POLITEKNIK SULTAN AZLAN SHAH JABATAN PERDAGANGAN RETAILING (PM304) ASSIGMENT 1

GROUP NAME : NORWANI BINTI HUSSEN NUR HAFFEDZAH HANNIES BINTI MOHD YUSOF NORAIN SYAFIQA BINTI ABD RASHID IZATUL AINA BINTI MUHAMMAD HALIM NORSYAHIRAH BINTI ASNAN

NO.MATRIX: 15DPR10F2042 15DPR10F2049 15DPR10F2052 15DPR10F2056 15DPR10F2057

JABATAN PERDAGANGAN : DIPLOMA PEMASARAN

CLASS: DPR 3B LECTURER : CIK SITI FATIMAH BINTI AHMAD HISAM

PM304 RETAILING ASSIGMENT 1

QUESTION 1 WHAT IS YOUR FAVORITE RETAILER? WHY DO YOU LIKE THIS RETAILER? WHAT WOULD A COMPETITIVE RETAILER HAVE TO DO TO GET YOUR PATRONAGE?

Retail organization that we chose is the 7-Eleven Malaysia SDN. BHD. We chose this organization because retail 7-Eleven is a pioneer and the largest operator of retail stores 24 hours in Malaysia. In addition the first 7-Eleven franchise in the domestic market to offer a profit-making shops available to franchisees. This is an advantage and strength of this organization to continue to progress until able to open the largest retail shop chain with more than 1,300 stores nationwide. 7-Eleven stores in Malaysia to be more than half a million customers each day.

Competitive retailers have to do to get the shade by finding loyal customers. This is important for the organization's bottom line. Research shows that customers frequently recurring spend more money, generate larger transactions, refer more customers, and purchase a wider variety of products from the buyer at a time. Therefore, it is important to understand the ease or difficulty of your customers can move the business to a different provider. As an organization that we chose the 7-Eleven. This organization has been attracting more customers by way of introducing fixed brewed coffee and other hot drinks, fresh with fresh food and bakery packaging for the benefit of existing customers looking for food to be eaten hot. Because majority Malaysians are followers of Islam who insist HALAL description in every food you eat, 7-Eleven has been to ensure that all food items sold at 7-Eleven certified Halal and undergo strict quality control to ensure freshness and tastefulness.

QUESTION 2 WHY DO RETAIL MANAGERS NEED TO CONSIDER ETHICAL ISSUES WHEN MAKING DECISIONS? The essence of management decision making. The 7 eleven store are required to evaluate alternatives and make decisions on various matters. Just like the management of store is different than others store of franchise. Make decisions involving uncertainty and risk, and decision makers of different levels of risk aversion. Decision-making also involves qualitative and quantitative analysis, and some decision makers to choose one form of analysis than others. Making decisions can be affected not only by rational judgments, but also by factors such as personality is not rational decision makers, peer pressure, state organizations, and others. Systematically: The organization of 7 eleven are often forced to make decisions under uncertainty, and not all the information needed. For example, some store of franchise use others strategies to attract attention of customers. Decision-makers need to pay attention to emotions and feelings when making decisions. 7 eleven created a wholesale store for every major area and established a distribution systems. The 7 eleven store must assemble the product sample or samples: Product name (the complete range) Product description Product cost price Product retail price The actual Universal Product Code (UPC) / Barcode Product size (carton and inner box quantity) Product display unit (if applicable)

Halal certificate or other certificate (if required or relevant) Lead time to delivery

RESULTS BASED ON PRINCIPLE (ethics) Making decisions can be a useful complement or alternative to the analytical results. Ethical decision making using the ethical (moral) principles for decision making, and principled decision-making can use all the principles (ie, including the principles or potentially unethical decisions that led to results that are not ethical). Making decisions is easy to understand principles and principled decision easier to communicate with others in the organization. The principles that can be used to help make the results of the analysis. For example, a portfolio manager store of 7 eleven can use the principles as a screen to isolate potential investment into the category of acceptable and unacceptable. This effectively determines the dimensions of the search and reduce the sample space. Once the principles have been used to reduce the problem of manageable size, the analysis techniques can be used to make the final selection. ROLE INFORMATION: DECISION SUPPORT SYSTEM Armed with information, 7 eleven managers can make better decisions. Front-line managers store, for example, supplied with direct activity cost information, the better able to manage earnings, margins and costs. Organizations can achieve greater consistency between top management and lower level by providing more information across the organization. A STEP APPROACH FOR BETTER DECISION-MAKING. 1. Work on the problem right decision. Be careful in stating the problem, and avoid assumptions that are not reasonable and selection bias limit. 2. State the objective. Determine what the store want to accomplish, and the interests, values, concerns, fears, and aspirations that are most relevant. 3. Create an imaginative alternative. Alternatives represent the different courses of action and results you cant better than your best alternative.

