors can custom make a suit and set of hand-made shirts in a couple of days. Korean sizes tend to be a little small for Westerners. Korea has a wide selection of fine silks and other fabrics.
As one of Korea's major exports, many types of electronics good are available, from computers and computer chips to TVs to microwave ovens to stereo equipment. Department stores, specialty markets, and brand name stores all carry a wide selection, but the prices tend to be higher than back home (due to heavy government subsidies of exported products). Prices at discount stores and the Yongsan electronics market can be as much as 30% cheaper. Domestic products use 220 volts, while most U.S. appliances use 120. Transformers from 220 to 110 and 110 to 220 can be found at most electronics stores. Most products include excellent after-sales service.
With the deeply discounted price of fur products in Korea, you can almost save the price of your plane ticket by coming to Korea and making a purchase. Specialty fur shops and and duty-free stores usually have the best bargains. Most department stores also have off-season sales during the summer months.
As one of the staple ingredients in many types of Korean food, garlic can be found at any market or food store. Koreans buy it whole, chopped, and powdered. Several areas are famous for their garlic yields. One of the most famous, Tanyang, even has an annual Miss Garlic beauty pageant.
The Greek words pan (all) and Axos (medical drug) combine to form panax ("cure all"), part of the scientific name for ginseng. A staple of Chinese herb medicine, ginseng is used as preventative treatment for a number of ailments. Because of the personal attention given by individual farmers and close government supervision of the process, Korean ginseng has a world-wide reputation for high quality.
Handbags and Suitcases
Korean shops carry a wide choice of purses, hand bags, back packs, travel bags, suitcases, and briefcases. Prices vary depending on the quality of the items, the types of store, and your bargaining skills. The items are made from cowhide, alligator, or eel skin, as well as a variety of synthetic. Handbags follow international fashion trends, and the latest styles from Europe are quickly copied by domestic makers.
Handicrafts and Traditional Goods
In addition to bamboo, brush painting supplies, and pottery, Korea produces many different types of traditional handicrafts. Lacquerware tables, chairs, wardrobes, and chests can be found in many homes. Brass is fashioned into vases, lamps, and tables. Wooden masks used for generations in plays and dances are also popular collectibles.Many women enjoy macrame and embroidery, and many shops can be found specializing in these items.
To Koreans, jade symbolizes purity. You can find a wide selection of necklaces, bracelets, hair pins, and statues made from this material. Ch'unch'on in Kangwon Province is rich in nephrite jade and many craftsmen work in the area.
Korean jewelers have a wide variety of rings, necklaces, earings, and bracelets made from local amethyst, topaz, and jade. Gold and silver are also popular materials, and diamonds are a girl's best friend in any country. Jewelers should be able to provide a certificate of authenticity for all items they sell.
What would Korea be without kimch'i? There are over 40 different variations of spiced radishes or cabbage fermented with hot peppers, onions, salt, and garlic. Each family has their own way of making it, giving theirs a unique flavor. Not all kimch'i is hot, but some types do require some getting used to. However, once you get used to it, you will probably find yourself getting u
What should an American know about Australia to feel happy and at home there & not suffer from culture shock?
I am a 33 y/o woman who is moving from the USA to Griffith, New South Wales, Australia. I have lived in small, medium, and large towns here in the USA, and I have traveled quite a bit and been exposed to various cultures. I have, however, never been to Australia, and I only know one person from there (but not very well).
What cultural details or other aspects of Australia (especially the area to which I'm moving) should I be familiar with before I go? I tend to get homesick and somewhat depressed when I'm stressed out in a new country, so I just want to make my transition as smooth as possible. Thank you so much for any advice you can offer! :-)
Question answered by Brigalow Bloke
Here is a URL for the Griffith municipal web site. Looks like they are short of water but have eased restrictions a little. There is also a Wikipedia entry and a lot of other stuff on the net.
With a population of 25,000 it will have some reasonable facilities. It is a big Italian area with lots of fruit growing under irrigation. Looks like it could be hot in summer, fairly cool in winter.
Australians use the metric system, we changed over decades ago, so everything is in kilograms, kilometres, metres etc. You might already be used to that.
Money is dollars and cents. The Australian dollar is worth about 80cents US but it changes all the time. Our biggest note is $100 (greenish), then $50 (yellow) $20 (red), $10 (blue) $5 (purple). The bigger the value, the bigger the note. While all new dollar notes are plastic, you may just find a few paper ones still around. Coins are $1, about the size of a dime but golden - bronze colour, $2, smaller but thicker, 50c, large with lots of flat sides and silver colour, 20 cents is round and silver, 10c is smaller and silver and 5c is the smallest and silver. We used to have 2c and 1c coins in a coppery metal but they have been withdrawn.
