RMG 400 Lecture 3: Week 3 Notes

• School: Ryerson University
• Department: Retail Management
• Course: RMG 400
• Professor: Bharat Sud

Document Summary

Non-bricks & mortar: e-selling, catalog and direct mail, direct selling, tv home shopping, vending machines. Retail classifications: soft goods, food, hard goods, building supplies, auto, clothing. Backward & forward integration: vertical owning processes in the supply chain (ex. Manufacturing your chocolate and owning retail stores: horizontal- buying retailers on the same level (ex. Buying another retailer: backward integration- merging with firms who used to supply the firm, forward integration- Integration: more control over processes, lower costs, outsourcing, faster to implement, more flexible, specialized. Why is measurement important: benching marking set by external factors, kpi (key performance indicators) continuous improvement. What are metrics: time, quality, dollars (revenue, profit, margins, ebitda) Annual sales: annual net earning, earnings per share, sales per sq. Breakeven analysis: used to decide to move to the next step, is it worth doing, should we invest, will we make a profit, break even is: revenue = total cost. Fixed costs: not dependent on number of units.