Category: Retailing

E-tailing

Commerce entails the exchange of services and commodities between consumers and service providers or manufacturers. This process involves the exchange of money and products or services between sellers or manufacturers and consumers. Organisations have been looking for ways of enhancing effectiveness and efficiency in these processes. This challenge has now been resolved with the emergence of Web 2.0 applications such as B2B and B2C commerce platforms, which have encouraged the growth of e-tailing or e-retailing.

Fujita, Nishiyama, and Hohgi define e-tailing as the selling of commodities and services in retail via electronic media, especially the internet (2). The technique is much similar to B2C, although it incorporates aspects such as the trust model and transactions that involve electronic processes. The strategy involves displaying and providing specifications for products and services in an online platform to create personal feel and attachments with them as consumers access the physical stores.

Due to the capacity to reach global consumers through e-tailing, the concept has experienced a significant rise in the last 15 years within the western countries. However, e-tailing is still in an infancy stage in other parts of the world. This situation is evident in the supermarket sector. The signing of a deal between Amazon and Morrison, which is among the biggest supermarkets in the UK, has evidenced one of the sporadic efforts by supermarket chains in the western nations to engage in e-tailing.

In the deal signed early 2016, Morrison stated that it was aiming to offer Amazon’s pantry clients an opportunity to purchase frozen and fresh products. The supermarket focused on taking advantage of Amazon’s supply chain and logistics management capabilities in the e-tailing market.

The strategic partnership deal provides evidence of the degree to which the e-tailing market niche has been utilised in the supermarket sectors in the western part of the world. However, this finding may not be the case in other parts of the world, which have lower infrastructural resources and capabilities for providing high reliable logistics to facilitate the delivery of products and services that are purchased through e-tailing systems. In the case of Morrison, even large supermarkets may require sophisticated supply chain systems to guarantee effectiveness and efficiency in the supply of products and services that are acquired through the systems.

E-tailing in the supermarket sector uses two types of e-business commerce: B2B and B2C. For the Business-to-Consumer trade, a supermarket organises its e-business around sellers and consumers who comprise the individual buyers. B2C brings together an immense number of purchasers who make millions of transactions on a daily basis with a number of organisations (sellers). Since such a supermarket operates as an online retailer, B2C works best.

Therefore, there is a need to guarantee cute management of the large number of transactions while maintaining security, confidentiality, and integrity of the business information being shared by the company and its consumers. This requirement has the impact of making B2C e-tailing in the supermarket sector an incredibly complex and difficult task since every item bought by a customer must be shipped and delivered at the right time with optimal security. This fact explains why western parts of the world have a well-developed e-tailing plan in the supermarket sector while the same strategy is at infancy in other parts of the world that have poor infrastructural resources.

Although e-tailing is still in the formative years in many developing nations, it is receiving a high embracement in the supermarket sector. For example, in Malaysia, e-tailing is becoming a commonplace phenomenon. Fujita, Nishiyama and Hohgi assert that in the country, big retailers, including supermarkets are now seeing the potential for selling their products through the internet (3). This opportunity has arisen following the increasing number of internet users.

The rise in number of supermarkets that offer their products for sale over the internet has also been replicated in India, China, Taiwan, and Korea. However, the degree of penetration of the e-tailing market in the supermarket sector in these nations is lower when compared to nations such as the UK and the United States. In developing nations, the internet market has not been fully utilised. Consequently, the adoption of e-tailing by the supermarket sector in these nations is still at the infancy phase.

Retail Internationalisation

The retailing market has stagnated in many developed nations. In some situations, the market has declined due to the increasing number of players who have provided fierce competition. Consequently, some of the players have considered seeking to expand their markets to include international new markets with the view of searching new opportunities. This move has been supported by the rise in e-commerce.

However, the number of internet retailers has been rising. This situation has the net effect of increasing the rate of market saturation to the extent of expanding competition in the retail market to international markets. This case has made the retail internationalisation approach much more than the opening of stores abroad. Indeed, successful retail internationalisation entails not only opening intercontinental stores but also ensuring the delivery of the things that consumers want, including the way they want them delivered. Hence, troubles such as underperformance or any decisions to exit a given international market are associated with poor understanding of the market dynamics.

Consumers value security, especially for their information, including that of their credit cards, which may be required to complete online transactions with an online retailer. Therefore, opening stores in the international markets is not just adequate when it comes to ensuring the success of an international retailer. The retailer needs to put in place strategies for ensuring that the specific customer concerns are met to induce trust and consumer loyalty. Indeed, electronic information can easily be copied and/or altered. This challenge makes e-tailing transactions present immense challenges during the establishment and maintenance of information authenticity (Fickes 39).

The goal of checking the authenticity of people who engage in an e-commerce is to determine whether the parties are actually the people they claim to be during the transaction process. Consumers need to be sure that when they make an order accompanied by an electronic payment, the paying company will honour the transaction and/or deliver the goods or services at the right time and the right quantity and quality. To enhance this requirement, Westfall asserts that limiting access to e-business system or information sharing between trusted parties via strategies such as the deployment of the visual private network (VPN) technology can foster the authenticity of information that is communicated in an e-business environment (45).

For any internationalising retailer, efforts to enhance the security of e-commerce systems are aimed at enhancing the reliability of e-transactions as the easiest means of embracing technology in enhancing the way people conduct business across geographically disjointed regions. For this purpose, the European Union launched a plan labelled “European Information Society” (Meier and Stormer 45). This action plan stipulates that internet resources and technologies are central when it comes to broadening the ability of organisations to function as individuals in the sense that they foster the exchange of relations and transactional contacts.

Thus, it is vital that “opportunities and risks of electronic means of communication be weighed against each other and the protection of intellectual property and of the private sphere maintained” (Meier and Stormer 78). To this extent, the risk of proper information flow is an essential aspect of consideration in the execution of a successful internalisation retailing strategy that deploys e-business technologies.

Successful international retailers do not just open stores in foreign nations. They adjust their business model as the most fundamental beginning point for successful penetration. This strategy is driven by the fact that consumers across the globe do not make purchases in the same way or buy similar things in the same manner. However, the appropriate adjustments depend on the channel and type of retail business.

For instance, in case of grocery retailers, the internationalisation strategy entails a very risky venture. Consequently, a successful internationalisation strategy is based on market study information such as consumer eating habits, culture, and any other important determinant of the type or way of consuming specific commodities. Afterward, they consider the appropriate expansion strategy such as strategic partnerships through franchising and vertical integration.

How the Store Design and Store Merchandising can lead to Customer Satisfaction and Loyalty for Kids’ Clothing Retailers

Customer satisfaction is a critical element that helps in not only retaining the existing clients of an organisation but also attracting new ones (Yelkur 106). Customers who possess good organisational reputation share it with other people. This aspect creates the urge among potential customers to experience the service or product offered by an organisation. The term customer contentment finds a wide application in marketing discourses.

It refers to the degree to which services coupled with products offered by an organisation exceed or meet buyer anticipations. Yelkur defines it as “the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals” (106). Such contentment varies between people and with respect to the nature of products or services bought or given. Hence, people of different ages have different aspects, which they consider in products or any accompanying attributes such as merchandising or store designs for them to have optimal satisfaction levels.

Satisfaction constitutes a psychological and physical variable that has a direct link with behaviours, for instance, repeated purchase or recurring use of a service. This situation may be determined by the frequencies of visits to a given store.

