Team Development

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  1. Would you be better off starting your career in retailing or manufacturing (if you eventually want to do both?)
    Retailing, since it helps you to better understand what the consumers want; gain better knowledge about manufacturing
  2. Equation for sales
    • Sales = # of transactions x average salescheck
    • Sales have gone down because of combined decrease in # of transactions and avg salescheck
  3. History of supply/demand
    • 1960-80: demand outweighed supply, easy to do business, industry flourishing
    • Early 1980s: supply exceeded demand
    • 1980s-Today: period of adjustment, stores closing
    • Today: conditions are still difficult; not enough demand
  4. What has happened to the number of transactions?
    Has significantly decreased due to less of and reallocating use of discretionary income
  5. What has happened to the average salescheck?
    • Has gone down
    • Prices going down due to presence of cheap retailers
  6. Politics and Ethics
    • Aristotle
    • The leader of the family, the tribe, and the organization are the most fulfilling occupations
  7. Organization
    A group of people with a shared purpose
  8. Ford Study
    • Opened two identical plans in England & Germany
    • Germany did better because the culture there was better
    • Problems in London: union workers & mgmt hated each other, worse attendance, bad morale, elitist mgmt, lazy workers
  9. Culture
    • Determined by the team leader
    • Will determine the success or failure of your team
  10. Horizontal team
    • All senior VPs
    • Make the large decisions that will affect the overall company
  11. Vertical specialization (teams)
    • Merchandising
    • Marketing
    • Stores
    • HR
    • Operations
    • Financial
    • Real estate
  12. Merchandising team
    • Overseen by CEO
    • Includes VPs of merch (GMMs)
    • DMMs
    • Buyers
  13. Marketing team
    • Overseen by CEO
    • VP of Marketing
    • Advertising
    • Visual team
    • Special events
    • PR
  14. Stores team
    • Overseen by CEO
    • VP of stores
    • Regional manager
    • District manager
    • Store manager
    • Sales associates
  15. Human Resources team
    • Overseen by COO
    • Recruiting
    • Training
    • Buyer of benefits
  16. Merchandising (5 Rights)
    • Planning using 5 R's of merchandising mix:
    • (1) Right product
    • (2) Right quantity
    • (3) Right price
    • (4) Right place
    • (5) Right time
  17. What is the right product?
    • Right silhouette
    • Right colors
    • Right fabric
    • Right details
    • Pattern/print
  18. What is the right price?
    Depends on target customer
  19. Who determines the right place?
    The planner
  20. What is the right time?
    • Depends on where youf all on the fashion lifecycle
    • People with money tend to buy earlier (upper-level stores)
  21. 3 Plans looking towards the future
    • (1) Investment plan
    • (2) Classification plan
    • (3) Assortment plan
  22. Investment plan
    • Plan stock, budget (OTB)
    • Predict sales
    • This plan is bottom-up (developed by buying team, approved by DMM -> GMM -> CEO
  23. How do we predict sales?
    • Look at past sales
    • The economy -- consumer debt and discretionary spending power
  24. Qualities of an effective organization
    • Dynamic
    • Flexible
    • Team
    • No boundaries
    • Bottom up / top down
  25. J.C. Penney's new merchandising strategy to use everyday low pricing - was it a good idea?
    Probably not, based on history with Sears and Stern's Super Sale (made similar move = bad for company)
  26. What is important to take into consideration when it comes to pricing strategies?
    The psychology of the consumer
  27. Classification plan
    • Developed by buying team
    • Team decides what they want to focus on
    • Ex: sweater buyer decides how much to invest in cardigans vs. v-necks
  28. Assortment plan
    • (1) Incoming fashion - NEW trends
    • (2) Dominant fashion - KEY items (*highest % of $ here)
    • (3) Classics
    • Amount of merchandise alloted to each category depends on your store and its location in the fashion cycle
  29. Marketing
    • The broadest area
    • The distribution (movement, sales) of goods & services from the time they are created until the timet hey reach the ultimate consumer
  30. Advertising team
    • Part of marketing
    • Headed by ad director
    • Media expert > media team
    • Production team > graphics, copy writing, layout
    • Psychology (in-house or outsourced)
  31. Industrial psychologists
    Try to figure out how to get the consumer to spend money
  32. Unresolved Infantile Repression Theory
    Uses subliminal messages to bring forth your repressed memories, thoughts, hardships...
