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ACCOUNTING MANAGEMENT
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RESEARCH METHODOLOGY
CASE-1 (16 Marks)
A professor is interested in following whether the "good" students finish the test earlier or later than
the others in the class. He observes a particular test and gets the following data given below
If 'good' students are those who get 90 and above, can the professor conclude that good students finish
the test randomly (use a 5% level of significance) ?Explain
Order of
finishing test Marks Scored

1 - 10 94 70 85 89 92 98 63 88 74 85
11 - 20 69 90 57 86 79 72 80 93 66 74
21 - 30 50 55 47 59 68 63 89 51 90 88
CASE-2 (16 Marks)
The weight (gms) of 31 books picked from a consignment are as follows:
106, 107, 76, 82, 106, 107, 175, 93, 187, 95, 123, 125, 111, 92, 86, 70, 127, 68, 130, 129, 139,
119,115, 128, 100, 186, 84,99, 113, 204, 111
Test whether this sample may be treated as random? Briefly explain?
Case-3 (16 Marks)
A local supermarket has experienced a decline in unit sales and little change in rupee value sales.
Profits have almost vanished. The chief executive in searching for ways to revitalize the operation, was
advised to increase the number of hours the market is open for business. He comes to you for advice in
structuring a research problem that will provide relevant information for decision making, Define the
research problem taking care to:
(a) state the relevant question.
(b) enumerate the alternative answers.
(c) clearly define the units of analysis and characteristics of interest.
CASE-4 (16 Marks)
According to the National Retail Federation and Center for Retailing Education at the University of
Florida, the four main sources of inventory shrinkage are employee theft, shoplifting, administrative
error, and vendor fraud. The estimated annual dollar amount in shrinkage ($millions) associated with
each of these data sources are as follows
Employee theft $ 17918.6
Shop lifting $ 15191.9
Administrative error $ 7617.6
Vendor fraud $ 2553.6
Total $43281.7
Construct a pie chart to depict these data ?
CASE-5 (16 Marks)
The market for jewellery in India is second only to that for foods and the trade is built around so-called
family jewelers. Tanishq belongs to the House of Tata and, true to the group's policy it aims at bringing
in credibility and professionalism to the jewellery industry.
India's jewellery market is estimated to be worth Rs. 400 billion a year and the share of the organised
sector -jewellery stores and brands managed by corporate houses - stands at about Rs. 10 billion. This
small but significant niche is largely the creation of Tanishq, a path-breaking effort that has earned a
well-deserved reputation for reliability and excellence, and for introducing pioneering concepts in an
industry where tradition once ruled. The brand has a 40% share of the organised jewellery market and
a 1% bite of the overall jewellery pie. There are more than 300,000 independent, non-branded
jewellery retailers in India.
Tanishq was a trailblazing endeavour to create a national retail chain that would provide consumers
with jewellery of reliable worth and high design value. Its entry changed, in more ways than one, the
way the Indian jewellery market operates. With 66 exclusive outlets spread across some 50 cities and a
fully integrated jewellery manufacturing facility at Hosur, in Tamil Nadu, Tanishq has emerged as one
of India's biggest retailers.
The introduction of 'Karatmeters' - instruments that can be easily used by consumers to measure the
purity of gold in a non-destructive manner - at its outlets is a key innovation that has developed
tremendous equity for the brand. Another Tanishq novelty, one on which the brand's growth strategy is
premised, is in the matter of differentiated designs, be they contemporary or traditional, Indian or
international.
Modern retail values and principles in the selling of branded jewellery in Indiaare almost completely
the handiwork of Tanishq. The brand has broken fresh ground in retailing by creating exclusive outlets
with hitherto unknown in-store ambience and hospitality touchstones. It has launched new collections
at a quicker rate than its competitors, and conducted marketing promotions and fashion shows to

enhance the shopping experience of consumers.
Although the purchase of branded jewellery is still a new experience for a whole lot of Indians, the
Tanishq brand enjoys increasing levels of consumer loyalty. In 2002, about one million people
shopped at Tanishq stores all over the country. A highlight of the brand's success is that, while the
jewellery market growth has declined during the past two years, Tanishq has recorded an annual
growth of approximately 40%.
Besides catering to Indian consumers, Tanishq has successfully entered key export markets such as the
US, the UK, theMiddle East, Singapore and Australia. This is testimony to the brand's ability to craft
products that meet the requirements of varied cultures and sensibilities. The brand Tanishq, like the
Tata name, has established itself as an ethical brand, earning the respect and affection of its consumers.
The Tanishq portfolio comprises a wide range of jewellery, including 18-carat studded products, 22-
carat plain-gold products, silverware and coins. Tanishq is the first brand in the jewellery category to
introduce collections designed exclusively for the modern Indian woman, especially working women.
Among the Tanishq collections that have caught the imagination of consumers are Aria and Diva.
Collection G, with a selection of over 90 designs, addressed the everyday jewellery needs of working
women. Positioned as ‘9-to-5 jewellery’, the collection is stylish and modern and is designed to suit all
forms of attire, western and Indian, casual and formal. The introduction of lightweight gold –jewellery
that looked heavy but was light in weight and on the purse –marked another milestone in Tanishq’s
brand history.
Tanishq’s retail boutiques are temples for the brand and are used as a platform for celebration, be it the
launch of a new collection, a new marketing promotion or a festival. This gives Tanishq outlets a
unique appeal and consumers an opportunity to heighten their shopping experience. One of Tanishq’s
more innovative ideas is to offer special schemes during various festivals. Tanishq has also initiated a
loyalty program called the Golden Harvest Savings Scheme, which offers buyers the benefit of getting
more jewellery than what they have paid for. The scheme allows consumers to planfuture purchases in
advance and pay for them in easy installments.
In sync with the Tata brand values, Tanishq is synonymous with trust and purity in a category that is
fraught with questionable practices. Being a member of the Tata family has meant that it can leverage
the group’s well-earned reputation for ethics and values in a business where such attributes are critical
to win the trust of consumers. Tanishq consumers can afford to take issues such as purity for granted,
and they know they can depend upon the brand to deliver quality products all the time. The brand’s
winning virtues in design and overall quality have shaped a class of discerning buyers who seek the
best in jewellery products.
Leadership and innovation are two of the other brand features that Tanishq is consistently identified
with. These values have helped the brand bond with its consumers like no other Indian jewellery
retailer.
Tanishq has deliberately moved away from mass-media advertising and focused on store promotions to
make the brand more accessible to consumers. This has been done to correct the consumer perception
that the brand is highly priced and only meant for the rich and the famous. This approach has also
ensured that Tanishq’s promotional approach is product-led.
Read the caselet carefully and answer the following questions:
1. Discuss the various bases or criteria for segmenting consumer markets. Explain Tanishq’s
segmentation and positioning strategy.
2. What are Tanishq’s key brand values or brand strengths? Explain.
3. What are the strength and weakness of Tanisq
CASE-6 (16 Marks)
A recent survey on washing machines conducted among housewives showed that most of them
belonged to middle income households, were generally employed had growing up children and
preferred a compact, easy-to-use, top-loading washing machine. They wanted a machine that gets
clothes clean and comes with a trouble-free service. If you were the marketer of Whirlpool's washing
machine, how will you use this information for planning your marketing strategy?
CASE-7 (16 Marks)
A company wishes to launch a new tooth paste which can effectively prevent cavities and tooth decay
as well make teeth whiter. But the tooth paste markets is highly crowed with multiple brands. Design a questionnaire to
identify product attributes important to consumers and consumer purchase behaviour. Also decide the target group on
whom the questionnaire can be executed.

RETAIL MANAGEMENT
Introduction
Soft goods specialty retailers are on a quest to grow, with the high-growth ``stars’’ working to maintain
momentum by rolling out successful concepts nationally while investing in new concepts that offer long-term
promise. The less stellar performers are reinvigorating tired concepts and strengthening margins via better
inventory and promotion management. A saturated marketplace will motivate more specialists at both ends of
the spectrum to seek growth by building a portfolio of concepts focused on ever-finer customer groups.
Concepts will vie for more attention by developing and applying deep customer insights to their assortment
strategy, the shopping experience, and store brand building and communication.
The Retail Landscape
Many soft goods specialty retailers have seen recent improvements in sales and profits, but for most, the
recovery is modest in nature and has done little to negate the pervasive price pressure on retail margins. The
sustainability of the recovery is questionable given poor comparable stores sales performance.
Modest Recovery
Since bottoming out in the first part of this decade, sales have steadily improved in both the apparel and
accessories specialty store and shoe specialty store channels. Yet, growth remains modest compared to the
late 1990s.
The long-term sales outlook for apparel and accessories specialty stores is stronger than for shoe
stores. Apparel stores are forecast to grow in the 4 to 5 percent range annually through 2008, while shoe
stores are forecast to grow mostly around 1 percent a year over the same time period. Much of the sale
improvement has gone straight to the bottom line for apparel and accessories specialty stores. Though still
well below its performance in the late 1990s, the sector has improved another important measure of
profitability, return on net worth.
In contrast, the very modest sales improvement among shoe specialty stores has not translated to
improved financial performance, with the average net profit margin for publicly held shoe retailers declining.
The financial struggles facing the shoe store channel are evident in the closing of individual stores and entire
divisions by some of the channel’s leading players.

