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WORDWORDBUSINESSREPORTINCREASINGTHEDEPARTMENTSTORE’SPROFITSFORINCREASINGTHEDEPARTMENTSTORE’SPROFITSPreparedforJohnSmithGeneralHARRODSdepartmentstorePreparedbyPeterAlbertChiefTWCBJuly15,2013MEMODATE: 07/15/2013TO: JohnSmithFROM: PeterSUBJECT: INCREASINGPROFITSHere is the report you requested on Jul.12, 2013 on departmentstore sprofits.Your uneasiness was right. As we only focused on somehigh-qualityproducts,wecantexpandmarketshareinaspects,thentheprofitsfellsharply.Thesolutionstotheproblemareclear.Weneedtotakesomecaresinothermarketing.Set up some convenience stores, discount stores specialitystoresascompetitiondid.ExpandforeignretailchainsinsomeeconomicallypotentstateslikeChinaandJapan.Maketransitionofservicemodetofollowtheconsumerdemands.Thankyouforgivingmetheopportunitytoworkonassignment.Ifyouhaveanyquestionsaboutthereport,pleasecallme.ExecutiveSummaryInthepastsixmonths,theprofitsofHarrodsdepartmentstore sfellsharply.Asaresult,severalsimilarfamousstoregroupsarenowheavilyindebt.Thereportstudiescauseofthefellandrecommendssolutionstotheproblems.CausesofthefellWehavefoundthreecausesrelatingtothefell:MarketPositioningisinflexible.TheForeignmarketdidn tdevelopwell.Serviceconceptwasoutofdate.Somepositionsandserviceconceptsareoutofdate,itslowercustomersatisfaction.Wealsofoundthatalargenumberofstaffnumbersandmanagerslackawarenesstofollowcustomersconsumptionconcept.Harrodsdepartmentstoremaystarttrainingtheirstafftokeepupwithmoderncustomersidea.MeasurestoIncreasetheProfitsSet up some convenience stores, discount stores specialitystoresascompetitiondid.ExpandforeignretailchainsinsomeeconomicallypotentstateslikeChinaandJapan.Trainingstaff.Maketransitionofservicemodetotheconsumerdemands.EstimatesforImplementingtheProposalMostoftheexpensesofimplementingthemeasureswillbesetupnewstoresandexpandforeignretailchains.Theyestimatedtobe25,0000pounds.TableofContentsExecutiveSummary ⅲIntroduction1Purpose,Scope,andChallenges1Methods 2TheDecreasingProfitsinHarrodsDepartmentStore225%Decreasingcomparedwith20112Competition sAverageProfitsin2011&20132MajorCausesoftheDecreasing3ImpactonHarrodsDepartmentstore4MoreFundsNeededtoIncreasing4JeopardizingtheHarrods BrandReputation4MethodsforIncreasingtheProfits5ThreeWaystoIncreasingtheProfits5TheFundNeededtoCarryOuttheMeasures6ConclusionsandRecommendations6SupplementaryParts7Appendix 7Bibliography8PartOneIntroductionInlastseveralmonths,there ssharplyprofitsfellshowedonthefinancialreportingformHpany,TWCB,asrequestedthesolutionbyHarrodsdepartmentstore smanager,weimmediatelylookedintothematterandfoundthreeproblemswhichmayhavecausedthedecreasing.Thefiscalthirdquarterofthisfiscalyearwillendintwomonths.Wewilldoeverythingtosolvetheproblemsbeforecustomersswitchandnevertoreturn.Inthisreport,Iwilldescribetheproblemswefoundinthedepartmentstoreandproposethreepossiblemeasurestosolvethemandtheestimatedcost.Purpose,Scope,andChallengesPurpose:thepurposeofthisreportistoanalyzewhatcausedtheproblemandhowcanwesolveitassoonaspossible.Thereportgivestheresultoftheinvestigation.Scope:weimmediatelyformedtwoteams,oneofwhichcheckedthedepartmentstoreregularlyandtheotherconductedasurveyoncustomer.Thefirstteamhangsaroundthestorefor7daysinarowandconstantlydoessomeshoppingtoseehow