MGMT 431 MGMT 431
Pennsylvania State University Altoona
Popular in Entrepreneurship Small Business Management
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This 4 page Class Notes was uploaded by Jason Kanowitz on Friday September 30, 2016. The Class Notes belongs to MGMT 431 at Pennsylvania State University Altoona taught by Professor Paul in Fall 2016. Since its upload, it has received 4 views. For similar materials see Entrepreneurship Small Business Management in Management at Pennsylvania State University Altoona.
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Date Created: 09/30/16
SHIRLEY’S SHOE STORE S.W.O.T. ANALYSIS Strengths: Knows the products well. Customer oriented. Quality products. Can discount prices on the spot. Only store in the area targeting diabetics. Small overhead costs. Weaknesses: Availability. Location. Small variety. No signs on the inside displaying men’s, women’s, and shoe type categories. Color schemes in store are bland. Lacks liveliness. Retail price. Opportunities: Turn on lights. Target younger demographic. Make window display clear on what is being sold. Change name. Organize the store and fill up the space. Host molding or pottery classes and events. Have a grand reopening sign and then turn on the lights when everything has changed. Online retailing and promotion. Threats: The store appearance from the outside, looking in, is awful. The store is messy on the inside. Hard to tell who the target market is. Does not use up all of the wall space for shoe styles, so it looks like the business is going out of business. The store does not use any lighting. No website. Facebook page is inactive. Name association. EVALUATION OF SWOT Strengths: Sam knows his shoe products very well and could sell all of the benefits to his clients. His primary target market are diabetics and he is the only shoe provider in the area that targets diabetics. He has learned to be personable with his customers and understand how to negotiate for instant sales. Due to the importance of diabetic shoes, Sam can charge more money. Sam also has very low overhead costs because he does not use many utilities. He also saves a lot of money by not employing any workers. Weaknesses: Sam’s primary target market right now are diabetics who usually age from 50 years old and older. His open hours are from 10 A.M. to 5:30 P.M. For the customers that do not live in a nursing home, they are most likely working. Many people do not finish work until 4 P.M. to 6 P.M., so he is not available for his target market. There are at least four other shoe stores in Altoona, so instead of rushing to Shirley’s Shoes from work, why not go to a store that has more of a variety and has later hours? Shoe Fly is open until 8 P.M. and Super Shoes is open until 9:30 P.M. The variety at Shirley’s shoe store is very limited as well. Most of the shoes that I saw were women’s shoes. Also, when I saw them there were not any signs that said “Men’s,” “Women’s,” or the type of shoe. At Shoe Fly, there is a shoe display on every wall. I knew exactly where to find men’s shoes, women’s shoes, athletic shoes, dress shoes, and etc. As of right now the walls look dull and in general the store looks like it is vacant. Another thing that I noticed after going to the other shoe stores was that there was music playing in the background. Music in the background changes the atmosphere. At Shoe Fly, it sounded like the music was the current top 40 newest hits. They do this because a lot of the other customers were in the athletic shoe side. Most of the athletic shoe psychographic customers are going to be lively customers who enjoy listening to music that motivates them during a workout. An example of a business that I would not expect to hear music would be at an accounting firm, but a shoe store is not an accounting firm. Lastly, the location is not great because of the local people walking around the area and some of the other stores lower the value by selling “junk.” There is also the issue of the diabetic customers parking on a oneway street that will be filled by student vehicles. A corner location can be a great location for a business, especially with all of the students walking by, and skateboarding across the street, but defining who the target market is, as well as the marketing efforts is key. Opportunities: Shirley’s Shoes has a lot of potential, but there is a lot of work to be done. As mentioned in the weakness evaluation, there are a lot of high school students that skateboard and scooter directly across the street, which could be a great target market. If diabetic customers are not coming to the store, then the store does not need to display diabetic shoes. Instead, Shirley’s Shoe store could market to diabetics through online retailing and advertising. Additionally, because Sam has a hobby in making pottery, making Facebook posts about pottery events in his store will draw people to his store and grow his network. The more people that know that his store is active and that he is selling great shoes will increase his chances of making a sale. Easy fixes and opportunities to increase business are to turn on the lights so people can see activity inside the store as well as the shoes, display only shoes that target the chosen primary market, and organize the store so that there is an impression that the store has had constant success. Lastly, changing the name from Shirley’s Shoes to a name that will keep up with a target market such as the younger generations will greatly impact the store. A grand reopening wouldn’t be so bad either. Threats: As of right now, the business looks vacant, much like many of the other deserted buildings in Downtown Altoona. People will make that connection if the lights are off and there is no activity of people going in and out of the store. Many students walk passed Shirley’s Shoes every day, and what might go through their mind is that they assume the business is closed down, or the store is a cheap junk store. The second reason is because displaying in the window are high heels, pocketbooks, and different pieces of pottery. Displaying random hobbies will not help attract people into the store because people will assume that the store is not for them. The association with the window display and the company name gives the assumption that Shirley’s Shoes is a women’s shoe store. Clarity of who is being targeted is very important. Next, would be to clean up the inside. At Shoe Fly, as soon as a salesman finishes helping a customer, the salesman cleans up right away to keep organized and so that the next customer to walk in does not think Shoe Fly is a dump. A customer may not notice a clean store, but if there is a mess or something is dirty, a customer will spot that right away and could cause them to want to spend their money elsewhere. Shirley’s Shoes has a lot of wall space that is not being used. It is a threat because customers will not spend much time looking around, and they will go to another store. A lack of wall space will give the impression that the store is going out of business, and if a store is going out of business, the prices are usually lower. Already, the mindset is the opposite of where Sam wants his customers to be because his prices are average retail prices for quality shoes. An important aspect that Shirley’s Shoe store is missing out on is the online presence. Even for something as small as finding when the store is open is important. On the Facebook page, the times are 9:30 A.M. to 5 P.M. which is incorrect and the half hour could make a big difference. There is a shoe store called Al’s shoes located on the country side of Altoona. They do not have an online presence, so it is hard to tell if the company is still in business. Why would anyone drive out to the Altoona country side on a gamble that the shoe store is still in business, and open when arriving? Websites and social media posts show that the company is active and running. Additionally, an entire business can be ran off of a website depending on how the business wants to run business. ACTION ITEMS 1. Turn on lights. 2. Move artwork to the back. 3. Clean up a mess after every customer. 4. Determine a new primary target market. 5. Advertise on social media actively and relevantly. 6. Display shoes in the window that will attract (students) to at least walk in. 7. Utilize all of the wall space, whether there is a giant picture of a shoe, or shoes being displayed. 8. Host events such as pottery making events to bring people into the store. 9. Put up signs to show different categories of shoes. 10. Increase advertising. 11. Increase shoe variety. 12. Play music (at least) during peak business times for customers. 13. Direct lighting on shoes that are displayed on the walls. 14. Change company name and signs. 15. Create a website for online retailing. 16. Have a grandreopening during an event day (ex: farmers market).
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