Notesale: Turn your study into money

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Rebecca Waterfield

WHAT IS RETAIL
BUSINESS?
In this article you will learn about retail
business and what is involved in trying to
run a business
...
I will
discuss two different businesses, Subway
and CEX (computer exchange) and show
how they do this
...
The
size of a business depends on the amount of
employees they have
...
A medium
business has 50 to 249 employees and a large
business has over 250 employees
...
If a business has
too many they may have too many wages to
pay and could be losing money
...
This will mean the company
should employ more people
...
A subsector is the range of
products the company deal with
...
The location
that a company opens a store depends on
what type of product they are selling and the
type of outlet they are opening
...
This
is
usually
where
superstores
and
hypermarkets open, for example, Morrisons
and Tesco
...


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RETAIL CHANNELS
‘A retail channel is the method that a retailer
chooses to sell their products or services to
the market
...
A retail channel
is a method that a retailer uses to sell their
products
...
webuy
...
As they have over 10 stores
that sell similar products, CEX has multiple/
chain stores
...

OWNERSHIP
There are five different ways in which a
business can be owned, these include the
business being a sole trader or a partnership
...
A partnership is where every
member of staff owns a part of the business;
this means that everyone receives a share in
the profits
...
CEX is a private limited company,
although they do sell their business to
franchisees
...
’s often are family-run
businesses because they have limited liability
and this gives them security
...
Shareholders
are not personally responsible for the
businesses debts
...


ADVANTAGES OF LTD’S



Shareholders
are
not
personally
responsible for the businesses debts, so
luckily it won’t affect every store owner if
one goes into debt and shareholders
can’t lose money this way
...






DISADVANTAGES

Arguments might happen between the
shareholders and the directors of the
company about the way it is run
...

There are more rules about the accounts of
these businesses, they are told to produce
complex data about the company’s finances
which can be expensive and take a lot of time
...

There is a lot of paperwork to fill out each
month this could take a lot of valuable time
and probably isn’t simple to do
...
It operates in
the food and grocery subsector and has
multiple/ chain stores in over 37,000 locations
around the world
...
Subway stores are located in many

2

different types of places but mostly in primary
locations such as the Grand Arcade and the
Manchester Arndale which are in very busy
cities, this ensures they obtain as much footfall
(people walking past the store) as possible
...

Franchisees are probably happy because they
are not being controlled too much and can
make business decisions for themselves
...
This ensures that customers will buy
products from your shop as they are familiar
with the products
...
Franchisees will get
more money from customers than new
business owners
...

DISADVANTAGES
•Have to follow specific rules and guidelines, don’t
have very much independence and cannot decide
things on your own
...

•You may have to pay fees such as advertising, this
could mean you run out of money and don’t have
enough to pay for other things
...

•There are no guarantees that you will be successful,
you could pay a lot to the franchiser and not be
successful
...

•You may have very little control over the business
this may frustrate franchisees as they aren’t allowed
to do what they want in the business
...


RETAIL CHANNELS
Subway sells from over 43,000 stores around
the world with over 1500 stores located here in
the UK
...
subwayfresh2u
...
uk
and either gets then delivered straight to your
door or you collect them from your nearest
store
...

Shelf stackers have to make sure everything
looks good and attracts people to buy the
products
...
If they didn’t do their jobs properly
it would probably make the numbers of sales
decrease dramatically as people might get
bored and leave
...
However, if they
wanted to move up a role in the business they
could become game testers or cashiers
...
They have
had experience with talking to customers and
answering their queries
...

Another important role is to be a cashier, in
CEX the cashiers have to answer questions
the customers have about the technology
they’re selling or buying
...
Also,
many customers buy a whole pile of games
and the cashiers are the ones that have to find
every individual game they want to buy in the
stock room
...
Cashiers already have
knowledge about the finances of the company
and also know what needs changing or
improving in the store from personal
experience and the satisfaction of customers
...

Sandwich artists make the sandwiches for
customers
...
Afterwards, they have
to put the correct toppings on the sandwiches,
then put them in bags and give them to the
customers
...
If there weren’t
sandwich artists they wouldn’t be able to sell
any sandwiches
...

If you wanted to move up in the business you
would become a senior sandwich artist and
then a shift manager
...
This means
you would be able to help the other workers
well because you know what you are doing
and have experience
...
They ensure the
employees are doing a good job and keeping

the customers happy
...

They also manage safety and security within
the store and make sure it is a safe and secure
place for employees and customers to be in
...

Subway needs people to do this because if
customers are not pleased with the service
they receive they probably won’t come back
...
To move up a
role in the business assistant managers can
become managers and then multi- unit
managers
...

NON-OUTLET RETAILING
Non- outlet retailing is selling goods outside of
shops and stores such as through vending
machines, on the internet, on the telephone or
on shopping channels such as QVC
...

They
have
a
website,
www
...
com, where you can buy and sell
products online
...

There is also free delivery
...
And in airports like Gatwick
where there are also many people needing a quick
place to stop for food
...
A kiosk like the one in a London train
station could have more customers than a Subway
store and is very cheap to run and build
...


4

SUPPORTING BUSINESSES
Supporting businesses are usually used in
almost all businesses, they help them to
transport goods, deal with money, supply
goods etc
...