  33. PR team
    • Want to promote favorable brand image
    • Issue press releases
    • Must turn complaints into positive stories
  34. Special events team
    • Creates exposure
    • Ex: Macy's Thanksgiving Day Parade
  35. Visual team
    Responsible for store design
  36. Who invented samples and gift with purchase?
    Estée Lauder
  37. Xi Jinping
    Soon to be China's president
  38. Operations team
    • Overseen by COO
    • Senior VP of operations
    • IT director
    • Security
    • Logistics
    • Distribution center
  39. Financial team
    • Overseen by COO
    • Chief Financial Officer (CFO)
    • Legal team
    • Credit team
    • Accounting (payable and receivable)
    • Inventory control team
  40. Real estate team
    • Negotiates leases
    • Decides store locations
  41. Department stores
    • Oldest model (comes from general store)
    • Dominated until 1970s when discount stores took over; consumer can't afford dept stores anymore
    • Basic idea: give customer everything under one roof
  42. Specialty stores
    • Private label stores (ex: The Gap)
    • Nordstroms is actually a specialty store
  43. Discounters
    • Started just after WWII
    • Corvette's = first discount store
    • K-mart = one of the earliest
    • Walmart came later, which worked to their advantage
    • Basic idea: small markup, low expenses, high turnover
  44. Corvette's discount store
    • Eugene Furkoff won money gambling on the ship back from the war
    • Worked at his dad's luggage store
    • Had the idea to discount murch in order to sell more to increase profits
  45. Warehouse clubs
    • Costco, Sam's Club, BJ's
    • Appeals to entry-level customers but also attracts wealthier customers
    • Can keep expenses low, offer discounted merchandise but also expensive name brands
  46. Outlets
    Started by real estate developers - idea to start shopping malls far from other stores
  47. Off-pricers
    • Store wins
    • Customer wins
    • Manufacturer loses - more profitable for them to have their own outlet store than to sell to off-priced retailers
  48. Pagination
    Placement and design of a catalog page
  49. Float
    • Payment terms
    • Delay between shipping and payment (manufacturer must wait for payment)
  50. Radical organization chart
    • Receptionist on top
    • CEO on bottom
  51. Leadership
    The ability to get people to follow you (even from behind the scenes)
  52. Leadership skills
    • Teamwork and family
    • Listen to employees
    • Empower employees
    • Tolerance for diversity
    • Likeability
    • Willingness to train and teach
    • Consistent - especially on company policies
    • Reward creativity
  53. Great leaders
    • Sam Walton
    • Howard Schultz
    • Winston Churchill
    • Martin Luther King Jr.
    • John F. Kennedy
    • Franklin Roosevelt
    • Gandhi
  54. Leadership by teamwork
    More effective than leadership by terror
  55. Starbucks
    • Schultz turned a coffee shop into a lifestyle, not just a brand
    • Employees are first, customers second
    • Mistakes are encouraged
  56. Correcting employee weaknesses
    • Begin with a positive
    • Don't cover more than two weaknesses in one meeting
    • Follow-up reviews
  57. Management
    The ability to get things done
  58. Management skills
    • Time management
    • Training and teaching
    • Evaluating and praising employee strengths
    • Evaluating and correcting employee weaknesses
    • The ability to deleate
    • Encouraging risk-taking
    • Celebrating (not condemning) employee mistakes
  59. Sam Walton
    • Radical leader
    • Developed inverted org chart
    • Empower employees
    • Maintain equality between employees and higher mgmt in order to avoid wasting any of the company's money
  60. Organizational culture
    The shared values of management and employees that influence the way they act
  61. Strong culture
    • Widely shared
    • Consistent messages about what's important
    • Employees know company's heroes
    • Employees strongly endore
    • Strong connection between values and behavior
  62. Weak culture
    • Values limited to top management
    • Mixed messages on what's important
    • Employees have little knowledge of history and heroes
    • Little connection between values and behavior
  63. Understanding the diversity of America
    • Age
    • Race
    • Ethnicity
    • Gender
  64. Tweens
    • Age 8-14
    • 30 million
    • Important market
    • Hard to target: insecure, unsure of identity, will not buy anything their peers/group has rejected
  65. Generation Y
    • Age 15-31
    • 60 million
  66. Generation X
    • Age 32-46
    • 40 million
  67. Baby boomers
    • Age 47+
    • 190 million
  68. Types of lifestyles
    • Traditional
    • Updated
    • Advanced
    • Regressive
Card Set:
Team Development
2012-03-23 04:29:40
td hayley jones

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