For clothing retailers who deal with children brands, merchandising and store design or layouts are critical aspects that may determine traffic flow into a store. Store layouts constitute an important aspect that influences children’s consuming behaviour. Findlay and Sparks assert, “Well designed layouts are extremely important because they strongly influence in-store traffic patterns, shopping atmosphere, shopping behaviour, and operational efficiency” (376).

Where inconsistencies are experienced, consumers are likely to leave an establishment to look for another, especially the one that offers better services. This observation underlines the need for adopting an appropriate approach to store layout to boost sales and induce customer loyalty. Indeed, store merchandising and layout design, which attract or grasps the attention of the targeted customers, are important in inducing customers’ attachment with products on display. Hence, store design and layout are important for retailers when seeking to guarantee contentment and loyalty for kids’ clothing.

As Zentes, Morschett, and Schramm-klein observe, store merchandising implies the manner in which products are displayed in any retail outlet (209). Although some descriptions, for instance, the selection of fixtures and methods of presenting products, are deployed in explaining the term, merchandising relates to the general context of store design, its layout, and the store’s environmental aspects. An attempt to guarantee satisfaction and loyalty for kids’ clothing retailers should adopt merchandising and store designs that focus on several aspects that make the shopping experience a fancy activity. A retailer who deals with kids’ clothing should focus on ensuring that the store design and merchandising allow easiness of the searching process while at the same time creating positive internal atmosphere.

Facilitating easiness of search is achieved through designs and layouts that warrant internal orientation in the most simplistic manner. Positive atmosphere at the stores implies merchandising and designs that evoke positive emotions in the minds of children, including parties that accompany them (children) when visiting a clothing store. Children’s attention is caught by colourful and appealing displays. Hence, appealing store designs and merchandising form an important factor to consider when designing clothing stores that target children.

These aspects can make shoppers save time and energy when going to search stores with such designs and merchandising features. Whether a clothing retailer targets kids or other age groups, consumers are likely to shop at the store that guarantees them optimal satisfaction Findlay and Sparks add that pleasant atmosphere for conducting shopping is critical in influencing the amount of time and money spent at any given store (377). For clothing retailers who target children, issues such as the spending of more time and many visits to a given store are an indication of satisfaction and dependability of the store. For such a level to be attained, store layout designs and merchandising need to suit children’s psychological perceptions.

Works Cited

Fickes, Martin. “B2B security.” Access Control and Security Systems Integration 43.10(2006): 37-40. Print.

Findlay, Antony, and Lewis Sparks. “Store-switching Behaviours.” International Journal of Retail & Distribution Management 36.5(2008): 375-386. Print.

Fujita, Seiichi, Shigeru Nishiyama, and Hideo Hohgi. Analysis of Key Success Factors for E-Tailing Websites in Malaysia, 2012. Web.

Meier, Andreas, and Henrik Stormer. E-Business and E-Commerce: Managing the Digital Value Chain, New Jersey, NJ: Springer, 2008. Print.

Westfall, Joseph. Privacy: Electronic Information and the Individual, Santa Clara: Markkula Centre for Applied Ethics, 2010. Print.

Yelkur, Richard. “Customer satisfaction and service marketing mix.” Journal of Professional Services Marketing 21.1(2007): 105-115. Print.

Zentes, Joachim, Dirk Morschett, and Hanna Schramm-klein. Strategic retail management Text and International Cases, Wiesbaden: Gabler, 2007. Print.

Executive Summary

The retail bakery will be located in southwest Washington to provide coffee and pastry products. The company aims to attract its own substantial market share despite the high competition in the target market. The company will sell quality products to its customers at competitive prices to increase the demand for the products.

Company overview

The company will provide a quality, latest, and comfortable environment for the business. The business will be family managed to reduce the costs of hiring employees. There will be a variety of bakery products to cater to the different tastes and preferences of customers. The company’s main mission is to satisfy customer needs and wants and ensure its dependability by customers. The main challenges are the high competition in the target market and the high costs of raw materials, premises, and pieces of equipment. The products are espresso and coffee. The quality will be maintained and improved throughout the business period. The coffee will be of Columbian origin. All the products sold will fresh and available (Palo Alto Software 1).

The retail business is very competitive because of the high consumption of coffee. People in the area take coffee frequently due to the cold weather. The company will also offer all the products in the competitor business to avoid losing customers to competitors and be able to maintain and attract their own customers. The business will target the rich and the middle class because they have a high purchasing power. Licenses will be required for the business to operate legally (Palo Alto Software 1).

Operational Plan

1. Select location.
2. Develop the store.
3. Start selling the basic kids wears.
4. Establish online selling.
5. Start full-service selling.
6. Plan for new stores (Business Plan Corner 1).

Start-Up Expenses

The business startup capital will be 1million dollars. The company will raise its capital through a loan from the bank. The expenses will be as follows:

Start-Up Expenses (Source: Business Plan Corner 1).

The forecasts will be done for the following 3 years.

The business focuses for 3 years (Source: Business Plan Corner 1).

Profit and Loss Projection

The projection shows increasing total operating expenses and net profit in the years.

Profit and loss projections (Source: Business Plan Corner 1).

Projected Balance Sheet

Projected Balance Sheet (Source: Business Plan Corner 1).

Breakeven Analysis

Break-Even Analysis (Source: Business Plan Corner 1).

Works Cited

Palo Alto Software. Bakery Business Plan. Palo Alto Software. 2011. Web.

Business Plan Corner. Sample Business Plan. Business plan corner.com. 2011. Web.

The main material for the production of a folding carton is cardboard, which is regarded as a cost-efficient and ecologic material with fine mechanical characteristics and printing properties. It has many advantages that define its widespread use in the production of different types of packaging, and it is associated with the use of various printing techniques.

One of the crucial stages of packaging development is printing design, and the overall success of the product in the market may significantly depend on the quality of operations at this phase of package manufacturing. Nowadays, the most popular methods of printing on cardboard are offset printing and flexography. However, it is considered that the selection of these techniques is more appropriate for large production runs, and their use in smaller runs is associated with significant cost inefficiency.

To achieve greater cost efficiency and printing quality for smaller production volumes, it can be suggested to use such methods as digital printing, and risograph printing as their implementation helps to reduce the time of packaging production, faster customization of design without the involvement of skilled specialists.

Digital printing implies the production of replicable items mediated through the implementation of digital machines that print the information uploaded from the electronic carriers and stations. This technique allows the obtainment of both multicolored and monochrome prints of high quality, and it can be implemented for multiple materials. Digital printing is one of the most efficient and cheap methods of printing for smaller production runs (Shifting to digital label printing, 2016).

Moreover, prior to the printing of a batch, it is possible to print a sample which is impossible to get in offset printing as the time-consuming and cost-consuming prepress preparations are required for this. Thus, the digital method facilitates the design amending, the printing of variable data, and printing personalization (Shifting to digital label printing, 2016).

The major precedence of digital printing over offset printing is the speed of finished items’ production. Along with the mentioned advantages, this technique is associated with a good quality of printing due to high resolution and high-frequency linearity of the printed images and templates (Shifting to digital label printing, 2016). Computerization of the printing process allows us to avoid overlay of colors and allows the disguising of defects, which cannot be done in many other printing techniques.