TEMPO
TEMPO is an online accounting service for
small businesses
...
They tell you
what needs doing with your business and
check where your money is going and if you
have enough money to pay for things
...

Accountants are usually needed as it can be
very hard to manage money that is going and
coming from so many places
...

EDDIE STOBART
Eddie Stobart is an important transport
business and is used to transport goods for
businesses
...

One is that most shops such as subway and
CEX have limited storage, so deadlines have
to be met as if they are not this could end up in
over storage or a shortage of products in the
shop
...

Transport companies like Eddie Stobart are
also needed within businesses as transport
vehicles can be incredibly expensive to buy
and almost impossible for a small business to
invest in, transport companies are very
important to businesses
...
Lastly, it
needs to have time and a clear deadline to
achieve the objective in
...


LTD’S AND FRANCHISES
Ltd
...
This also happens in a franchise
because you have to follow specific rules and
you don’t have much control
...
Ltd
...

Both ownerships can be quite expensive, to
become an ltd it can be a difficult and
expensive process and franchisees have to
pay fees such as advertising
...
However, owners are not the final
decision makers in an ltd
...
An objective needs
to be smart
...

it also needs to be measurable so you are able
to measure whether you have achieved your
target
...
Also realistic and
you have to have the resources to make it

5

Aims are very important for businesses, they
are what they need to keep going and create a
successful business
...

From 2007, subways aim in New Zealand was
to gain money using the subway rewards card,
the Subcard as a way of increasing store sales
by getting customers to register using email
addresses to receive advertisements and
offers
...
After this 20% more people revisited
subway a within a month of their last visit
...

Another objective in the UK and Ireland was to
have 2010 stores by 2010 as it would make
advertising that would make more people want
to be subway customers and franchisees
...
’
They had two objectives to for fill this aim, to
‘reduce salt by 19%’ and to ‘launch healthy
eating campaigns’
...
Menus for children
will bring in more families and will make
parents feel reassured their child is getting
what they need
...

Subways main vision for the future is to be the
number 1 quick service restaurant franchise in
the world, while delivering fresh, delicious
sandwiches and an exceptional experience
...


CEX

SUBWAY

CEX’s first aim was to get their business
known and to start making money and opening
shops
...
One
was to open 200 global stores which they have
done and now have almost doubled the
amount
...


Subway probably look at KPI’s such as
complaints,environmental performance
targets, sales per employee and their overall
sales
...
In doing
this customers have a choice of how they want
to get their money and might make them feel
they have more control over their money
...
The last way
in which they were going to help complete this
aim was to learn more languages and open
more global stores
...

Another aim for the business was to be one of
the best second hand gaming stores
...
Also, they sell products at
very cheap prices, much cheaper than other
stores around them
...

I think they have completed this aim as they
are well known and get a lot of people walking
into their stores
...

KPI’s
KPI’s (key performance indicators) are used a
lot for businesses to check their progression
towards their aims and objectives
...


6

Firstly, dealing with complaints will tell you
what you should change to make more
customers and they will tell you what the
general public believe about your products and
stores
...
Also, if the person who has a bad
experience tells other people about it, it may
stop others going to subway
...
On the other
hand, some customers may have different
views towards products and probucts which
some people are complaining about other
people may really enjoy
...

Secondly, environmental performance targets
are used as they can tell you what you need to
do to be environmentally safe and can also
help you appear well to the public for being
good to the environment
...

Also, sales per employee ensure that the
retailer knows how good each of their staff are
at selling to the public
...
Another reason for
measuring this KPI is to ensure that queues
don’t become to long and will check if
customers are being served in time
...
This may be because of
people asking questions about products or
products needing to be tested
...
The
queue may also cover up some products that
people want to look at
...
Also,
some employees might be buying products
from the public and not selling them, this
means there selling figures cannot be
measured
...
They will tell you how much
revenue a retailer has earned after a certain
amount of time
...

CEX
CEX’s KPI’s will probably include sales per
customer,returns,
stock
holding
and
complaints
...
They can also tell if
certain items generally go wrong a lot and
could take these products off the shelves
...
This might mean that customers
are just coming back with nothing wrong with
their product
...
Also people might
bring the product back because they don’t like
it and this is something the store cannot
change as all there stock is made by other
people
...
If
customers aren’t buying more than one item at
a time this may tell the company they need to
use offers such as buy one get one free or £1
for 3 and so on
...
Sometimes this
cannot be helpful however because if lots of
people are buying in bulk and just some
customers are buying single products you do
not want to lower prices
...
This KPI would be easy to
measure because the company can use the
electronic point of sale to tell them how many
products are purchased and how many of
each product are purchased
...

They will then know if they need to advertise
more or if they need to enquire more stock
...

A downfall for this KPI though is that if no one
is selling the store products they cannot
ensure that people will still be buying as much
as there will be less products on offer
...

Finally, we can also tell by this graph that aims
and KPI’s have definitely had an impact in
CEX’s success
...
CEX stores are now all
over the world and located in busy town
centres, most people have heard of the store
and they are now a very popular place to buy
games and technology from
...

In conclusion, we can see that KPI’s are
very effective in businesses
...
This shows that aims
and KPI’s helped subway achieve their
goals and make them one of the best fast
food restaurants

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