We use Mastercard, Visa, American Express, Diner's Club and a few others in about that order of popularity. There are some large banks that operate Australia wide, eg Westpac, Commonwealth, ANZ, National.
There are also a lot of local based "building societies" that mostly do home mortgages and savings accounts. You will find a lot of automatic teller machines for your routine stuff and you can bank online.
Wages and salaries are usually paid direct into a bank account. Income tax is deducted from each pay, so you don't have to pay a big tax bill at the end of the financial year.
You might even get something back. The other main tax is Goods & Services Tax which is 10% on everything but fresh food. Prices quoted in stores (we usually call them "shops") include this tax. There is no variation in sales taxes from state to state except when buying cars or houses.
We drive on the left and gasoline is called petrol. It is more expensive than in the USA but cheaper than in many other places. Cars might be a bit older on average than you see in the US, they are more expensive here and the dry climate means they can last longer. Size wise our larger cars are much the same.
What is called "hamburger" in the USA is called "mince" here. Big supermarkets here might offer beef, lamb and pork mince. We have slightly different meat cuts.
Australian hamburgers, even at McDonalds come with more salad vegetables than in the USA. Typically you will get lettuce, onion, tomato, maybe a slice of beetroot.
Australian standard beers are stronger than some US brews but there is also a "light" option with lower alcohol. Gambling is legal in all Australian states and you will find clubs in Griffith with lots of slot machines. Don't get sucked in, you can do your pay real quick.
You will find Roman Catholic, Anglican (Episcopalian), Uniting (mostly Methodist), Salvation Army, Baptist, probably AOG and some other churches operating there. Australians are not big church goers.
You will find Australians are generally a fairly friendly bunch. Make a point of saying hello to your neighbours as soon as you get settled in if they look OK.
All domestic power supplies in Australia are 240Volts 50hz so it is best not to bring much in the way of big appliances with you. Dual voltage shavers and things like laptop and cell phone chargers may be OK if they are marked as 100-250V, but hair dryers and curling wands will be no good. You will need an adapter for the plugs and sockets for these. Portable battery operated radios are OK too. Switches are "down" for "on". We call cell phones "mobile" phones or just mobiles. You phone may be OK, check with your supplier, but you will probably need an Australian SIM card. DVDs will not work unless you get a de-regionalised player.
Australia is about to go fully digital in TV so best not to buy an secondhand analog TV unless you get a converter box.
People who have lived for a while in the USA say things are basically very similar. A few people will try you out on the slang. This isn't the slang as much as seeing if you have a sense of humour. Beware, some slang like "cobber" etc is so obsolete that people will look at you funny if you use it.
We spell things differently too.
what is the future of the retailing industry?
I'm referring to discount stores specifically walmart, target and kmart.
Question answered by Conan the Librarian
Discount department stores are also known as discount variety stores, general merchandise discount stores, mass merchandisers, full-line discounters, or discount houses. This industry is dominated by the Wal-Mart, Target, and the newly created Kmart/Sears (the two companies merged in 2005) chains.
The Big Three discount retailers began operations as individual variety stores, and by the late-1990s had evolved into chains averaging 80,000 square feet of discount-selling space per store, providing clothing; hardware, housewares, auto supplies, and small appliances; stationery and candy; sporting goods and toys; health and beauty aids; pharmaceuticals; gifts and electronics; and shoes and jewelry. By 2003, the stores showing the most success were the so-called supercenters, which grew nearly 18 percent over the previous year, and grew by about the same amount the following year. Although overshadowed by the Big Three, groups of regional stores, Dollar General, Family Dollar Stores, and the Dollar Tree Stores, are also listed under the variety stores category. Warehouse stores such as Costco and Sam's Club, are also part of this designation. There were an expected 8,000 more dollar stores to appear by 2008. The common element among all stores in the industry is the focus on low prices.
The emergence of discounters, which relied heavily on technological advances to improve productivity and cut costs, had a tremendous impact on the financial well-being of full-price retailers. Although luxury retailers were on the rebound, this upward trend for discounters was also continued in the years between 2002 and 2005, as consumers were increasingly concerned with value shopping and saving money. Other factors affecting the future of discount retailing include a consumer base of greater ethnic diversity, a heightened concern for the environment, interactive technology, and international retailing.
