Retail Management Assignment

Submitted By: Muhammad Furqan Zeb 01-111072-182 BBA VII-B Submitted to: Sir Ali Raza

Q 2) What are the expected & augmented value chain elements for each of these retailers? a) Roadside diner b) Resort hotel c) Local bank Value Chain: The value chain, also known as value chain analysis, is a concept from business management that was first described and popularized by Michael Porter. Value Chain of Local Bank:
Strategic Decisioning

Procurement

Technology Deployment

Human Resource Management

Revenue Market & Sales Delivery Operations

Value Chain of Resort Hotel:

Goods from Suppliers

Operations

Marketing & sales

Service

Q3) Why should a retailer devote a special attention to its core customers? How should it do so? What is More Important than Your Customers? One of the best ways to grow your business is to be totally devoted to them and they will pay you back by bringing in new customers to you Customer Satisfaction is Worthless; Customer Loyalty is Priceless is a great quote from the marketing guru Jeffrey Gitomer. Its one of the first things I say to myself as I begin my day at my at home based business. And when you think about it, it is so true. Absolute customer loyalty is only achieved when you provide a product and service that is second to none. Satisfying customers is easy, considering the averages out there. Going above and beyond, now thats priceless in todays market and let me tell you, your customers will notice. Retailers should devote special attention towards their core customers as to increase the loyalty of the customers so that in the future they will trust upon that retailer. Also remember that positive word of mouth is very much important for the retailers. It is also said that it is much expensive to create new customers as compared to retain the existing ones. There are some points which explain how it can be done: 1. Identify your real core customers. Don't assume that anybody who buys from you is a core customer. Its as important to know whom you don't serve and what you don't specialize in as it is to know the opposite. 2. Ask if your clients are satisfied. Or more importantly: Listen. Problems, mistakes or discontent may not be obvious right away. Discussions may be time consuming; however, using a cleverly crafted feedback and suggestions form will help you understand your customer. This exercise will find out where you might be leaving an opening for a competitor to win your customer away. 3. You can't just be good at what you offer. Find ways to become an invaluable asset that your customers can't imagine leaving. E.g. reward him with discounts or a free gift, find your customer a customer, or nominate your customer for an award etc. 4. Your Core Customers among your most important clients and that you're committed to the success of their business, no matter what it takes. Make them believe it by telling it to them straight. Have a candid conversation with, go over your plan to help them and get their feedback. 5. When you consistently deliver, your customers and clients will remember. To make sure that you do so consistently, its always important to follow-up on each concerns of the customer to see if they dont creep up again, or assist them by providing additional tips every now and then. The trick is to be pro-active.

Q4) What is the connection between customer service & employee empowerment? Is employee empowerment always a good idea? Why or why not? It has been long established that organizations with a quality foundation have better leverage to achieve high levels of customer satisfaction, but research has shown that a specific key driver of achieving customer satisfaction is employee satisfaction. There is a positive and signi ficant relationship between customer satisfaction and employee satisfaction, these relationships are positive and statistically and substantively significant. Employee satisfaction is significantly related to service quality and to customer satisfaction, while the later in turn influences firm profitability, leading to a satisfaction-quality-profit cycle. In one study based on 7,939 business units in 36 companies, on average business units in the top quartile on the employee engagement measure produced 1-4 percentage points higher profitability. Similar results were found for productivity (revenue or sales per month). Business units in the top quartile on employee engagement had, on average, from $80,000 to $120,000 higher monthly revenue or sales. Denis Leonard, Ph.D. So, satisfied employees are more productive, innovative and loyal, which in turn leads to customer retention, which means that employee satisfaction plays a strong, central role in predicting profitability and organizational effectiveness. Employee Empowerment is always a good idea as empowerment is clearly a function of leadership. Powerlessness cascades down the organization. Managers who feel their own power is threatened or diminished will often take it away from others wherever they can. "The two sides of power (getting it and giving it) are closely connected, Where there are good leaders, empowerment is evident in different ways. One is that people feel significant -- that they make a difference to the success of the organization. It may be a small difference but it has meaning. They also value learning and competence, as a good leader does, in personal development as well as work skills.

Q11) Differentiate between social responsibility & consumerism from the perspective of a retailer? Consumerism: Consumerism is concerned with broadening the rights of consumers. The concepts of social responsibility and consumerism go hand-in-hand. If every organization practiced a high level of social responsibility the consumer movement might never have begun. Consumerism is a struggle for power between buyers and sellers; specifically, it is a social movement seeking to increase the rights and powers of buyers in relation to sellers. Buyers' rights and power: To refuse to buy a product that is offered to them To except the product to be safe To expect the product to essentially match how the seller represented it To receive adequate information about the product It is in the best interest of marketers to understand the level of consumer standards and the nature of consumer perceptions, as well as what is required to foster realism and accuracy among consumers. Social Responsibility: Social responsibility is the principle that companies should contribute to the welfare of society and not be solely devoted to maximizing profits. This responsibility can be "negative", meaning there is exemption from blame or liability, or it can be "positive," meaning there is a responsibility to act beneficently.