Question 1

As a general rule,retailers should strive for a financial leverage of:

Accepted Answer

A)  1.0 to 2.0 times. 
B)  2.0 to 3.0 times. 
C)  3.0 to 4.0 times. 
D)  4.0 to 5.0 times. 
E)  5.0 to 6.0 times. 
A)  1.0 to 2.0 times. 
B)  2.0 to 3.0 times. 
C)  3.0 to 4.0 times. 
D)  4.0 to 5.0 times. 
E)  5.0 to 6.0 times.

Question 2

A retailer only needs to consider its strengths and environmental opportunities when formulating a strategic plan.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is an incorrect statement regarding strategic planning?

Accepted Answer

A)  A short-term commitment of resources is required by strategic planning. 
B)  The strategic planning process is started by assessing the external environment. 
C)  Effective strategic planning can aid a retailer in contending with competitors. 
D)  Strategic planning takes into consideration how a retailer responds to the environment. 
E)  Ineffective strategic planning can lead to a decrease in a retailer's level of profitability. 
A)  A short-term commitment of resources is required by strategic planning. 
B)  The strategic planning process is started by assessing the external environment. 
C)  Effective strategic planning can aid a retailer in contending with competitors. 
D)  Strategic planning takes into consideration how a retailer responds to the environment. 
E)  Ineffective strategic planning can lead to a decrease in a retailer's level of profitability.

Question 4

Merchandise productivity:

Accepted Answer

A)  is net sales divided by the total square feet of retail floor space. 
B)  states how many dollars in sales the retailer wants to generate for each square foot of store space. 
C)  is net sales divided by the number of full-time-equivalent employees. 
D)  reflects how many dollars in sales the retailer desires to generate for each full-time-equivalent employee. 
E)  is net sales divided by the average dollar investment in inventory. 
A)  is net sales divided by the total square feet of retail floor space. 
B)  states how many dollars in sales the retailer wants to generate for each square foot of store space. 
C)  is net sales divided by the number of full-time-equivalent employees. 
D)  reflects how many dollars in sales the retailer desires to generate for each full-time-equivalent employee. 
E)  is net sales divided by the average dollar investment in inventory.

Question 5

If a retailer is assessing the remodeling needs of its stores,as well as evaluating the effect that the lack of a formal training program is having on the management of its establishments,the retailer is reviewing the firm's:

Accepted Answer

A)  strengths. 
B)  weaknesses. 
C)  opportunities. 
D)  threats. 
E)  operations. 
A)  strengths. 
B)  weaknesses. 
C)  opportunities. 
D)  threats. 
E)  operations.

Question 6

As a general rule,a retailer should strive to have its financial leverage between 3.0 and 4.0 times.

Accepted Answer

A) True 
 B)False

Question 7

A strategy is a carefully designed plan for achieving the retailer's goals and objectives.

Accepted Answer

A) True 
 B)False

Question 8

The four basic types of objectives that a retailer can formulate are:

Accepted Answer

A)  financial, gross margin return on sales, return on assets, and return on net worth. 
B)  equity, benefactor, consumer choice, and employment. 
C)  sales volume, market share, productivity, and profitability. 
D)  societal, market performance, personal, and financial performance. 
E)  marketing performance, profitability, productivity, and societal. 
A)  financial, gross margin return on sales, return on assets, and return on net worth. 
B)  equity, benefactor, consumer choice, and employment. 
C)  sales volume, market share, productivity, and profitability. 
D)  societal, market performance, personal, and financial performance. 
E)  marketing performance, profitability, productivity, and societal.

Question 9

Which of the following is NOT an example of a financial performance goal?

Accepted Answer

A)  Increase return on assets from 8 percent to 9 percent. 
B)  Increase asset turnover from 2.5 to 2.8. 
C)  Increase market share by 20 percent. 
D)  Increase space productivity by 5 percent. 
E)  Reduce financial leverage from 2.1 to 2.0. 
A)  Increase return on assets from 8 percent to 9 percent. 
B)  Increase asset turnover from 2.5 to 2.8. 
C)  Increase market share by 20 percent. 
D)  Increase space productivity by 5 percent. 
E)  Reduce financial leverage from 2.1 to 2.0.

Question 10

Target market refers to the group of consumers that a retailer is seeking to serve.

Accepted Answer

A) True 
 B)False

Question 11

Value proposition is the difference between the benefits offered by one retailer versus those of the competition.

Accepted Answer

A) True 
 B)False

Question 12

Managers are usually evaluated on financial leverage since return on assets is beyond their control.

Accepted Answer

A) True 
 B)False

Question 13

As a general rule,a retailer should strive to have a net profit margin of 1.5 to 2.5 percent.

Accepted Answer

A) True 
 B)False

Question 14

Net profit margin is calculated by dividing the retailer's net profits by markup in dollars.

