UNIT - 1

1. What are the major concerns for retailers to survive and sustain in the market.

Major concerns for retailers to survive are stated below:

a. Customer satisfaction:
- Retailers know that satisfied customers are loyal customers.
- Retailers must develop strategies intended to build relationships that result in
customers returning to make more purchases.
- It helps to maintain relationships between the retailers and the customers.

b. Ability to Acquire the Right Products:

- An important objective for retailers is to identify the products customers will demand
and negotiate with suppliers to obtain these products.
- Many of the retailers don't manufacture their own product, they hire suppliers who
supply the product from various manufacturers as per customer demand.

c. Product Presentation:
- The obtained products must be presented or merchandised to customers in a way
that generates interest.
- Retail merchandising often requires hiring creative people who understand and can
relate to the market.

d. Traffic Building:
- Like any marketer, retailers must use promotional methods to build customer
interest.
- Building "traffic" is accomplished with a variety of promotional techniques such as
advertising, including local newspapers, internet and specialized promotional
activities, such as coupons and discounts.

e. Layout:
- For store-based retailers, how the store is set up physically plays a crucial role in
attracting customers. It's not just about deciding where to place products; it's about
creating an overall shopping experience
- For many retailers designing the right shopping atmosphere (e.g., objects, light,
sound) can add to the appeal of a store.
- For instance at Palladium Mall, the slightly dull mirrors subtly suggest to customers
that their current outfits might be lackluster, subtly encouraging them to consider
buying new attire.

f. Location:
- Well placed stores with high visibility and easy access with high land cost may hold
significantly more value than lower cost sites that yield less traffic.
- Understanding the trade-off between costs and benefits of locations is an important
retail decision.

g. Keeping Pace with Technology:

- Technology has become a part of every aspect of retail
 - Right from understanding customers using software to managing products with
online tools like shopping carts and purchase recommendations at the point of sale.

2. Define the term retailing, elaborate the functions performed by retailers in India.

a. Arranging Merchandise in Small Quantities:

- A retailer may be defined as a trader who buys goods in small quantities from the
wholesaler and sells in bits or units to the final consumers.
- They are the middlemen considered essential in the chain of distribution of goods.
Retailers sell in small quantities; they sell directly to the final consumers and the
business location of retailers is open to the general consumers.

b. Customer Inquiries:
- Customer inquiries typically are concerned with commercial information or technical
information.
- Commercial information covers such issues as customer orders and payments, while
technical information includes issues of product use and troubleshooting.
- Based on the inquiries they make necessary changes.

c. Repair and Maintenance:

- After a sale, taking care of repairs and maintenance is crucial.
- This involves managing spare parts, dispatching field crews, handling returns, and
dealing with warranty claims.

d. Follow on Sales:
- Good customer support after a sale can boost sale of warranties, service contracts,
spare parts, and accessories.
- Some companies also find a profitable market in consumables like toner and inkjet
cartridges as part of post-sales support.

e. Handling Complaints:
- Addressing customer complaints is crucial for keeping existing customers; it is also
called defensive marketing.
- Each complaint follows a set procedure which results in the formulation of an "Action
Plan" based upon:
● How the complaint occurred.
● Why the complaint occurred.
● The action required to resolve the problem
● The action is required to ensure that a problem of this type does not occur
again.

f. Arrangement of Varieties:
- Retailers source products from different suppliers, each with unique offerings and
terms. Customers have diverse needs, so retailers must stock a wide range of
products to satisfy them.
- Variation in offers, prices, discounts, and quality among sellers makes it crucial for
retailers to be well-equipped to retain customers and prevent them from switching to
competitors.
3. Discuss the factors responsible for the growth of organized retail in India.

a. Increase in per capita income:

- Per capita income is the average amount an individual earns in a year from the total
income generated in the country.
- India has marked growth in per capita income by 10.5% which shows a tremendous
increase in GNP of the country.