4. Understanding the impact. Determine the different ways and alternatives to meet all store objectives. 5. Grapple with the tradeoffs store. Since the conflict of objectives with one another regularly, it becomes necessary to choose between the possibility that less than perfect. 6. Describe store uncertainty. Facing uncertainty in assessing the possibility of different results and evaluate their impact. 7. Consider the outcomes. Many important decisions related to from time to time. The key to making a series of decisions to isolate and resolve the issues the near term and at the same time gathering information related to the issues that will arise later.

QUESTION 3 CHOOSE ONE OF THE TOP 20 RETAILERS AROUND THE WORLD. GO TO THE COMPANYS WEB SITE AND FIND OUT HOW THE COMPANY STARTED AND HOW IT HAS CHANGED OVER TIME.

No. 1 2 3 4 5 6 7

Retailer Wal-Mart Stores, lnc Carrefour Group The Kroger Co MetroAG he Home Depot, lnc Albertson's, lnc ITM Entreprises SA

Base

Type Region Discount USA Store 163,532.00 N.America FRA Hypermarkets 52,196.10 Europe USA Supermarkets 45,352.00 N.America

Sales in U.S. $millions

% of sales Regional in foreign Station country Global Global Single Country Global Global Single Country Regional 13.90% 37.70% 0.00% 40.00% 3.70% 0.00% 36.00% 10.60% 0.00% 0.00% 0.50% 76.40% 10.80% 19.70% 10.00% 29.80% 2.40% 18.40% 47.90% N/A

GER USA

Diversified Hardlines

44,163.37

Europe

38,434.00 N.America

USA Supermarkets 37,478.00 N.America FRA Supermarkets 36,762.45 Dept Store Discount Store Discount Store Dept Store Europe

8 Sears, Roebuck and Co USA 9 10 11 12 13 14 15 16 17 Kmart Corporation Target Corporation JC Penney Royal Ahold Safeway Inc Rewe-Gruppe Tesco plc lto-Yokado Co, Ltd Edeka-Gruppe USA USA USA

36,728.00 N.America Regional Single 35,925.00 N.America Country Single 33,702.00 N.America Country 31,503.50 N.America Europe Europe Europe Asia Europe Global Global Regional Global Global Regional Global Global Regional

NET Supermarkets 31,222.15 GER Supermarkets 30,567.69 Supermarkets 30,404.40 Gen. JPN Merchandise 30,237.57 GER USA Diversified Warehouse Clue 30,002.57 UK

USA Supermarkets 30,801.80 N.America Regional

18 Costco Companies, lnc

26,976.45 N.America Europe Asia

19 TengelmannWarenhande GER Supermarkets 26,509.12 20 The Daiei, lnc JPN Diversified 26,486.11

How the company started and how it was changed over time?

Walmart Growing up during the Great Depression Sam Walton worked a variety of jobs including milking the family cow. He joined JCPenney as a trainee 3 days after college and earned $75 per month. He first opened a Ben Franklin variety store (a discount variety store chain) in Newport, Arkansas with a 20,000 loan from his father in law. In this store, he learned about constantly stocking shelves with variety and low prices. He also learned to work hard and stay open longer than other stores. After several more Ben and Franklin stores, he opened the first Wal-Mart in 1962 in Rogers, Arkansas. It was a fifth the size of the current store. His business plan was simple: provide variety, have low costs and give low prices. The birth of discount retailing Most people think discount retailing began in 1962 the year that Kmart, Target, and Walmart first opened. But actually, the chain of variety stores Sam Walton owned during the 1950s faced stiff competition from many regional discount stores. 1962 Walmart begins Before opening Walmart, Sam traveled the country studying everything he could about discount retailing. He became convinced American consumers wanted a new type of store. Trusting his vision, Sam and his wife Helen put up 95 percent of the money for the first Walmart store in Rogers, Ark. 1972 Walmart goes public Discounters such as Kmart quickly expanded in the 1960s, while Sam only had enough money to build 15 Walmart stores. In 1972, Walmart stock was offered for the first time on the New York Stock Exchange. With this infusion of capital, our company grew to 276 stores in 11 states by the end of the decade. The 1980s Walmart comes of age In 1983, the first Sams Club members-warehouse store opened. The first Supercenter opened in 1988, featuring a complete grocery, and 36 departments of general merchandise.

