MKT 534, Spring 2013, p.

MKT 534 Retail Strategy Spring 2013 Mondays and Wednesdays, 5:00- 6:20 pm Section 16534R JKP 102 Professor: Office: Office Phone: MOR Phone: E-mail: Office Hours: Judith Blumenthal BRI 307D Bridge Hall 213-740-0734 213-740-0728
judith.blumenthal@marshall.usc.edu

Mondays 3:50-4:50 p.m., and by appointment

Introduction and Course Objective The retail industry is undergoing a period of extraordinary turbulence. Many companies that only recently were riding a wave of growth in revenue, profit, and share price have been stunned as their markets have gyrated and consumer buying patterns have altered in unimagined ways. Far from continuing their aggressive expansion plans, many retailers are pulling backsome merely slowing expansion, others contracting, others declaring bankruptcy. Yet as in past periods of upheaval, there are and will continue to be winners as well as losers. Consumers will always need to buy things for themselves and their families, and there will be space for different retail formats and different value propositions. The retailers challenge and opportunity will be (as it always has been) to find a meaningful way to add value to products and services for a chosen segment of customers. This course will explore the following questions: What is the role of retailers in the supply chain that brings goods and services to consumers? How do retailers add value? How is the landscape of retailing changing? What trends are emerging? Which retail models are winning today? Which are likely to win in the future? What are the keys to managing a successful retail operation? What does it take for retailers to be profitable?

We will provide frameworks for analyzing retail firms, and the dynamics within the retailers competitive, industry, and macro environments. We will apply our knowledge through case analysis, discussion of current events, speakers, and student projects Learning Objectives By the end of the term, you will have learned how to: Analyze the role of retailing in the supply chain that links manufacturers to consumers; Understand the basic functions involved in running a retail business, and the concepts and principles necessary for decision-making in a retail firm; Analyze historical and current trends affecting retailing, including environmental, industry, firm, and consumer dimensions;

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Analyze retail sectors and retail firms from a strategic perspective; Develop recommendations and compelling arguments for strategic decisions in retail situations; Understand careers in retail and retail-related fields and be able to evaluate your own suitability for such careers.

Learning in this course The course combines concepts and application. There are two resources for the concepts componenta text and course readings. (Many of the latter are available through USCs electronic library reserves system (ARES); some are included in a course packet, available at the USC Bookstore; a few are on Blackboard.) The text provides wide breadth concerning conceptual frameworks used in retail analysis and the course readings offer depth and contemporary analyses of topics of particular interest. In terms of application, cases, current event readings, guest speakers and student projects will provide an opportunity for us to apply the theory. Students will have hands-on opportunity for research, analysis, and decision-making through projects requiring primary and secondary research on retail sectors and organizations. The amount of learning you accomplish will be a direct function of your personal involvement in these activities. ALL students are expected to come to class prepared for all discussions and activities. I will endeavor to create a supportive environment for our discussions, and I expect students to contribute to that goal too. My aim is make the class a learning community, where we can all learn from each other. This requires active participation and respect for each others contributions. Required Materials Retail Management, by Michael Levy, Barton Weitz, and Lauren Beitelspacher , (8th edition), McGraw-Hill. Course Reader, available at the Bookstore. See Appendix A for content USC Electronic Library, including ARES (See Appendix B) ; Marshall Electronic Library; Blackboard Access to the Wall Street Journal and current business press Recommended Materials: Sample of sites to sign up for e-mails on retailing
National Retail Federation: http://www.smartbrief.com/nrf/index.jsp?campaign=082010Trial_signupbutton WWD: www.wwd.com/newsletters Kantar Retail Forward: www.kantarretailiq.com The Robin Report: http://therobinreport.com/subscribe/

The Business of Fashion: http://www.businessoffashion.com/ Prerequisites One from GSBA 509a or GSBA 528 Course Notes Copies of course lecture notes/materials, further details on assignments, and general course announcements will be posted on Blackboard throughout the semester. You should develop the habit of checking the course folder on a daily basis. You can access Blackboard through the My Marshall portal http://mymarshall.usc.edu, or directly: https://blackboard.usc.edu. You will need your UNIX password.