b. Demographic changes:
- India is having a huge young age working population which is generating huge
income and high savings.
- For any developing country's young age group, income, savings are key factors for its
growth. The presence of these key factors has helped in attracting big retail giants to
India.

c. High standard of living:

- Previously in India, shopping was seen as an emotional experience, and there was a
mistaken belief that buying things at malls or shopping complexes was costly and
meant only for rich people.
- However, perceptions have evolved, and people have embraced the mall culture,
signifying an elevated standard of living.

d. Change in consumption pattern:

- Earlier customers were brand loyal due to which they stuck to a particular brand.
- But now customers are showing a good response to new products entering the
market because they have realized that they are paying for quality.
- This drastic change in customer perception has opened ways for many new entrants.

e. Availability of low-cost consumer credit:

- Purchasing on a credit basis with good creditworthiness gives both seller and buyer
flexibility to transact.
- Earlier due to lack of cash many buyers used to postpone their purchases, but now
with modernization, they are carrying it on a credit basis as it is cheaper to repay.

f. Infrastructure improvements:
- As the country undergoes various infrastructure developments like metro rails and
the Bandra-Worli sea link, the retail sector is also growing.
- The inflow of significant investments, particularly through Foreign Direct Investment
(FDI), has attracted major retail giants to consider entering the Indian market.

g. Entry to various sources of financing:

- An economy gets finance from two routes either in the form of FDI or as FII.
- Previously to protect small Kirana stores, the route for FDI in retail was difficult but
later on, when it was found that retailing is generating employment of around 8% in
the economy, the FDI route was also simplified.
4. Explain the challenges of multi channel retailing.

Managing various channels across different segments of the market becomes very difficult for a
retailer. There are a few challenges which retailers are facing in the concept of multichannel retailing
such as:

a. Integration:
- Integration is one of the primary challenges to gain customer loyalty.
- The retailer has to ensure that the quality and performance of the product should be
unique despite its offering through any channel and it should be as per the customers
expectation.
- In case the delivered product falls short in terms of quality, customers may opt to
switch to competing products.

b. Evaluation of alternate channel:

- Before a retailer expands to new marketing channels, like selling through mail orders,
they should carefully evaluate the opportunity.
- Sometimes, trying to sell in different ways can be challenging and may lead to losing
customers from the original channel.

c. Resistance to change:
- Today in the era of globalization where change has become a need for the day there
are still many who don't welcome such change.
- For example, if McDonald's introduces a vending machine alongside its regular outlet,
not everyone may be interested. Even though people's lifestyles are changing, some
still don't like new things. This resistance makes it challenging to inform existing
customers about new options.

d. Lack of IT infrastructure:
- IT acts as a facilitator for retailers, in the sense that it makes processes better and
improves business practice.
- Retailers sometimes become late to adopt different technologies due to poor IT
infrastructure, lack of awareness and lack of technical support.

e. Mode of Payment:
- Internet retailing is a form of retailing where the payment gateway is not secured.
- There are chances of fraud by entering the wrong financial data.

f. Difficulty in cross channel targeting:

- Inability to effectively target cross-channel marketing efforts due to lack of
comprehensive customer behavior data.

g. Difficulty in integrating supply chain:

- Supply chain cannot be controlled and managed due to multiple, disjointed order
management systems flowing in the company across various channels.

h. Inventory Mismanagement:
- Lack of visibility of inventory and demand aggregation across channels creates
mismanagement of all kinds of inventory whether it is in the form of raw materials,
work-in-progress or finished goods.
- Tracking the position of inventory is impossible across various channels.
5. Define retailing, discuss the drivers of growth of organized retail in India.
Pg27
The drivers of growth of organised retail in India are stated below:
Store retailers:
Retailing of various products by carrying out operations from the stire is known as store retailing.
Store retailers are further classified into:
a. Specialty store:
b. Departmental store:
c. Supermarket:
d. Convenience store:

Non store retailers:Retailing done without conventional store-based location is called non-store
retailers

