Management 350: Credenhill Simulation

Essay by ibkensterUniversity, Bachelor'sA+, October 2006

download word file, 4 pages 0.0

Credenhill retail operates 112 stores across the country and is experiencing problems in the companies north Dallas location. This paper will focus on three cycles, the first cycle will identify the urgent and critical, urgent but not critical, and the non-urgent but critical problems. In the second cycle two decisions from a list of possible solutions are selected. Finally, the third cycle will use a matrix for the two decisions selected. In all three cycles explain the reasoning for selecting a course of action. (University of Phoenix Interactive Simulation, n.d.)

Cycle 1:

The issues plaguing the store are lagging sales, attrition of sales associates, possible legal action with the city, big ticket inventory not moving, poor product mix, associates complaining about the operation manager, a new multi brand store opening in close proximity, poor market trends analysis, problems with the variable pay scale, and a failing wide area network (WAN).

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 the simulation product mix was the first choice because sales were down significantly following the opening of a 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 balanced 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...