1. Retail Simulation Lecture
30-Jul-19
[Title of the course]
Retail Simulation Lecture
Part of the
ABW
Enterprise Education
E-Learning Program
For more information
http//:
Copyright © All rights reserved.
Copyright © NameOfTheOrganization. All rights reserved.

2. 30-Jul-19
Situation Analysis
[Title of the course]
You are about to take over and run a Retail – Consumer Electronics Company
Copyright © NameOfTheOrganization. All rights reserved.

3. Situation Analysis You currently lease one store
30-Jul-19
Situation Analysis
[Title of the course]
You currently lease one store
and a virtual online store
Copyright © NameOfTheOrganization. All rights reserved.

4. Situation Analysis You can lease another three stores
30-Jul-19
Situation Analysis
[Title of the course]
You can lease another three stores
And can upgrade your virtual online store
Copyright © NameOfTheOrganization. All rights reserved.

5. You sell products in 3 different categories
30-Jul-19
Situation Analysis
[Title of the course]
You sell products in 3 different categories
Category 1
$1 - $99
Category 2
$100 - $999
Category 3
$1,000 - $9,999
Copyright © NameOfTheOrganization. All rights reserved.

6. Situation Analysis You will: be divided into teams.
30-Jul-19
Situation Analysis
[Title of the course]
You will:
be divided into teams.
elect a Store Manager.
allocate roles in the areas of Marketing, Operations & Finance.
The key to success is to work together as a TEAM!
Copyright © NameOfTheOrganization. All rights reserved.

7. Situation Analysis
The objective of the simulation is to make the best decisions each quarter regarding the marketing, operations and finance of the business, in competition with other businesses in the market.
Your challenge now is to run this business successfully over a number of quarterly periods.

8. The Decision Sheet

9. Decision Sheet Operations No. of stores (1,2,3,4) 1 Store 1 Store 2
Online
med 50 20
Store size (sml,med,lge) 30
Store Quality (low,med,hi)
Category 1 Space (%)
Category 2 Space (%)
Category 3 Space (%)
Staff Level (low,med,hi)
Staff Training (low,med,hi)
Maintenance (low,med,hi)

10. Decision Sheet Marketing Category 1 Category 2 Category 3 $0 2,600
30-Jul-19
Decision Sheet
[Title of the course]
Marketing
Category 1
Category 2
Category 3
Clearance Price (AUD) $0
Clearance Units
Purchase Units
2,600
1,400
200
Purchase Price (AUD) 33
333
3,333
Selling Price AUD 49
499
4,999
Advertising
$250
$2,250
$22,500
$50
$500
$5000 No
Promotions
Specials (Yes/No)
Copyright © NameOfTheOrganization. All rights reserved.

11. Decision Sheet Finance Management $25,000 $20,000 $30,000 $15,000
30-Jul-19
Decision Sheet
[Title of the course]
Finance
Credit Facility
Employee Bonus
(% of profits)
Term Deposit
Management Bonus
(% of profits)
No. of Quarters
Community Support
Management
Manager
$25,000
Case Study Decision (Yes/No)
Operations Dept (3)
$20,000
Marketing Dept (4)
$30,000
Finance Dept (2)
$15,000
Copyright © NameOfTheOrganization. All rights reserved.

12. Product Demand Forecast
30-Jul-19
Product Demand Forecast
[Title of the course]
Category 1 11 10 9 8 7 6 5 4 3 2 1
Quarter
1000’s of Units
Category 2
Category 3
This shows demand for your products in the market and is revealed quarter by quarter.
Copyright © NameOfTheOrganization. All rights reserved.

13. Performance Indicators
30-Jul-19
Performance Indicators
[Title of the course]
Performance Index 5
After tax profit $ 102,184
Market share % 50
Return on assets % 49
Debt ratio % 67
Return on Equity % 100
Total Assets $ 310,050
Stock Turn 6.8
Revenue per m
Copyright © NameOfTheOrganization. All rights reserved.

14. 30-Jul-19
Performance Reports
[Title of the course]
Performance Index – reflects the market value of your business based on evaluating the key performance criteria
400,000
350,000
300,000
250,000
200,000
150,000
100,000
After Tax Profit ($)
17.5
15.0
12.5
10.0
7.5
5.0
2.5
Market Share (%)
After Tax Profit – shows the profit after tax has been paid out. The higher, the better.
Market Share – shows how much of the market your business has.
Copyright © NameOfTheOrganization. All rights reserved.

15. Performance Reports Debt Ratio (%) Return on Equity (%)
30-Jul-19
Performance Reports
[Title of the course]
100 90 80 70 60 50 40
Debt Ratio (%)
100 90 80 70 60 50 40
Return on Equity (%)
Debt Ratio - shows how much you have borrowed (liabilities) compared with how much the owners (equity) have put in.
Return on Equity - shows the business’ after tax profit as a % of shareholders equity. 35 30 25 20 15 10 5
Stockturn
700
600
500
400
300
200
100
Revenue per m2
Stockturn – shows how often stock is sold out in a quarter.
Revenue per m2 – is the amount of
sales revenue generated for every
square metre of selling space.
Copyright © NameOfTheOrganization. All rights reserved.

16. Strategy & Planning What is your General Direction?
30-Jul-19
Strategy & Planning
[Title of the course]
What is your General Direction?
Low End Pricing Prices below market due to low operating costs, special buys and tight controls
Medium Pricing Prices are set at market level. More attention spent on store hours, location and product assortment
High End Pricing Prices are set at above market levels due to posh atmosphere, distinctive products and super customer service
Copyright © NameOfTheOrganization. All rights reserved.

17. Sales What if you sold out? Increase purchasing levels & review:
30-Jul-19
Sales
[Title of the course]
What if you sold out?
Increase purchasing levels & review:
Selling price
Advertising
Promotions and Specials
Category Space
Check Product Demand Forecast
Lease another store and:
Decide on Store Size, Quality and Category Space
Copyright © NameOfTheOrganization. All rights reserved.

18. What if you have too much stock left over?
30-Jul-19
Sales
[Title of the course]
What if you have too much stock left over?
Decrease Purchasing Levels
Have a Clearance Sale
Review Selling Price
Check number of staff and staff training level
Advertise and Promote
Check the Product Demand Forecast
Copyright © NameOfTheOrganization. All rights reserved.

19. Revision Remember Fill in all the blanks on the Decisions Sheet
30-Jul-19
Revision
[Title of the course]
Remember
Fill in all the blanks on the Decisions Sheet
You can lease up to 4 stores and 1 virtual online store
Your purchasing decisions will be influenced by the Product Demand Forecast
Find out what your customers want
All details are in the manual
Copyright © NameOfTheOrganization. All rights reserved.

20. 30-Jul-19
Still not sure…..?
[Title of the course]
Don’t harass your mentor …… they cannot give you the answers
Work together
But above all remember to……..
Copyright © NameOfTheOrganization. All rights reserved.

21. HAVE FUN EXIT 30-Jul-19 [Title of the course]
Copyright © NameOfTheOrganization. All rights reserved.