Organization and Structure
Variety stores can be categorized by price and level of service, and generally fall into one of the following categories: discount department stores, wholesale clubs, supercenters, hypermarts, and so-called category killers.
Wholesale clubs are no-frills stores that sell in bulk to people who pay dues to maintain membership. Originally targeted toward small businesses, which appreciated the opportunity to purchase supplies in large quantities, membership requirements have been made broader to include many segments of the general populace. Supercenters, or superstores, are large retail outlets offering general merchandise in addition to a complete grocery area. The supercenter concept evolved from the hypermart, which offers discounted merchandise and groceries, as well as ancillary businesses, such as branch banking and photo processing. Finally, category killers are specialty chain stores offering a single line of merchandise, such as T. J. Maxx, Dress Barn, and Burlington Coat Factory. Although industry information related to discount retailers often includes statistics on category killers, many of these stores are formally listed under the SIC related to the merchandise in which they specialize.
Background and Development
Although discounted sales have existed since the early 1900s, the discount variety store industry picked up shortly after World War II. During this time, according to Discount Store News, entrepreneurs were prompted to open large variety stores due to the increasing demand for consumer goods, including such new products as record players and television sets. In the northeastern part of the country, in particular, large facilities became available to potential variety store owners when manufacturers moving operations to the South vacated several mills. Taking over such facilities for retail operations, variety store owners found that their proximity to those mills that had remained in operation facilitated the timely restocking of stores with apparel and domestic items.
By 1962, industry leaders and a standard store format were well established. Discount department stores were formed by the Dayton Company, which pioneered the Target chain, as well as Kmart stores, an offshoot of S. S. Kresge, the F. W. Woolworth Company's Woolco stores, and Sam Walton's Wal-Mart. These new stores transformed the variety store business into large, low-price, self-service stores, featuring both hard goods and apparel.
Several mergers occurred in the late 1960s and early 1970s, as chains sought to expand quickly through acquisitions. During this time, Kmart became the decided leader with more than 300 stores, which was more than double the number of the next largest chain. Although over a dozen discount stores filed for Chapter 11, attributable to economic recession, Kmart and Woolco grew into national companies, whereas Wal-Mart and Target expanded in the Southeast and Midwest, respectively.
During the 1970s, discount stores began exploring advances in technology, using computers, electronic registers, UPC bar coding systems, point-of-sale (POS) scanning, and satellite communication systems. Wal-Mart's explosive growth, in particular, was attributed to its successful implementation of computer technology. The company established highly automated distribution centers, which cut shipping costs and delivery time, and installed an advanced computer system to track inventory and speed up checkout and reordering. As a result, Wal-Mart increased the number of its retail establishments from 18 in 1970 to 270 in 1980.
By the end of the 1980s, Kmart, Target, and Wal-Mart dominated the industry. At the same time, other chains had filed Chapter 11, including Woolco, FedMart, Memco, Twin Fair, Zayre, Zodys, Kings, Ames, and Hills. Regional operators experiencing moderate success included Jamesway, Caldor, and Bradlees in the East; Rose's in the South; Clover in Philadelphia; Fred Meyer in the Pacific Northwest; Fedco in Southern California; and Venture, Meijer, and Value City in the Midwest.
The introduction of a full line of grocery items to the discount store format represented an important aspect of the successful supercenter in the early 1990s. Although the majority of store profits were attributable to merchandise sales, food divisions began to draw customers into the store and accounted for 40 percent of a supercenter's sales in the early 1990s. This trend was expected to have a negative impact on the traditional supermarket owner. Nevertheless, some analysts have viewed the discounters' venture into the food business with skepticism. Critics noted that since grocers earned an average of less than one penny per dollar of sales in the early 1990s, superstores faced the challenge of imposing even stricter cost controls to compete.
In their ongoing battle for market share, discounters also began focus on appealing to specific ethnic groups, striving to become familiar with the needs of the diversifying market in the 1990s. For example, some stores employed bilingual clerks, particularly in Hispanic communities, and featured signs and advertisements in languages other than English. Moreover, an awareness of traditions and holidays specific to certain ethnic groups helped store managers to stock seasonal merchandise.
In another effort to draw and retain loyal customers involved the promotion of environmental awareness. In addition to touting recyclable and environmentally friendly products, many discount stores attempted to cut back on lighting, heating, cooling, and other energy-draining expenses. They also began using recycled paper for printed advertisements and sign boards.
In June 1993, Wal-Mart opened an "environmental demonstration store" in Lawrence, Kansas. The store featured a community recycling center as well as an environmental education center. During this time, Kmart introduced programs to recycle cassette tapes, auto and truck tires, and auto and marine batteries. Target sponsored Kids for Saving the Earth, a grass roots environmental organization.