Pervasive price pressure has contributed to the commoditization of apparel and footwear, particularly
basic styles that are easily sourced and widely distributed. Commoditization has also been propelled by the
growth of Wal-Mart (www.walmart.com) and Target (www.farget.com), both of which offer wide
assortments of basic and fashion-focused soft goods at sharp price points that appeal to a broad swath of
consumers. This has increased the pressure on many retailer margins as their increasingly undifferentiated
assortment goes head to head with price-driven retailer margins as their increasingly undifferentiated
assortment goes head to head with price-driven retailers off the mall.
While apparel price deflation has made it challenging for soft goods specialists, many have proven
worthy of the challenge. The availability of cheaper products allowed many of these specialists to improve
inventory turns, resulting in a slight increase in their return on inventory ratio since 1998. This improvement
reflects a focus by many apparel specialty store retailers on a combination of better markdown strategies,
improved inventory management, and introduction of higher-margin fashion items.
A Challenging Environment
Soft goods specialty retailers face a crowded marketplace that is steadily becoming even more competitive.
Most shoe specialty stores are faring far worse than the apparel specialists in the competitive wars. Off-mall
retailers, including discount department stores/super centers and Kohl’s (www.kohls.com), are capturing
apparel and shoe share of preference at expense of mall-based retailers, including specialty stores. Consumer
preference for purchasing apparel is strongest at discount stores/super centers.
The upward trend for discounters contrasts with a decline in spending preference for clothing at
apparel specialty stores, value department stores, and traditional / upscale department stores in the same time
period. For shoe purchasing, shoe stores are actually gaining spending preference, although the price-driven
discount store/super center channel is as well. Shoe, discount, and apparel specialty stores are capturing shoe
spending preference from value and traditional department stores, particularly Sears (www.sears.com) and
Dillard’s (www.dillards.com), as well as Payless (www.payless.com).
The upward trend for discounters contrasts with a decline in spending preference for clothing at
apparel specialty stores, value department stores, and traditional / upscale department stores in the same time
period. For shoe purchasing, shoe stores are actually gaining spending preference, although the price-driven
discount store/super center channel is as well. Shoe, discount, and apparel specialty stores are capturing shoe
spending preference from value and tradition al department stores, particularly Sears (www.sears.com) and
Dillard’s (www.dillards.com), as well as Payless (www.payless.com).

Although department stores have suffered the most at the hands of off-mall retailer growth, many are
reinventing themselves. Key elements of the department store reinvention include a stronger, more exclusive,
and more differentiated brand and style assortment supported by upgraded, easier-to-shop stores. Thus,
department stores now contribute to more competitive intensity in the apparel and footwear playing filed,
particularly for upscale customers. The profile of monthly shoppers at traditional/upscale department stores is
similar to that of monthly shoppers at apparel specialty stores in terms of higher income and education levels
– although apparel store customers skew younger.
Competitive battles are also escalating due to the entry of a number of foreign specialty store retailers
to the marketplace. Though most of the new foreign players operate only a handful of U.S. stores at this point
in time, several intend to ramp up their store openings after establishing an initial base of stores.
Some suppliers are also branching out to target new customers with new specialty store chains to
attain growth in the face of modest prospects at department stores. Polo Ralph Lauren (www.polo.com) is
launching Rugby, a new brand and chain of stores targeting college-aged consumers. Oshkosh B’Gosh
(www.oshoshbgosh.com) is testing a family lifestyle store targeting men and women.
A final factor contributing to heightened competitive pressure is the expansion of full-price specialty
store chain s by several soft goods suppliers. A number of catalog retailers that are fairly new to retailing are
also rapidly building store chains. Although the track record of most soft goods suppliers has been spotty
when it comes to operating successful full-price retail stores – and several are closing unsuccessful concepts –
it is clear that most of the majors view full-price retail as another avenue for growth that most be pursued as a
consequence of overall retail maturity.
Suppliers with the most substantial full-price store base include Jones Apparel Group (primarily shoe stores,
www.jny.com), Liz Claiborne (primarily via Mexx in Europe and Canada, www.liz.com), and Polo Ralph
Lauren. The two soft goods catalog retailers relatively new to full-price retailing that are most actively
building their store chain are Coldwater Creek (www.cp;dwatercreek.com) and J. Jill (www.jjill.com).
Growing diversity is making it more difficult for many specialists to adequately address the needs and
expectations of all of their target customers – a critical requirement for success in the specialty store arena.
Diversity is also propelling more retailers to tailor assortments and adjust merchandising tactics on an
individual store basis. Previously, many only altered the offer to reflect regional seasonal variations and
market size differences.
Apparel and footwear are steadily capturing less of the consumer’s total spending, This is in part due
to a shift in consumer spending priorities toward necessities (home, health, and transportation), as well as
toward new everyday ``luxuries’’ such as eating out and entertainment – which including products such as

consumer electronics. sporting goods and toys, and the cost of fees/admission to sporting events, concerts,
movies, clubs, and other types of events.
Consumers are increasingly willing to cross channels to shop a growing number of retailers – from
mass to class – for apparel. They are more apt to trade down on staple wardrobe elements while trading up on
aspirational, ego-intensive purchase and shopping experiences. Thus, value retailers play an even more
important role in supplying the core of consumers wardrobes – from basics like undergarments to wardrobe
fashion ``staples’’ such as causal pants, casual shirts, and everyday sweaters. Likewise, a number of soft
goods specialty retailers and department stores are taking steps to tap into the shopper’s trade-up mindset by
upgrading store environments, focusing on stronger aspirational store brand images, and introducing more
higher-end and ``affordable luxury’’ products and labels to the assortment.
Looking Forward
Polarizing Playing Field
Although the soft goods specialty store channels is far more fragmented than most other retail channels, it will
continue to slowly consolidate as big companies grow bigger, ``adding more banners to their portfolio.
However, the nature of specialty retailing will also ensure the continual entry of new, smaller, usually more
flexible niche players able to exploit market gaps not being addressed by the majors. Only 37 percent to total
U.S. Soft goods channel sales are by the top 15 retailers. This reflects a large number of independent retailers
and the presence of smaller firms that operate on a regional of multi-regional basis.
Growth at the ends of the size spectrum will cause the soft foods channel to remain polarized into the
very big versus the very small retailers. Those in the middle will continue to be squeezed by the efficiencies
and resources of the big retailers and by the flexibility and customer intimacy of smaller retailers and retail
chains.
Firms with strong sales growth tend to fall into one of three camps – hot, high-growth youth retailers
like Pacific Sunwear (www.pacsun.com), Urban Outfitters (www.urbanoutfitters.com), Hot Topic
(www.hottopic.com), and Aero-postale (www.aeropostale.com), mature but re-invigorated multi-brand mega-
specialists like Gap Inc. (www.gapinc.com) and Limited Brands (www.limitedbrands.com); and Chico’s
(www.chicos.com), which stands alone within the channel as a result of carving out a very well-defined niche
targeting an underserved baby boomer woman.
The strong performance of these retailers indicates that most will be in a position to further propel
performance improvements via continued investments in technology and processes that enable them to reduce
costs, more effectively allocate and manage inventory, and more strategically manage price and promotional

activity. These retailers will also be better positioned than their peers to focus on increasing share of wallet
among their highest-prospect customers.
The soft goods specialty store channel will also continue to polarize with respect to new store-opening
opportunities, with an expanding number of ``tapped-our’’ retail concepts unable to grow by opening more
U.S. stores. With little international experience (or bad experiences in the past), most tapped-out retailers are
unlikely to move rapidly or successfully into global apparel retailing, except for opening stores in Canada.
Instead, they will focus on growing sales in current concepts by getting more share of wallet from existing
customers through a combination of a more well-defined and relevant market position and extending their
assortment into new products, brands, and services for the target customer.
Despite overall channel maturity, there are several soft goods specialty store retailers with substantial
room to grow, particularly those that have only begun rapid store expansion within recent years. Strong sales
growth reflects both a rapid pace of new store openings and, for players such as Chico’s and Pacific Sunwear,
equally impressive store-to-store sales growth.
Some soft goods specialists that operate a large base of stores and that have struggled will continue to
weed out unprofitable, low-prospect stores from their portfolio. In a few cases, retailer will divest or close
entire chains to focus resources on higher-profit, higher-growth concepts. This trend has been under way for
years, by firms such as Payless, Gap Inc.,
Limited Brands Inc., Wilsons Leather (www.wisonsleather.com), Charming Shopper
(www.charmingshoppes.com), Brown Shoe (www.brownshoe.com), and Mother’s Work
(www.motherswork.com).
Repositioning for Relevancy
The recent economic downturn has made many retailers loath to invest in major repositioning initiatives.
However, as slaes gain some momentum and corporate purse strings sales gain some momentum and
corporate purse strings loosen a bit, more aging soft goods specialty stores will undergo a facelift. For some,
this will involve a long overdue
re-assessment of the target customer. Perhaps the highest-profile repositioning has been Gap (www.gap.com),
Old Navy (www.oldnavy.com), and Banana Republic (www.bananarepublic.com), and Banana Republic
(www.banarepublic.com) chains.
Banana Republic has added more trend-driven fashions to better distinguish it from Gap Stores. This
includes a stronger emphasis on color, more feminine styles, and clothes for social occasions, as well as its
standard work-appropriate assortment. Old Navy is more firmly positioned as a value-focused store for the
entire family, with more emphasis on serving the needs of each member of the family. The retailer has
increased assortment segmentation based on customer group. The chain also has new fixtures that increase

