"Bendel, which only started opening stores outside of New York City in 2008, announced plans to...

"Bendel, which only started opening stores outside of New York City in 2008, announced plans to stop selling clothes in 2009 to focus on accessories and gifts —a move that flummoxed many fashion designers." Why do you think this decision was made and do you think it was wise? Please explain your thoughts.

Solutions

Expert Solution

If we look at the decision made by the company to shut down all of its stores selling cloths in 2009 and to focus on accessories and gifts, the main focus behind this decision is that the management is looking to improve the profitability of the company and wants to focus on the larger brands which have greater potential for the business growth. By doing so, the company can narrow its offering and thus have greater focus on the customer requirements and trying to satisfy these needs of the customers.

\In my opinion, looking at the market segment in which the company is operating, it is a good decision as the customer's expectations are increasing every day and thus the company must focus on the resources utilization to the fullest and avoiding those streams of the business which have a greater probability of the profit and revenue generation. This will help the company to use its expertise and competence in a better manner.

keosha answered 1 year ago

Next > < Previous

Related Solutions

Walmart is considering opening a small experimental store in New York City. A store is expected...

Walmart is considering opening a small experimental store in New York City. A store is expected to have a long economic life, but the valuation horizon is 15 years. The store in New York is likely to generate revenues of $36M in the first year and then it grows at 5.0%. But the costs of running the business are high because the margins on all the products sold are low. (It is a volume business!) The cost of goods sold...

Walmart is considering opening a small experimental store in New York City. A store is expected...

Walmart is considering opening a small experimental store in New York City. A store is expected to have a long economic life, but the valuation horizon is 19 years. The store in New York is likely to generate revenues of $30M in the first year and then it grows at 5.0%. But the costs of running the business are high because the margins on all the products sold are low. (It is a volume business!) The cost of goods sold...

City Bagel operates four bagel stores in New York. The owner has provided the following budgeted...

City Bagel operates four bagel stores in New York. The owner has provided the following budgeted data for next year. Revenue $11,419,000 Fixed Costs $3,308,000 Variable Costs (depends on the # of bagels sold) $7,820,000 For each of the following scenarios, determine the dollar impact on City Bagel. Consider each scenario independently. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Enter all values as positive values. Do not use...

New York City started using rent control after WWII in an effort to create affordable housing....

New York City started using rent control after WWII in an effort to create affordable housing. New York City is known for high rents for everyone not receiving rent control, and for the small size of the majority of apartments. How has New York City’s policy of rent control created these conditions? Should cities institute rent controls to help lower-income households afford housing?

Aldi, a Germany-based global discount supermarket chain, opened two stores recently in New York City and...

Aldi, a Germany-based global discount supermarket chain, opened two stores recently in New York City and it can offer prices that are 20% less than Walmart’s, which makes it an attractive place for city dwellers to shop. Aldi’s distinctive competence is produced by a number of factors. It operates with a business model that focuses on selling a limited number of groceries and household items in a small setting. Its typical stores are just 16% the size of a typical...

How is the New York City Budget determined?

New York City is the most expensive city in the United States for lodging.

New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $55.what is the probability that a hotel room costs $225 or more per night?what is the probability that a hotel room costs less than $140 per night?What is the probability that a hotel room costs between $200 and $300 per...

New York City is the most expensive city in the United States for lodging.

New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $205 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $55. Use Table 1 in Appendix B. a. What is the probability that a hotel room costs $225 or more per night (to 4 decimals)? b. What is the probability that a hotel room costs less than $143 per night...

A New York City taxi medallion, which gives the owner a license to operate a taxi,...

A New York City taxi medallion, which gives the owner a license to operate a taxi, is a valuable commodity. Medallions trade in a weekly market at about a $1M each. There are 15,000 medallions outstanding today, the same as over 75 years ago. The taxi services market is an example of monopoly-like control of competition sanctioned by government regulation -- the New York City Taxi Commission. In the New York City taxi market, suppose weekly demand for taxi trips...

Subjects