Some consolidation in the industry, particularly affecting the warehouse clubs, occurred in 1993 due to increased competition, market saturation, and a slow economy. In November 1993, Wal-Mart agreed to acquire 91 of Kmart's 113 Pace Membership Warehouse clubs for $300 million. The sale gave Wal-Mart access to five additional states and expanded its presence in California. Some of the Pace Warehouses would operate as Sam's Clubs, and others were designated for remodeling as supercenters.
Wal-Mart's supercenter business achieved annual sales of $5 billion by 1994, a substantial increase over the reported $1 billion in 1992. By 1997 there were 344 Wal-Mart Supercenters in operation, mostly in Texas and Missouri, and by 1998 that number climbed to 441.
Led by the strength of such retailers as Wal-Mart, the discount industry surpassed $200 billion in sales in the early 1990s. The Dollar General chain of discount stores was second to Wal-Mart in percentage sales growth, having found a niche market in towns considered too small to support Wal-Mart stores. Kmart maintained its position as the second largest discount chain in the nation in volume, with $31 billion in 1996 sales, while Target neared $18 billion in sales in 1996. Regional discount chains that achieved strong sales growth included Connecticut-based Caldor (with $26 billion in 1996 sales) and St. Louis-based Venture Stores (with $1.5 billion in 1996 sales). The increased popularity of discount operations also led to their inclusion as anchor stores in suburban malls, a location once considered inappropriate by developers and more up-scale merchants.
Since strong national chains originated in the 1960s, they have taken an increasing share of the market away from traditional full-price retailers, a trend that continued into the late 1990s. Discounters have seen sales rise from $2 billion in 1960 to $175 billion in 1998. The battle for market share is ongoing as traditional department stores try to fend off increased competition from these discount retailers. The August 1999 Chain Store Age State of the Industry Supplement stated, "Discount stores continue to be in the catbird seat in the retail industry. As long as they continue to provide customers with value and quality merchandise, they will be hard to beat."
In keeping with that statement, discounters maintain top position in the market in girls', boys', and men's apparel. Traditional department stores and specialty stores still have control over the women's apparel segment, but discounters are gaining market share quickly. The success of discount stores is attributed to meeting consumer demands, constant review of product mix, and offering higher quality, private label products. For example, Kmart began offering a "business casual" line, and Target has focused on a trendier line with its Xhileration label. Sears, Roebuck and Company's CEO Arthur Martinez stated in Chain Store Age , "Target and Wal-Mart have done a better job of improving and are more credible on price than Sears and mass-market retailers."
Discount stores have also seen success by diversifying product mix. In 1998, more than 36 percent of vitamins and mineral supplements were sold at discount stores. These stores also account for the largest share of bath product sales with 36 percent. In 1998, Wal-Mart took the lead over Toys "R" Us in toy sales, and Kmart and Target also saw gains in this area.
This industry has also increased focus on brand names, proprietary brands, and partnering. Kmart teamed up with Garth Brooks in 1999 to promote his new CD online. The company has also paired with Martha Stewart to offer her line of home products, sales of which exceeded $1 billion in 1998. Kmart's Jaclyn Smith and Kathy Ireland apparel lines also were successful in the 1990s, as well as its Sesame Street line. Wal-Mart has also shared success in partnering; its Kathie Lee apparel line had more than $250 million in sales in 1998.
Along with its success, however, the industry saw bankruptcies, consolidation, and mergers in 1998 and 1999. Many regional chains suffered under the increasing competition from larger chains. Jamesway and Clover went through liquidations, Caldor and Venture no longer operate, ShopKo purchased Pamida, Ames bought Hills, and Bradlees filed Chapter 11.
Meanwhile, stronger, successful chains continued to grow. Both Target and Wal-Mart increased square footage significantly from 1998 to 1999. Wal-Mart, Dayton Hudson, and Kmart also increased expenditures in efforts to expand. At the same time, retailers invested in older store overhauls and closed stores that were not profitable.
The early 2000s were a tough time for retail due to the terrorist attacks of September 11, 2001, and a shaky economy. The picture for discounters was mixed at best. More people went to discounters to save money but overall sales were generally flat. The big three continued their dominance in this sector in the new millennium, and small businesses within the industry were becoming scarcer. Small companies such as Ann & Hope closed completely, regional ShopKo was forced to close stores, and Ames was forced into bankruptcy.