selling capacity. Gap has been repositioned as the classic specialty store for a range of fashion ``basics’’ for
casual occasions, supplemented by more `òccasion-oriented’’. merchandise for weekends, the workplace,
and stepping out. Underperforming Gap stores have been closed, and stores have stricter inventory controls to
increase productivity and reduce markdowns. Gap is reinvesting in marketing, including developing a more
consistent message across all media.
In line with size-related trends in the overall population, more specialty retailers will expand their
standard size range to include larger sizes, as well as petite/small sizes. Some may spin special-size concepts
off as their own store banners, but most will choose to simply extend the size range within the existing
banners by adding new sizes or by increasing the breadth of assortment within existing special size lines. Ann
Taylor (www.anntaylor.com) plans an overall focus on petites as one of its growth strategies. Plans include
extending the product offering to all categories and more styles, creating a store environment that makes
petites a preferred destination, and boosting marketing to generate awareness. The firm has rolled out petite
adjacencies in current stores (including some with separate entrances).
To capture more sales from customers already in the store, a growing number of soft goods specialty
store retailers will extend their assortments to include products that provide additional style perspectives and
meet the needs of additional wearing occasions. Express (www.expressfashion.com) strengthened its wear-to-
work appeal with the Express Design Studio line of clothing being rolled out to all stores. The line is designed
by a New York-based team and focuses on fitted pants, tailored jackets, and key pieces that `àdd sexy
sophistication’’ and allow the line to move from the ``work-place to the weekend.’’ The men’s line also
includes suits sold as separates, dress shirts, and ties.
Abercrombie & Fitch (www.abercrombie.com) is repositioning its brand to be less aggressively sexual
in its marketing to customers and to include higher price points and fewer promotions. As part of this strategy,
the retailer has a new higher price point collection called Ezra Fitch. The collection includes products such as
$118 to $148 jeans and cashmere crew necks at $178.
While the factors having the most influence on trying a new brand or store are the styling and price,
followed by the influence of friends and family, monthly specialty store shoppers are far more likely than all
shoppers to be influenced to try a brand or shop a store based on fashion magazines and celebrity culture.
They are also far more willing than all shoppers to say that wearing designer brands has a positive impact on
their self-esteem and self-confidence.
As part of their approach to new customers, most specialist will choose to first move up the age
spectrum with the intention of leveraging the knowledge they have about their customers as they `òutgrow’’
the existing concept and enter a new life stage. Where this opportunity has already been tapped out, they will
be forced to focus on concepts targeting an entirely new style, lifestyle, or occasion of use.

Driving Growth Through Strategic Investments
More specialty store retailers will invest in initiatives that allow them to not just attain competitive
differentiation but to also drive profitable top-line growth via higher purchase conversion levels, more
multiple-item transactions, and increased destination store status with targeted customers. Key areas of
investment will include new technologies and high-value services, as well as alternative marketing and
promotional venues.
New technologies are becoming more mainstream and less cost-prohibitive, a trend that will motivate
more specialty store retailers to invest in technological solutions that ensure that the right products are on the
selling floor in the right quantities at the right time and price. Technology will also be used to provide more
alternative shopping and purchasing options for customers (beyond just online selling). It will also be used to
better track the flow of customer traffic in the store on a real-time basis in order to design stores that have
higher sell-through levels and staff stores in line with customer needs.
Many specialty store retailers will focus on improving their service programs and associate-customer
interaction as a way to build top-of-mind status with target customers. In some cases, this will involve more
personal shopping services and stronger customer ``clienteling.’’ In others, it will involve creatively
responding to the service and shopping experience needs of the best customers in ways that are more
meaningful to the customer.
Talbots (www.talbots.com) has experimented with a variation on its popular Appointment Shopping
service with a service called Wardrobe Express. The service targets busy, time-pressed customers with highly
efficient shopping appointments by providing a pre-selected assortment of garments for the customer in the
dressing room at the prescribed time – along with a light snack for lunchtime shoppers. During the visit, the
store associate completes a ``wardrobing sheet’’ including what was tried on and possible coordinates. Using
credit card information that is on file, the associate then completes the purchase after the shopper has left the
store and arranges for pickup or delivery.
Questions
1. What can an independent retailer learn from this case?
2. What are the positive implications of this case with respect to the use of leased departments in
department stores?
3. How can a mid-priced apparel store become a destination retailer?
4. How is Gap Inc. utilizing the principles of the wheel of retailing through its Gap, Old Navy, and
Banana Republic divisions?

5. How can high-priced apparel specialty stores successfully compete against full-line discount
stores?
6. What role should the Internet play for apparel retailers?
7. Can an apparel retailer prosper in the future if it does not engage in multi-channel retailing?
Explain your answer.
‘
THE APPAREL SHOPPER’
INTRODUCTION
Several general observations can be offered regarding apparel shoppers :
 High – income shoppers and younger shoppers underlie recent sales growth.
 Spending changes are more likely to be driven by needs not wants. Although important, the
advent of new fashion “looks” is not the main reason shoppers increase – or decrease – their
spending. Instead, changes are far more likely to be related to very practical reasons (e.g., a
change in size, replacement of worn clothing, lower household incomes, more savings / debt
reduction).
 Also important in prompting changes in clothing spending is te need to upgrade / update a work
wardrobe or respond to a changed work situation.
 As own – market shoppers feel the need to pinch their pennies for apparel, they spend more of
their budget at Wal-Mart. Among these shoppers, Wal– Mart is over whelmingly seen as offering
the best clothing value, while its clothing styles are a good match for their basic style preferences.

 Clothing specialty stores and traditional department stores benefit from consistent or increased
spending among up – market shoppers. The brands and styles offered at these retail formats are
most preferred by up – market shoppers.
 Much of the spending increases among younger shoppers are funneled to fashion – focused
clothing specialty stores, as well as retailers offering credible fashions plus a strong price for the
quality value.
 Department stores and clothing specialty stores are the top two choices for offering the most –
wanted brands and the most – wanted styles, both overall and among key segments.
 The majority of Americans wear ordinary/basic styles at work and at play. However, they seem a
bit more stylish on the job than off. Younger and higher-income shoppers skew toward more
fashion – driven looks for both wearing occasions.
Who Is driving Apparel Shopping Growth ?
Apparel sales grew 6 percent form 2003 to 2004, following 1.4 percent growth the prior year. We project
apparel spending to increase about 4 percent annually during the next several years. Margins, however, will
be severely tested by accelerating price pressure. The 2004 sales increase can be explained by our
ShopperScapeTM data, particularly when viewed through the “liens” of household income. Every month, we
survey 4,000 shoppers about their recent and planned spending. We collect purchasing data for over 150
retailers and more than 100 product categories.
The majority of Shopper Scape TM respondents say they spent about the same amount on clothes for
themselves in 2004 compared with 2003. Twice as many reported reduced spending than reported increased
spending. These proportions, however, drainatically varied by upper-versus lower income households and
resulted in a net increase in overall spending.
Consumers with the highest incomes were the most likely to increase their spending for themselves,
while those with lower incomes were the most likely to reduce spending. According to U.S. personal
consumption expenditure date, the highest- income shoppers account for one-quarter of all apparel spending,
although they make up only 12 percent of all households. The lowest-income households account for over
one-third of all households but only 18 percent of all apparel spending.
With respect to race / ethnicity, Whites were the most likely to maintain their clothing spending for
themselves, compared with African-Americans and Hispanics. Latines, more of whom reported reduced
spending. Spending trends on clothing also varied notably by both gender and age. Changes in spending –
both increases and reductions – were more pronounced among women and younger shoppers than among
their counterparts. Men and mid – life to older shoppers were most likely to have an unchanged rate of
spending on clothing for themselves. Women were more likely to have both increased or decreased spending

compared with men. Working-age shoppers (ages 18 to 54) were more likely than older shoppers to have
increased their spending on clothing for themselves.
What Underlies Spending Changes ?
Spending Increases
Spending increases were most likely to be related to very practical reasons (e.g.a change in clothing size,
replacement of worn clothing). Spending decreases were most likely to reflect a shrinking wallet. Work
wardcobes also were important to spending changes, whether related to updating the wardrobe or a change in
work status.
Among those spending more on clothing, the most commonly cited reasons were related to practical
needs for new or replacement clothing rather than to having more discretionary income available to spend on
clothing or having a desire for a new fashion look. The need for a new size was mentioned as the most
important reason for spending more on clothing by 28 percent of respondents. The replacement of worn – our
items was mentioned by 21 percent. Eighteen percent increased spending to upgrade the work wardrobe.
Few shoppers (3 percent) increased spending because fashions were of greater interest than previously. A
slightly larger percentage (9 percent) attributed the increase in spending to higher income.
Specific reasons for increasing clothing spending were highly related to age but not as much to
gender. The only significant gender differences were that women were more likely than men to increase
spending on clothing due to a change in size, while men were more likely in increase spending because of the
need to replace a worn or torn item. Shoppers in older age groups were more likely to spend more because
they were replacing worn – out clothing. Those in their mid-life “work” years were more likely to spend
more because they were updating their work wardrobe. Less debts, higher incomes, and more time to shop
were more likely to be reasons cited by younger shoppers for higher spending.
Reasons behind increased spending were not well explained by either income or race. The most
notable differences by income were among shoppers with household incomes of $25,000 to $49,999 and
$75,000 to $99,999. Both groups were more likely than others to spend more to upgrade the work wardrobe.
Those with incomes from $25,000 to $49,000 also were more likely than others to spend because they had
more income and more free time to shop.
Spending Decreases
Among respondents cutting back on their clothing spending most did so because their clothing budge shrank,
either due to a decrease in income (21 percent) or in an attempt to spend less so as to save more or pay down
debt (18 percent). Other frequent responses included a change in a workplace situation that resulted in a
decreased need for clothing spending a spending shift away from clothing to other items, and a desire to wait

