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u_r\,®\°“m ma lN'l‘ERNATlONAL UNIVERSITY (1U) Course: Retail Management

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SAMPLE TEST
Question 1 (10 points):
What do off—price retailers need to do to compete against other formats in the fiiture?

Question 2 (10 points):

How does the Internet help customers evaluate merchandise when making buying decisions?

Question 3 (10 points):

Why is choosing a good location such an important decision for a retailer?

Question 4 (10 points): Compare and contrast when it is essential for a retailer to have good
visibility and accessibility, and in which cases these attributes are less important.

Question 5 (20 points):

We are running a clothing shop. We would like to develop a better strategy for our shop so that
we survey three types of customers: college students, officers and freelancers. After doing
survey to get customers’ opinions, we get the results as below:

Table 1: The importance of 4 characteristics (Rate from 1 to 10)

Characteristics College Officers Freelancers
students

_
_
_
__
Table 2: Performance of three different clothing shops (Shop A and Shop B are our
competitors):

shop A
_
_
_
a) Calculate the overall evaluation of each shop and see which shop is having more advantage?
(10 points)
b) Choose your target market. Develop the strategy for your shop based on the target
customers you chose. (10 points)
 THE INTERNATIONAL UNIVERSITY (I U) Course: Retail M.
School of Industrial Engineering and Management

Question 6: (20 points)

There are 2 existing phones stores 1 and 2 with the size of 800 and 1,000 square meters
respectively. The main customers of phones store are from Ho Chi Minh City and Bien Hoa
City with the market sizes are $3 million and $ 2 million per year. We plan to open a new store
with the size of 1,200 square meter. Based on the collected historical data, we find that l=3.
a) Calculate the expected sales of the new store. (10 points)
b) If the average monthly sale is less than $160,000, we will decide not to open new store
in proposed location. What is our decision in this case? (10 points)

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. _ BienHmomaCity
" Market size: 2,000,000 )/
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8" Market size: 3,000,000 _ » -

Question 7: Case study (20 points)

For years, Ohio’s Cleveland Clinic has ranked with the top world-class providers of medical care. It
pioneered coronary bypass surgery and developed the first kidney dialysis machine. King Hussein
of Jordan used the clm’ic, as does the royal family of Saudi Arabia.

Big-name health care institutions like the Cleveland Clinic are afier new markets for their
state-of-the-art medical care, and are posing a new threat to local physicians. The expansions
are also disrupting traditional relationships between physicians and their patients, physicians
and their hospitals, and physicians and their fellow physicians.

Like any business, the Cleveland Clinic keeps close tabs on its core market, and the outlook wasn’t
all that bright. Seven Midwestern states provided 90 percent of the clinic’s business, though
population growth in that region is expected to be flat through the year 2010. But not so
southeastern Florida, where the population is still growing and, in many areas, is highly affluent.
Southeastern Florida appeared to be a dream market. Yachts lining the canals of the Intracoastal
Waterway and a ubiquitous buildm'g boom reflect wealth and growth so palpable that c11n'ic
officials have come to call it unm'aculate consumption. Moreover, about 20 percent of the 3.7
million residents in Dade, Broward, and Palm Beach counties are over 65 years old. About 50
percent of the population is over 45—a potential mother lode of patients. “We felt there was room
for us,” Dr. Kiser, CEO of Cleveland Clln'ic, said. “We decided to go on our own rather than wait to
be invited.”
 0 Hit: lN'l‘ERNA’l‘lONAl. UNIVERSITY (IU) Course: Retail Management
School ot‘lndustrial Engineering and Management

When the Cleveland Clinic opened an outpatient clinic in South Florida, a war broke out. In a
null-page advertisement in the Miami Herald Dr. Seropian, a local physician, pulled out the
stops. He likened the clinic to dingoes (wild Australian] dogs) that roam the bush, eating every
kind of prey. The clinic filed suit in le’deral district court in Fort Lauderdale, charging, among
other things, that some physicians had conspired to hamper its entry into Broward County.

Famous medical institutions like the Cleveland Clinic and Mayo are victims of their own
success. Many of the once—exotic procedures that they invented are now routinely available
across the country, reducing patients’ need to travel to the medical meccas. For instance, the
Cleveland Clinic might once have had a hold on coronary bypass surgery, but no more. In
2000, more than 350,000 patients had the operation at hospitals throughout the United States.

“These clinics used to be the court of last resort for complex medical cases,” says Jeff
Goldsmith. national health care advisor to Ernst & Young, the accounting firm. “Now, the
flooding of the country with medical specialties and high technology equipment has forced
them to adopt a different strategy."

Their expertise and reputation mean formidable competition for the local medical community.
“On one level,” says Jay Wolfson, a health policy expert at the University of South Florida in
Tampa, “it’s like bringing in a McDonald’s. If you’re a mom-and-pop sandwich shop on the
comer, you could get wiped out.”

Discussion Questions
a. Compare the Cleveland Clinic to traditional retailers. (10 points)
b. What was its retail mix? (5 points)
c. What factors in its environment resulted in it changing its retail mix? (5 points)