At the same time, it is not recommended to use digital printing while shifting towards larger production runs because as the manufacturing volume rises, the productivity and cost-efficiency in digital printing significantly drops (Ryynänen, Sirviö, Tanninen, & Lindell, 2011). The researchers claim that a company may encounter the difficulties of manufacturing when using digital machines for label and packaging printing.

As Ryynänen et al. (2011) state, it is challenging to achieve profitability increase while printing a limited number of personalized stickers and packages a day as the outputs in digital printing are substantially lower than the outputs that can be obtained when applying a regular flow production methods and traditional printing techniques. Based on this, nowadays, digital printing cannot compete with offset printing for large production volumes as it entails significant financial burdens, reduces productivity, and requires the development of an effectively organized working environment that would support the optimization of speed and flexibility of the processes.

For an initial small production run, it is also possible to use risograph printing – a technique that combines the advantages of digital and silk screen printing (Get started with risograph printing, 2014). The beneficial effects of this method use include the high quality of the finished print, good productivity, and efficient use of raw materials. Moreover, risograph printing does not imply the implementation of highly skilled personnel.

The simplicity of machine use makes the technique one of the most popular methods of polygraphic production and prints’ replication. However, the major disadvantage of this technique is the inability to get a full-color image because when printing, color ink are superposed on each other, and it interferes with the obtaining of intermediate colors and halftones (Get started with risograph printing, 2014). Therefore, it is possible to say that the risograph cannot compete with digital or offset printing methods, but its’ use can be justified in printing simple images comprised of a few colors and for a small production line.

In case the product goes into the larger production runs, it can be recommended to use one of the popular printing methods: offset printing or flexography. These techniques are interrelated with greater efforts for production preparation, additional expenditures, and level of skillfulness in machine operation, but, at the same time, they are capable of producing higher-quality items and improving the overall perception of the product.

For example, the duration of the offset printing process primarily depends on the complex prepress procedures: design, makeup, scanning, preparation of the images for printing, color proofs, color separation, development of layouts and photo forms, etc. (Wilken et al., 2013). The cost of preparation activities is sufficiently high. Thus, it is recommended to use this method only for printing in large volumes because the prepress costs are usually estimated for the product run as a whole, and the larger the production run is, the lower the net cost of an item becomes.

Flexography is one of the most common printing methods as it has almost an unlimited capability of printing on diverse materials from paper to foil and different types of plastic. Flexographic machines have a high speed of production, but, at the same time, they are associated with low efficiency during the transition from one run to another (Moore, 2008). Therefore, flexography should be used for large runs to reduce costs and increase the efficiency of other resources’ use needed for the service of the complex printing machines and operation maintenance.

Similarly to offset printing techniques, flexographic forms have a high run length, which results in the reduction of production costs in large production runs. However, flexography has an advantage over offset technique – it can freely change the length and width of printing and allows the use of the form, which is appropriate for particular circumstances (Moore, 2008). In some cases, it helps to increase productivity.

An offset machine is indifferent to the size of the carton – whether it has maximal proportions or takes only 75% of the area – and its productivity remains the same while, in this case, a flexographic machine will work two times faster. Therefore, from the economic point of view, it is possible to say that the implementation of flexography for larger production runs is reasonable because, despite the big initial investments in prepress preparation and service maintenance, it has a good cost-productivity ratio which makes the recoupment term significantly lower.

References

Get started with risograph printing. (2014). CB: Creative Blog. Web.

Moore, N. L. (2008). The printing of paper and packaging materials. Review of Progress in Coloration and Related Topics, 9(1), 72-87.

Ryynänen, M., Sirviö, P., Tanninen, P., & Lindell, H. (2011). A productivity study of digital printing in the packaging industry. Packaging Technology and Science, 25(2), 119-124. Web.

Shifting to digital label printing: Pros and cons. (2016). Xeikon. Web.

Wilken, R., Pollex, I., Stahl, S., Dörsam, E., Klein, R., & Miletić, M. (2013). Paper and board converting and printing. Holik/Handbook of Paper and Board Handbook of Paper and Board, 911-981. Web.

Giant annual sales have been part of the American culture for some time now. Many shoppers are most active on thanksgiving, Cyber Monday, and Black Friday. The absurd shopping trend is informed by consumers’ assumption that most products are highly discounted during these periods. Unfortunately, giant annual sales are not always as good as they may seem.

Retailers rely on simple strategies to influence buying patterns during the giant annual sales. Some retailers sell at highly discounted prices to increase sales volume thereby making considerable profits by accumulating small profits from many items sold. Others mark down selected products hoping that as customers pick them, they will be taking other “normally” priced items thereby enabling them to make profits on the products with normal prices. These strategies are often successful in influencing customers to buy more items. The customers who succeed in getting limited discounted products only save if they do not buy other products. Even so, the savings margin is always very thin as most prices remain relatively the same. The following list shows the prices of items given by various stores on Black Friday against the prices of the same items on other days of the year.

It is clear from the above list that the prices of most products were considerably reduced during the Black Friday. However, these products were available in limited quantities as most online stores indicated “out of stock” as early as midday. Additionally, some products had very marginal discounts. Vanity Fair Bras is one of the products whose prices remained relatively the same in some online stores.

Black Friday has many disadvantages that have made a growing number of people to consider shopping on other days. The shopping frenzy makes many people buy items they do not need thereby ending up spending more money than necessary. Additionally, many items presented as highly discounted are often not and those that are highly discounted are low-end products. Another common problem with Black Friday shopping is its crowdedness. Many shoppers come out on the day to take advantage of available offers making shopping malls too crowded for comfort. Huge crowds not only make shopping uncomfortable but also increase the chances of contacting diseases, theft, and running into conflicts with arrogant shoppers. Lastly, the highly hyped discounted items are often limited and only early shoppers get them.

In conclusion, it is undisputable that giant annual sales are accompanied by significant price reductions. These reductions influence many people to buy more thereby ending up spending more money than they had planned. Worst still, many shoppers end up spending on products they do not need simply because the products are cheap. Taking advantage of price reduction is acceptable. However, indulging in impulse buying should not be promoted.

The author of this article looks into demand and delivery services in an auto-part retail store, and how they relate to the amount of revenue gained by the store. Furthermore, the author looks into factors relating to supply and demand and how they can be worked out to increase the revenue of the store without affecting customer loyalty. Therefore, the author brings out major changes that a store can do to overcome the challenges of increasing revenue, and, at the same time, giving its customers better and quality services. The author gives concrete and elaborate findings that if an auto-part retail shop adopted an area-based delivery strategy, the store would be able to improve on its efficiency, and, at the same time, bring a match between the revenue generated from a sale to a specific customer and the trips made to the said customer.

The article gives concrete arguments. However, there are some concepts in the arguments that are not refutable. A retail store, as argued, comprises of customers, distribution centres, and a bridge between the two, which in this case, transport. Irrefutable. Therefore, it is important that all of these three aspects of a retail store be considered when analyzing and coming up with conclusive support for the arguments, and the author has effectively considered all the above in the arguments given. The use of a Geographic Information System, commonly referred to as GIS, is very important in determining the viability of a certain customer in relation to locality and sales with respect to the nearest distribution centre. For example, Supercheap Auto, in their website, have established or created an area where you can input your data, and the GIS will locate the nearest store from where you can place your order. This will not only reduce the cost of transportation but also the time required to deliver the product, thus boosting on revenue generated without compromising on customer loyalty.

On the demand analysis, the authors pose the question, “are all customers equal, or are some more equal than others”? According to business ethics, all customers should be treated equally regardless of the number of sales a store makes towards them. However, in as much as all customers should be given equal treatment, there are repercussions involved. These repercussions should be considered where prioritizing your customer based on the revenue they bring to the store. Therefore, it will be prudent to go against the general business rule and consider some customers more important than others as long the revenue generated through this set of customers is agreeable. Therefore, in this contest, it does not matter where the customer is located from the point of sale as long as the revenue generated can cater for the delivery cost and still retain maximum profitability. As a matter of fact, the demand analysis discussed counters the general aspect of the spatial model as stipulated by the author. However, he gives a conclusion that there are customers who should be considered more important gauging on the revenue they generate into the store.

On service delivery analysis, it was evident that stores incur reduced revenue as a result of delivering products to customers who are based in widely spread and large areas and have low sales. However, the conclusion of ignoring this client is not the answer to the underlying problem and goes against the protocols of any business. Businesses need to expand, therefore, the solution will be to link these customers together and deliver the goods at a specific date prior to each making their individual orders. On the other hand, service given to the customer should be of high quality and does not exclude delivery time. Therefore, if a store finds out that it is experiencing an influx of demand from a certain region, the best way to counter it without affecting its revenue is to open a new store at a location that will best serve the whole region with minimum distance travelled. The author has clearly explained how this is done and how effective it is, through his service usage analysis passage. Additionally, the implementation of a website such as that implemented by major auto-parts stores like Supercheap Auto, Repco and Autobarn which have incorporated a store locator will play a great role in using the closet store to deliver goods to the customer.

It is important for a store to do a thorough survey on its market before opening new stores, to eliminate the issue of distributing centres of the same store from competing for the same customers. Therefore, based on the market area analysis, it is important to set up a distribution centre that can serve more than 80% of its clientele at a distance of not more than 15 minutes drive. However, in this part, it will be unwise for the store to close a distributing centre just because it is within another centres range, as most customers usually pop-in to the nearest store. As a matter of fact, this will result in loss of revenue for the store.

The passage in the article brings out a clear picture of what should be done, and based on the argument of the author; it will be prudent for an auto-part store to follow the direction of each passage if it were to increase the revenue it generates.

Introduction

The retail market is one of the largest ones presented in Dubai and the UAE. The paper presents the analysis of its structure and organization, customer service, and other aspects pertinent to it. The company selected for the analysis is Ahmed Seddiqi & Sons. It is a large Dubai-based retailer selling luxury watches and jewelry. The report addresses its aspects, the ways it utilizes to attract and retain clients, and significant issues associated with the business.

Structure and Organization of the Retail Sector in Dubai

The retail sector plays a highly significant role in the city’s economy. Dubai has the second-highest mall density in the world, with more than 60 shopping centers (Dubai Chamber of Commerce & Industry, 2018). Its size is expected to reach more than $43 billion by the next year. Currently, the retail sector can be defined by its 30% contribution to the country’s economy, which is more than 25% of its real gross domestic product (GDP) (CORE Research, 2018).

As for trends in sales, Dubai’s retail market shows modest single-digit growth. Suppliers based in the city often offer price reductions and promotions to motivate customers to purchase their products. Boosting sales and three-day sales are also common for the market (Knight Frank LLP, 2017). A high level of profitability is the result of the issues mentioned above. For instance, visitors spend more than $25,000,000 in Dubai’s retail locations overnight (CORE Research, 2018). At the same time, annual prime rent is less than $5,000,000 in luxury locations.

As for store size and location, malls in Dubai are located both at the city center and at non-central locations. It is possible to say that large shopping centers above 10,000 sqm prevail (CORE Research, 2018). Independent retailers are less present than the retail locations working with multiple suppliers. Although the complete classification of the types of stores present in Dubai is unavailable, it is possible to analyze the retail sector based on one of the largest malls in the city. For instance, the categories of stores present at Emaar Malls include fashion, electronics, beauty, furnishing, and toy ones (Emaar Malls, 2019).

The majority of these stores operate both as online and offline businesses, which means that hybrid shops exist in Dubai, too. Not-for-profit organizations are also present in the city; the Dubai Shopping Malls Group is one of them (Oxford Business Group, 2020). As for service and product retailing, the number of visitors’ spending presented above suggests that the level of product retailing is higher in Dubai.

Speaking of retailers operating in the city and their ownership types, the majority of present stores are chain or franchise ones. As mentioned earlier, independent retailers are less common in Dubai, which may be determined by a high level of competitiveness and annual prime rent (CORE Research, 2018). The main retail areas in Dubai can be characterized by a mix of shopping and entertainment (Gulf Business, 2020).

The data about the exact number of employees, enterprises, and their turnover working in the retail sector is not available online, as Dubai represents one of the largest retail markets in the world. However, it is possible to suggest that the level of turnover is high because, as mentioned above, visitors contribute significantly more money than companies spend on rent and advertisement.

Distribution Systems in the Organization

As mentioned above, the company selected for the analysis is Ahmed Seddiqi & Sons. The organization specializes in luxury watches, accessories, and jewelry and currently represents more than 75 brands (Dubai Festival City Mall, 2020). The company is present in more than 90 locations in the UAE, including Dubai. Because of it, the products of Ahmed Seddiqi & Sons are available for all customers willing to purchase them. The primary distribution channel for all of the goods the organization sells includes offline shops; in some cases, customers can also buy watches, jewelry, and accessories online depending on a particular brand.

As mentioned before, Ahmed Seddiqi & Sons works with only three types of goods, which belong to the same retail segment. However, the company does not disclose information about the process of the movement of goods from manufacturers to retailers, as well as the data about transport and retail control of the supply chain. The firm offers several luxury brands, each of which may have a particular manufacturer. The company is responsible for after-sales service, which will be discussed in detail below.

The Process of Distributing Goods

The information the company discloses publicly does not address the channels the organization uses to transfer goods from the manufacturer to the customer. However, as the organization represents more than 75 brands, it moves its products across continents regularly. Ahmed Seddiqi & Sons works with different suppliers for its brands but is a distributor for the goods it offers. Currently, it has exclusive franchise agreements with leading Swiss watch companies.

The organization is likely to use information and communication technologies (ICT) in the supply chain, as it utilizes this approach in other aspects, including communication with customers. This point will be discussed in the next section of the paper.

Process of Providing Excellent Customer Service

The selected company is known for providing excellent customer service, especially because it works in the luxury segment. Besides customer care strategies common for all retail stores, the organization offers non-traditional services. They include consultancy, advisory, and after-sales (“Services,” n.d.). Ahmed Seddiqi & Sons supports the idea that the purchase of a luxury watch may be associated with increased responsibility. For this reason, the company ensures that customers obtain the necessary industry-related knowledge to choose the best model that aligns with their budget and design preferences.

This way, the company ensures a high level of satisfaction for new customers because it allows them to learn more about the products they want to buy. To ensure satisfaction for repeat customers, the organization provides them with advisory services, helping them to build their watch collections. The advisors working at Ahmed Seddiqi & Sons help consumers in adding new watches to their collections. They also assist customers in choosing the timepieces that reflect individuals’ vision.