to make new purchases until the respondent lost weight. Only 2 percent said they reduced spending because
they were less interested in the latest fashions.
The most frequently mentioned reasons for reduced clothing spending were closely related to age and
gender. Women and shoppers younger than 55 were most likely to say a decrease in income caused them to
cut back. Mid-life shoppers were more likely to decrease their budget to save money or pay down debt.
Younger shoppers were more likely to reduce spending due to a shift in spending priorities away from
clothing toward other types of products. Men and older shoppers were more likely to say a change in their
work situation triggered reduced spending, presumably reflecting retirement among the oldest shoppers.
Women were more likely to say they were holding off on new clothing purchases until they lost weight.
Income is modestly indicative of the reasons why shoppers cut back on spending. However, race is not
a good indicator. Lower-income households were more likely to cut back because of a decrease in income.
Shoppers in the lowest income households also were the least likely to postpone new apparel purchases until
they lost weight. Shoppers in the highest – income households that cut back on spending were more likely to
say they did so because they had less time to shop or were shifting work wear spending toward less
expensive, more casual clothing. African – American were much more apt to spend less because they shifted
spending away from clothing to other nonclothing items.
What Retailers Are Benefiting from Spending Growth ?
Overall, Wal-Mart (w.w.w.walmart.com) was the biggest direct beneficiary of recent increased spending –
although primarily from lower – income or mid – life shoppers. Higher income shoppers and those at each
end of the age spectrum shifted their spending to more fashion – focused apparel retailers. Regardless of
whether their budget to any particular retailer. An equal number of shoppers, however, said they were
shifting more of their clothing budget to Wal – Mart.
The retail recipient of shifting spending on apparel varied notably by age and gender.
 Wal– Mart gained more of the budget of women than of men, as well as of all but the youngest
and oldest shoppers.
 Women were more likely than men to shift their clothing budget toward all types of specialty
stores, from full – price to off-price and value – priced Old Navy (www.oldnavy.com)
 Men were more likely than women to shift more of their budget to Sears (www.sears.com)
 Eighteen to 34 years – olds formed a distinctive bloc, that was especially likely to shift their
budgets to all types of specialty stores, as well as to Target (www.target.com) They were the most
likely to shift their clothing budget among retailers, reflecting less – ingrained shopping patterns

and a greater desire to shop at retailers offering trend-right fashions, particularly at value price
points.
 Shoppers age 45 or older were more likely to shift their budget toward traditional department
stores, long the domain of the mid – life to older shoppers.
Shifts in the budget to various types of retailers also are linked to income and race. Wal-Mart’s
everyday low prices clearly attracted shoppers on a budget; 40 percent of consumers with incomes less than
$25,000 say they spent more on clothing there. Shoppers with incomes of $25,000 or higher were more likely
to shift their budget to Kohl’s (www.kohis.com) and Old Navy. The most – affluent shoppers ($100,000 and
above) were more likely than others to shift their budget to traditional department stores.
African – Americans were more likely than Whites or Latinos to shift their budget to Wal – Mart and
clothing specialty stores. Latinos were more apt than Whites or African – Americans to shift to Target and
Sears. African – Americans and Latinos were more likely than Whites were more apt than African –
Americans or Latinos to shift to Kohl’s.
Who Has the Right Clothing Quality for the Price ?
Apparel shoppers come in all shapes, sizes, ages, incomes, and taste levels. Even though there are clear
differences in retailer preferences based largely on age and income, it is safe to say that Wal-Mart is the
overall clothing value leader. However, consumers have different criteria for assessing value, which is evident
based on the ratings of shoppers by key demographics such as age and income.
The assessment of which retailer offers the best clothing value clearly differs by age but less so by
gender. Wal-Mart is seen as a good value by more men than women. Women are more likely to perceive that
Target and Old Navy offer a good value, most likely because of the ``fashion right’’ orientation of these
retailers, an aspect of value that women are more likely to use in their ratings. Older shoppers are notably
more likely than younger shoppers to perceive that J.C. Penney (www.jcpenney.com) and Kohl’s offer a good
value. Younger shoppers are more likely to perceive that Target and Old Navy offer a good value, again likely
including being ``fashion right’’ as a more important component of value.
Income has a direct relationship with shopper rankings of quality for the price paid. Value retailers
receive higher ratings among lower-income than upper-income households. Race/ethnicity has less of a
relationship to shopper perceptions, although a few differences exists. Wal-Mart’s overall top ranking for
clothing value is directly linked to its high ranking among lower-income shoppers; no other retailer comes
close in terms of perceived clothing value. The gap between Wal-Mart and other retailers also is large in the
$25,000 to $49,999 income group but narrows among those with incomes of $50,000 to $74,999.
In the highest income group ($100,000 and over), only 7 percent of shoppers feel Wal-Mart offers the
best clothing value. Kohl’s is perceived by the highest percentage of shoppers in this group to offer the best

clothing value. As income increases, traditional department stores, Old Navy, clothing specialty stores, and
Target are more likely to be perceived to offer the best clothing value.
With respect to race/ethnicity, Whites are more likely than African-Americans or Lations to feel that
Kohl’s offers the best clothing values. Lations are more likely to feel that Target offers the best values. This
surpasses the percent of Latinos who say that Wal-Mart offers the best clothing values. Latinos are more
likely to feel that Target offers the best values. This surpasses the percent of Latinos who say that Wal-Mart
offers the best clothing values-which is not the case with Whites or African-Americans, who give Wal-Mart
the highest rating on this measure.
Who Has the Right Brands and Styles?
The overall ranking of retailers based on whether or not they offer more of the brands shoppers want to buy is
very different from retailer rankings based on whether or not they offer the best value. Traditional department
stores and clothing specialty stores (excluding Old Navy) are the most likely to offer more of the brands
shoppers prefer. A smaller percentage say Wal-Mart has more of the brands they want to buy, followed by
J.C. Penney and Kohl’s.
Because many brands are aimed at specific age groups and sold at retailers targeting these groups,
brands ratings of retailers noticeably vary by age. There are few differences based on gender. Older shoppers
are the least likely to known which retailer carries the brands they prefer; they also are the most likely to say
that traditional department stores carry the brands they want. J.C. Penney is rated highly on this factor by the
oldest shoppers. Clothing specialty stores receive high ratings for carrying the ``right’’ brands by most
shoppers, particularly younger ones. Target and Sears.
At Work or Play, Basics Rule
American consumers are not trendy – either at work or play. Regardless of wearing occasion, ``ordinary, very
basic’’ styles were preferred by a wide margin over all other styles although more so far casual / weekend
wear than for work. Second in preference for both wearing occasions were classic and traditional styles that
never go out of fashion. Slightly more shoppers wear this style for work than for weekend. Less than a third
of consumers said they wore ``contemporary’’ or ``trendsetting’’ fashions for work or for casual wear. The
percent wearing the more fashion-focused styles for work was higher than the percent wearing these styles for
the weekend.
Age has a more noticeable impact than gender on the styles worn by full-time workers. Younger
adults are more likely to wear work wardrobes comprised of contemporary or trendsetting styles. Roughly
half of those younger than 34 are attracted to fashion forward types of work wear, compared with l4ess than a
third of all workers. Older workers are more likely to stick to classics and basics for work, with 83 percent

and 88 percent of workers in the 55 – to – 64 and 65+ age groups saving they wear one of these two
categories. Workers in the oldest age group are twice as likely to favor basic styles for work compared with
those in the youngest. Women are more likely than men to wear trendsetting styles for work.
Outside of the office, consumers are even more likely to wear basic styles. Half of all shoppers say
this is their favorite style to wear on the weekend or on other casual occasions. As shoppers get older they are
more likely to prefer basic casual looks. More than 60 percent of the oldest shoppers cite basic styles as
preferred for weekend / casual wear. Classic/traditional styles are less preferred by younger shoppers for
casual wear than for workplace attire. Contemporary looks are most preferred by younger shoppers for their
casual wardrobe, with more than a third saying this is their favorite casual style.
There is a direct relationship between income and style preferences for work attire, with preferences
becoming less basic as incomes increase. Race / ethnicity is also related to work wardrobe preferences.
Higher-income workers are most likely to prefer a classic work wardrobe. They, along with those in the
middle-income range, also are more likely to favor contemporary, but not trendy, work wardrobes. The lower
workers’ incomes, the more likely they are to wear basic styles to work. Basic styles also are more favored by
White workers than by African-American and Latino workers. Latino workers are the trendiest race/ethnic
group with respect to work clothing.
Questions
1. What overall conclusions do you reach after reading this case?
2. How can apparel retailers compete with Wal-Mart?
3. Does cross-shopping affect apparel retailing? Is this good or bad? Why?
4. What are the retail implications of this statement ``American consumers are not trendy – either
at work or play?’’ Do you agree with the statement? Explain your answer.
5. How could the information cited in the case be used in a retail information system?
6. Devise a questionnaire to determine what improvements the loyal customers of an apparel store
chain would like to see in the chain.
7. What additional consumer-related information would you like to review about apparel shoppers
besides that stated in the Case?
RETAIL MANAGEMENT
CASE – 1 (14 Marks)
E-BAY
The concept for eBay was born during a conversation between Pierre Omidyar and his wife, an avid
Pez collector. (She currently has a collection of more than 400 dispenses.) She commented to Pierre
how great it would be if she were able to collect Pez dispensers and interact with other collectors over
the Internet. As an early Internet enthusiast, Pierre felt that many People like his wife needed a place
to buy and sell unique items and meet other users with similar interests. He started eBay in 1995 to
fulfill this need.
Luckily for Pierre Omidyar, he was living in Silicon Valley when he got the idea for eBay. If
Omidyar’s family had been living in France, his idea never would have gotten off the ground. It’s not
a lack of venture capital or Internet audience in France that would have stopped him; it was the law at