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Important: E-mails sent to the class originate from the Blackboard system, and will also be archived as Announcements on Blackboard. It is your responsibility to insure that your e-mail address and account settings in Blackboard are correct for you to receive messages. If you need to send me an e-mail, you may do so through the Blackboard system. Grading Summary The components of the final course grade will be weighted as follows: Participation Midterm Examination Sector Presentation (team) Company Report (team) Final exam Total 20% 20% 20% 15% 25% 100%

Final grades represent how you perform in the class relative to other students. Your grade will not be based on a mandated target, but on your performance. Historically, the average grade for this class is about A-/B+ (3.5). Assignments and Grading Detail Class participation Because this class is built on in-class discussion and analysis, class attendance and active participation are essential to your learning. Pre-class preparation is crucial. You should complete all assignments in advance, and be prepared to describe the central ideas and offer your critical analysis of readings and cases (See Appendices C, D, and E). You are expected to prepare for speaker visits by doing research on their companies. This preparation will help you to ask meaningful questions and gain maximum benefit from the opportunity these visits afford. In addition, you are expected to read the business press, seeking articles pertaining to the topics covered in the course, and particularly the area you have chosen for your team projects. As class experts on your sector, you are expected to contribute examples and applications regularly. To encourage you to participate actively in class, I will cold call, and I will grade class participation. Class participation will provide a material portion of your grade. My logic for grading class participation is quite simple: Grading of class participation motivates class participation, and having highly interactive class sessions helps the learning process. Active class participation encourages students to be well prepared and thus to become active, rather than passive, learners. Participation provides students with the opportunity to gain from the experiences and talents of everyone in the class. And class participation helps students improve their oral communication skills. This is important because research shows that people in business tend to spend very little time reading and even less time writing reports. A great deal of managers and other professionals interactions with others are through oral communication.

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Class participation evaluations will be based primarily on the quality of the contributions to our classroom discussions. To help you understand what I am looking for regarding class participation, I have listed below some questions I will try to answer in evaluating class participation: (1) Does the class member make points that are especially pertinent to the discussion? Do they increase the understanding of the class or are they simply a regurgitation of the problem or case facts? (2) Is there continuity in one's contribution from what has been said previously during class, or are the comments disjointed, isolated, or tangential? The best class contributions are those that reflect not only excellent preparation, but also good listening, interpretive and integrative skills. (3) Do the comments reflect a willingness to put forth new, challenging ideas or are they always agreeable and "safe"? (4) Is the participant able and willing to interact with others by asking questions, providing supportive comments or challenging constructively what has been said? I will evaluate participation on a scale, the end points of which can be described as follows: Outstanding Contributor: This person's contributions reflect exceptional preparation, and the ideas offered are always substantive and provide major insights and direction for the class. If this person were not a member of the class, the quality of the discussions would be diminished significantly. Unsatisfactory Contributor: This may be a person who is absent from class or rarely participates in class discussion. Alternatively, this persons contribution in class reflects inadequate preparation and/or understanding. Ideas offered are not substantive and provide few, if any, insights and rarely or never a constructive direction for the class. Integrative comments and effective arguments are absent. Class comments are either obvious, isolated from the main discussion, or confusing to the class. If you are not present, are late, or leave early, you will lose points for class contribution. Each student is allowed three absences, no questions asked and no penalty. However, since you cannot participate if you are not present, all further absences will reduce the student's course grade, at the rate of one-third a letter grade for every additional absence. Students with an excessive number of absences are at risk of failing the course. If an emergency has prevented you from thorough preparation in a particular class, please let me know in advance to spare us both the embarrassment of my calling on you. Finally, a few words about classroom etiquette: An atmosphere of mutual respect is in order. So please... arrive at class on time: late arrivals are disruptive to your fellow classmates and to the conduct of the class; turn off your cell phones before you enter the classroom; do not engage in side conversations during class; do not pack up and leave towards the end of the class until it is clear the class is over.

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Midterm and Final Examinations The midterm and final examinations will consist of multiple types of questions (i.e. may include short answer, essay, analysis of a case or article etc.). NOTE: Except under extraordinary circumstances, no makeup examinations will be given for the midterm exam. A student who misses the midterm will be assigned 80% of the score he or she earns the final exam as a grade for the missed exam. A student must take the final exam AND complete all other course requirements to receive a passing grade for the course. Team assignments: Retail Sector Analysis and Final Group Research Project on a Company: Students will form teams of 5 members by the end of the second week of classes. These teams will be responsible for a sector analysis and a final research project on a company within that sector. (See Appendix F.) These two team projects (5 students per team) will give students the opportunity to develop expertise on a particular sector within the retail industry and then prepare a comprehensive analysis on a company within that sector. Sector analyses will be presented by student groups on several days shortly after the midpoint of the semester, and the final comprehensive company analysis (including recommendations) will due in writing in the last class. Sector selection: We will have no more than one team representing a sector. Members of that team will become sector experts, and are expected to read the press throughout the semester, and bring up examples from that sector as we discuss various topics. Please see Appendix: Sector Analysis and Final Group Research Project for sectors available for selection and further information.) You will provide me names of your team members and top three sector choices at the beginning of class on January 23. You will also email me electronic backup copy within 24 hours. Be sure to write the course number (MKT 534), and the words sector preferences in the subject line of the email. If there are multiple groups with the same preferences, I will randomly assign sectors. Notes: 1. Sector preferences must be submitted in typewritten form, following format guidelines discussed in this syllabus under Marshall and Course Guidelines. 2. Your sector preference list must identify key companies in the sector, including some publicly traded companies. 3. You must provide first, second, and third sector choices. 4. You must provide names of all group members. 5. For email copy, you must include the course number (MKT 534), and the words sector preferences in the subject line of the email. 6. Pleaseprovide all information in the body of the email, NOT in an attachment. Sector presentations: The sector presentations will occur on several days just after the midpoint of the semester. Presentations may range from 15-20 minutes. You will provide me with hard copy of your talking document Slides, PowerPoint Notes, and Appendicesat the beginning

