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Shc Extra Credit Case Mgt 405

1261 words - 6 pages

Eric Kang 815130492 Professor Sloan November 23, 2015
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(pg.8). In part of its strategic development, SHC starts with maintaining its product categories in stock levels for merchandise with its diverse products in order to satisfy its customers.
In looking at the macro-environmental factors that affect the overall business of SHC, there are some transitions and changes that affect the overall structure of SHC’s business lines, and purchasing of the overall supply of merchandising and the advancement of the changes in retail business. For example, “We obtain a significant portion of our inventory from vendors located outside of the United State. Some of these vendors often require lengthy advance notice of our requirements in order to be able to supply products in the quantities we request. This requires us to order merchandise, and enter into purchase order contracts for the purchase and manufacture of such merchandise, well in advance of the time these products will offer for sale.” (pg.7). the response from the macro-environmental factors has affected and can make SHC more vulnerable in the changes of the retail environment In terms of prices and supply orders. As well discuss more about the retail industry; there are highly competitive barriers to entry. “We compete with a wide variety of retailers, including other department stores, discounters, home improvement stores, appliances and consumer electronics retailers, auto service providers, specialty retailers, wholesale clubs and many other competitors operating on a national, regional or local level. Some of our competitors are actively engaged in new store expansion. Online and catalog business, which handle similar lines of merchandise and some of which are not required to collect sale taxes on purchases made by their customers, also compete with us” (pg.7). To make sure to achieve its successes, it uses a differentiation strategy in order to respond to customer’s changing tastes. The performances of the competitors, as well as changes in the pricing policies, marketing activities, new store openings and other business strategies could have an effect on the business and financial conditions. There are some economic and other factors that are outside of SHC’s control that include consumer and commercial credit availability, consumer confidence and spending levels, including payroll and medical cost increases in the US, inflation, employment levels, housing sales, and remodels, debt level, flue costs, and other challenges in the global economy have affect the reduce demand of the SHC merchandise. If any of the raw materials gain a rise in price such as wool or cotton, there will be increases in the merchandise, and the decrease in consumer spending. These are some threats that can affect their overall market. Sales fluctuate have been affect by the actions of their competitors, seasonal fluctuations due to weather conditions, changes in merchandise strategy, changes in populations, and the timing of its promotional events. These factors have...

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