By 1989, there were 1,402 Walmart stores and 123 Sams Club locations. Employment had increased tenfold. Sales had grown from $1 billion in 1980, to $26 billion. The 21st century one of the most successful retailers in the world Today, 9884 stores and club locations in 28 countries employ 2.1 million associates, serving more than 176 million customers a year. It is a perfect example of how to manage growth without losing sight of your values. Our most basic value has always been, and always will be, customer service. Sams secret give your customers what they want In his autobiography, Sam said, " if you think about it from the point of view of the customer, you want everything: a wide assortment of quality merchandise; the lowest possible prices; guaranteed satisfaction; friendly, knowledgeable service; convenient hours; and a pleasant shopping experience. You love it when a store exceeds your expectations, and you hate it when a store inconveniences you, gives you a hard time, or pretends you're invisible."

History Timeline 1960s

First discount store in Rogers, Ark. The Walmart story began in 1962, when Sam Walton, our founder opened the companys first discount store in Rogers, Ark. 1968 saw the hiring of Walmart Aviations first full-time pilot, who provided help to Sam and Bud Walton, as well as the opening of the first stores outside of Arkansas, in Sikeston, Mo., and Claremore, Okla. The company officially incorporated as Wal-Mart Stores Inc. on October 31, 1969.

1970s

Walmart's first distribution center, Bentonville, Ark. The 1970s marked the beginning of significant growth for the company. The first year of that decade saw the opening of the first Walmart distribution center, as well as the Walmart Home Office, in Bentonville. Ark. At that point, Walmart employed 1,500 associates (employees) working in 38 stores, with sales of $44.2 million. Walmart also began selling 1980s

First Sam's Club, Midwest City, Okla. 1980 Growth continued into 1980, with Walmart stock splitting 100 percent for the fourth time with a market price of $50. That year also saw the opening of the largest distribution center to date in Palestine, Texas. In 1981, Walmart entered Georgia and South Carolina, and made its second acquisition with 92 Kuhns Big K stores. The company entered Florida and Nebraska in 1982, following Junes fifth 100 percent stock split at a market price of $49.875.

1990s

Walmart Visitors' Center, Bentonville, Ark. 1990 Walmart became the nations No. 1 retailer in 1990, entering into California, Nevada, North Dakota, Pennsylvania, South Dakota, and Utah and acquiring the McLane Company of Temple, Texas. The company also opened the Walmart Visitor Center on Bentonvilles town square, on the site of Sam Waltons original Waltons 5-10 store. Walmart stock split 100 percent for the ninth time in 1990 as well, at a market price of $62.50. Late 1990s In the last year of the 1990s, Walmart became the largest private employer in the world, with 1,140,000 total associates. The stock split 100 percent for the 11th time, with a market price of $89.75. The 1999 Cone/Roper Report, an annual national survey on philanthropy and corporate citizenship, ranked Walmart the No. 1 Corporate Citizen in America. The company acquired 71 Interspar units in Germany and acquired the ASDA Group plc in the United Kingdom. 2000s

H. Lee Scott Jr., third CEO of Walmart Stores Inc.

2000s Walmart entered the new millennium with the appointment of H. Lee Scott Jr. as the third CEO of Wal-Mart Stores Inc. in 2000. That year, Fortune magazine ranked the company fifth in its "Global Most Admired All-Stars" list and named Walmart the third most admired company in America. The 2000 Cone/Roper Report once again ranked Walmart as 2005s Walmart marked a significant turning point in 2005 with a new commitment to bring environmental sustainability into its business, under the leadership of CEO Lee Scott. The sustainability commitment developed after Walmart led the corporate drive to assist in U.S. hurricane relief effortswith $18 million in cash donations. That same year, in McKinney, Texas, and Aurora, Colo., Walmart created experimental stores that save energy, conserve natural resources, and reduce pollution. The company also launched the Acres for America program, which conserves critical wildlife habitats for future generations. As of 2005, Walmart employed more than 1.6 million associates in more than 6,200 facilities around the world including 3,800 U.S. stores and 3,800 international units with $312.4 billion in sales for the year. The company served more than 138 million weekly customers in the United States,Argentina, Brazil, Canada, China, Costa Rica, El Salvador,

Germany, Guatemala, Honduras, Japan,Mexico, Nicaragua, Puerto Rico, South Korea and the United Kingdom. View the current unit count for each country.