Accepted Answer

A) True 
 B)False

Question 15

Most smaller retailers have more control over this important factor for successes than larger retailers:

Accepted Answer

A)  promotional strategy. 
B)  location. 
C)  personnel. 
D)  service levels. 
E)  credit policies. 
A)  promotional strategy. 
B)  location. 
C)  personnel. 
D)  service levels. 
E)  credit policies.

Question 16

If a retail firm is attempting to determine the potential negative effects of a new competitor entering the market,it is assessing its:

Accepted Answer

A)  strengths. 
B)  weaknesses. 
C)  opportunities. 
D)  threats. 
E)  operations. 
A)  strengths. 
B)  weaknesses. 
C)  opportunities. 
D)  threats. 
E)  operations.

Question 17

An equity objective reflects the retailer's desire to treat the consumer and suppliers fairly and not endanger their living conditions.

Accepted Answer

A) True 
 B)False

Question 18

Poorly managed operations can positively affect a retailer's profitability.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not a step in the strategic planning process:

Accepted Answer

A)  develop action plans. 
B)  perform a SWOT analysis. 
C)  define specific goals and objectives. 
D)  a well defined mission statement. 
E)  strategy development 
A)  develop action plans. 
B)  perform a SWOT analysis. 
C)  define specific goals and objectives. 
D)  a well defined mission statement. 
E)  strategy development

Question 20

A good mission statement states how the retailer intends to use its resources,how it expects to relate to the ever-changing environment,and how it expresses the values it intends to offer the consumer.

Accepted Answer

A) True 
 B)False

As a general rule,retailers should strive for a financial leverage of:

A retailer only needs to consider its strengths and environmental opportunities when formulating a strategic plan.

Which of the following is an incorrect statement regarding strategic planning?

Merchandise productivity:

If a retailer is assessing the remodeling needs of its stores,as well as evaluating the effect that the lack of a formal training program is having on the management of its establishments,the retailer is reviewing the firm's:

As a general rule,a retailer should strive to have its financial leverage between 3.0 and 4.0 times.

A strategy is a carefully designed plan for achieving the retailer's goals and objectives.

The four basic types of objectives that a retailer can formulate are:

Which of the following is NOT an example of a financial performance goal?

Target market refers to the group of consumers that a retailer is seeking to serve.

Value proposition is the difference between the benefits offered by one retailer versus those of the competition.

Managers are usually evaluated on financial leverage since return on assets is beyond their control.

As a general rule,a retailer should strive to have a net profit margin of 1.5 to 2.5 percent.

Net profit margin is calculated by dividing the retailer's net profits by markup in dollars.

Most smaller retailers have more control over this important factor for successes than larger retailers:

If a retail firm is attempting to determine the potential negative effects of a new competitor entering the market,it is assessing its:

An equity objective reflects the retailer's desire to treat the consumer and suppliers fairly and not endanger their living conditions.

Poorly managed operations can positively affect a retailer's profitability.

Which of the following is not a step in the strategic planning process:

A good mission statement states how the retailer intends to use its resources,how it expects to relate to the ever-changing environment,and how it expresses the values it intends to offer the consumer.

Perspectives on Retailing

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Exam 2: Retail Strategic Planning and Operations Management

As a general rule,retailers should strive for a financial leverage of:

A retailer only needs to consider its strengths and environmental opportunities when formulating a strategic plan.

Which of the following is an incorrect statement regarding strategic planning?

Merchandise productivity:

If a retailer is assessing the remodeling needs of its stores,as well as evaluating the effect that the lack of a formal training program is having on the management of its establishments,the retailer is reviewing the firm's:

As a general rule,a retailer should strive to have its financial leverage between 3.0 and 4.0 times.

A strategy is a carefully designed plan for achieving the retailer's goals and objectives.

The four basic types of objectives that a retailer can formulate are:

Which of the following is NOT an example of a financial performance goal?

Target market refers to the group of consumers that a retailer is seeking to serve.

Value proposition is the difference between the benefits offered by one retailer versus those of the competition.

Managers are usually evaluated on financial leverage since return on assets is beyond their control.

As a general rule,a retailer should strive to have a net profit margin of 1.5 to 2.5 percent.

Net profit margin is calculated by dividing the retailer's net profits by markup in dollars.

Most smaller retailers have more control over this important factor for successes than larger retailers:

If a retail firm is attempting to determine the potential negative effects of a new competitor entering the market,it is assessing its:

An equity objective reflects the retailer's desire to treat the consumer and suppliers fairly and not endanger their living conditions.

Poorly managed operations can positively affect a retailer's profitability.

Which of the following is not a step in the strategic planning process:

A good mission statement states how the retailer intends to use its resources,how it expects to relate to the ever-changing environment,and how it expresses the values it intends to offer the consumer.

Perspectives on Retailing

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters