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KapConsultants is a small consulting firm in Dayton, Ohio. They consult with small to medium sized retailers on the following areas:
- Bringing retailers into the 21st century.
2. Educate retailers on the business environment and its impact on retailing. 3. Make retailers aware of the various organizational retail structures.
4. Teach retail management practices and strategies.
5. Identify ethical and legal issues in retailing.
Mark MacGibson is the new President for KapConsultants. Mr. MacGibson is a graduate from Kaplan University’s MBA program. Mary Graff has a Bachelor’s degree in Business from Kaplan University and is a Junior Consultant for KapConsultants. They just hired you to join their firm! Their first assignment is the following:
Client Number 1
The owner of a new electronics store is uncertain with regard to several distribution decisions including these:
- Should merchandise be purchased directly from manufacturers or should a major wholesaler be sought out?
- What assortment of brand names and models should be carried?
- What kind of promotion should be used?
- Who should be responsible for storing, shipping, and price-marking
- What kind of support (e.g., advertising, displays, etc.) should be expected from
- Should exclusive, intensive, or selective relationships with suppliers be sought?
- How should store fixture suppliers be selected?
The store owner has hired KapConsultants to help with these decisions.
Answer the following two questions:
- What information must you obtain from the store owner before making any suggestions?
- What criteria would you consider for each of the decision areas noted in this exercise before making recommendations?