The Credenhill Retailing Company, with 112 stores throughout the country, is experiencing problems in the companies north Dallas location. This paper will frame the problems in which the store is experiencing, and evaluate the decisions made in focusing on framing the problems and making decisions regarding the effectiveness of the decisions made.
I see three main problems for the north Dallas location, which are decreased sales volume, WAN problems, and competition from other local retailers. These problems are further complicated by employee attrition, city council legal action, improperly managed inventory and product mix, market trends and variable pay system. The simulation groups the problems into critical problems of urgent nature to address, to non-critical problems still of urgent nature. While the others problems focus on critical yet non-urgent problems and non-critical of non-urgent focus. In framing the problems, the critical urgent problems are the product mix, competition from a local retailer, and variable pay.
The critical yet non-urgent problems are legal action. Lastly the non-critical yet urgent problems are the WAN system. In using a Pareto analysis I determined these were the key problems facing the company.
The first choice of product mix was chosen because while sales were falling this factor went along with the opening of the competing store. The improper product mix goes hand-in-hand with decreased sales volume. While product mix is only one factor affecting decreased sales volume this factor is the most important. As market tends show an improperly balance product mix will not bring the consumers into the store for purchasing these items. These factors as well as market analysis, can be turned around with an aggressive marketing campaign focusing on the products which have traditionally sold well for the company. The second choice of WAN problems cuts across all facets of the companies...