Operations management
the efficient and effective implementation of the policies and tasks that satisfy a retailer's customers, employees, and management
Operations blueprint
systematically lists all operating functions to be performed, their characteristics, and their timing
Prototype stores
multiple outlets conform to relatively uniform construction, layout, and operations standards example: McDonalds and star bucks
Top-down space management approach
a retailer starts with its total available store space (by outlet and the overall firm if a chain) and divides the space into categories and then works on product layouts
Bottom-up space management approach
begins planning at the individual product level and then proceeds to category, total store, and overall company levels
Store maintenance
encompasses all activities in managing physical facilities, including exterior and interior parts of the store
Inventory management
maintains proper merchandise assortment while ensuring that operations are efficient and effective
Store security
relates to two basic issues: personal security and merchandise security. Personal security includes uniformed security guards , under cover personnel, brighter lighting in parking lots, tv cameras, alarm systems, curfews for teenagers, access to storage areas is limited, bank deposits are made frequently and by armed security guards
Credit
retailers must ask themselves:
what form of payment is acceptable? (cash , check, credit cards, debit cards, etc)
Who administers the credit plan? The firm can have its own credit system or accept major credit cards such as visa, master card, american express, or discover)
What are customer eligibility requirements for a check or credit purchase? check purchase generally needs a photo id and to open a new credit account a customer must meet age, employment, income, and other conditions
What credit terms will be used? A retailer with its own plan must determine when interest charges will begin to accrue, the rate of interest, and minimum monthly payments
How are late and non payments to be handled? Some retailers with their own credit plans rely on outside collection agencies to follow up on past-due accounts
Crisis management
A crisis can be within a retailers control or outside of a retailer's control. Those within a retailer's control should be handled as smoothly as feasible