All transactions at the company’s stores require the company to collect customer information. The organization collects individuals’ names, physical and email addresses, phone numbers, and other similar information (“Privacy Policy,” n.d.). Moreover, the company asks clients to verify their identity by providing an ID card, a copy of a passport, or a resident’s visa. Ahmed Seddiqi & Sons state that, in some cases, it collects financial information, including bank account details or credit card numbers. The organization uses the obtained data to create client profiles and simplify further purchases (“Privacy Policy,” n.d.). The company states that it may also share the information with third parties for fraud screening purposes. Otherwise, Ahmed Seddiqi & Sons does not disclose any data and aims at preserving its customers’ privacy.

The company uses ICT to interact with its customers. For instance, it sells promotional messages to its clients and answers their messages and concerns via its social media pages (“Privacy Policy,” n.d.). Moreover, customers are welcome to contact the company by phone or email at any time. Besides, Ahmed Seddiqi & Sons have a customer support team as one of the means of customer relationship management.

Competition in the Retail Environment

Some of the largest competitors Ahmed Seddiqi & Sons has in the retail environment are The Watch House and Al-Futtaim Watches & Jewellery. Moreover, many e-commerce organizations in the UAE and Dubai, specifically, offer watches, jewelry, and accessories. Its market position is defined by selling high-quality and luxury goods to the customers and those collecting vintage or high-end watches.

Moreover, the organization strives to support its clients in creating their collections of rare watches. Possible barriers to entry into the market the company operates in may include a high prime cost of products and increased rent prices in Dubai and the UAE in general. It is possible to say that the company’s prices are not its competitive advantage, as Ahmed Seddiqi & Sons sells luxury items. The organization does not seem to implement new retailing concepts, as it has a highly specific customer base. However, some of its new and outstanding services include advisory and consultancy ones.

Structure and Organization of the Retail Sector in the UAE

The retail sector in the UAE can be considered a highly significant one to the country’s economy. In 2014, it contributed more than 15% to the UAE’s GDP (Ardent Advisory & Accounting, 2016). The retail sector has become advanced because of high levels of disposable income, a retail-oriented culture, and an increasing population. The non-food segment constitutes 70% of the retail market in the country (Ardent Advisory & Accounting, 2016).

The top 10 stores, including those selling luxury clothes, account for around 65% of the value share. Statistics suggest that the retail market in the UAE is highly profitable. In 2016, the value of the retail sector in the UAE reached more than $65 billion and was expected to exceed $70 billion by the next year (Sadaqat, 2018).

From the perspective of store size, it is possible to say that, similar to Dubai, large malls prevail in the country compared to small independent stores. The majority of retail locations are situated in Dubai and Abu Dhabi, which are two of the largest cities in the UAE. Trends in sales in Dubai reveal that regardless of the growing number of purchases, customers have become more conscious of their decisions.

Sadaqat (2018) reports that the clients of the retail market want to receive value for money along with the high quality of products. Moreover, sales of organic products have increased in the UAE significantly, with more individuals purchasing fresh food and choosing sustainable clothing brands (Sadaqat, 2018). From this perspective, trends observed in the country can be considered different than the ones present in Dubai. The reason for it may be that the city is known for its luxury stores, while the customers are visiting other places of the UAE start focusing on sustainability.

The country’s retail market is dominated by international retailers and large domestic groups as opposed to independent and non-profit ones. The emerging store types that can be found in the UAE include community and neighborhood malls, convention centers, and creative entertainment locations. The first group of retailers includes apparel stores, discount department shops, booksellers, and supermarkets (Ardent Advisory & Accounting, 2016). Convenience centers offer services and products that neighborhoods may need daily. Finally, creative entertainment offerings have become more popular within the past several years.

The data about the exact number of retailers, their sizes, and the number of employees are not available online. The reason for it is that the country has a large number of enterprises, and some workers may not be registered officially. However, it is possible to say that, like in Dubai, the majority of retailers are franchise and chain ones. All stores present in the UAE can be classified in the following categories.

Clothing stores represent the largest sector of the retail market in the country, followed by the healthy and organic food one (Spary, 2018). Like in Dubai, many stores in the UAE operate as both offline and online businesses. The reason for it is that today’s customers in the UAE prefer to make purchases quickly and conveniently (Spary, 2018). As a result, many companies open e-commerce platforms or establish a physical store for their brands if they do not have one. However, it is possible to say that offline retail locations prevail, and their number continues to grow.

Methods of Distributing Products and Services in the UAE

Currently, the majority of companies operating in the UAE do not provide detailed information about the logistics process because of privacy reasons and a high level of competitiveness in the market. However, the supply chain may be presented by manufacturers, wholesalers, retailers, and customers. As mentioned above, the majority of organizations operating in the UAE are chain or franchise ones, which means that they may not have the need to move goods across continents.

The reason for it is that these firms are likely to be present in other countries, too. ICT is also likely to be used in the supply chain in the UAE in general because, as mentioned above, it is utilized in Dubai. The information about the stock locations and fulfillment is not disclosed; however, the companies should offer home delivery options for customers.

Sales Techniques and Customer Service in the UAE

As mentioned above, customers of the UAE have particular preferences and needs that retail organizations should follow. Trends in sales affect the ways customer service is provided, as well as the sales techniques companies use. It is important for organizations to respond to consumers’ needs. Today, the retail market in the UAE forces companies to follow the principles of sustainability. It means that organizations operating in the market should provide ecology-friendly solutions for their businesses.

One of the most significant challenges retailers can encounter while working in the UAE is a high level of competition. Notably, it may be easier for companies to identify customers’ needs because there are various types of products and services available in the country. It means that retailers can observe the situation in the market, compare competitors’ revenues to their ones, and decide on the strategies they will use to achieve the desired result.

Companies in the UAE utilize various sales processes, which differ depending on the type of products they offer. For instance, Ahmed Seddiqi & Sons sell its goods in boutiques and focus on working with high-end brands and customers. From the perspective of sales support, the firm’s customer services mentioned above ensure that new clients become repeat ones. Moreover, the organization has franchise agreements with Swiss manufacturers and uses various techniques based on the type of the brand.

The Impact on the Company

It is possible to say that the sales techniques and customer service presented above have a positive impact on customers and sales. For instance, the current company’s revenue is around $260,000,000 (Zoom Information, Inc, 2019). It means that clients value the organization and its products. Moreover, statistics suggest that the levels of customer satisfaction for new and repeat clients are also high because Ahmed Seddiqi & Sons strives to provide support for them. The utilization of ICT allows the organization to share information about its products and communicate with its audience, which potentially helps it to attract new customers.

The collection and use of customer information do not affect the level of satisfaction among clients because the company does not disclose the obtained data. After-sales service is likely to increase customers’ dedication because it helps individuals to manage possible problems associated with the products. Ahmed Seddiqi & Sons does not address the sales process and techniques in detail; however, the information about its revenue reveals that its approaches are successful.

Conclusion

The report reveals that the retail market in Dubai and the UAE, in general, is highly significant. It represents a significant part of the country’s economy and shows an increased level of revenue. Ahmed Seddiqi & Sons is a competitive organization offering high-end watches, jewelry, and accessories. The firm offers excellent customer service, uses ICT to interact with clients, and supports the ones purchasing its products. It is possible to conclude that the organization is competitive in the retail market of Dubai and the UAE.

References

Ardent Advisory & Accounting. (2016). GCC retail sector. Web.

CORE Research. (2018). Dubai retail overview. Web.

Dubai Chamber of Commerce & Industry. (2018). Dubai retail sales forecast to exceed $43 billion by 2021, new analysis shows. Web.

Dubai Festival City Mall. (2020). Ahmed Seddiqi & Sons. Web.