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of your presentation, and email me a backup copy within 24 hours. Be sure to write the course number (MKT 534), your group number, and the name of the sector in the subject line of the email. See requirement for deliverable in Appendix F: Guidelines for Sector and Company Analyses). Final research paper on company within your sector: You will propose, in writing, a company for the final report no later than the date of the first sector presentations. I will approve all company proposals. The final company research analysis will be in written form (10-12 pages) and turned in on the last day of class. You will also attach the graded copy of your sector analysis. You will also email me a backup copy of your final report within 24 hours. Be sure to write the course number (MKT 534), your group number, the name of the sector, and the name of the company in the subject line of the email. See Appendix: Sector Analysis and Final Group Research Project. Additional information will be provided in class. Peer Feedback and Peer Evaluations (See Appendices G and H) This course relies heavily on teamwork. In addition to the team assignments, I strongly encourage you to meet in teams to prepare for class. Your learning from this course will be greatly augmented by team preparation. Following the sector presentation, students should complete the appended Peer Feedback form. This form is designed to help your team identify and addresses any team process issues after the first major team assignment, so as to enhance team effectiveness for the final project. After the sector analysis, this form should be completed, sent to each of your team members and discussed in a team meeting. The Peer Feedback form is for you to provide feedback for your team onlyit is not to be turned in to me. The Peer Evaluation form, also appended, is for me and will be turned in the last day of class, once the final company project has been completed. The peer evaluation covers BOTH the sector analysis and the final company project. Completion of the Peer Evaluation form is a course requirement, and will be considered part of class participation.

Marshall And Course Guidelines Add/Drop process You may be dropped from this class if you do not attend the first two sessions. Please note: If you decide to drop, or if you choose not to attend the first two sessions and are dropped, you risk being not being able to add to another section this semester, since they might reach capacity No makeup midterm examinations Except under extraordinary circumstances, no makeup examinations will be given for the midterm exam. A student who misses the midterm will be assigned 80% of the score he or she earns the final exam as a grade for the missed exam. A student must take the final exam AND complete all other course requirements to receive a passing grade for the course. Students with disabilities

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Any student requesting academic accommodations based on a disability is required to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP. Please be sure the letter is delivered to me as early in the semester as possible. DSP is located in STU 301 and is open 8:30 a.m. 5:00 p.m., Monday through Friday. The phone number for DSP is (213) 740-0776. Technology policy Laptop and Internet usage is not permitted during academic or professional sessions unless otherwise stated by the respective professor and/or staff. Use of other personal communication devices, such as cell phones, is considered unprofessional and is not permitted during academic or professional sessions. ANY e-devices (cell phones, PDAs, I-Phones, Blackberries, other texting devices, laptops, I-pods) must be completely turned off during class time. Upon request, you must comply and put your device on the table in off mode and FACE DOWN. You might also be asked to deposit your devices in a designated area in the classroom. Videotaping faculty lectures is not permitted, due to copyright infringement regulations. Audiotaping may be permitted if approved by the professor. Use of any recorded material is reserved exclusively for USC Marshall students. Assignment submission deadlines Assignments must be turned in on the due date/time specified and in the manner specified (hard copy/online/etc.). Any assignment turned in late, even if by only a few minutes, will receive a grade deduction. Deduction will depend upon period of lateness. For fairness, late penalties will be applied at a rate of 1/3 letter grade per day or part thereofe.g. being 2 days late would drop an A paper to a B+, a B to a C+, etc. Group presentations MUST be given on the date assigned in order for credit to be received. You must complete all required assignments to pass this course. Formatting of assignments All assignments must be typed on plain white 8 x 11 paper in 11 or 12-point font with one-inch margins around the page. All assignments must include a cover page with assignment title, course title and number, section number, date, and, for team projects, each team members name with e-mail address. All text material (not tables or references) must be double-spaced. All pages, including slides, must be numbered. Papers should be fastened with a staple in the upper left cornerno folders please. Creative formatting may result in penalty. Power Point slides submitted as hard copy MUST be legible. Usually (but not always) 2 slides per page will work. Also, there must be sufficient white space for comments. Number all slides. Any appendices must support and be referenced in the body of your report. Return and retention of graded coursework Students who miss class sessions when assignments are returned are responsible for arranging an appointment to retrieve their materials. To keep things fair for future students, I do not allow students to take their quizzes or exams out of the classroom. You may look these over in my office at any time. Final exams and all other graded work which affect the course grade will be retained for one year after the end of the course if the graded work has not been returned to the student; i.e., if I returned a graded paper to you, it is your responsibility to retain it. Academic integrity