Leader Wal-Mart not only bucked the flat sales trend but also became the largest company in the world during 2002. Not surprisingly, the company continued plans for expansion in 2003, with an estimated 45 to 50 new discount stores and 200 to 210 new supercenters, 140 of which would be expansions or relocations. Sam's Club planned 40 to 45 new stores. New retail space for the company would total 48 million square feet, up 8 percent over 2002. Wal-Mart operated 1,066 stores at the end of 2001. Supercenters, which generated the largest portion of sales, remained the company's number-one growth vehicle. Wal-Mart also added more food to its mix, unveiling the new Neighborhood Markets in the United States and in China. By 2002, the megacompany was making headway toward the goal of becoming the largest grocer in the United States. Entering a newly hot market, Wal-Mart also began offering more than 12,000 DVD titles for rent through its walmart.com Web site. Most Wal-Mart stores currently have less than 1,000 titles available to rent. Wal-Mart managed a gain of more than 5 percent in sales in 2001.
Target is also expected to grow in the future. A report from Retail Forward, a management consulting and market research firm, forecast that Target could grow to more than 1,500 stores and sell $65 billion per year. Target was not as aggressive at converting into superstores in the early 2000s. Instead, the retailer focused on honing its merchandise assortments, including the trendier line of clothing and merchandise that has differentiated Target from its less chic competitors. Target gained more than 6 percent in sales during 2001.
Kmart had its share of problems early in the decade. After a foray into specialty retailing that cost the company sales, Kmart filed for bankruptcy in 2002. In all, some 600 stores were closed in a massive restructuring effort in 2002 and 2003 that also saw a complete turnover in its executive leadership. The company also suffered during an investigation of stock transactions by Martha Stewart. Stewart was accused of receiving insider information leading her to sell shares of ImClone. The store continued to support Stewart, whose products accounted for approximately $1.5 billion of Kmart's $36 billion in sales. However, Brand Keys Customer Loyalty Index noted a decline in consumer perception for both brands in different areas. Still, Kmart continued to convert its traditional stores to superstores, also adding food. The new concept of in-the-box supercenters combined the traditional discount store and grocery store into one supercenter. Kmart posted a sales loss of 2.43 percent in 2001.
Dollar stores continued their popularity and expansion. By 2002, leader Dollar General had 5,500 stores, followed by Family Dollar with 4,455 stores, and Dollar Tree at 2,060. Others in the category included Freds, headquartered in Memphis, Tennessee and 99 Cent Only Stores, with headquarters in City of Commerce, California.
By 2004, although not approaching Wal-Mart's total numbers, Target was outperforming all the competition, in part by bridging the gap between discount and perceived quality, particularly in its focus on fashion clothing and home decor. In 2004, it sold the struggling Marshall Field's stores to May Department Stores, and focused on the Target branding, to great success.
In the 2004 holiday shopping season, one of the biggest draws was the gift card, which was expected to account for about 15 percent of sales for the following season. Supercenters, particularly those of Wal-Mart and Target, were growing at the fastest rate in this sector. Many of the older stores were being converted to supercenters.
Wal-Mart was set for expansion again in 2005, with an expected 1,963 supercenters and 1,240 discount stores by the end of the year, up from 1,713 supercenters and 1,365 discount stores in 2004. While the total number of discount stores went down, many were converted to supercenters, and dozens of new stores were planned.
Arkansas-based Wal-Mart has long been the world's largest retailer, but in 2002 it surpassed General Motors and Exxon Mobil Corp. to become the world's largest company, as well. The company operates more than 4,800 stores, including Wal-Mart discount stores and supercenters and Sam's Clubs. In 2005, Wal-Mart reported $285.2 billion in sales and employed 1.5 million workers.
Wal-Mart's founder, Sam Walton, entered the industry with a few Ben Franklin stores operating under the "Walton 5 & 10" name. When management at the Ben Franklin Company rejected the idea of opening larger discount stores, Sam Walton and his brother James "Bud" Walton opened their first Wal-Mart Discount City in Rogers, Arkansas, in 1962.
The explosive growth of the chain was facilitated by its effective use of computer technology. In the early 1990s the company invested almost $600 million in computerization and information systems, enabling it to reduce its costs to 15 percent of its annual revenues, well below the 25-percent industry average. An innovator of the wholesale club and hypermart concepts, Wal-Mart eventually came to favor the supercenter format, and in the early 1990s many Wal-Mart stores were redesigned as supercenters. In 1998, more than 40 percent of Wal-Mart's selling space went to its supercenters. During the mid-1990s the company's return on capital declined significantly due to large-scale investments in international stores, which totaled 310, with expansions mainly in Canada and Latin America. The company benefits from large economies of scale, and in 1998 foreign sales were up 63 percent to $12.2 billion.