6. Elaborate the concept of IT in retail and advantages of IT in retail.

Information technology is a key business driver in today’s business. Technology has become a
competitive and critical tool for surviving in the business. Retailers use IT to:
- Manage and plan inventory
- Reduce procurement costs
- Electronic ordering
- Electronic fund transfer
- Email communication

Advantages of IT in retail are stated below :

a. Development of Markets:
- For consumers and retailers, IT is recognized as a key driver for revenue growth.
- The development of new market segments, new products/services, and new
customers can be accelerated through IT. In many cases, IT is the innovation-as with
digital products, digital features, and digital services.

b. Linkage with Manufacturers:

- IT networks link retail outlets to product manufacturers, production facilities, and
vendors.
- They use the data to know what's selling well, predict future trends, and plan new
products. This information goes back to the stores so they can make sure to keep the
products people like on their shelves.

c. Electronic Data Interchange (EDI) :

- It is like a high-tech way for businesses to share information. It's a quick and accurate
way to send standardized business data from retailers to suppliers.
- It's mainly used for things like sending electronic orders, creating invoices, sharing
sales data, and giving advanced shipping notices.

d. Product Identification Makes Simple:

- RFID identifies the items using a tag, which is made up of a microchip with a coiled
antenna, and a reader with an antenna.
 - A wide range of product information is transmitted when the tag is read by the reader,
including the identification of the product, location details, price, and date of
manufacturing transportation/purchase.
- Having collected data makes it easy to make decisions in the store.

e. Data Mining:
- In a retail store, the introduction of a loyalty card system rewards customers for
shopping. Data mining is crucial in this context, helping retailers understand
consumer behavior, segment customers, and customize products/services based on
individual groups.
- It plays a vital role in the above key areas :
a. Supply chain management
b. Reducing business risk
c. Refining inventory levels
d. Forecasting customer demand
e. Enhancing CRM and optimizing targeted marketing strategies.

f. Inventory Management:
- Inventory Management is about efficiently handling products in stores and
warehouses.
- It involves tracking items from arrival to sale, ensuring real-time info for store clerks,
and using wireless tech like barcode scanners to manage inventory accurately. This
helps reduce stock issues and streamline operations.

g. Coordination Among Staff:

- Many retailers use two-way radios or walkie-talkies for voice communication between
store associates.
- A wireless LAN can enable secure voice communication that is free from interference
and is encrypted to prevent eavesdropping.

h. Additional Facilities:
- Many stores now provide customers with access to the Internet while they shop. This
can be free or require payment and is often done to encourage customers to stay in
the store for a longer time.
- This trend is especially common in bookstores that have cafes and other places
where food is served. For example, cafes like starbucks and cafe coffee day.

7. Explain the need for FDI in the Indian retail sector.

Need for FDI in the retail sector is stated below:

a. Facilitator:
FDI acts as a facilitator to outgrow competition in the retail industry, due to the current
scenario of low competition and poor productivity.

b. Improves quality:
With FDI in retail trade, India will significantly flourish in terms of quality standards and
consumer expectations, since the inflow of FDI in the retail sector is bound to pull up the
quality standards and cost competitiveness of Indian producers in all the segments.

c. Increase in tax revenue :

 FDI in retail is predicted to significantly increase tax revenue, generating around 16.2
billion USD in taxes by 2021. This investment is expected to improve the balance of
payments, create jobs, and boost overall tax collections.

d. Export opportunity:
Foreign Direct Investment (FDI) in retail can open up excellent export opportunities for small
and medium-sized enterprises (MSMEs).
This can positively affect the manufacturing sector by enhancing the quality of products. The
competition with global brands, innovation, and the adoption of new technologies are some
of the ways this impact is observed.

e. Increase in competition :
With the increase in competition, consumers will get products at lower prices, better
shopping experience, greater varieties of products, latest products and designs, and quality
products.

f. Better price:
Allowing foreign direct investment (FDI) in retail in India can benefit farmers by ensuring they
receive better prices without the involvement of middlemen.
Additionally, it will provide education to farmers on enhancing crop yield and choosing crops
based on consumer demand.

g. Improves service :
Foreign Direct Investment (FDI) in retail can enhance transportation, logistics, warehousing,
and related services.
FDI in retail is expected to offer higher salaries, improved working conditions, and contribute
to raising the living standards of the people.