Seiyu Store in Japan 2006s By 2006, the number of weekly customers grew to more than 176 million around the world, with 6,779 locations. Walmart had record net sales of $345 billion. The company increased its ownership stake in Seiyu inJapan, to 53.3 percent, and increased its ownership of CARHCO to 51 percent, renaming the company Walmart Central America.

Through the Walmart Foundation, charitable partnersand donations from customers and associates, Walmart contributed more than $415 million in cash and in-kind merchandise to 100,000 organizations worldwide. Walmart also launched a new $4 generic prescription drug program to help customers in its U.S. pharmacies save money on health care. 2007s In February 2007 Walmart helped launch Better Health Care Together, a unique partnership of organizations dedicated to a set of four common sense principles for achieving a new American health care system by 2012. Later in the year, Walmart expanded its successful $4 generic program, which as of 2007 had saved customers more than $396 million on prescription drug costs. Walmart International reached significant milestones as well. In August, Walmart and Bharti Enterprises announced an agreement to establish Bharti Walmart Private Limited, a joint venture for wholesale cash-and-carry and back-end supply chain management operations in India. The 3,000th international store, a Supercenter in Sao Paulo, Brazil, opened in November 2007. In December, Walmart successfully completed a tender offer to acquire all issued and outstanding shares of Seiyu in Japan, which raised Walmarts ownership to 95.1 percent. 2009s

Mike Duke, President and CEO of Walmart Mike Duke succeeded Lee Scott as president and chief executive officer, effective February 1, 2009. Duke was also elected to the companys board of directors. Scott continues serving as chairman of the executive committee of the board. The board also approved the promotion of Eduardo Castro-Wright to vice chairman of Walmart Doug McMillon is promoted to president and chief executive officer of Walmart International, the companys second largest operating segment.

SUSTAINABILITY At Wal-Mart, they know that being an efficient and profitable business and being a good steward of the environment are goals that can work together. Their broad environmental goals at Wal-Mart are simple and straightforward:

To be supplied 100 percent by renewable energy; To create zero waste; To sell products that sustain people and the environment.

Their efforts have been recognized through numerous awards, which would not be possible without the support of their customers, associates and communities around the world. The latest changed: Walmart Express Stores The first two Walmart Express test stores opened in June 2011 in Northwest Arkansas. Walmart every convenient Express day in access has a for been smaller fill-in created format and to offer store stock-up low that shopping prices provides trips.

The stores give Walmart flexibility in serving customers, especially in rural and urban areas where not have access shoppers to larger may stores.

The Walmart Express test stores average 15,000-square-feet and offer groceries and general merchandise, including an assortment of fresh produce, dairy and meat, dry goods, consumables, health and beauty aids, over-the-counter medicines and more. Many have pharmacies as well.

QUESTION 4 FROM A PERSONAL PERSPECTIVE, HOW DOES RETAILING RATE AS A POTENTIAL CAREER COMPARED WITH OTHERS YOU ARE CONSIDERING? From a personal perspective, the retail rate is a potential career compared to others. As an example, a comparison between the retail and business divisions. For the retail, the way they manage the retail sector is more potential for the work done by them is very easy compared to the business. Part of this business is greater than the retail. This is usually caused part of the business of business between large companies compared to the retail business where they just carry on a small scale. In addition, it is easy to retail in the receivables and the public know. It also does not require much capital as compared to the business that requires a lot of capital. The retail division is said to have greater potential because if there is a branch of the non-profit or near bankruptcy, there are still other branches already operating from the business in which if a company does not profit, the company will face big losses on issued capital . As an example, Shops 7-Eleven stores in Malaysia owned by Convenience SHOPPING SDN. BHD. (CSSB) which now operates about 800 stores across the country and planned to expand up to 1000 branches. Next, the retail sector is also an attorney or agent to distribute their products from a number of firms compared with the business focused on one product. So, users have many options if they purchase an item at the grocery store. Here shows that the more significant retail potential processing products to the consumers compared to the more difficult part of the business if a user is to have a product or products required.