Target Corporation, second largest discounter, formerly Dayton Hudson, operated more than 1,300 stores. Target stores, including SuperTarget and Target Greatland, accounted for more than 85 percent of Target Corporation's sales. The company posted 2004 sales of $48.2 billion, up 10 percent from 2003, and had 328,000 employees.
By 1995, Target operated 30 Greatland stores in and around the Chicago area. The company also launched its Club Wedd bridal gift registry and the Lullaby Club baby registry. At the same time, Target also began the development of a prototype store for smaller markets, carrying merchandise similar to that in larger Target stores. Dayton Hudson, as reported in Valueline, earmarked 80 percent of its $1.4 billion capital budget for 1997 to add an additional 65 stores, 5 of which would include groceries. This added eight million additional square feet to Target stores, an increase of 10 percent in 1997.
Michigan-based Kmart, which merged with Sears in 2005, became the country's third-largest retailer, behind Wal-Mart and Home Depot, and the third-largest discounter, behind Wal-Mart and Target. Before the merger, Kmart reported sales of 19.7 billion.
Kmart's origins may be traced to 1897, when Sebastian S. Kresge and John McCrory opened their first five-and-dime stores in Memphis and Detroit. They split their partnership in 1899, and Kresge remained in the retail business. Kresge incorporated his company in 1912 as the S. S. Kresge Company, the second largest dime store chain in the United States. By the 1950s, Kresge's company had grown to become one of the largest general merchandise retailer in the nation. In 1958, company management decided to enter into discount retailing, transforming three unprofitable stores into discount operations. The first Kmart discount store was opened in Garden City, Michigan, in 1962. Americans soon grew accustomed to Kmart's "blue-light" specials--spontaneous sales in various departments signaled by a flashing blue light.
Growth continued in the 1970s, and the Kresge Company changed its corporate name to Kmart in 1977. During this time, the company began a series of acquisitions that included Furr's Cafeteria and Bishops Buffets, both of which were sold in 1986. Other acquisitions included Payless Drug Stores, Waldenbooks, and Builders Square. In 1988, Kmart opened its first Pace warehouse clubs as well as its first hypermart, American Fare. By 1990, Kmart had surpassed Sears, Roebuck & Co. in retail revenue, but sales at both stores were quickly eclipsed by Wal-Mart. A major rejuvenation program, begun in the early 1990s, included the renovation or relocation of more than 2,400 Kmart stores. However, outdated inventory and old storefronts hurt sales, and the company found itself heavily discounting merchandise to retain sales. As reported in Valueline, "the crucial core challenge remained the same: get customers to come back more often." The typical Kmart customer came in only 15 times a year, compared to 32 for Wal-Mart. Customers, in addition, often drove greater distances to avoid Kmart and go to Wal-Mart.
With about 1,500 stores after closures--down from a high of 4,792 in 1992--and with sales steadily declining, the company filed for bankruptcy in 2002, emerging as a leaner operation after hundreds of store closures the following year. In 2005, Kmart and Sears announced a planned merger. The company posted revenues of just over $30 billion, a 14.9 percent loss for the year, resulting in a net loss of $3.2 billion.
The retail industry was a significant source of employment in the United States, accounting for roughly 18 percent of the labor force. According to the U.S. Department of Labor, the retail industry was expected to realize significant growth between 1998 and 2005, with more than three million new jobs created in those years.
As larger companies relied more heavily on computer technology, lowering labor costs and increasing productivity, employees of Wal-Mart, Target, Kmart, and other discount establishments found that job descriptions changed accordingly. With these advances, more jobs became available. According to Discount Store News editor Tony Lisanti, Wal-Mart is the largest employer in the United States and soon will become the largest employer in the world.
America and the World
In 1999, Wal-Mart had operations in Puerto Rico, Canada, China, Mexico, Brazil, Germany, the United Kingdom, Argentina, and South Korea. David Toung, analyst with Argus Research, stated, "These are very important areas for them because there is more growth opportunity for them than there is in the U.S." The company remains focused, along with other strong discounters, on operations abroad. By the 2002, Wal-Mart saw its greatest growth opportunities in the Asian markets of China, Japan, and Korea. The company had 20 stores in China at that time, and planned to open 120 to 130 stores worldwide by 2003. By the late 1990s, several discount retailers had opened stores in foreign markets, most notably in Europe and Mexico. Furthermore, companies began creating alliances with foreign operations in the form of licensing and franchising agreements, investments, and joint ventures.