8. Explain the concept of franchising and the challenges in franchising.

Franchising is a business arrangement where the person who created a brand lets others own and run
their own branches. In return, these new owners pay fees instead of sharing their profits with the
original brand creator.

Challenges In Franchising

a. Royalty Payments:
- Royalties are probably the toughest reality of owning a franchise.
- Profit reduces as a certain percentage of gross profits are paid to the
franchisor for obtaining the right of using his brand.

b. Franchise Fee and Start-up Costs:

- The start-up cost involved in franchising involves setting up the same outlet
as the parent company which is costly for new entrepreneurs.
- The franchisee is also supposed to pay heavy fees for obtaining the license.

c. Long-term Contract:
- In many cases, franchisees require at least a 10-year contract. This is quite
challenging as a franchisee has to go on despite losses faced by the parent
company.
 d. Rules and Regulations:
- Franchisees are bound by very rigid rules and regulations.
- Keeping national development and integrity in mind, rules and regulations are
framed in a very congested manner.

e. Exposure to Bad Decisions by the Parent:

- The creditworthiness of franchisees is detected by that of their franchisors.
- If a franchisor creates a negative impression in the market or with the public,
it will affect the franchise business as well. Unfortunately, franchisees have no
control over it and have to face consequences.

UNIT - 2

1. Explain the terms retail shoppers and factors influencing retail shoppers.

Factors influencing retail shoppers are stated below:

a. Range of Merchandise:
- The initial curiosity of the store may draw a consumer to a retail store, but converting
him into a buyer and retaining him over some time is largely dependent on the quality
and the range of merchandise offered by the store.
- If the merchandise is similar to that of another store or what is commonly available,
the customer may not see any reasons why he should not switch stores.

b. Cultural Characteristics:
- The beliefs, norms, and language someone learns while growing up shape their future
buying habits.
- Shoppers prefer to feel at ease in the places they shop. To achieve this, stores need
to grasp their customers' culture and language.

c. Store Locations:
- The store location is one most important factor, as customers are more attracted to a
store which is located with a good ambience.
- Physical factors such as the layout of a store, music played at stores, the lighting,
temperature, and even the smells which are called atmospherics also influence
buying behavior to a greater extent.

d. Social Factors:
- Society has a big impact on how people behave, whether it's within their family or
among their social circles.
- In a family, there are different roles:
a. The Influencer, who suggests buying a product
b. The Decider, who makes the final decision
c. The User, who ends up using the product.

e. Personal Factors:
- The consumer buying behavior changes with the change in many personal factors
like age, occupation, income, lifestyle and personality.
- Spending habits at retail stores depends on occupation and income.
2. Marketing research is an important tool for understanding retail shoppers. 85

With the customer of today becoming more demanding, sophisticated, brand and quality conscious,
the term 'marketing Research' is gaining a lot of importance. In the past customers generally
interacted with the sales and marketing personnel who passed on the customers requirements to
the other departments and they, in turn, took the necessary decision or action.

The characteristics of markets, growing environmental impacts, emergence of consumerism,

unknown competitions, and volatility of international political relationships, changing production
functions, and growing technology have given rise to the growing difficulties of making efficient
marketing decisions.

From the retailer's perspective, market research needs to be done before the setting up of a retail
store as well as after the setting up of a retail store.

Marketing research provides the correct and latest information for arriving at sound marketing
decisions. During the years of growing complexities, the management needs more and more
rigorous marketing information to reduce the uncertainties involved in introducing new products and
penetrating a new market. Marketing research has, today, become an important component of the
==marketing information system to manage all areas of management in general and to marketing
management in particular.

Marketing Research is the systematic gathering, recording and analyzing of data about marketing
problems to facilitate decision making. Marketing research is a tool of marketing information
system which has become an important function of management.

"Marketing research is the systematic design, collection, analysis and reporting of data and findings
relevant to a specific marketing situation facing the company. It shows that marketing research is
required to solve specific problems, but it is more than that since now it is considered a significant
part of the marketing information system which has been a continuous aspect of management.

3. What is customer retention management, What are the benefits of it

Customer retention management bounds the actions you take to encourage your customers to remain
loyal to the brand over a long period of time.

The target of customer retention is to build and maintain a long term relationship with customers.
Both parties - the company and the customers - benefit from each other. The benefits of customer
retention are as follows:

a. Reduce the cost of acquisition:

The acquisition of a new customer costs 5 to 10 times more than maintaining an existing
customer. Therefore customer retention has a positive effect on costs.

b. Increase in client base:

Customer retention helps also to decrease the migration rate of customers. This serves the
purpose to maintain the existing clientele and together with instruments for acquiring new
customers to increase the clientele.

c. Repurchasing:
 Customer retention and repurchasing are interrelated. Those customers who will remain with
the organization are expected to repurchase.

d. Increase in turnover:
Retained customers bring about positive results for the organization. With repurchase
decisions, turnover increases

e. Profitable relation:
The "value of a customer" increases with time. The costs for customer liaison and support
decline, whereas the turnover increases. The longer the relationship exists, the more
profitable the relationship becomes.

f. Mouth publicity:
Customers who are satisfied with the service of a company are likely to advertise positive
word-of- mouth recommendations. This is one of the most efficient but also economic
activities to win new customers.

4. Explain the concept of CRM along with it's need and importance. 92/94

5. Explain the steps in developing retail strategy. 116

The strategic retail planning process is the set of steps that a retailer goes through to develop a
strategic retail plan. The step involved in developing retail strategy is stated below:

Step 1:
Define the Business Mission :
- The mission statement is a broad description of a retailer's objectives and the scope of
activities it plans to undertake.
- In developing the mission statement, managers must answer five questions:
a. What business are we in?
b. What should be our business in the future?
c. Who are our customers?
d. What are our capabilities?
e. What do we want to accomplish?

Step 2:
Conduct a Situation Audit
- A situation audit involves examining the opportunities and threats present in the retail
environment, as well as assessing the strengths and weaknesses of a retail business
compared to its competitors.
- A situation audit is composed of four elements:

a. Market factors
Market factors are important elements that influence how businesses function. They
include factors like the size and growth rate of the market, how sales fluctuate over
time, and seasonal changes in demand.

b. Competitive factors
The competitive rivalry in the retail market refers to how often and how strongly
competitors react to each other's actions. Factors that can make this rivalry intense
include:
 - A large no. of competitor
- Slow growth
- High fixed rate

c. Environmental factors:
Market attractiveness is influenced by various environmental factors, including
changes in technology, the economy, regulations, and society.

Step 3:
Strengths and Weakness Analysis
- The most critical aspect of the situation audit is for a retailer to determine its unique
capabilities in terms of its strengths and weaknesses as compared to the competition.
- Strength and weakness analysis indicates how well the business can grab opportunities and
avoid harm from threats in the environment.

Step 4:
Identify Strategic Opportunities
- After completing the situation audit, the next step is to identify opportunities for increasing
retail sales.
- The strategic alternatives are defined with the help of the retail market matrix, this matrix
helps businesses understand their position in the market and decide on the best strategy to
pursue.

Step 5:
Evaluate Strategic Opportunities
- Evaluation helps the store see where it can really shine and make money in the long run.
- To make smart decisions, the retailer needs to think about how attractive the market is and
what it's not so great at. It should put the most effort into opportunities where it's really
strong compared to others in the market.

