Assighment Essay Example | Topics and Well Written Essays - 1000 words

Assighment - Essay Example All this will indeed be a challenge for me but utilizing the gained knowledge will help me overcome the challenges and make the store a profit center. Discussion What are the most significant challenges facing you as manager of this store? For me as the manager, the most significant challenges can be enumerated as follows: Low volume of Sales: As the manager of the store, the most important thing for me to keep the store afloat would be the finances. The store cannot operate at a loss and to ensure that it is not at a loss, sales are the most important criteria. The store will have certain fixed overheads and certain variables. Fixed overheads include salaries, electricity, rent, telephone expenses etc. These are the costs the store has to bear even if there is no sale. These components are discounted by the profit which is generated out of sales. In the event of no or low sale, the fixed expenses stand as it is and proves heavy for the store. Variable expenses also are a part of exp enses which are incurred in case of sale. Suppose freight charges for delivery of products etc. So this cost is only incurred if there are sales and is directly proportionate to sales. So in case, there is low sale, my store will have to bear the fixed overheads at least. There needs to be a minimum amount of sale to cover the fixed costs and be at zero profit at least(Berman, 2007). Manpower issue: Since the store is not doing well, the manpower cannot be more due to their costs. The plus point here is that the store has a good blend of experienced and fresh manpower. So to utilize maximum potential from them, the experienced ones should provide some training to the fresh ones and always back them up during sales. The attrition rate also has to come down to save on training time and cost. Branding and Advertising: Since the store once enjoyed loyalty of customers in neighborhood, the goodwill re-building would not be so difficult. I should focus on how I can harness the goodwill al ready built among certain groups of people to attract them to be our customers at the shopping mall and to promise them that the quality of products and services are same irrespective of change of hands of the store. What steps would you take during the first 90 days as manager to address these challenges? In the first 90 days, the steps I would take have been described below: Since the employees include high school and college students, I would harness their contacts to boost my sales. I would plan an incentive for each employee if they give me a minimum amount of business. Example: An employee will be offered x% of the sales value if they give a minimum of x amount of business. Since they are college students, offering only a small amount will be enough to motivate them to bring in business. This will be done keeping in mind the profitability of business. Once we have customers, they can be converted to repeated customers later on through schemes and good service. Specifically aim ed promotion: The store needs to be promoted in such a way that the people who were already loyal customers can connect to the promotion activities and believe that the store is still the same as they liked it even after change of hands. The erstwhile loyal customers will be the first ones whom I would like to be my customers as they will be easy to convince. Once they are back, word-of-mouth will play