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The following information on academic integrity, dishonesty, and the grading standard are placed here at the recommendation of the Marshall School of Business Faculty and are taken from the Faculty Handbook. Additional statements about student conduct and academic integrity may be found in the SCampus Handbook, online at http://www.usc.edu/go/scampus and from the Office of Student Judicial Affairs and Community Standards, found online at http://www.usc.edu/student-affairs/SJACS/ . The University, as an instrument of learning, is predicated on the existence of an environment of integrity. As members of the academic community, faculty, students, and administrative officials share the responsibility for maintaining this environment. Faculty has the primary responsibility for establishing and maintaining an atmosphere and attitude of academic integrity such that the enterprise may flourish in an open and honest way. Students share this responsibility for maintaining standards of academic performance and classroom behavior conducive to the learning process. Administrative officials are responsible for the establishment and maintenance of procedures to support and enforce those academic standards. Thus, the entire University community bears the responsibility for maintaining an environment of integrity and for taking appropriate action to sanction individuals involved in any violation. When there is a clear indication that such individuals are unwilling or unable to support these standards, they should not be allowed to remain in the University. (Faculty Handbook, 1994: 20) Academic dishonesty includes: (Faculty Handbook, 1994: 21-22) 1. Examination behavior - any use of external assistance during an examination shall be considered academically dishonest unless expressly permitted by the teacher. 2. Fabrication - any intentional falsification or invention of data or citation in an academic exercise will be considered a violation of academic integrity. 3. Plagiarism - the appropriation and subsequent passing off anothers ideas or words as ones own. If the words or ideas of another are used, acknowledgment of the original source must be made through recognized referencing practices. 4. Other Types of Academic Dishonesty - submitting a paper written by or obtained from another, using a paper or essay in more than one class without the teachers express permission, obtaining a copy of an examination in advance without the knowledge and consent of the teacher, changing academic records outside of normal procedures and/or petitions, using another person to complete homework assignments or take-home exams without the knowledge or consent of the teacher. The use of unauthorized material, communication with fellow students during an examination, attempting to benefit from the work of another student, and similar behavior that defeats the intent of an examination or other class work is unacceptable to the University. It is often difficult to distinguish between a culpable act and inadvertent behavior resulting from the nervous tensions accompanying examinations. Where a clear violation has occurred, however, the instructor may disqualify the students work as unacceptable and assign a failing mark on the paper.

Classroom etiquette An atmosphere of mutual respect is in order. So please... arrive at class on time: late arrivals are disruptive to your fellow classmates and to the conduct of the class; turn off your cell phones before you enter the classroom; do not engage in side conversations during class;

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do not pack up and leave towards the end of the class until it is clear the class is over.

Emergency preparedness/Course continuity In case of emergency, and travel to campus is difficult, USC executive leadership will announce an electronic way for instructors to teach students in their residence halls or homes using a combination of Blackboard, teleconferencing, and other technologies. Instructors should be prepared to assign students a "Plan B" project that can be completed at a distance. For additional information about maintaining your classes in an emergency please access: http://cst.usc.edu/services/emergencyprep.html Please activate your course in Blackboard with access to the course syllabus. Whether or not you use Blackboard regularly, these preparations will be crucial in an emergency. USC's Blackboard learning management system and support information is available at blackboard.usc.edu.

About Your Professor Judith Blumenthal has published, taught, and consulted in the areas of strategic management, organizational development and leadership, retail and services management, strategic alliances, and corporate governance. She has also served as a senior corporate executive. Dr. Blumenthal was Associate Dean of the Marshall School of Business (January 1996 through March 2000) and USCs Chief Alumni Officer (April 2000 through June 2006). She currently serves on the Board of Directors of Guess? Inc. as well as not-for-profit boards-- the Board of Directors of the California Council on Economic Education and the Advisory Board of USC Radio. She has also served on the District Board of Directors of the Council for Advancement and Support of Education (CASE), the Community Advisors for the Natural History Museum of Los Angeles County, and the USC Alumni Association Board of Directors. She received her bachelors degree in English from Hunter College of the University of New York, and her M.B.A. and Ph.D., Business Administration, from USC.