Step 6:
Establish Specific Objectives and Allocate Resources
- The retailer's overall objective is included in the mission statement.
- Specific objectives have three components:
The performance sought, including a numerical index against which progress may be
measured, (2) a time frame within which the goal is to be achieved, and (3) the level of
investment needed to achieve the objective. Typically, the performance levels are financial
criteria such as return on investment, sales, or profits.

Step 7: Develop a Retail Mix to Implement Strategy

The next step is to develop a retail mix for each opportunity in which investment will be made and to
control and evaluate performance.

Step 8: Evaluate Performance and Make Adjustments

The final step in the planning process is evaluating the results of the strategy and implementation
program. If the retailer fails to meet its objectives, reanalysis is needed. This reanalysis starts with
reviewing the implementation programs, but it may indicate that the strategy (or even the mission
statement) needs to be reconsidered. This conclusion would result in starting a new planning
process, including a new situation audit.
6. Explain retail value chain.120

a. Market research: As one decides to go into the retail business, he need to find out if
there is a market for the product he wish to sell. Before launch of business one must
find answers the following questions:

● Will my product sell?

● Who is the target market?

● How do I reach my target market?

● What are the most desirable store locations?

b. Build financial projections: During the research process itself, a person will be aware
of the product line he wishes to start-up. During this stage a person needs to take
certain financial decisions:

● How much will he sell in the first quarter?

● What will be margins?

● Which will be the slow season and how will that impact the cash flow?

● Which will be the high season and how will that impact hiring and staffing?

c. Selection of mode to sell:

● The internet

● Street Vending

● Flea Markets

● Small Vendor Markets

● Commercial location/store: If one decides to sell in a store, the location will be vital to
success. Below are some considerations for choosing a location:

● Customer attraction power

● Availability of access routes to the store

● Zoning regulations

● Demographics of the neighborhood

● General appearance of the area

● Cost of the site

● Traffic flow

● Complementary nature of the stores in the area

● Vulnerability to competition

d. Organization of store: Any savvy business person will organize their store to
maximize sales. Below are some tips for doing just that:

● Show all merchandise to all customers - strategically locating signs, offering special
values, or locating the most purchased items in the back, will entice your customers
to visit all parts of the store.

● Prime locations should be allotted to the most profitable items - make impulse buys
and products with a high mark up very visible.

● Locate related items next to each other to urge a customer to buy both. E.g. printers
and computers, clothes and shoes, etc.

● The most important lines should get the best locations in the stores. These are lines
of products with proven profitability and a known and reputable brand that attracts
clients.

e. Determine the right prices for products: Offering very low prices to attract a higher
volume of customers and undercut competitors should not be the only thing you
consider in creating a pricing strategy few factors should be considered:

● Competing on price alone makes for a narrow profit margin and increases
vulnerability to any business cost hikes. (e.g. 5% rent increase)

● Clients who come because of the price are loyal to the price and not the product.

● Create a niche market.

● Focus on value. This is a combination of price and quality.

● Be efficient. Look for ways to save money that don't involve gouging prices or
reducing wages.

● Target the customers that will pay for the product.

f. Hiring frontline employees: Frontline employees with decision-making authorization

save management time and increase client satisfaction. Organizations providing
work environments where staff can perform at their best attract and retain the best
people. Positive employee relationships generate energy and raise productivity.
To determine how many employees the retailer need, he needs to consider the
following factors:
 ● Size of location

● Analyze the type of product - if the price and complexity of the product are high, then
more personal selling will be required, and by extension, more staff will be necessary.

● Determine how many days and hours the outlet will be open.

● Determine the times of day when sales are concentrated or slow and staff
accordingly.

g. Promotion: Every business needs to market their products. There are various ways of
promoting an outlet:

● Develop a PR strategy - decide where and when to advertise.

● What newspapers and magazines might your customers read?

● Would clients be receptive to solicitation by mail?

● How can flyers or business cards placed in complementary businesses add to the
customer base?

● What trade events can publicize the products?

● Use promotions - special discounts or other promotions can lure customers to the
business.

● Internet Marketing.