Emaar Malls. (2019). Store directory. Web.

Gulf Business. (2020). How did Dubai’s retail industry fare in 2018? Web.

Knight Frank LLP. (2017). Dubai retail overview. Web.

Oxford Business Group. (2020). Overcoming challenges to expand Dubai’s retail market. Web.

Privacy Policy. (n.d.). Web.

Sadaqat, R. (2018). UAE retail sector continues to grow. Web.

Services. (n.d.). Web.

Spary, A. (2018). Dubai’s retail sector aims for the right mix. Web.

Zoom Information, Inc. (2019). Ahmed Seddiqi & Sons. Web.

What are some of the unique aspects and challenges of doing business in China that Sarah Harrison has encountered?

Doing business in China involves several unique aspects and challenges, as Sarah Harrison has found out. Firstly, there is a political challenge in the form of guanxi wang. This refers to a type of social network system that is common in the Chinese business practice. Guanxi wang mainly involves conducting business through social networks or connections. From her diary, Sarah informs us that both Professor Wong and the general manager at the First Department Store are close associates. In fact, professor Wong has done consultation work for the department store in the past. He has now brought Sarah Harrison as a consultant presumably to return the favor.

Language barrier is another challenge of doing business in China. Sarah Harrison experiences this challenge firsthand when she goes to buy an umbrella at the First Department Store. Before entering the store, Sarah sees a sign that welcomes visitors into the store written in English. She therefore assumes that she will have to difficulty in making the purchase but to her dismay, nobody at the store speaks English. As a result, Sarah has to rely on hand gestures and nodding of the head to communicate with the staff.

What are the problems facing the store?

There are many problems facing First Department Store. To start with, the merchandise at the store is poorly organized. Most of the items have been crammed together and this makes it hard for customers to have a good look at the items on display. Another problem facing the store is over-staffing. Sarah finds several employees manning a single merchandise area. While purchasing an umbrella at the store, Sarah is served by more than 5 employees. The Kunshan store also has many employees. On the day that Sarah visited the store, most employees were idle. While some of the employees were busy reading magazines, a good number of them were napping.

Another problem facing the store is poor display of items. Sarah gives the example of tightly packed garments hanging or racks in the same plastic covers they were transported in from the factory. The store also lacks a streamlined system of purchase. For example, once a customer has identified an item that he/she wants to buy, he/she has to queue in order to be invoiced for the item by the store clerk.

the clerk issues them with an invoice. The customer queues once more to settle the invoice, before collecting the item. Consequently, the customer spends more time buying an item at the store.

The store is also dirty and clattered, as evidenced by the dirty entrance and facade. The entrance door is very narrow, and customers have to line up to enter the store. The walking areas are also narrow, while the floor is poorly designed. This has resulted in crowded aisles. The store also lacks an inventory management system to track sales made and keep an inventory of the movement of goods in and out of the store.

What recommendations should Sarah offer to the management of First Department Store? Why?

In order for the store to overcome the challenges facing it, Sarah should consider offering the following recommendations to the management of First Department Store:

There is need for improved store layout and design

The entrance door should be wide enough to handle traffic. The design at the store entrance should also be improved for enhanced visual appeal. Additionally, the management should consider using nonskid flooring materials. It is also important to ensure that the store remains clean, especially the entrance and the stairs.

Improved physical layout of store merchandise on display

The management should improve the display of merchandise on the store to enhance store success. As Piotrowski and Rogers (23) have noted, the interior design and layout of a store is greatly influenced by the kind of customers that the store hopes to attract and the type of merchandise on sale. Therefore, the store management needs to conduct considerable merchandising and marketing research to determine traffic patterns and the kind of merchandise that attracts customers to the store.

Store inventory management software

Sarah should also advice the management of the First Department Store to install a store inventory management software. This will increase the efficient movement of goods in and out of the store. The inventory management software will also help the management to keep track of stock on order and inventory trends. This will go a long way in improving the store’s operational efficiencies (Muller 41) and inventory replenishment.

What other information should Sarah get to help her in making the recommendations to the store’s management?

If Sarah is to make a solid recommendation to the store’s management, she needs to get detailed statistics on the store’s sales per square foot, sales per employee, inventory turnover, customer traffic, and competitor statistics like their location, items catalogue, and traffic. This information should be provided by the store’s headquarter at Suzhou.

Works Cited

Muller, Max. Essentials of Inventory Management, New York: AMACOM Div American Mgmt Assn, 2011. Print.

Piotrowski, Christine, and E. Rogers. Designing Commercial Interiors 2nd ed, New York: John Wiley & Sons, 2013. Print.

What major types of marketing intermediaries occupy retailing sector?

In the retailing sector, three major types of marketing intermediaries are represented. The first type is store retailers; they usually offer one of the following levels of service: self-service, an automated store, which is preferred by many customers (Cisco Customer Experience Research 4); self-selection, where customers select good on their own but can ask for aid; limited service, where more shopping goods are available; full service, where shop assistants help the customers at each stage of the buying process (Kotler and Keller 448).

The second type is nonstore retailers. Nowadays, nonstore retailing is becoming more and more popular, and the growing number of customers prefer this type to the previous one. This type includes direct marketing (by means of the Internet and TV), automatic selling, direct vending, and buying services (Kotler and Keller 449).

The third type is corporate retailing and franchising. In such organizations, franchisees perform operations that are controlled by a franchisor. Such interaction is mutually beneficial: franchisees are better acquainted with the local market and have sufficient motivation while a franchisor possesses funds and opportunities (Kotler and Keller 450).

What marketing decisions do these marketing intermediaries make?

The mentioned marketing intermediaries make decisions related to the following fields:

• Target market – determining the key audience to understand the needed assortment, price, the specificities of advertisement, etc.
• Channels – finding out how to reach out to this audience (the Internet, traditional stores, or other formats).
• Product assortment – understanding whether a customer wants a narrow or a broad assortment, a shallow or a deep assortment.
• Procurement – developing the features of the merchandise policy.
• Prices – establishing reasonable prices.
• Services – establishing a range of available services (Kotler and Keller 453-457).
• Store atmosphere, activities, and experiences – selecting the way in which the environment in a store will be organized to encourage customers to spend time here (Lesonsky par. 8-11).
• Communications – selecting means to operate purchasing rates, such as sales, coupons, special programs, etc.
• Location – selecting convenient and beneficial locations for stores (Kotler and Keller, 458).

What are the major trends with marketing intermediaries?

Major trends among marketing intermediaries include the following. First, despite the fact that the majority of products and services are sold at traditional stores, nonstore retailing, especially via the Internet, keeps expanding (Heller par. 1).

The number of stores that are getting under corporate retailing is growing as well. Franchising advances along with globalization; international corporations, such as McDonald’s, prefer this type of ownership since it ensures higher profit and better adjustment to local markets. Giant corporations are becoming more powerful and start dominating in retailing while middle and small retailers are facing a crisis. Finally, Millennials are becoming a dominant category among customers, and retailers have to cope with that; for instance, they have to increase their presence on the Internet and develop mobile applications for their customers (Jankowski par. 1).

What does the future hold for private label brands?

In the future, private label brands will probably dominate in the world of retailing. They are already gaining more market shares than national brands. This trend will be enforced by the fact that private brand owners are beginning to use more and more brand management operations and strategic product innovation that are usually employed by national brands. Private brands are developing at a faster rate and in a more efficient way.