Kmart began entering into joint ventures with foreign partners as early as 1968 with Coles Myer Ltd., the largest retailer in Australia. A long-time operator of stores in Canada, Kmart was also the first U.S. discount retailer to enter Eastern Europe with a 76-percent purchase of Maj, a large Czechoslovakian department store in 1992. The company had operations in Puerto Rico, Guam, and the U.S. Virgin Islands by 1996. Overall, Kmart has spent more than $100 million on the selection and renovation of department stores in the downtown areas of several foreign cities.
Success in international retailing remains linked to a company's sensitivity to cultural differences. In a Chain Store Age article, Ames Department Store CFO Rolando de Aguiar stated, "Too many retailers do not pay attention to differences of doing business in different countries." This mistake leads to technological problems as well, as different countries use different types of communication and computer systems.
Research and Technology
The Internet became a significant contributor to the retail environment with the increasing number of retailers who created Web sites for general marketing information and to allow customers to purchase goods online. In 1996, Wal-Mart created two Web sites for both higher and lower priced items, Kmart began offering online shopping in May 1998, and Target offers online purchasing as well. With Internet sales increasing by the billions by 2003, discount retailers have been forced to create an online presence to tap into increased market share. As a result of increasing technology, information technology and information services retail professionals have been called upon and now play substantial roles in the discount stores infrastructure.
Due to the price sensitive nature of the industry, discount stores have to maintain efficient operations to achieve maximum profitability. The implementation of computer technology was, and is, essential to store operations. Development of technology such as computer-assisted bar code scanning, online receiving, merchandise tracking, and labor management is crucial to store profitability. With the onset of computerized operations, discount stores were able to reduce inventory, speed up inventory turnover, and shorten the lead time required to move merchandise into the store.
Interactive touch screens for point-of-sale (POS) operations went into development in 1998. Graphical user interface (GUI) payment terminals are expected to become increasingly popular, despite initial negative feedback. Jim Dion, a senior partner with the J. C. Williams Group, stated in a Stores article, "For some time now, retailers have made interactive kiosks, touch-screen information terminals, and similar capabilities available to customers at or near the point-of-sale. In most cases, the technology was ignored by customers over age 50 and used infrequently by 25- to 50-year-olds. Most stores and malls have backed off this technology for the time being."
Nevertheless, vendors are pushing the new POS systems. Checkmate developed a new product, the eN-Touch 1000, which is predicted to replace existing countertop credit and debit terminals. Mary Lynne Campbell, Director of Business Development for Checkmate, stated in Stores, "retail marketers can achieve 'virtual customer intimacy' through nonpayment applications such as advertising, personal messaging, instant credit, loyalty programs, cross selling, electronic coupons, surveys, managerial signoff, information kiosks, and product locators." Large, national retailers are expected to implement these new devices.
Use of handheld computers in the industry also increased in the late 1990s, greatly facilitating in-store communications, particularly for price verification and inventory tracking. Wal-Mart, Target, and Kmart used wireless in-store systems. The handhelds proved beneficial in maintaining stock levels and facilitating price markdowns.
Moreover, the development of spread-spectrum radio promised greater bandwidth in wireless communications, allowing stores to use wireless systems for a wide variety of tasks. Future applications for spread-spectrum radio included use as a local-area network infrastructure, which would connect handheld computers; new generations of wireless (and possibly mobile) POS systems; and electronic shelf labels to provide graphs of sales trends among other information. Manufacturers of spread-spectrum radio systems continue development on graphical interfaces.
In 2003, Wal-Mart announced that its top suppliers would need to comply with RFID tagging of merchandise by the start of 2005. The initiative cost the suppliers around $2 million, according to AMR Research, far less than the originally projected $17 million average. The so-called RFID mandate was not 100 percent by the stated deadline, but it did push many of the distributors toward the new electronic tagging and inventory devices.
I thought tht whn an item is labeled not 4 individual sell thn it must not b sold. TrueorFalse? Is it a Crime?
Well how is it fair that any one on Ebay can sell someone else an item that states "Not for Individual Sale" Obviously I understand the Acts in place by Attorney General however, what amount should be charged to someone if it has no real value?
Question answered by Steve B
Under most legal systems, any 'rights' reserved by the Manufacturer (or other seller) and not EXPLICITLY agreed (by the buyer) are lost when the ownership is transferred to the buyer ..
