Case Analysis of Sherman and Jackson Stores

Name

Institution

CURRENT SITUATION

Sherman and Jackson stores incorporation are a chain that began seventy years ago. The chain began with five to ten stores and it has grown to over one hundred retail shops. Additionally, products line has grown to the extent of having expensive items such as color television sets along with furniture that were not found in the past years. The market in Sherman and Jackson stores incorporation has been growing drastically with new customers becoming frequent shoppers. Store layouts are usually standardized whereby every store carries similar products with brands roughly in equal quantities. Each manager is responsible in running every store as well as responsible for maintenance, sales clerks and security.

Strategic Posture.

I. Mission.

As the company grows, it intends to concentrate more on the less expensive lines of the store since most of the customers are not well off financially. Most of the customers save every coin to purchase a car. With this regard, the company aims to reach all customers, which in return will increase overall profits.

II. Objectives

Increase usage of the products by lowering prices in order to attract more customers and to get people in the store.
Restructuring effective sales and marketing in the company to develop awareness of products to the clients.

III. Strategies

Develop products in variety merchandise, which in return will attract more customers having different taste.
Working on marketing strategies such as promotion to create frequent shoppers and first buyers to potential customers

EXTERNAL ENVIRONMENT.

High degree of competition from other businesses that offer and sell similar products
Many customers are not well financially, which as a result, causes the company to adjust pricing to meeting all clients’ needs.

General Environment Components.

Demographic conditions such as income, which affects, the company lowering products prices to meet all customers: When customers experience finances problems he or she will postpone anything than is not paramount.

Specific Environment Components

Potential uncertainties of customers due to the change of taste to the point of, many are dissatisfied with the company products and services.
The management to have a steady and reliable flow of inputs in order to achieve the company objectives

Threats

New entry of competitors
The company is at risk of selling some products at a cheaper price; to meet the need of customers who are not financially stable as a result, decreasing total revenues.

Opportunities

By examining threats, there will be a proper estimation of identifying the unfavorable market shift, which in return will create the defensive posture of the company meeting its potential ways for diversification.

INTERNAL ENVIRONMENT.

Strengths

High-bargaining power over supplier prices
Reasonably pricing of merchandise which appeals to the mass market
Many stores in convenient locations
Loyal personnel

Weaknesses

The company lack marketing experts thus creating problems of many customers coming with adverts in the newspaper without the knowledge of the sales personnel.

ANALYSIS.

In essence, the company lacks working together in a team. This contributes to the reason why sales people make advertisement of the company products without involving the sales personnel. When customers ask about the products being advertised, the sales personnel are caught unaware. This impose to clients that, the company is not fully aware of what it is selling as well advertising. The main problem is poor marketing skills.

RECOMMENDATIONS

The company should develop alternative strategies that include use of user status consist of having the first time, potential together with regular customers
The company to develop an effective team that would enhance effective distribution to various channels
The company to work as a team in sales and marketing
Offer discounts on products

Advantages/ Disadvantages for the Alternative

When the company develops the aspect of user status, this will maintain first-time customers to potential buyers. Additionally, potential buyers will change to frequent shoppers, which as a result, increase the company revenues. However, this requires time in convincing the first-time buyer to become a potential buyer.
When the company develops effective team in distribution channels, there will be a guarantee of the company goods been known in many distributions. On the contrary, this requires herculean capital in terms of adding the stock to fit all distributions sites. Additionally, much money is required in paying the team in charge of distribution.
When Sherman and Jackson stores incorporation works together like a team in marketing; it will absolutely meets the objective in marketing. Everybody in the company will be aware of the products been advertised thus, eliminating problems that emerge in cases when the owners of the company are not aware of the products been advertised. There may be a vulnerability in cases when the sales-personnel is not around especially if a need emerge for marketing goods.
Access of discounts would attract many customers to buy more. However, it may directly affect the company revenues because of low pricing.

IMPLEMENTATION

The management team to monitor each task progress along with achievement percentage of each objective of the company. For instance, when delays of the company achievement occur; the management team to evaluate the cause. If this is done, it will ensure that the company is progressing at daily basis.

References

Sherman and Jackson Stores, Inc. Retrived on 3 May,2011 from: https://mail.google.com/mail/h/56r3v9eyw4ga/?view=att&th=12fb4ef14e28a28 8&attid=0.1&disp=vah&realattid=f_gn8kcv6v0&zw

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