the service feels like. The second team designedquestionnairescollectingcustomer scommentsonthestore.Theresultwasnotasbadaswehadexpected.Buttheshoulddosomethingbeforeitbecomesarealproblem.Challenges:thedepartmentstorehasbeenfacingtremendouschallengesandpressureasthenumberofcompetitionsgrowsathighspeedeachyear.Forinstance,somecustomersselectonestorevisitregularlyoutoften.Ourstoreisincreasingcompetitivepressure.MethodsWeconductedtheinvestigationthroughtwomethods:interviewsandquestionnaires.Wesentout1000questionnairesand800customersrespondedtothem.300customerschosenrandomlycustomerquestionnaire’snumberswereinterviewed.PartTwoTheDecreasingProfitsinHarrodsDepartmentStoreInlastsixmonths,there’ssharplyprofitsfellshowedonthefinancialreportingformHarrodsdepartmentstore.Wedidresearchonthedecreasingproblem.25%Decreasingcomparedwith2011Aftertheresearch,wefoundthatunderthestrategyofHarrods,toofferawidechoiceofproductsandpersonalizedservice,thedepartmentstorehasworkedwelluntilrecently.Lastyear,however,profitsfellsharplyandresultsforthefirstsixmonthsofthisyearhavebeendisappointing.Thenwedidacomparingwiththisstor’sprofitsfromJanuarytoJunein2011and2013,thereisthechart:MonthMonthJan.Feb.Mar.Apr.May.Jun.TotalYear2011 21% 23% 18% 20% 25% 17%201317%19%14%16%20%13%-25%Competitio’sAverageProfitsin2011&2013Aftercomparedwithourownstor’sprofitsin2011,oneourteamdid researchonourcompetitiosaverageprofits专业技术专业技术.整理分享3.53.53WORD资料.可编辑2.52in2011&2013.Hereisthetable(onnextpage):1.5145%0.540%035%30%25%20%2013201115%10%5%0%Q1Q2Q3Q4Fromthetable,wecanseethat,whenHarrodsdepartmentstore sprofitsdecreasingsharplyinthistwoyear,thecompetitionhasgrownalot;itgivesusagreatcompetitivepressureatnowandfuture.Weneedtodosomethingtothebadsituation.MajorCausesoftheDecreasingFromtheresearch,wecanseethemajorproblemswhichthedecreasing,andwesummarizedthemasfollows:Asweonlyfocusedonsomehigh-qualityproducts,wecantexpandmarketshareinotheraspects,ourmarketpositioningisinflexible.Aseconomicglobalizationbecomesstrong,ourforeignmarketshoulddevelopmoredeepandwidely.Ourstrategyisgood,butitdidntpayattentionnowadaysshoppingfashion.ServiceconceptwasoutofWemusttakeconcretemeasurestosolvealltheproblems. WORD资料.可编辑 专业技术专业技术.整理分享PartThreeImpactonHarrodsDepartmentstoreThedecreasing oftheprofitsnotonly madedamagetotheeconomicinterestsofHarrodsdepartmentstore,itwillsjeopardizingtheHarrods’brandreputationandthenwhenweneedmorefundstoincreasetheprofitswillbeveryhard.MoreFundsNeededtoIncreasingProfitsIndeedtoincreasingthedepartmentstore’sprofits,weshoulddoalotofresearchandwork.Tomakeaperfectsolution,theprojectswillspendalotofmoneytogetthemostaccurateanswer.Duringthewholethings,wewillcooperatewithmanyfamouscompaniesoninvestigationordoingbusinessexpanding.Tomakesureeverythingismovingonscheduleandiswithinbudget,wewillmakeanaccurateexpense,andexpecttocompletetheprojectwithoutexceedingthebudget.JeopardizingtheHarrod’BrandReputationWiththeresultofourquestionnaire,wecanseethat:the800customers,650areemployeesandrestsofthemareteenagersandseniorcitizens.Intheemployeesgroup25%ofthemwithanannualincomeof100,more,andothersannualincomeisabout30,000to80,000£.Thehighincomegroup