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MKT 534 RETAIL STRATEGY PROJECTED CLASS SCHEDULE SPRING 2013 ****You are responsible for any changes announced in class or on Blackboard**** Cl 1 2 D M W M 3 W Date 1/14 1/16 1/21 1/23 Topics Assignments Introduction Success in Retailing MLK Birthday--Univ. Holiday Types of Retailers Sector Preferences Due Text: Ch. 2.3 ARES: Zhang et al. Crafting integrated multichannel retailing strategies ARES: Strugatz, The Year in E-Tail Text: Ch. 5 ARES: Crawford & Mathews, Myth of Excellence (excerpts) CP: Surviving Disruption Text: Ch. 4, 17 ARES: Underhill, P. Why we buy. (excerpts) ARES: Strauss, In store aisles, less is more but customers can still be particular ARES: Iyengar, A better choosing experience Text: Ch. 6 Readings Text, ARES, CP(Course Packet),BB Text: Ch. 1 BB: Drexler article; Read for next week! Cases In Course Packet

1/28

Retail Market Strategy

QVC (897-050)

1/30

Consumer Buying Behavior Store Layout and Design

6 7 8

M W M

2/4 2/6 2/11

Retail Financial Strategy Retail Financial Strategy, cont. Guest Speaker Mike Relich, Guess, Inc. EVP & Global Chief Information Officer Information Systems and Supply Chain Management, CRM Info.Systems/Supply Chain/CRM (Review) Merchandise Planning and Buying Presidents DayUniv. Holiday Merchandise Planning and Buying, cont. Merchandise Pricing

Diamond Retailing: Blue Nile, Zales, & Tiffany (KEL394)

Text: Ch.10,11 Text: Ch. 12,13

W M

2/13 2/18 2/20 2/25

10 11

W M

Text: Ch. 14 ARES: AP-J.C. Penney gets rid of hundreds of sales ARES: Cespedes et al. Raise your prices ARES: Fishman, The man who said no to Wal-Mart ARES: Kadet, Price-point politics

12

2/27

Guest Speaker Neil Watanabe, Executive VP and CFO Annas Linens Retail Locations and Site Location Retail Locations/Site Location (Review) Human Resource Management Midterm Review Text: Ch. 7,8 Text: Ch. 9

13

3/4

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Cl 14

D W

Date 3/6

15 16

M W

3/11 3/13

Topics Assignments Guest Speaker Ken Stevens, Multiple CEO/President Positions and BODs in retail Midterm Examination Guest Speakers, Trader Joes Jon Basalone, EVP Marketing Bryan Palbaum, EVP, Finance and Admin Spring Recess Sector Presentations I Final company proposals due Sector Presentations II Sector Presentations II Guest Speakers Mike Jannini, President Cheesecake Factory with Alex Cappello, Chairman & CEO Cappello Capital Corp., and Lead Director, Cheesecake Factory Retail Communication Mix Careers in Retail Guest speaker Mark Werts Founder/Chief Executive, American Rag

Readings Text, ARES, CP(Course Packet),BB

Cases In Course Packet

ARES: Kowitt, Inside Trader Joes

17 18 19 20

M W M W

3/183/23 3/25 3/27 4/1 4/3

21 22

M W

4/8 4/10

Text: Ch. 15, Text: Ch. 16

-Beverly Stern Retail Executive (604-018)

23

4/15

24

4/17

Guest Speaker Wendy Klarik Senior VP and GMM, Guess? Inc. Customer Service as Competitive Advantage

25 26 27 28 29

M W M W W 1. 2. 3.

4/22 4/24 4/29 5/1

Historical Perspective on Retailing Luxury Retailing

Text: Ch. 18 CP: Spenner and Freeman, To keep your customers, keep it simple (R1205G) ARES: Berry, Serving unfair customers ARES: Evans, J. Retailing in perspective: the past is a prologue to the future BB: BCG, Luxe Redux

Mitchells/Richards (604-010)

Marshall Field and the Rise of the Department Store (801-349) Burberry (504-048)

Unique Positioning IKEA (504-094) Final Papers Due BB: BCG, Retail 2020 Course Wrap-up and Review 5/8 MKT 534 Final Exam 4:30-6:30 PM Regular Classroom All readings and cases are to be thoroughly prepared in advance of class. Additional readings may be added during the semester. They may be available electronically or require purchase at the Bookstore. Guest speakers will be an important part of the course. Speakers may be added and/or rescheduled during the semester, which may cause adjustments to this schedule. You are expected to prepare for all speaker presentations by doing individual research on their companies.