that time. Under French regulations, only a few certified auctioneers are allowed to operate, so eBay
could not have been opened for business in its founder’s homeland back in 1995. Ten years later,
eBay operated auctions in Argentina, Australia, Austria. Belgium, Brazil, Canada, China, France,
Germany, Hong Kong. India, Ireland, Italy, Korea, Malaysia. Mexico, Netherlands, New Zealand,
Philippines, Poland, Singapore, Spain, Sweden, Switzerland, Taiwan, and the United Kingdom.
OFFERING TO CUSTOMERS
Most retailers follow the business-to-consumer sales model. eBay pioneered online person-to-person
trading, also own as the consumer-to-consumer sales model, by developing a Web-based community
in which buyers and sellers are brought together. Initially, most of the items auctioned were
collectibles such as antiques, coins, stamps, and memorabilia.
Many of the sellers on EBay are small entrepreneurial Business that use the site as sales channel. By
2003, most of the merchandise available on eBay had shifted form collectibles to practical item, such
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
as power drills and computers. Now big business such as Disney and Sun Microsystems have
discovered Bay. Retailers, manufacturers and liquidators are using the site to unload returned
merchandise, refurbished merchandise, and used products.
The eBay service permit sellers to list items for sale and enables buyers to bid on items of interest.
All eBay users can arowse through listed items in a fully automated, topically arranged, intuitive, and
easy-to-use online service that is available 24 hours a day, seven days a week. However, even with
automated bidding features, participating in an online auction requires more effort than buying fixed
price goods, and once the auction is over, most buyers have to send a check or money order and then
get the merchandise up to two weeks later. Buyers have the option to purchase items in an auctionstyle
format or at a fixed price through a feature called Buy It Now.
More than 500 million items are listed for sale each year. From Civil War to Star War items, from
Beanie Babies to fine antiques, chances are that you’ll find it among eBay’s 45,000 categories of
merchandise from 254,000 online sellers. “If you can’t sell it on eBay, you might as well open up the
window and throw it out in the backyard because it ain’t worth a damn,” says Bob Watts, an antique
dealer in Fairfield, Virginia. The Web site has over 135 million registered users worldwide.
Financial Overview for eBay
Year 2004 2003 2002 2001 2000
Net revenues ($
mil)
3271 2165 1214 748 431
Net Income($ mil) 778 442 250 90 48
Employees 8100 6200 4000 2500 1927
Net profit margin 23.8% 20.4% 20.6% 12.1% 11.2%
People spend more time on eBay than any other online site, making it the most popular shopping
destination on the Internet, Users often refer to eBay as a community—a group of people with similar
interests. For example, Dr. Michael Levitt by day is a distinguished medical researcher at the
Minneapolis Veterans Medical Center, but by night, he is an eBay warrior. Levitt is a collector of
antique California Perfume Company bottles. Every night he logs on to eBay to see if anything new
is being offered. He has purchased hundreds of bottles through eBay simply because it’s the most
convenient way to connect with sellers.
The Web site requires that all new sellers have a credit card on file, insurance, authentication, and
escrow accounts. Buyers and sellers can check the “reputation” of anyone using eBay. A Feedback
Forum is provided, through which eBay users can leave comments about their buying and selling
experiences. If you’re a bidder, you can check your seller’s Feedback Profile before you place a bid
to learn about the seller’s reputation with previous buyers. If you’re a seller, you can do the same
with your bidders.
BUSINESS MODEL
Unlike most e commerce companies, eBay has been profitable from the very beginning. Exhibit I
contains net revenues, net income, employees, and net profit margin figures from 2000 to 2305. Most
of the company’s revenues come from fees and commissions (between 1.25 and 5.0 percent of the
sale price) associated with online and traditional offline auction services. Online revenues come from
placement and success fees paid by sellers; eBay does not charge fees to buyers. Sellers pay a
nominal placement fee, and by paying additional fees, they can have items featured in various ways.
Sellers also pay a success fee based on the final purchase price. Online advertising on eBay has not
made significant contributions to net revenues, and no significant revenue from advertising is
expected in the near future. Additional revenues come from auction-related services, including bidder
registration fees and appraisal and authentication.
Its online business model is significantly different from electronic retailers. Because individual
sellers, rather than eBay, sell the items listed, the company has no procurement, carrying, or shipping

costs and no inventory risk. The company’s expenses are just personnel, advertising and promotion,
and depreciation on the site’s hardware and software.
COMPETITION
Due to the popularity of auctions with consumers, a number of e-businesses have entered the market.
Some competing Internet auctions offering a broad range of products are Amazon.com, Yahoo!,
uBid, and Overstock.com. In addition to these multicategory sites, there are vertical auction sites
specializing in a single category of merchandise such as stamps or baseball cards.
Perhaps the most significant competitor is Amazon.com, which launched an auction site in 1999.
Amazon has a well-known and highly regarded brand name and substantial traffic on its Web site.
(Amazon is the most widely known e-business, with eBay ranking third in brand awareness.) When
Amazon launched its auction site, it offered some unique benefits to customers, including a nodeductible,
no-haggle, no third-party money-back guarantee for purchases up to $250 and a feature
called Going, Going, Gone that extends the auction for 10 minutes if a bid is made in the last 10
minutes before closing. On eBay, it is common for items to be picked off in the closing minutes by
vigilant consumers who make the last bid.
Amazon is known for the usability of its site. In response to Amazon’s entry, eBay took steps to
make buying and selling easier. It now offers a Personal Shopper program that searches out specified
products and My eBay, which gives user information about current eBay activities, including
bidding, selling, account balances, favorite categories, and recent feedback.
Finally, some Internet businesses have arisen that simply search and display summary information
from many auction sites to enable comparison shopping. However, eBay sued one such site and has
used technology to block access of another site to prevent them from gathering and displaying eBay
auction data.
Questions
1. What are the advantages and disadvantages from the buyer’s and seller’s perspectives of
purchasing merchandise through Internet auctions like eBay?
2. Will a significant amount of retail sales be made through Internet auctions like eBay in the future?
Why or why not?
3. What are eBay’s competitive advantages? Will it be able to withstand the competition from other
auction sites like Yahoo! And Amazon’s auctions?
CASE - 2 (6 Marks)
How Much for a Good Smell?
For the past two Christmas seasons, Courtney’s, an upscale gift store, has carried a sweet-smelling
potpourri in a plastic bag with an attractive ribbon. Heavily scented with cloves, the mixture gives a
pleasant holiday aroma to any room, including the store.
Two years ago, the mixture cost $4.50 a bag. Courtney’s (the only store in town that carried it) sold
300 pieces for $9.50. Courtney’s supply ran out 10 days before Christmas, and it was too late to get
any more.
Last year, the manufacturer raised the price to $5.00, so Courtney’s raised its retail price to $9.95.
Even though the markup was lower than the previous year, the store owner felt there was “magic” in
the $10 price. As before, the store had a complete sellout, this time five days before Christmas. Sales
last year were 600 units.
This year, the wholesale price has gone up to $5.50, and store personnel are trying to determine the
correct retail price. The owner once again wants to hold the price at $10 ($9.95), but the buyer
disagrees: “It’s my job to push for the highest possible markup wherever I can. This item is a sure
seller, as we’re still the only store around with it, and we had some unsatisfied demand last year. I
think we should mark it $12.50, which will improve the markup to 56 percent. Staying at $10 will
penalize us unnecessarily, especially considering the markup would be even lower than last year.
Even if we run into price resistance, we’ll only have to sell 480 to maintain the same dollar volume.”
The owner demurs, saying, “This scent is part of our store’s ambiance. It acts as a draw to get people
into the store, and its pleasant smell keeps them in a free-spending state of mind. I think we should
keep he price at $9.95, despite the poorer markup. And if we can sell many more at this price, we’ll
realize the same dollar gross margin as last year. I think we should buy 1,000. Furthermore, if people
see us raising a familiar item’s price 25 percent, they might wonder whether our other prices are fair.”
QUESTIONS
1. What prices caused Courtney’s charge?
2. Which price would result in the highest profit?
3. What other factors should Courtney’s consider?
4. What price would you charge, and how many units would you order?
Promoting a Sale
A consumer electronic chain in the Washington, DC, area is planning a big sale in its suburban

Virginia warehouse over the three-day President’s. Day weekend (Saturday through Monday). On
sale will be nearly $2 million worth of consumer electronic products, 50 percent of the merchandise
sold in the store. The company hopes to realize at least $900,000 in sales during the three days. In the
retailer’s past experience, the first day’s sales were 50percent of the total. The second day’s were 35
percent, and the last day’s, 15 percent. One of every two customers who came made a purchase.
It’s known further that large numbers of people always flock to such sales, some driving as far as 50
miles. They come from all economic levels, but all are confirmed bargain hunters. You’re the
assistant to the general merchandise manager, who has asked you to plan the event’s marketing
campaign. You have the following information:
1. A full-page Washington Post ad costs $10,000, a half page ad costs $6,000, and a quarter-page ad
costs $3,500. To get the maximum value from a newspaper campaign, it’s company policy to
always run two ads (not necessarily the same size) for such events.
2. The local northern Virginia paper is printed weekly and distributed free to some 15,000
households. It costs $700 for a full page and $400 for a half page ad.
3. To get adequate TV coverage, at least three channels must be used, with a minimum of eight 30-
second spots on each at $500 per spot, spread over three or more days. Producing a TV spot costs
$3,000.
4. The store has contracts with three radio stations. One appeals to a broad general audience aged 25
to 34 years. One is popular with the 18-to-25 group. A classical music station has a small but
wealthy audience. Minimum costs for a saturation radio campaign, including production, on the
three stations are $8,000, $5,000, and $3,000, respectively.
5. To produce and mail a full-color flyer to the store’s 80,000 charge customers costs $10,000.
When the company used such a mailing piece before, about 3 percent responded.
QUESTIONS:
1) Knowing that the company wants a mixed-media ad campaign to support this event, prepare an ad
plan for the general merchandise manager that costs no more than $40,000?
2) Work out the daily scheduling of all advertising?
3) Work out the dollars to be devoted to each medium?
4) Justify your plan?
CASE – 4 (10 MARKS)
Enterprise Builds on People
When most people think of car rental firms, they think of Hertz, Alamo, Budget or Avis, but
Enterprise is the largest and most profitable car rental business in North America. The company
operates 700,000 rental and fleet vehicles worldwide and has annual revenues of $7.4 billion. In
2005, Enterprise was listed as number 16 on the Forbes “500 Largest Private Companies in America”
list. Enterprise operates in the United States, Canada, Germany, Ireland, and the United Kingdom.
In 1957, Jack Taylor started Enterprise with a unique strategy. Most car rental firms targeted business
and leisure travel customers who arrived at an airport and needed to rent a car for local transportation.
Taylor decided to target a different segment—individuals whose own cars are being repaired, who are
driving on vacation, hauling home improvement materials, providing an extra vehicle for an out-oftown
guest, or, for some other reason, simply need an extra car for a few days.
The traditional car rental companies have to charge relatively high daily rates because their locations
in or near airports are expensive. In addition, their business customers are price insensitive because
their companies pay for the rental expenses. Whereas the airport location is convenient for customers
traveling by air, this location is inconvenient for people seeking a replacement car while their car is in
the shop. Although Enterprise has airport locations, it also has rental offices in downtown and
suburban areas, near where its target market lives and works. The firm provides local pickup and
delivery service in most areas.
Enterprise’s human resource strategy is a key to its success. The firm hires college graduates for its
management trainee positions because it feels that a college degree demonstrates intelligence and
motivation, Rather than recruiting the best students, it focuses on hiring people who were athletes or
officers of social organizations, such as fraternities, sororities, and clubs, because they typically have
the good interpersonal skills needed to effectively deal with Enterprise’s customers.
Jack Taylor’s growth strategy was based on providing high-quality, personalized service so that
customers would return to Enterprise when they needed to rent a car again. But operating managers
were compensated on the basis of sales growth initially, not customer satisfaction. So service quality
declined.
The first step Enterprise took to improve customer service was to develop a customer satisfaction
measure. The questionnaire, called the Enterprise Service Quality Index, was developed on the basis
of input from the operating managers. Thus, the managers felt ownership of’ the measurement tool.
As the index gained legitimacy, Enterprise made a big deal about it. It posted the scores for each
location prominently in its monthly operating reports—right next to the net profit numbers that

determined managers’ pay. The operating managers were able to track how they were doing, and how
all their peers were doing, because all of the locations were ranked.
To increase the motivation of’ managers and improve the service at their location, Enterprise
announced that managers could be promoted only if their customer satisfaction scores were above the
company average. Then it demonstrated that it would abide by this policy by failing to promote some
star performers who had achieved good growth and profit numbers but had below-average
satisfaction scores.
To provide a high level of service, new employees generally work long, grueling hours for what
many see as relatively low pay. They, like all Enterprise managers, are expected to jump in and help
wash or vacuum cars when the agency gets backed up. Bu all this hard work can pay off. The firm
does not hire outsiders for other than entry level jobs. At Enterprise, every position is filled by
promoting someone already inside the company. Thus, Enterprise employees know that if they work
hard and do their best, they may very well succeed in moving up the corporate ladder and earn a
significant income.
QUESTIONS
1. What are the pros and cons of Enterprise’s human resource management strategy?
2. Would you want to work for Enterprise? Why or why not?
3. How does its human resource strategy complement the quality of customer service delivered by
its representatives?
Diamond in the Rough
(Christmas Bonus)
Ruth Diamond, president of Diamond Furrier, was concerned that sales in her store appeared to have
flattened out and was considering establishing a different method of compensating her salespeople.
Diamond was located in an affluent suburb of Nashville, Tennessee. Ruth’s father had founded the
company 40 years earlier, and she had grown up working in the business. After his retirement in
1980, she moved the store into an upscale shopping mall not far from its previous location, and sales
had boomed most immediately. Rising to just over million in five years. However, once it had
reached that sales volume, it remained there for the next three years, making Ruth wonder whether
her salespeople had sufficient incentive sell more aggressively.
Diamond’s staff was all women, ranging from 27 to 58. There were four full-timers and four parttimers
(20 hours a week), all of whom had at least three years of experience in the store. All of them
paid at the same hourly rate, which was $10; there was also a liberal health benefit plan. Employee
morale was excellent, and the entire stall displayed strong personal loyalty to Mrs. Diamond.
The store was open 78 hours a week, which meant that there was nearly always a minimum staff of
three on the floor, rising to six at peak periods. Diamond’s merchandise consisted exclusively of fur
coats and jackets, ranging in price from $750 to more than $5,300. The average unit sale was about
$2,000. Full-timers’ annual sales averaged about $160,000, and the part-timers’ were a little over half
of that.
Mrs. Diamond’s concern about sales transcended her appreciation for her people’s loyalty. She had
asked them, for example, to maintain customer files and call their customers when the new styles
came in. While some of them had been more diligent about this than others, none of them appeared to
want to be especially aggressive about promoting sales.
So she began to investigate commission systems and discussed them with some of her contacts in the
trade. All suggested lowering the salespeople’s base pay and installing either a fixed or a variable
commission rate system.
One idea was to lower the base hourly rate from $10 to 7 and let them make up the difference through
a 4 percent commission on all sales, to be paid monthly. Such an arrangement would allow them all
to earn the same as they currently did.
However, she realized that such a system would provide no incentive to sell the higher-priced furs,
which she recognized might be a way to improve overall sales. So she considered offering to pay 3
percent on items priced below $2,000 and 5 percent on all those above.
Either of these systems would require considerable extra bookkeeping. Returns would have to be
deducted from commissions. And she was also concerned that disputes might arise among her people
from time to time over who had actually made the sale. So she conceived of a third alternative, which
was to leave the hourly rates the same but pay a flat bonus of 4 percent of all sales over $1 million,
and divide it among the people on the basis of the proportion of hours each had actually worked. This
“commission” would be paid annually, in the form of a Christmas bonus.
QUESTIONS
1) What are the advantages and disadvantags of the various alternatives Ruth Diamond is
considering?
2) Do you nave any other suggestions for improving the store’s sales?

3) What would you recommend? Why?
Case – 6 (12 Marks)
Home Depot Changes Directions
Founded in Atlanta, Georgia, Home Depot has grown into the world’s largest home improvement
specialty retailer and the second-largest retailer in the United States. Twenty years of consistent
growth is quite an achievement for any retailer; however, due to this growth, Home Depot is a much
different company than it was when it was founded by Bernard Marcus and Arthur Blank in 1978.
Changes in the company, put into motion by the new CEO, Bob Nardelli, shook up the way Home
Depot does business.
HISTORY AND CULTURE OF THE COMPANY
During Home Depot’s first 20 years, Bernard Marcus was CEO. In 1997, Arthur Blank succeeded his
partner’s place at the top of the company. In founding Home Depot, the partnership of Marcus and
Blank revolutionized home improvement shopping by creating a different kind of store.
Warehouse is a better term for the stores’ layout; each location stocks large volumes of goods that
enable the company to compete by maintaining low prices. Because Home Depot’s primary customer
is the individual home owner or small contractor, the stores also offèr know1edgeable customer
service to assist those in need of a little direction. In fact, the company took this service further by
offering how to clinics and longer four-week courses in its Home Depot University to educate
customers about various home improvement projects, such as laying tile and caulking bathrooms.
Thus, Home Depot effectively combined the strategies of low price and high service, not commonly
seen in retailing.
Home Depot’s “do-it-yourself” slogan was not just aimed at customers. This philosophy was
fostered by the founders and trickled down through the entire company Home Depot grew, not as a
part of complex plan, but as a result of a good business idea, good people and some experimentation
with new projects such as the Expo home decorating stores. Home Depot’s corporate structure was
Very decentralized: many typical corporate policies were nonexistent in the firm. Each store manager
was also a do-it-yourselfer and had a significant amount of control in making decisions pertaining to
such areas as merchandising, advertising, and inventory selection for a particular area. Thus, Home
Depot stores tended to be less homogeneous in their merchandise offerings than many other national
retail chains.
But this decentralization of decision making allows managers to feel a stronger sense of ownership in
a store’s business. Associates of the company demonstrate a great deal of loyalty and pride in the
company. Many store associates are hired with strong background experience in home improvement
and are able to pass their knowledge along to customers. By building an enthusiastic staff, Home
Depot has been able to deliver its promise of exceptional customer service.
FINDING A NEW LEADER
In 1999, with well over 900 stores, a market share of 24 percent, and several growth initiatives, Home
Depot exuded success. However, historical success and future success are different concepts. Home
Depot’s board of directors was becoming increasingly unhappy. The company’s performance at the
time was faltering with a sharp drop in stock price in October 2000. After disputes about strategy,
stores, and people, Home Depot’s directors finally took action and so set out to find a leader capable,
in their view, of continuing the firm’s growt. in sales and profits.
The board found their man in Bob Nardelli. At the time, Nardelli was vying for Jack Welch’s position
as CEO of GE but lost the battle to Jeff Immelt. Althogh he was passed up by GE, Bob Nardelli’s
career has been impressive, to say the least. From playing football at western Illinois University to
starting as a manufacturing engineer at GE, Nardelii’s attitude was one of persistence and relentless
hard work, Nardelli managed to work up through GE to the position of rnanufcturing Vice President,
left to join the equipment maker Case as an executive vice president, and then returned to GE to run
the Canadian appliance business. He then continued to prove himself at GE as the head of GE
Transportation and CEO of GE Power Systems. Throughout his career at GE, Nardelli was
recognized for his ability to improve operations and execute, but unfortunately, he was not viewed as
a strong strategic leader. Believing he was finally in the right position to succeed Welch, Nardelli was
very disappointed at the announcement of Immelt’s appointment. Home Depot quickly snatched
Nardelli up, placing him as CEO of Home Depot in December 2000. Nardelli redirected his energy
into a mission to develop Home Depot.
CHANGES AT HOME DEPOT
Since Nardelli took the lead at Home Depot, the company has experienced significant changes. Home
Depot is shifting toward a more centralized organization, one that can more efficiently handle the
operations of a 1,400- store company in Canada, Mexico, and the United States. For example, buying,
once handled by nine regional offices, is now located at corporate headquarters in Atlanta. The
company as a whole benefits from consolidation; buyers can get larger quantities of goods at lower
costs, but how does this affect the do-it-yourself store manager? Nardelli, always a relentless