Customers are more likely to buy the products of private brands due to their belief that big national brands spend a lot on the advertisement, and these expenses affect the final price. Apart from that, customers do not see any difference in quality. The next generation of the world’s most successful and progressive brands will be represented almost exclusively by the private ones (Dawson par. 1-11).

Works Cited

Cisco Customer Experience Research 2013, Retail Shopping Results: Global Data. Web.

Dawson, Thompson. “Private Label Brands: The Future Leaders Of Retail?” Branding Strategy Insider, 2012. Web.

Heller, Laure. “The Future of Online Shopping: 10 Trends to Watch.” Forbes. 2011. Web.

Jankowski, Paul. “3 Insights To Help Your Millennial Marketing Strategy Succeed.” Forbes. 2015. Web.

Kotler, Philip, and Kevin Lane Keller. Marketing Management. 14th ed. 2009. Upper Saddle River, New Jersey: Pearson Prentice Hall. Print.

Lesonsky, Rieva. “6 Things Customers Want from Retail Stores and How You Can Deliver.” Small Business Trends. 2013. Web.

Problem Statement

The high turnover rate among retail sales employees is a considerable bother of modern human resource (HR) management. According to the United States Department of Labor Statistics (2015), the retail turnover rate increased from 26.8% in 2011 to 33.5% in 2014. Avanzi, Fraccaroli, Sarchielli, Ullrich, and van Dick (2014) mention that employee turnover is associated with considerable financial losses, job satisfaction issues, and performance problems. Therefore, one of the primary tasks of HR managers is to employ efficient techniques for preventing high employee turnover. However, HR managers may be unaware of a useful method to address and prevent high turnover rates.

Literature Review

The problem of high turnover rates of retail employees is a widely discussed topic in scholar and professional literature due to its considerable implications for a company’s performance. Avanzi et al. (2014) identify turnover as a permanent exit from the organization, which is often preceded by other withdrawal behaviours, such as lateness or absenteeism. According to Lee (2018), a considerable body of research supports the idea that there is a negative linear correlation between turnover rates and a company’s performance. Low retention is associated with both pecuniary, which is recruiting and training costs for new employees, and nonpecuniary costs, such as low employee morale (Lee, 2018). In other words, companies lose money when they need to substitute a more experienced employee, which possesses valuable knowledge for the company. The money is lost due to training costs and differences in performances between the two employees. The recruiting costs also include the time when a job position remains vacant. In short, the implications of high turnover rates are considerable and efficient retention strategies need to be employed to reduce the possible damage.

The reasons for turnover intentions may vary depending on the situation; however, there are certain aspects, upon which all the researchers agree. First, Wilson (2018) mentions that the compensation level is one of the leading causes of a person quitting his or her job. The matter is confirmed by Pryce (2016) since salary disparities often mean a higher rate of employee turnover and job dissatisfaction. Second, Onsardi, Asmawi, and Abdullah (2019) state that empowerment is also critical for job loyalty. Wilson (2018) and Pryce (2016) also mention empowerment as one of the ways to improve retention rates. Finally, Leder, Newsham, Veitch, Mancini, and Charles (2016) claim that office environment and positive relationships with peers and authorities are vital for improved retention rates. All authors of the reviewed literature support the idea that job satisfaction is the key to low turnover. Job satisfaction is influenced by all the mentioned factors, including compensation, peer relationships, empowerment, and relationships with the managers.

There are multiple strategies for reducing employee turnover, as discussed in scholarly literature. All of them address the reasons for turnover intentions improving job satisfaction in different spheres. Wilson (2018) states that among one of the primary ways to improve retention is to offer sufficient compensation and provide the employees with professional growth opportunities. Pryce (2016) and Leder et al. (2016) emphasize the importance of workplace culture and positive relationships in the workplace and describe strategies to address the matter. Gupta et al. (2014) propose the employment of principles of spirituality to improve the loyalty of the staff. Gilani and Cunningham (2017) demonstrate a positive correlation between companies’ branding strategies and employee retention. While all the described measures seem adequate, they provide insufficient information about what specific steps should an HR manager take, to improve the current retention rates.

A revolutionary way of addressing the problem is gaining its popularity among scholars. Pryce (2016) briefly mentions that among other reasons for high employee turnover is the unwillingness of companies’ authorities to spend additional money on hiring. According to Pryce (2016), in-depth assessment of candidates can lead to improved job retention rates. Predictive hiring using analysis of Big Data is a growing trend among researchers. Bongard (2019) states that using algorithms for decision-making in HR is associated with improved outcomes and decreased bias in employee selection. Even though the model is an effective way to address low retention rates, it is a complicated method that requires complex computations. Therefore, a more comprehendible strategy needs to be introduced for employee selection.

The purpose of the present paper is to introduce data-driven criteria for predictive hiring. It contributes to the overviewed body of literature by assessing demographical and professional factors, which may influence the performance of an employee in retail. The present research may help HR managers to understand which criteria are vital for choosing employees with lower turnover intentions.

Analysis Methodologies

Variables

As identified by the literature review, one of the methods of preventing high turnover rates is a careful choice of candidates. Since financial performance was recognised as one of the leading causes of employee satisfaction, HR managers can benefit from predicting the parameter to ensure high retention rates. Therefore, the primary dependent variable was identified as income or annual salaries of retail workers. The independent variables are age, experience in retail, years of higher education, gender, and marital status. The aim of the analysis was to understand if there is a correlation between independent and dependent variables.

Sample and Data Collection

In order to answer the research question, a sample of 50 random retail employees in one organisation was surveyed online. The retail workers were given a link to the survey, and they had to complete it within one week after the link was issued. The surveys did not include any personal information, such as names, addresses, and phone numbers, to ensure the anonymity of the survey. The data was stored on a private personal computer protected by a password. The data can be viewed in Appendix A.

Identified Test

Two types of test were performed using the collected data. Since the aim of the study is to determine if there are any interrelationships between the variables, correlation analysis was performed. Pearson’s correlation coefficient is a measure of the linear correlation between two variables. It helps to quantify the association and interpret the degree of interrelationship between all the variables. The second type of performed tests is equal variances t-test, which was needed to compare the means of annual income between people of different genders and marital statuses. The test was chosen as a result of F-test that helped to identify the variances of the samples.

Procedures

In order to answer the research question, three tests were accomplished. First, a correlation analysis was performed using financial performance, age, experience in retail, and years of higher education. Second, the sample was divided into two depending on gender, and equal variances t-test was performed to compare the means of female and male retail workers. Finally, equal variances t-test was also performed to understand if there was a significant difference in salaries of married and single employees. All the tests were performed using Excel’s standard statistical package.

Results of Analysis

Test Results

The correlation analysis demonstrated that there is a strong positive correlation between financial performance (annual salary) and experience in retail. Table 1 shows the results of Pearson’s correlation analysis. According to the table, there are no other strong correlations between any of the other identified variables. The study also demonstrated that there is a weak interconnection between age and experience in retail, which is foreseeable because older people have lived more years and they have a higher chance of having more experience in the area. The t-tests demonstrated that there are no differences in annual salary means between males and females or married and single employees. The results of these tests are shown in Table 2 and Table 3 correspondingly.

Table 1. Pearson’ r Analysis Results.

Table 2. Results of t-Test for Males and Females.

Table 3. Results of t-Test for Single and Married.