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Appendices Table of Contents Appendix A Course PacketTable of Contents Appendix B ARESTable of Contents Appendix C Case Assignment Questions Appendix D Guidelines for Case Analysis Appendix E Guide to Article Analysis Appendix F Sector Analysis and Final Group Company Project Appendix G Peer Feedback Form Appendix H Peer Evaluation Form

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Appendix A Course PacketTable of Contents Articles Surviving disruption (R1212C) To keep your customers, keep it simple (R1205G)

Cases QVC (897-050) Diamond Retailing: Blue Nile, Zales, & Tiffany (KEL394) Marshall Field and the Rise of the Department Store (801-349) Beverly Stern Retail Executive (604-018) Burberry (504-048) IKEA (504-094)

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Appendix B ARESTable of Contents (as of 1/7/13) (Additional readings may be added during the semester)

D'Innocenzio, A. Berry, L.L. and Seiders, K. Fishman, C. Kowitt, Beth Strauss, M. Evans, J. Zhang, J, . Faris,P Irvin, J., Kushwaha,T. Steenburgh, T & Weitz, B Iyengar, Sheena and Agrawal, Kanika

Associated Press Online J.C. Penney gets rid of hundreds of sales Business Horizons Serving unfair customers Fast Company The Man Who Said No To Wal-Mart Fortune Inside Trader Joe's Globe and Mail Update In store aisles, less is more but customers can still be particular International Review of Retail, Distribution and Consumer Research Retailing in perspective: the past is a prologue to the future Journal of Interactive Marketing Crafting Integrated Multichannel Retailing Strategies

strategy+business A Better Choosing Experience The Myth of Excellence Crawford, F. and R. Mathews Excerpts Wall Street Journal Kadet, Anne Price-Point Politics Cespedes, Frank, Ross, Elliot, Wall Street Journal and Shapiro, Benson Raise Your Prices Why We Buy Underhill, P. Ch 3, 5, 8 (Exerpts) WWD.com Strugatz, R. The Year in E-Tail: Lessons Learned and Looking Ahead

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Appendix C Case Assignment Questions

QVC 1. Is QVC conducting e-commerce? 2. Define the Existing Value chain for traditional retailers. What is QVCs Value system? Is QVC operating as a marketplace or marketspace company? What seed opportunities has QVC exploited? 3. Define QVCs value proposition. Which of the 7cs is/are the focus of why QVC can deliver value to the target market better than HSN? Diagram QVCs resource systems. How does the resource system support the value proposition? 4. Consider this quote, QVC does not fit any existing marketing theory. Do you agree? Defend your position. 5. Which capabilities of the resource system are readily leveraged for Internet based commerce? Diamond Retailing: Blue Nile, Zales &Tiffany See questions included at the end of the case Marshall Fields and the Rise of the Department Store 1. In the 1850s and 1860s, how did Field view the possibilities for mass distribution? Where did he get his information? 2. How did he act on this information and his larger vision? Which business practices made Marshall Field so successful? 3. How were Fields strategic initiatives related to the broader environment? 4. How would you evaluate Field as an entrepreneur? As an institution builder? 5. What were the most important lessons of Fields experience for brand creators and stewards today? Beverly Stern Retail Executive 1. What aspects of Beverly Sterns career in retailing appeal to you? (Explain) 2. What aspects do not appeal to you? (Explain) 3. Do you think she should accept the position with Gymboree? Why or why not?

Mitchells/Richards 1. In 2003 Mitchells/Richards was bringing in over $65 million in annual revenues in its two Connecticut stores, and industry observers had identified the company as one of the most successful clothing retailers of its size, with higher sales per square foot than any other mens clothing store in the US. Analyze the business model of this upscale retailer to identify the elements that seem to you most critical to its success thus far. 2. What options should the Mitchell family consider for its business going forward? For example, should they be looking to expand the range of products they sell, within largely the same

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market, or to expand the markets in which the company operates, with the same kinds of product lines? Or is expansion unrealistic, given your understanding of the business model? That is, is it unrealistic for Mitchells/Richards to survive as a family business that will sustain a fourth generation of owner/managers? 3. What do you recommend they do, and why? Burberry 1. Compare Burberrys market position relative to that of its competitors, including Polo, Coach, Armani, and Gucci. Is Burberrys competitive position sustainable over the long-term? Why or why not? 2. Because demand tends to be unpredictable in the world of fashion, the fashion business is inherently risky. In this context, consider the various changes Bravo made upon her arrival at Burberry. To what extent have these changes exacerbated or mitigated Burberrys risk profile? 3. Bravos team is currently juggling a lot of things, including multiple brands (Prorsum, London, Blue and Black, Thomas Burberry), multiple collections (womenswear, menswear, accessories), multiple channels (wholesale, retailincluding flagship and company-owned stores), and multiple licensees. What is the role of each of these elements in Burberrys overall business model? For example, what is the role of each of the sub-brands? What is the role of the company-owned stores? What is the role of licensing? 4. The case notes that Bravos team has managed to elevate the overall status of the Burberry brand. How has it managed to accomplish this? IKEA 1. What factors account for the success of IKEA? 2. What do you think of the companys product strategy and product range? Do you agree with the matrix approach described in Figure B of the case? 3. Despite their success, there are many downsides to shopping at IKEA. What are some of these downsides? IKEAs Visions Statement (in Figure C of the case) describes how the company seeks to build a partnership with its customers. What do you think of the vision statement? 4. The fact that IKEA hopes to have fifty stores in operation in the US by 2013 is an indication of how optimistic the company is about the viability of its value proposition in this country. Do you think IKEAs growth plans are overly optimistic? How would you improve IKEAs value proposition to make it even more attractive to American consumers? 5. To achieve its planned growth, should the company change its product strategy? If so, how? Product range? Number of styles and price points? Other? 6. How do think IKEAs value proposition and product lineup will look in ten years? 7. Some industry observers have suggested that IKEA should open a number of smaller, satellite stores across the US (e.g. in shopping malls, strip malls, etc.) What do you think of this idea?