● Submit to search engines.

Although launching a retail store seems simple. Many aspiring retailers believe their
stores will achieve success once they reserve space, hire employees, source
products, and advertising. Unfortunately, there is a lot more to starting a retail
business and driving it to success.

7. Define organization structure and factors influencing designing organization structure. 133
(Definition tu likh de)
Six factors managers need to address when they design their organization structure:

They are:

● Work specialization

● Departmentalization

● Chain of Command

● Unity of Command

● Span of Control
 ● Centralization

● Decentralization

● Formalization

❖ WORK SPECIALIZATION: The degree to which activities in an organization are divided into
separate jobs. Work specialization ensures that each employee has a set of specific duties
they're expected to perform based on their work experience, education, and skills. It prevents
employees from being expected to perform tasks for which they have no previous experience
or training.

❖ DEPARTMENTALIZATION: The basis by which jobs are grouped. The departmentalization

element breaks down how jobs are grouped to create departments. Departments are created
based on the types of jobs employees perform, the products or brands they're assigned to,
geographical locations, or customer needs.

❖CHAIN OF COMMAND: The unbroken line of authority that extends from the top level of
the organization to the lowest levels. It indicates who is answerable to whom. In a company,
each employee is expected to report to one manager, rather than to several. Managers are
responsible for assigning tasks, informing employees of expectations and deadlines, and
offering motivation. Managers are also available to answer job-related questions from
employees and handle conflicts within their departments. Employees are responsible for
completing the duties assigned to them by their manager accurately and in a timely fashion.

❖ UNITY OF COMMAND: A subordinate should have only one superior to whom he or she is
directly responsible. It implies that a sub-ordinate should receive orders and instructions
from only one boss. It is related to the functioning of personnel. It is necessary for fixing the
responsibility of each subordinate. It avoids conflicts, confusion, and chaos. It leads to a
better superior-subordinate relationship.

❖ SPAN OF CONTROL: Span of control suggests how many employees each manager can
handle within an organization. This element of organizational structure also outlines the
number of managers an organization needs, which is typically determined based on the
number of employees and departments a company has.

❖CENTRALIZATION: In a centralized organization, all decisions are made by top-level

managers such as the chief executive officer, chief operating officer, and chief marketing
officer. Centralization leaves department managers with little to no input. This system is
typical in larger, corporate organizations.

❖DECENTRALIZATION: A decentralized system allows all managers to give input, while

bigger decisions are still made by top-level managers. Decentralization is "a systematic
delegation of authority at all levels of management and in all of the organization." In this
system, the highest levels of management are in charge of making major companywide
decisions and designing a policy and decision framework for the rest of the firm. The
remaining decisions, authority, and responsibility are reapportioned to middle and lower-level
management. Decentralization focuses on learning dynamics and relies on a bottom-up
philosophy. The decision-making style is democratic and detail-oriented since input from
every level is checked and re-checked each time a decision is made
 ❖ FORMALIZATION: Formalization is the element that outlines employee roles within a
workplace, as defined by the rules and guidelines developed by management. Formalization
determines whether employees have to sign in and out upon arriving and exiting the office,
frequency, and length of breaks, computer usage, and dress code.

8. Explain the significance and functions of human resource management in detail. 131 (nahi mila iska
answer)

UNIT - 3

1. Explain the process of category management.

2. State down the steps involve in the organizations buying process

3. Discuss the need and importance of private label brands

4. What are the environmental and organizational factors that affect the buying decisions

5. What is price and what are the various determinants which affect pricing strategy.

6. Explain the pricing strategy in line with merchandising.

7. Explain the concept of price adjustment and elaborate the different price adjustment strategies.

8. What is price discrimination and discuss the degree of price discrimination in detail.

UNIT - 4

1. Explain the principles of store design.

2. Explain digital signage and its features.

3. What is visual merchandising and what are the tools used for visual merchandising.

4. Explain the concept of mall management along with its various components.

5. Explain the components of the store interior.