Understanding why the business is performing well, or poorly, is critical to business success. If the business is performing well, managers need to know why it is doing well so they can maintain and improve that performance. If the business is performing poorly, managers need to know why so they can correct problems and turn around the performance.
Based on your research and conclusions regarding the most relevant metrics to use, select one of the following scenarios (A or B) and answer the questions. Identify your choice in your threads subject line.
Scenario A: It’s July 1, and internal reports show that the sales growth rate in the Automotive department in your Walmart store has slumped over the past quarter when compared to last year. Your store is located in an area of the city that is seeing a lot of new commercial and retail development. Your store also went through a major reset that was completed on March 1.
a. Speculate on and choose one external risk factor that may be affecting the sales growth rate in the Automotive department. Identify one action you could take to respond to that risk factor to improve sales growth in the department.
b. Speculate on and choose one internal risk factor that may be affecting the sales growth rate in the Automotive department. Identify one action you could take to respond to that risk factor to improve sales growth in the department.
Scenario B: It’s September 1, and internal reports show that the inventory turnover ratio in the Office department of your Walmart store has increased over the past quarter when compared to last year. Your store is located in an area of the community that has seen a lot of residential development in the past year, and a new middle school opened just in time for the new school year. In addition, new inventory management practices were implemented in your store in July.
a. Speculate on and choose one external factor that may be positively affecting the inventory turnover ratio in the Office department. Identify one action you could take to take advantage of the opportunity represented by this external factor.
b. Speculate on and choose one internal factor that may be positively affecting the inventory turnover ratio in the Office department. Identify one action you could take to take advantage of the opportunity represented by this internal factor.
