Problem Solving Retail Industry - Case Study Example

Introduction Retail industry is one of the biggest sectors that involve darned many types of businesses. This field is considered highly competitive because it needs a lot hard work and self-motivation. Merchants or agency personnel, who operate such retail business, are always focused on maximizing their profits. Retailing is common globally. This is because various different merchants and businesspersons have found it beneficial. In retail business, there is room for expansion and diversification. Dealing in varieties, use in availing commodities needed by customers. This lift good market forces is enhanced. Though retailing considered profitable, there are very many challenges that attached to it. Some of these challenges are based on the employee-customer relation. Quality of the products is also vital in retailing being that there is a lot of competition. Clients will only search for companies or businesses that offer quality services. This paper focuses a retail business that tends to face challenges in marketing their produce. The name of the company is ‘Lambton Road Cash and Carry’. Various problems need to be sorted in this franchise retail store for it to conform and achieve good performance in the market. The problem facing this business is based on gross income and cost of advertisement. Background Information ‘Lambton Road Cash and Carry’ is one of the retail business situated in Sarnia, Ontario. Mr. Don Barlow as the manager heads this organization. He has conducted enough research on the business profitability strategy therefore wanted to build a Beaver outlet (Nystrom, 33). This was to ensure that all the business finances were well spent. Being that the Lambton road retail business was established in the year 1972, and since then, it has succeeded through all kinds of challenges to date. This was due to good management practice. Dorn Barlow as the manager changed the Lambton’s type of business activity to meet some of their long-term goals in the year 1991. ‘Lambton Road Cash’ started offering outlet services to obtain good market forces and increase trading profit. This also created space for diversification and relieved customers of the tedious process of service or stock purchase. Previously before the change, the business faced one big challenge when it came to goods order and delivery process. Some customers were used to ordering small commodities hence subjecting the company to partial lose. The cost of delivering those kinds of goods were rated the same regardless of the quantity of commodities to be delivered. These kinds of services were offered on set period. Lambton Road Cash retail face challenges when it comes to the establishment of proper business strategies. This can be seen on how they conduct their advertisement program. This retail business has been using various information transmission media to advertise their product. Five years back, ‘Lambton Road Cash’ invested in a radio advertisement that they seem to have cheaper. Due to stiff competition in the global market, they were forced to use other live transmission media to create awareness on their mode of business operation (Hugos, 67). Advertisement is one of the expensive business activities that need many cash. Solution for this problem according to the research carried out by the company manager, Dorn Barlow is an establishment of long-term business strategy. The business management team or the human resource manager can only do this. Currently, the business works towards achieving its long-term investment decisions. This type of decisions needs patience and strategies. These kind decisions are also considered valid because they allow room for consultation. In big or well-established retail Business Corporation, various departments monitor or take care of other activities in the company hence avoiding employee workload. This means that strategists have to be present in any retail business corporation to help in long-term business investment decisions. Even though, these kinds of decisions are not realized immediately, a wrong business move may lead to their destruction. In these kinds of decisions, many factors have to be put into consideration. Some of these factors are; i) The financial status of the business ii) Overall size of the business iii) Current competitors iv) Threats Financial status of ‘Lambton Road Cash and Carry’ ‘Lambton Road Cash must first consider its current financial status in order to make decisions. This enable company strategist in decision making because they will calculate the amount of capital needed to establish the investment plans. When a company is financially unstable, then the first step in future investment plan may start at stabilizing the company’s financial status (Ghosh, 23). Overall size of the business The size matters a lot in the decision-making process because it determines the amount of investments to be made in the future. Size in this case may be measured in terms of commodity dealings and stability. Current competitors Current competitors of ‘Lambton Road Cash and Carry’ retail business may hinder it from achieving some of its long-term investment goals and objectives. This is because the competitors will also try their best in ensuring that they outsmart their competitors, and this may turn out to be a major threat to ‘Lambton Road Cash and Carry’ business retail. In this case, strategists or the management committee must first analyze its opponent’s weaknesses to be able to achieve its investment goals. The identification of opponent weaknesses can help because the retail business to base its plans on the opponent’s weaknesses. Government policy or regulation may not be needed in running any this being that retail business has many organs. The organs are assigned various duties and responsibilities that have to be done to perfection. Private, retail businesses like ‘Lambton Road Cash and Carry’ may not need government involvement though they have to allow room for partial involvement. For any business, operation to be established in a country government must issue a permit, and this is one way of government involvement in private, retail business. A government can also buy shares in any retail business that thrives well in terms of market performance. Being that government gets involved in retail businesses, ‘Lambton Road Cash and Carry’ also cater for the value added taxes in its goods to benefit the government. These expenses should be considered when it comes to strategy establishment. ‘Lambton Road Cash and Carry’ started dealing in various commodities after the diversification that made them face a lot of challenges. After the change in their mode of operation, many customers were not familiar with their new system. This is one of the factors that led to advertisements. They had to inform clients on their advanced system. Work Cited Nystrom, Paul H. Retail Selling and Store Management. New York: D. Appleton and company, 1914. Print. Ghosh, Amalendu. Managing Risks in Commercial and Retail Banking. Singapore: John Wiley & Sons, 2012. Print. Hugos, Michael H, and Chris Thomas. Supply Chain Management in the Retail Industry. Hoboken (N.J.: J. Wiley, 2006. Print. Bhatia, S C. Retail Management. New Delhi: Atlantic Publishers & Distributors, 2008. Print. Read More