workaholic, expects those around him to have the same attitude by holding frequent meetings and
treating weekends like any other day of business.
Although a “can do, will do” atmosphere is necessary to implement Nardelli’s plans, the hasty shift
from laid- back to no-nonsense is creating some anxiety within the organization. In the ffrst 19
months of his office, Nardelli lost 24 of 39 senior officers and has brought in several new faces, many
from outside the retail industry. One newcomcr, recruited by the new CEO, is Dennis Donovan from
GE. Nardelli, believing in Donovan’s efficiency, has made him an exceptionally high-paid chief of
human resources.
Changes are not just affecting Home Depot’s associates. In the past, Home Depot’s customer return
policy was simply to give cash back, no matter what. Although this was fantastic customer service,
without receipt restrictions, abuse of the policy was out of control. Home Depot will now save close
to $10 million annually with a new return policy of only store credit without a receipt.
Nardelli is applying the GE mindset, one characterized by strict measurement emphasizing
efficiency, to his new company. Home Depot is now using GE’s Six Sigma quality control method
and quickly increasing the company’s use of the Internet. Another new focus is that on associate
training and evaluation. Pre-Nardelli, Home Depot had 157 different associate appraisal forms. All
295.000 associates are now reviewed using just two different forms.
These changes do not mean that the company is less interested in developing its people; in fact,
Nardelli is trying to create an environment that will best highlight individual’s abilities. At Home
Depot’s headquarters in Atlanta, the company is forming a leadership institute offering courses on
leadership, merchandising, store planning, financial operations, and Six Sigma to executives with
high potential. Nardelli wants a “coaching environment” that promotes succession planning and
avoids the recent incident of having to hire a CEO from outside the company. Despite Nardelli’s
efforts, the market has not been kind to Home Depot. In Nardelli’s first six months, the stock price
rose from $39 to $53 but then curiously fell 10 percent after a first quarter announcement of 35
percent profits growth. Quarterly earnings continue to grow as in the past, but unfortunately, Home
Depot’s stock price is not reflecting this trend.
COMPETITION AND GROWTH POTENTIAL
As Home Depot struggles with its own growing pains, the company must also consider the everincreasing
competition from Lowe’s. By placing stores in directly competing areas and growing at a
faster rate than Home Depot, Lowe’s is definitely a factor in future planning. Lowe’s best advantage
is that it stores are designed with less of a “warehouse” feel, having wider aisles and better lighting.
Store appearance may not be a crucial factor, but it is definitely a differentiating feature for a female
shopper. And women are increasingly doing a greater percentage of home irnprovement shopping.
Home Depot is trying to address this issue by cleaning up and modernizing its store look with lower
shelving and different product mixes.
Extending its already strong business targeted at individual customers, Home Depot is now opening
several professional stores for contractors, developers, and superintendent or maintenance people.
The firm is also looking to expand through purchases of European home improvement companies.
QUESTIONS
1) What is the best way for the Home Depot to continue to grow?
2) Can Home Depot maintains its current market position with its new policies and increasing
competition?
3) Will more efficient operations and increased centralization be effective in streamlining Home
Depot’ business?
4) How might the shifts in corporate culture affect executives, management, and associates?
Can Wal-Mart Improve Its Company Image?
The company Sam Walton built has become the world’s number one retailer. The organization has
grown in a variety of retail formats, including Wal-Mart Stores, Supercenters, Sam’s Clubs,
Neighborhood Markets, online, and internationally. Wal-Mart operated units in the following
countries as of April 2005:
Country Number of Stores Country Number of Stores
Argentina 11 South Korea 16
Brazil 151 Mexico 700
Canada 261 Puerto Rico 54
China 45 United Kingdom 285
Germany 89 United States 3719
As Wal-Mart has grown, it has also become a large job creator. According to the company home
page, “more than 1.2 million Associates work at Wal-Mart in the U.S. The majority of Wal-Mart’s
hourly store associates in the U.S work full-time. That’s well above the 20-40 percent typically
found in the retail industry. We are a leading employer Hispanic Americans, with more than 139,000

Hispanic associates. Wal-Mart is one of the leading employers of African Americans, with more than
208,000 African-American associates. More than 220,000 of our associates are 55 or older. We
project we will create positions for more than 100,000 new jobs in 2005.”
WAL-MART FACES CRITICISM
Over the years, Wal-Mart has had its share of negative press about its labor and management
practices. As a large company and employer, Wal-Mart has grown to expect attention and criticism.
Some of the key areas of concern include discriminating against women, resisting unions, paying
lower wages and offering fewer benefits, purchasing merchandise from China, employing contractors
who hire illegal immigrants, and growing too rapidly. Constructive criticism has helped Wal-Mart
improve its operations; however, the company takes issue when the criticism becomes an
unwarranted attack that tarnishes their reputation.
ADVERTISING CAMPAIGN TO IMPROVE CORPORATE IMAGE
To reverse negative criticism and improve its public image, Wal-Mart launched an informative Web
page, http://www.walmartfacts.com/Default.aspx; had key high- ranking executives appear for
interviews on ABC, CNN, Fox, and CNBC; and took out full-page advertising in over 100
newspapers. Wal-Mart is proactively fighting back against critics and special interest groups to dispel
myths about its employment and business practices.
To tell the Wal-Mart story and clear up misperceptions, the Web page contains company news and
press releases, illustrates community impact and involvement programs, describes employee benefits
and wages, and explains the status of current lawsuits facing the organization. This non-commercial
Web page also summarizes Wal-Mart’s diversity and equal employment opportunity policies,
international operations, employee promotion strategies, charitable giving, and merchandise sourcing.
An important objective of the Web site is to help associates, consumers, reporters, and investors learn
about the company.
To reach the mass media and take control of its image, Wal-Mart’s chief Executive Officer, H. Lee
Scott, appeared on many networks including ABC, CNN, Fox, and CNBC for interviews. As part of
this promotional campaign to show Wal-Mart in a positive light, he also granted interviews with
US4Todqy and the Associated Press.
Wal-Mart put a full-page ad in more that 100 newspapers including the New York Times and The
Wall Street Journal on January 13, 2005. The ads contained a five-paragraph letter from CEO Scott
in response to misinformation about Wal-Mart. To set the record straight, the national print ads stated
that the average wage for full-time hourly workers at Wal-Mart is $9.68, which is almost twice the
federal minimum wage of $5.15 per hour.
QUESTIONS
1) Can this type of advertising campaign improve Wal-Mart’s image in the eyes of associates,
consumers, investors, and the press?
2) What else could Wal-Mart do to improve its reputation?
3) Go to Wal-Mart Stores home page at http://www. walmartstores.com and click on College
Recruiting. Explore what this page has to offer. If a Wal-Mart recruiter came to your campus,
would you consider Wal-Mart as an employer? Why or why not?
CASE - 8 (10 MARKS)
Competitive Environment in the Teen/College Apparel Market
Jennifer Shaffer, a 17-year-old living in Newton, Massachusetts, used to shop at Abercrombie &
Fitch (A&F) once a month. She thought the prices were high, but the brand name and image appealed
to her. She says, “It’s like I really had to have Abercrombie.’ Then an American Eagle (AE) store
opened about 15 minutes from her home. Now she shops at the AE store about twice a month and
rarely goes to the A&F store. “They look the same, and they’re both really cute,” she says. “But
American Eagle’s prices are a little cheaper.”
Both A&F and AE are still growing into their present strategy of selling casual apparel to the
teen/college market. When A&F was established as an outdoor sporting goods retailer over 100 years
ago, it sold the highest quality hunting, fishing, and camping goods. A&F also outfitted some of the
greatest explorations in the early part of the twentieth century, including Robert Perry’s expedition to
the North Pole and Theodore Roosevelt’s trips to the Amazon and Africa.
Over time, its tweedy image became less attractive to consumers. The chain experienced a significant
declines sales and profits, and in 1977 it was forced to declare bankruptcy. The company, initially
acquired by Oshman’s Sporting Goods, did not experience a turnaround until The Limited Inc.
acquired it in 1988. Initially, The Limited positioned A&F as a tailored clothing store for men. In
1995, The Limited repositioned A&F to target both males and females in the teen and college market
with an emphasis on casual American style and youth.
In 1999. The Limited sold A&F. which now operates as a separate company that operated 351
Abercrombie & Fitch stores, 167 abercrombie stores, 271 Hollister Co. stores, and 5 RUEHL stores
at the end of May 2005. It operates e-commerce Web sites at www.abercronibie.com,