did’t show any unsatisfactoryto the serviceandproduct.Butinthemiddleincomegroup,manyofthemwantvalueformoneyandtofeeltheyhavegotabargainandserviceswhichmakelifeeasierorsavetime,whichtheythinkHarrodscan’tservewell.PartFourMethodsforIncreasingtheProfitsTheworkingteamhasworkedoutmethodstoincreasetheprofitsofthedepartmentstore.Wewilldependonmarketingpositioning,foreignmarket,andtrainingnewserviceasourmainapproachestoourcustomers.ThreeWaystoIncreasingtheProfitsToattractcustomerswewillrebuildourdepartmentstoretomakeaplaceforsomediscountgoods.Andinotherarea,likecommunitiesandshoppingmall,wewillsetupsomeconveniencestores,discountstoresandspecialitystoresascompetitiondid.Butasthelonghistoryandspecialbrandcharmwehas,ourstoreswillbeverydifferentfromothers.Wewilldevelopanewmessagetoourpotentialcustomers,that“LuxuryculturealsocanbeanApproachableculture.Themessagetogetherwithpicturesshowingfeaturesofnewstoreswillbeadvertisedinthelocalpapers,magazines,andournewcatalogs.AlthoughHARODDSisasuccessfuldepartmentstoreinLondonandhasmanychainstoresinNewYorkandItalian,wecan tignorethemegaconsumermarketinsomeAsiancountries,likeChinaandJapan.Thesecountriesownalargeconsumerpopulation,whichmakesthemconsumermarketswithgreatpotentials.Soweshouldtrytoconnectwiththoselocalbusinessmentoexpandourforeignretailchainsanddevelopforeignmarkets.Withasurveyshowsthat:astheEnglishpopulationages,oldergroupswillprovideopportunitiesforsalesgrowth.AndnowadaystheEnglishconsumerswantvalueformoneyandtofeeltheyhavegotabargain.Britainismovingfromaluxury culture to a convenience culture. People wantserviceswhichmakelifeeasierorsavetime.Sotheoldserviceconceptwasoutofdate,weshoulddoaseriesoftrainingstoimprovestaff sawarenessoftheshoppingfashionandtheircompetenceincompetinginthemarket.Thetrainingmainlyfocusesonhowtoservecustomerinapleasantway.Thenmostofpotentialcustomerswilltoourstores.PartFiveTheFundNeededtoCarryOuttheMeasuresTheestimatedcostsforthemeasuresaresummarizedTrainingstaff 5,Rebuilddepartmentstore& SetupnewstoresExpandingforeignretailchains 8,0000£PartSixConclusionsandRecommendationsAlthoughproblemsexist,greatbusinesspotentialistobeexploited.Wehavecalculatedthatallthemeasuresshouldbringanincreaseinprofitsby23%inthreemonths.Underimprovedserviceconceptandcreateamorecomfortableshoppingenvironment,Harrodscanremainhighinprofitabilityandoffsetthethreats.TheOfficehasworkedoutthreerecommendations:Setupacommittee(composedofstor’smanagers,representativesandgovernmentstaff)tomonitortheservice.Carryouttrainingforthestorsstaffandmanagers.Advertisethefeaturechangesofthestoreonthelocalpapers.SupplementaryParts
PartSevenAppendixQUESTIONNAIREOFTHEHARRODS’GOODSANDSERVICESThisquestionnaireisdesignedforHarrodsdepartmentstoesproblemsandfutureimprovementonitsgoodsandservices.Andwe’dliketocollectyourfeedback.Youdonothavetowriteyournameonthem.Youareaskedtofillinscalesandwriteconstructivesuggestionstoimproveit.Weappreciateyourtimeandeffortsverymuch!Selectyouranswersasfollows:5isahighlypositiveresponsetoaparticularquestion.1isahighlynegativeresponse.Useablue/blackpen
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