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Appendix D Guidelines for Case Analysis Think of yourself as a consultant to the client in the case. For each case, imagine that you have been given a chance to study an organization and come up with a diagnosis and a set of recommendations. As with many real-world situations, the issues to be resolved may not be obvious. Study questions are provided, but these are offered only to get your thinking going they are not an agenda for your analysis or for our discussion. It is for you to identify the specific issues posed by the case, decide how they can be best addressed, and come to each class prepared to present and defend your own analysis. Most of these cases present a well-rounded picture of a business situation: they are not merely illustrations designed to exercise or test your knowledge of a given article or chapter of the textbook. As a result, the concepts needed to analyze the case and to formulate an appropriate action plan are not narrowly bounded by the textbook or specific readings. In many cases, you will find it useful to invoke concepts from earlier in the course, from other courses, or from your own experience. Note: Please do not go outside the materials I have provided, since that will undermine the quality of the class discussion. How to Approach a Case: Key Questions For each case, clearly identify the client. For whom are you performing the analysis and making recommendations? This is the person who will need to implement your recommendations (assuming s/he accepts them!) The basic questions for all cases are essentially the same: 1. What is the most critical challenge the client and the organization need to address? Why is it important to address this challenge? 2. What makes addressing this challenge difficult? 3. What is your analysis of the underlying, or root issues responsible for the situation that make it difficult to address? What evidence do you have that this is, in fact, the underlying, or root, cause? (Digging for the source of the challenge is where the major part of your analysis will focus!) 4. What alternatives does the organization have in tackling these issues, and which alternative makes most sense? Make sure that you propose just a few alternative solutions that actually address the underlying issues you have identified! Were not interested in a laundry list of good ideas you have for the company. We are interested in solving a particular issue. 5. What specific action plan would you recommend? Why? How to Approach a Case: The Process The following approach to case analysis has proven helpful. a. Rapidly read the case to get a sense of layout and a general understanding of background and issues. During this initial reading, try to form preliminary hypotheses. Initial impressions

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b.

c.

d.

e.

f.

can be revised, but this groundwork will provide structure and direction for more in-depth reading. Carefully re-read the case,-i. Take notes that organize information and separate the wheat from the chaff. ii. Test and refine your hypotheses as you read, modifying or rejecting them as new information surfaces. iii. Clarify what the key challenges really are. These are the challenges your recommendations will address. They may or may not have been obvious on first reading. iv. Develop analysis questions to help illuminate the situation on which action needs to be taken. What do you need to understand that is not apparent in the case? Perform qualitative and quantitative analyses, as appropriate. If important data are not available in the case, precise descriptions of what data are missing often trigger ideas for making creative use of the information that is available, or for developing well-informed assumptions about necessary but missing information. Be sure to distinguish between factual data from the case, opinions of actors in the case, and assumptions you make. REMEMBER: Your objective is to get beyond the level of problem symptoms to analyze underlying issues and causes. Identify and evaluate reasonable alternative courses of action, based on appropriate criteria. You will explicitly consider and reject various alternatives: Some may not be effective in addressing the issues you identified, others may cause more problems than they solve or cost more than they are worth, others may not be feasible or acceptable to management (solutions should be compatible with the values and preferences of management and those who will implement them). In formulating alternatives, avoid copouts such as: "Hire a new president who can solve the problem," Conduct market research," or "Hire a management consultant to solve the problem. Decide on a course of action to recommend. Your solutions must address the challenges you have identified and follow logically from your analysis. Remember: Goals are not recommendations for action. Dont say, Improve the culture, unless you can offer a plan to accomplish it. Recommend a plan by which the desired action may be achieved or implemented within the constraints encountered in the situation. This is a good final acid test. If you solution is not do-able, it is not a good solution.