In UK at least, the seller can not reserve any rights 'by default' ... ie. the buyer must be made aware of any restrictions and the buyers explicit agreement must be obtained .. although admittedly it's quite normal to open up the box of a domestic appliance and discover something to the effect that 'This appliance is for Domestic use Only' .. however it then goes on the say 'Guarantee void if used for any Business purpose' .. (i.e you won it and legally do what you like with it, BUT they will not guarantee it inm the even of 'misuse')
SO, to answer your question, unless the seller has signed a Contract with their own supplier, there is NOTHING to stop them selling goods however they see fit .. if they HAVE signed a Contract, it is up to the Manufacturer to sue them for breach ..
what degree has energy conservation served to mitigate energy dependency?
Question answered by George
The compact fluorescent light: saves in energy consumption (about two-thirds) and last longer (by about four times), but cost more initially and pollute with their mercury content. The energy savings is negative, outweighed by cost of production and disposal. Lighting is a minor percentage of energy consumption for any household or organization, at any rate.
Energy Star appliances: new appliances that are more efficient seems to make sense, and is a good decision in many cases. An increase in efficiency would reduce consumption.
Energy conservation efforts are mostly a facade, a political sales-pitch, and do little to reduce or conserve energy. Are we talking America? We have become dependent on foreign oil sources because of escalating demands and diminishing domestic supplies. The resources are available, but the governmental restrictions have limited exploration and development. Mitigate energy dependency? I hope we start soon. Actually, it's too late to save lifestyle as it now stands. Prices for energy will go up within the next few years. Electricity will double within seven years. Gasoline will double within three. Inflation and add-on costs will increase the price of food and services. Strap in. We're on track for a wild ride.
Do the Chinese eat toast?
I am just wondering because we bought a new toaster which doesn't make very good toast. My parents also bought two different ones and neither one makes good toast. We didn't buy the cheapest ones either. It either toasts well on one side but not on the other, or takes so long to make the toast that the bread gets all dried out. Since every toaster for sale here is now made in China, I'm just wondering if it's because the Chinese don't eat toast, so they don't know what good toast is supposed to be like.
Question answered by Stillwaters
One person made probably the correct point. China makes a great deal of various goods sold in the world and they may not be commonly used in their domestic market. The Chinese companies simply manufacture based on designs provided by their Western clients, fitness for the intended purpose & adequacy of design is not their problem. So if you have a cranky & unreliable toaster or other home appliances, don't blame the Chinese as it's much more likely to be an overseas-provided design flaw rather than local manufacturing defect. And you can spend more on a pricier model and still don't get what you paid for.
what are the forms of departmentalization in business organizations?
if possible could you elaborate on the answers it please....
in real need for a right answer!
Question answered by rkoblitz
Please learn how to use Google. By doing a google search for "business departmentalization forms" you would have found this web site.
Page down and you will find it says this.
"usually the first step in the organizing process is departmentalization. Once jobs have been classified through work specialization, they are grouped so those common tasks can be coordinated. Departmentalization is the basis on which work or individuals are grouped into manageable units. There are five traditional methods for grouping work activities.
· Departmentalization by function organizes by the functions to be performed. The functions reflect the nature of the business. The advantage of this type of grouping is obtaining efficiencies from consolidating similar specialties and people with common skills, knowledge and orientations together in common units.
· Departmentalization by product assembles all functions needed to make and market a particular product are placed under one executive. For instance, major department stores are structured around product groups such as home accessories, appliances, women's clothing, men's clothing, and children's clothing.
· Departmentalization by geographical regions groups jobs on the basis of territory or geography. For example, Merck, a major pharmaceutical company, has its domestic sales departmentalized by regions such as Northeast, Southeast, Midwest, Southwest, and Northwest.
· Departmentalization by process groups jobs on the basis of product or customer flow. Each process requires particular skills and offers a basis for homogeneous categorizing of work activities. A patient preparing for an operation would first engage in preliminary diagnostic tests, then go through the admitting process, undergo a procedure in surgery, receive post operative care, be discharged and perhaps receive out-patient attention. These services are each administered by different departments.
· Departmentalization by customer groups jobs on the basis of a common set of needs or problems of specific customers. For instance, a plumbing firm may group its work according to whether it is serving private sector, public sector, government, or not-for-profit organizations. A current departmentalization trend is to structure work according to customer, using cross-functional teams. This group is chosen from different functions to work together across various departments to interdependently create new products or services. For example, a cross-functional team consisting of managers from accounting, finance, and marketing is created to prepare a technology plan."
Remember, next time you need homework type help try giving Google a try.
Hope this helps.