www.abercrombiekids.com, and www.hollisterco.com.
American Eagle, though lacking the rich tradition of A&F, also was positioned as outfitter when it
started in 1977. Initially offering apparel only for men, Amerian Eagle shifted its focus to teens and
college students in 1995. In 2000, it acquired two Canadian specialty retail chains—
Bluenotes/Thriftys and Braemar. The Braemar locations were converted to American Eagle stores,
whereas the Thriftys stores are being converted into Bluenotes stores specialty stores that target a
slightly younger, more urban teen demographic and that carry more denim merchandise. Today,
American Eagle has 779 AE stores in 50 states, the District of Columbia, and Puerto Rico and 70 AE
stores in Canada. It also operates via its Web business, www.ae.com.
Even though A&F and AE have evolved from their roots, there is still an outdoor, rugged aspect in
their apparel. Both retail chains carry similar assortments of polos, pants, t-shirts, jeans, and
sweaters. All the apparel and accessories carry the store’s private-label brand. A lot of the
merchandise is athletically inspired.
The rivalry between A&F and AE is intense; A&F even filed a lawsuit in 1998 in federal court
accusing AE of copying its clothing styles and catalog. The courts found that though the designs were
similar, there was nothing inherently distinctive in A&F’s clothing designs that could be protected by
a trademark. But the courts have ruled that Abererombie’s catalog design and image are worthy of
trade dress protection. Trade dress is the overall image of a product used in its marketing or sales,
composed of the nonfunctional elements of its design, packaging, or labeling (such as colors, package
shape, or symbols). However, the court also felt that AE’s catalog had a different image that did not
infringe upon the image of the A&F catalog.
It was the catalog and home page that first drew Jennifer to an A&F store a couple of years ago. She
recalls going through the catalog and browsing the Web page with some girlfriends and looking at the
muscular young men featured “The guys in the magazine— that’s what made us all go,” she says.
This young and sexy image is enhanced by store signage featuring scantily clad lacrosse players and
young beachgoers. Abercrombie & Fitch has exploited this image by introducing a line of intimate
apparel in 2001. Intimate apparel is now one of the best selling merchandise categories in the stores.
To reinforce its brand image and communicate with its target audience, AE teamed up with MTV to
sponsor MTV Spring Break 2005. As a major sponsor, AE was the official apparel provider for the
network’s hottest annual event, broadcast from Cancun, Mexico, on March 18—20, 2005. American
Eagle provided the wardrobe for the stars of Dawson’s Creek, and it also has its apparel featured in
various movies. While its commercials are less suggestive than those of A&F, its “Get Together”
commercials feature college- and high-school--age teens dancing and then coming together and
kissing.
Even though A&F devotes its advertising and marketing resources to reaching college-age
consumers, many teenagers also patronize its stores. The company is concerned that the image of its
stores will be negatively affected if they become a place for teenagers to hang out. The development
of the Hollister chain is one of the approaches that A&F has taken to preserve the A&F image while
catering to the growing teenage market.
The Hollister stores are unique. Their target market consists of consumers ages 14 to 18 years. The
merchandise in the stores is 20 to 30 percent less expensive than A&F’s merchandise. The styling of
the merchandise is also different, with brighter colors and larger logos. However, many teenagers fail
to recognize the subtle differences. They contend that it is essentially the same merchandise except at
lower prices.
Furthermore, Hollister stores are roughly. 2,000 square feet smaller than A&F stores, and the store
design is completely distinct. While A&F stores still convey an outdoor ruggedness in their decor,
Hollister stores present a California beach—inspired theme. They want their customers to feel as
though they are part of a bench party. This casual atmosphere provides young consumers with an
enjoyable shopping experience. The decor in the stores inspires and evokes memories of hot summer
days at any time of the year.
QUESTIONS
1) What, if any, are the differences in A & F’s and AE retail strategy?
2) What are the brand images of A&f and AE? What words and phrases are associated with each
retailer’s brand name?
3) List other specialty apparel retailers that target the same customers as A&F and AE. How do these
brands differentiate themselves in the competitive retail environment? Construct a product
positioning map to illustrate.
4) Which retailer(s) has (have) the stronger competitive position? Why?
Retail Management

Q.1) What is the purpose of developing a formal retail strategy? How would a strategic plan
be Used by a college book store? (10 Marks)
Q.2) Do you believe that customer service in retailing is improving or declaring, if yes, why
and If no why? (10 Marks)
Q.3) What are the expected and augmented value chain elements for the following retailers.
(15 Marks)
a) Fast food restaurants
b) Motel
c) Local pharmacy
Q.4) What do you understand by service retailing. Explain the unique aspects of service
Retailing with suitable examples. (10 Marks)
Q.5) Explain the wheel of retailing. Is this theory applicable in today’s context. Why or
why not? (10 Marks)
Q.6) Compare a single channel and a multi-channel retailing. State the advantages and
Dis-advantages also. (10 Marks)
Q.7) a) Explain non-store retailing with example (10 Marks)
. b) Explain the 30 days rule for direct marketers.
Q.8) Explain the characteristics of retail training methods? (5 Marks)
RISK & SAFETY MANAGEMENT
Q1) Write short notes (any two) (10 Marks)
a) Investment Alternatives
b) Mutual Funds as form of effective Indirect Investing
c) Securities Market Is the Battlefield
Q2) Explain briefly the Guidelines for Investment Decisions. (10 Marks)
Q3) Define Portfolio Management Framework and explain its features (10 Marks)
Q4) Explain in brief the Portfolio Theory .Discuss The Benefits of Diversification (10 Marks)
Q5) Discuss the features of Industry Analysis. (10 Marks)
Q6) Explain in brief Equity Valuation and its application. (10 Marks)
Q7) Explain in brief Financial Statement Analysis: The Information Maze. (10 Marks)
Q8) What is Company Analysis. Discuss the process of Establishing the Value Benchmark. (10 Marks)
SAFETY MANAGEMENT
CASE STUDY : 1
You as a Safety Manager, have just received a report that Harold Jacobs has lost the tips
of two fingers in an accident on the milling machine he operates. His foreman states
that it was a clear case of carelessness, that Jacobs is accident-prone anyway and that he
thinks the man ought to be discharged, or at least move to another department. The
records show Jacobs has been on his present job three weeks. He has been with the
company and in this department for three years. Two months ago, he was out three days
with a badly lacerated hand as a result of an ‘accident’ with the broach he was then
operating. A year earlier he suffered a badly sprained ankle in a fall, and shortly after
he was hired he suffered a minor injury on a drill press.
Question :
1) Do you agree with foreman?
2) What things would you want to investigate relative to possible clauses?
3) Discuss some of the possibilities in this case?
4) Is Safety more a psychological problem or more an engineering problem, why?
CASE STUDY : 2
The Lux manufacturing Company is seriously considering going into production of a
new liquid glass cleaner for house, cars and table glasses. Tests have shown the liquid
is particularly effective in dissolving spots of grease, albumen and other stubborn
materials, as well as washing away ordinary dirt. It seems to leave glass clean and
shining. The company is satisfied that it has the money, equipment, manpower, and
marketing facilities to handle this additional product.
Question :
1) From a Safety point of view what investigations would you wish to have made?
2) Suggest how these investigations might be handled? i.e. what people, departments or

organizations might carry out investigations of what hazards?
3) How serious are the dangers is unsuspected hazards of new products? Cite an
example or two briefly?
4) Suggest steps a company may take to increase the probability that its products will
not prove injurious on occasion?
CASE STUDY : 3
The Bateman Corporation manufactures metal parts for farm machinery and road
building equipment assembled and merchandised by other concerns. It does a good deal
of cutting, pressing and welding of both steel and magnesium. Occupying a two-storey
brick building containing 230,000 square feet of floor space on each floor, it employs on
the average, 950 men and 1000 women.
Question :
1) What are the two considerations in reducing the fire hazard?
2) What provisions should be made for rescue units?
3) Which portable fire-extinguishing equipment you would recommend?
4) Suggest a training program for fire prevention?
CASE STUDY : 4
Suppose that a safety specialist in October of 1990 decides to figure out approximately
how much injuries and accidents have cost the company in the preceding 12 months
perhaps the top management has raised the question as to whether the company, making
an all out effort to cut costs, should not curtail its safety program. The safety specialist
can show that the firm’s prevention efforts over a period of time have reduced the rate
of injuries by 30 percent. He or she now wants to translate that into dollars.
Question :
1) Define the term Insurance cost?
2) Define the term Average Uninsured costs?
3) Why is it desirable to make some use of averages or ratios in calculating the cost to a
company resulting from its work injuries?
4) What is the logical basis for including the cost of no injury accidents as well as
SAP CONSULTANCY
1. What are the differences between system fresh and client fresh?
2. What is the difference Between Role and Profile?
3. What is the process of dialog program from first to last?
4. How can one use Bar codes in Sap-script?
5. Answer the following set of questions
a) What is MANUE field in NAST table?
b) What is its purpose?
c) What for it is used in SAP Script?
d) How can we use that field in our own driver program?
e) Where Standard Driver programs reside?
f) What is the t code & path for finding the standard driver programs?
6.What are client dependant objects in ABAP or SAP?
7.How do we debug sap script?
8.What are the diff types of dispatcher in SAP?
9. How you will send mail from one SAP system to other SAP system?
10.Is it possible to link R/3 projects to the MS Project? Explain
SAP CONSULTANCY MANAGEMENT
Case Study :1
Good Sports manufacturing is a firm that has four production plants good sports is engaged primarily
in the manufacture of athletic wear the head quarters & administrative offices of the firm are located
adjacent to one of four plants the distribution centre is a also at the same location two other plants are
located in the same location two other plants are located in the same town as the headquarters while
the fourth plant is located about 60 miles away two plants produce primarily shorts and warmup suits,
& two produce T-Shirts.The production from all plants is sent to the firms distribution center for
shipping to retailers.
Q1) Explain “Retailing”?
Q 2) What do you mean by franchise?

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