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Appendix E Guide to Article Analysis The following set of questions is provided to guide your analysis of the readings assigned this semester. Please use this guide to structure your article analyses. 1. What is the purpose or objective of this article? (To challenge or debunk a well-accepted view; to contribute to a body of theoretical work; to explain a puzzling exception; to update theory in response to current phenomena; etc.) 2. What is the articles basic argument/thesis? Its major findings/ conclusions? 3. What is the nature of evidence presented in support of the argument/ thesis? (Impressionistic, theoretical, empirical, etc.) Are the conclusions well supported? 4. Are there important assumptions, assertions, values, or biases that the author expects us to accept without support? Are these explicit or implicit? 5. How does this article contribute to your overall understanding of the subject? How does it relate to other articles you have read and to your own knowledge and experience? 6. How useful is the article for practicing managers? 7. Does the article leave you with any remaining problems or concerns?

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Appendix F Sector Analysis and Final Group Research Project These two team (5 students per team) research projects are related. In the first part, you will present research and analysis about a sector in the retail industry, and in the second project, you will prepare a complete analysis of a real retail company in that sector, including recommendations for its future. Details for sector selection submission are provided in body of syllabus, in section, Assignments and Grading Detail. You will propose a company within the sector for your final analysis no later than the date of the first sector presentations. I will approve all companies for final projects. Additional details will be discussed in class. Sector Analysis The sector analysis is basically similar to an industry/strategic group analysis in a strategy class. You will make a 15-20 minute presentation and turn in a Power Point report, including exhibits and a bibliography of articles and other sources for information used in making your report. Sources will include 10K reports at www.sec.gov, articles in magazines and newspapers found through library database, company web sites, etc., as well as data discovered through primary research (e.g. interviews with store executives). You must provide sources for your data on individual slides and in bibliography. Sectors available for selection are: Womens apparel and accessories stores Department stores Food stores Mens Electronics and entertainment Books Mass, club, dollar Childrens Jewelry Shoes Furniture Office supply Hard goods Sporting goods Auto Drug Do-It-Yourself

Final Written Company Report: You must select a publicly traded company for which financial data are readily available. While the company does not have to be locally-based, it should have stores that you will be able to visit. The company may not be one that the class is studying in a case analysis this semester.

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I will approve all student projects, and will make assignments if preferences are not submitted on time. Your assignment is to prepare an analysis of the retail firm within a sector. You will identify the retailers strategy and compare your focal retailer to its direct competitors in terms of: the retailers target market and positioning, its retail mix (merchandise variety and assortment, pricing, locations, etc.), and its bases for developing a competitive advantage. Include a financial analysis for the retailer comparing its present to past performance and the performance of competitors. Based on your analysis, make recommendations for your retailers future strategy. Your group will turn in a paper, approximately 10-15 pages, plus, exhibits and a bibliography of articles and other sources for information used in making your report. Sources will include 10K reports at www.sec.gov, articles in magazines and newspapers found through library database, company web sites, etc., as well as data discovered through primary research (e.g. interviews with store executives). You must provide sources for your data on individual slides and in bibliography. The report should contain a comprehensive analysis, including important detail concerning relevant competitors, an in-depth company analysis, and recommendations for top management, with supporting logic. All reports are due at the beginning of the last class.

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Appendix G Peer Feedback Form After your team presentation, you need to give each of your team members feedback and then discuss all this feedback in your team. The simplest way to proceed is to fill out the form below, give it to each of your team members and discuss it in a team meeting: You will share this form with your team members, not with me.

I like the way you <team member name:>

I wish you

<team member name:>

<team member name:>

<team member name:>

<team member name:>

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Appendix H Peer Evaluation Form

This form must be completed and submitted to me on the last day of class. Aggregate results may cause me to adjust individual grades for team projects up or down. Please consider overall contribution of team members to the two team projects, taking into account the following: Preparation: Rate the extent to which the member completed the necessary assignments, had read the related material, and was ready to contribute to the team. Input: Rate the extent to which the member provided valuable input of ideas towards the teams work. Diligence: Rate the extent to which the member took on the necessary roles to complete the teams work, their timeliness in completing and distributing work, and the quality of the work performed. Facilitation: Rate the extent to which the member helped the team maintain a positive climate and work together effectively. Please follow directions carefully! Allocate 100 points across all the members of your team apart from yourself to reflect your assessment of their individual contributions to the team effort. I will treat your assessments as confidential.

Your name: ____________________________________________________ Course name: ___________________ Date form completed_____________ Course number:_________________ Section number:__________________ Group #: _____________________ Team-member name: 1. _____________________ 2. _____________________ 3. _____________________ 4. _____________________ 5. _____________________ Total: Contribution %: _____ _____ _____ _____ _____ 100% Comments _______________________________ _______________________________ _______________________________ _______________________________ _______________________________

General Comments (Use additional page if necessary): __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________