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1、BUSINESS REPORTINCREASING THE DEPARTMENT STORES PROFITS FOR INCREASING THE DEPARTMENT STORES PROFITSPrepared forJohn SmithGeneral ManagerHARRODS department storePrepared byPeter AlbertChief advisorTWCB July 15, 2013MEMODATE: 07/15/2013TO: John SmithFROM: Peter AlbertSUBJECT: INCREASING PROFITSHere i
2、s the report you requested on Jul.12, 2013 on the department stores profits.Your uneasiness was right. As we only focused on some high-quality products, we cant expand market share in other aspects, then the profits fell sharply.The solutions to the problem are clear. We need to take some cares in o
3、ther marketing. Set up some convenience stores, discount stores and speciality stores as competition did. Expand foreign retail chains in some economically potent states like China and Japan. Make transition of service mode to follow the consumer demands.Thank you for giving me the opportunity to wo
4、rk on this assignment. If you have any questions about the report, please call me. Executive SummaryIn the past six months, the profits of Harrods department stores fell sharply. As a result, several similar famous store groups are now heavily in debt. The report studies the cause of the fell and re
5、commends solutions to the problems.Causes of the fellWe have found three causes relating to the fell: Market Positioning is inflexible. The Foreign market didnt develop well. Service concept was out of date.Some positions and service concepts are out of date, its lower customer satisfaction. We also
6、 found that a large number of staff numbers and managers lack awareness to follow with customers consumption concept. Harrods department store may start training their staff to keep up with modern customers idea.Measures to Increase the Profits Set up some convenience stores, discount stores and spe
7、ciality stores as competition did. Expand foreign retail chains in some economically potent states like China and Japan. Training staff. Make transition of service mode to follow the consumer demands.Estimates for Implementing the ProposalMost of the expenses of implementing the measures will be on
8、set up new stores and expand foreign retail chains. They are estimated to be 25, 0000 pounds.Table of ContentsExecutive Summary Introduction 1 Purpose, Scope, and Challenges 1 Methods 2 The Decreasing Profits in Harrods Department Store 225% Decreasing compared with 2011 2 Competitions Average Profi
9、ts in 2011&2013 2 Major Causes of the Decreasing 3Impact on Harrods Department store 4 More Funds Needed to Increasing Profits4 Jeopardizing the Harrods Brand Reputation 4Methods for Increasing the Profits5 Three Ways to Increasing the Profits5The Fund Needed to Carry Out the Measures6Conclusions an
10、d Recommendations6Supplementary Parts7Appendix7 Bibliography8Part OneIntroductionIn last several months, theres sharply profits fell showed on the financial reporting form Harrods department store. Our company, TWCB, as requested the solution by Harrods department stores manager, we immediately look
11、ed into the matter and found three problems which may have caused the decreasing. The fiscal third quarter of this fiscal year will end in two months. We will do everything to solve the problems before customers switch and never to return.In this report, I will describe the problems we found in the
12、department store and propose three possible measures to solve them and the estimated cost.1. Purpose, Scope, and Challenges Purpose: the purpose of this report is to analyze what caused the problem and how can we solve it as soon as possible. The report gives the result of the investigation. Scope:
13、we immediately formed two teams, one of which checked the department store regularly and the other conducted a survey on customer. The first team hangs around the store for 7 days in a row and constantly does some shopping to see how the service feels like. The second team designed questionnaires co
14、llecting customers comments on the store. The result was not as bad as we had expected. But the store should do something before it becomes a real problem. Challenges: the department store has been facing tremendous challenges and pressure as the number of competitions grows at high speed each year. For instance, some customers select one store visit regularly out of ten. Our store is facing increasing competitive pressure.2. MethodsWe conducted the investigation throug
