Author Question: Compare and contrast low- margin, low- turnover retailers and high-margin, high-turnover ... (Read 90 times)

Mr. Wonderful · **on:** Jun 29, 2018

Compare and contrast low- margin, low- turnover retailers and high-margin, high-turnover retailers.

Question 2

The three concepts of interorganizational management that a retail executive needs to understand are dependency, _____, and conflict.
a. trouble-shooting
b. interorganizational transfers
c. power
d. chain of command
e. personalities

Sweetkitty24130 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Retailers are classified into four basic types by using the concepts of margin and turnover: (1) low margin, low turnover; (2) high margin, low turnover; (3) low margin, high turnover; and (4) high margin, and high turnover.
The low-margin, low-turnover is one that operates on a low gross margin percentage and a low rate of inventory turnover. The low-margin, low-turnover retailer is the least able to withstand a competitive attack because this retailer is usually unprofitable; when competition increases, profits are driven even lower.
The high-margin, high-turnover retailer is one that operates on a high gross margin percentage and a high rate of inventory turnover. The high-margin, high-turnover retailers can be very profitable. These retailers are in an excellent position to withstand and counter competitive threats because profit margins enable them to finance competitive price wars.

Answer to Question 2

C