QUESTION 5 HOW MIGHT MANAGERS AT DIFFERENT LEVELS OF A RETAIL ORGANIZATION DEFINE THEIR COMPETITION? In retail organization , managers will know what consumer need and want in the market . That means manager must know what consumer want to buy in the shop and look what in another store sell and compare with the price. For example , 7eleven store their sell a same product with another retail store like daily necessities ; milk , maggie and so on . But managers for 7eleven must know how price they want to put for attract consumer to choose the product. Managers must thinking how to improve and take information from competitors. So the managers can use it to build the store from a better one. In additional , competitors always grab the oppournities from the market and managers must take the oppurnities that market give it. 7eleven store is a 24 hours store different than retail store. So its easy when consumer want the product in the midnight and for emergency so the consumer can buy it in the 7eleven store . Managers also must think how to do the promotion and make a sale from the promotion. Managers using skimming and penetaration price before sell the product. In the retailing situation , the retailer/managers sell the quality product . Its same like a another retail store but sometimes retailer put also the low-quality product. Consumers must choice it but they can prefer more quality product like 7eleven store to buy it and they believe 7eleven store sell the quality product. Futhermore , managers should know how to arrange the product in their store for make sure that consumer easy find the product. For example , 7eleven store arrange the product very well like food , food cane and so on. Its make consumer like it. In another store , sometimes they didnt arrange the product very well and make a consumer trouble. 7eleven store offers a Sluurrrppeee for those want to try a new one for drink. Its delicious and didnt have any another store. Only for 7eleven outlet. So managers has the advantage to do the a promotion for the drink and attract more from consumer/people. In additional , 7eleven store have a community care where 7eleven between Berjaya Times Square do a donation when all contributions will be channelled to Berjaya Cares Foundation for various charitable bodies. Its different from another store.

QUESTION 6 RETAILING VIEW 1.1 BELOW DESCRIBE HOW SOME RETAILERS ARE ACTING SOCIALLY RESPONSIBLY. TAKE THE PERSPECTIVE OF A STOCKHOLDERS IN THE COMPANY. WHAT EFFECT WILL THESE ACTIVITIES HAVE ON THE VALUE OF ITS STOCK? WHY MIGHT THEY HAVE A POSITIVE OR NEGATIVE EFFECT?

Acting socially responsibility is define as the integration of business operations and values, whereby the interests of all stakeholders including investors, customers, employees, the community and the environment are reflected in the company's policies and actions. It have positive effect on the value of its stock because it encouraging the business partners to strive for matching performance, acting in a socially responsible way, continually improving the performance and meeting all relevant legislation and encouraging the staff to be mindful of the effect of their actions on any natural resource. The purpose of the policy is to make clear to all stakeholders what their mean by CSR and how it proposes to work towards achieving it.

The company social responsibility policy applies throughout all of Procurement Service and governs the approach to all the activities. In implementing the policy they will aim to be responsible and to be an example of good practice. It recognizes that good CSR embraces all aspects of sustainable development and the way it affect people through the business operations. Next, they will assess which social issues are of most relevance to the contract and decide at what stage in the procurement lifecycle this social policy could most effectively and legally be included then, they shall operate in a way that safeguards against unfair business practices.

They believe that a responsible approach to developing relationships between companies and the communities they serve, global or local, is a vital part of delivering business success because when carrying out a procurement exercise, in consultation with the customers, they will determine the environmental, social and economic issues. The contracts will clearly set out the agreed terms, conditions and the basis for their relationship. They will continually review the policies and business practices to encourage engagement with small and medium enterprises and to promote the development of the regional supply chain. In addition, it improves the company public image and necessary in order to avoid excessive regulation.

Socially responsible actions can be profitable and improved social environment will be beneficial to the company. It will be attractive to some investors and can increase employee motivation besides will help to corrects social problems caused by business and base and all explanation above it will automatically increase the value of its stock from time to time especially there are from the top and largest retailers company around the world.