Implications

The findings suggest that HR managers should pay attention to the years of experience in retail while hiring employees. The results demonstrated that there is a linear correlation between years of working in retail and annual salary. High financial performance is expected to lead to increased retention intentions, as suggested by the literature review. The notion, however, is intuitive, and there is little value in confirming the matter. While positive results are not informative, negative results have greater importance for HR practice.

The common belief that there is a direct link between formal education and employee performance was not confirmed. In fact, the results demonstrate that there is a slight negative correlation (which is not statistically significant) between years of formal education and performance in retail. This may mean that professional education is not needed for being a successful retail worker. Therefore, HR managers may consider paying less attention to education level while hiring retail employees. However, it needs to be emphasised that the findings are relevant only to retail workers, and they cannot be applied to any other sphere.

The results also demonstrate that marital status does not influence job performance in retail. It was initially hypothesised that married employees would have a higher degree of responsibility, which may lead to being more industrious and motivated to make more money. The hypothesis was not confirmed meaning that there is no link between annual salary and marital status. However, it should be considered that marital status may still have a positive effect on retention intentions due to intentions of taking fewer risks.

It is also worth mentioning that the research confirmed that gender does not have any influence on employees’ performance. The finding supports gender diversity in the workplace and demonstrates that gender bias cannot be justified in retail. Therefore, HR managers should avoid including sex as a criterion for hiring a person for a retail position. The notion, however, applies only to retail and gender may be a criterion for hiring in other industries.

Conclusion

High employee turnover is a considerable bother for HR managers since it negatively affects the performance of the company. While there are many methods for employee retention discussed by scholars, little of them provide HR managers with specific steps to follow for reducing employee turnover. The present research aimed at identifying the criteria for hiring decisions to prevent high turnover. The analysis of annual salary, age, experience in retail, years of higher education, gender, and marital status demonstrated that there is a linear correlation between financial performance and experience in retail. The finding suggests that HR managers should consider working experience as the primary criteria for selecting candidates with high retention intentions. Moreover, the results demonstrate that marital status, gender, and years of formal education do not influence the performance of retail employees.

The research is limited due to the sample characteristics, which negatively influences the generalisability of the results. The sample size is small, and it represents information only about retail employees in one geographical area. Additionally, the results apply only to retail workers. Future research should focus on extending the sample size and considering other variables for predicting turnover. For instance, scholars may consider analysing the correlation between age, marital status, or a number of children and retention intentions.

References

Avanzi, L., Fraccaroli, F., Sarchielli, G., Ullrich, J., & van Dick, R. (2014). Staying or leaving: A combined social identity and social exchange approach to predicting employee turnover intentions. International Journal of Productivity and Performance Management, 5(3), 272. Web.

Bongard, A. (2019). Automating talent acquisition: Smart recruitment, predictive hiring algorithms, and the data-driven nature of Artificial Intelligence. Psychosociological Issues in Human Resource Management, 7(1), 36-41.

Gilani, H., & Cunningham, L. (2017). Employer branding and its influence on employee retention: A literature review. The Marketing Review, 17(2), 239-256.

Gupta, M., Kumar, V., & Singh, M. (2014). Creating satisfied employees through workplace spirituality: A study of the private insurance sector in Punjab (India). Journal of Business Ethics, 122(1), 79-88. Web.

Lee, S. (2018). Employee turnover and organizational performance in US federal agencies. The American Review of Public Administration, 48(6), 522-534.

Leder, S., Newsham, G. R., Veitch, J. A., Mancini, S., & Charles, K. E. (2016). Effects of office environment on employee satisfaction: A new analysis. Building research & information, 44(1), 34-50.

Onsardi, A., Asmawi, M., & Abdullah, T. (2017). The effect of compensation, empowerment, and job satisfaction on employee loyalty. International Journal of Scientific Research and Management, 5(12), 7590-7599.

Pryce, A. C. (2016).Strategies to reduce employee turnover in small retail businesses. Web.

The United States Department of Labor Statistics. (2015). Web.

Wilson, D. (2018). Strategies for reducing employee turnover in retail outlets.Web.

Appendix A. Data under Analysis

Transportation of the Crude Oil

Nowadays, due to globalization, the world community needs to master the most effective ways of the transportation of global commodities. There are four primary methods that are used to transport crude oil, namely, pipeline, boat, truck, and rail (Steer, 2018). Pipelines remain the most efficient way to transport petroleum as modern technologies allow people to track its ways and prevent leaks and pipeline bursts. Pipelines are usually made of stainless steel and are buried deep underground. The utilization of pipelines brings both positive and negative consequences. Thus, it ensures the transportation of crude oil to various parts of the world but destroys natural sceneries in places where they are installed.

Sometimes, it might be difficult to transfer the crude oil through pipelines as not all the countries have an opportunity to install them on their territory. For example, it may be challenging for coastal countries to bury pipelines under the water. In this case, boats are used for the transportation of oil over the ocean. As a result, petroleum-producing countries have an opportunity to carry large quantities of oil using giant ships. However, at times, the shipwrecks occur, which result in the crude oil offshore and seawater pollution.

Trucks are usually used to carry oil for close-range distances, such as to local business companies. This transportation means is not popular for international shipment as it cannot carry a large quantity of oil. However, if an accident occurs, it is easier to clean up the oil on the road rather than in the sea. As for rails, they can also be used for carrying the oil to remote destinations. Moreover, the total volume of oil lost during transportation by rail is less than in other transportation methods (Steer, 2018). Nevertheless, some scholars still assert that pipelines are found to be a much safer transportation method than rails (Green, & Jackson, 2015). The consequences that may be brought about by the truck and rail methods of transportation include damage to buildings located nearby railways and air pollution emitted from engines. Therefore, the transportation of crude oil can be performed in various ways. Some of them are more beneficial than others depending on the destination, consumers, producers, and other factors. While some of the methods are safer than others, unfortunately, all of them may bring negative consequences for the environment.

Corporations that Dominate the Processing or Retail Sale of the Crude Oil

There are numerous corporations in the world that process crude oil. However, Forbes reveals 25 primary organizations that dominate the processing or retail sale of crude oil. Russian, American, Chinese, and European organizations are positioned on the top of this list. Russian companies, such as Rosneft and Lukoil, dominate the list, while the most powerful U.S. organization is represented by Exxon Mobil, the world’s third largest oil and gas producer. PetroChina produces almost the same quantity of oil as Exxon Mobil. The largest European corporation is British Petroleum, which is ranked as the fifth largest oil and gas producer in the top 25 (Rapier, 2016). Other large oil corporations include Saudi Aramco, Petrobras, and more.

Except for petroleum and gas, there are various products that can be derived from crude oil. Thus, various types of fuel are derived from oil, such as gasoline, diesel fuel, jet fuel, and others. Moreover, heating oil, petrochemical feedstocks, and waxes are also made of oil. Paving roads is also performed with the help of asphalt, which is made of oil as well. There is also a massive list of items that are produced from oil and used by people in their everyday lives, such as bicycle tires, motorcycle helmets, faucet washers, antiseptics, deodorants, perfumes, and even clothes.

References

Green, K. P., & Jackson, T. (2015). Safety in the transportation of oil and gas: Pipelines or rail? Eraser Research Bulletin, 1–14.

Rapier, R. (2016). The 25 biggest oil and gas companies in the world.Forbes. Web.

Steer. (2018). The four primary methods of oil & gas transportation. Web.