After graduating from college, Melissa Malone landed a position with Orchard Creek, one of the finest...

 

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After graduating from college, Melissa Malone landed a position with Orchard Creek, one of the finest children's boutiques in the Boston area. Three years ago, Melissa was promoted to Assistant Buyer. Among her other responsibilities, Melissa is now the sole buyer for the Children's Accessories Department. Orchard Creek has successfully been selling children's clothing for over 25 years. Its merchandise assortment includes classic children's clothing, fashionable accessories, and unique gift items for infants, toddlers, boys, and girls. Employees take great pride in the store. The boutique, well known for its merchandise quality and exceptional customer service, has received many awards, including the "Readers" Choice Award" and "Top Pick" for Best Children's Clothing from local newspapers as well as a regional magazine. This fall, however, the Children's Accessory Department is falling short of meeting its sales goal. During an October meeting with the department sales manager, the merchandise manager, and the advertising manager, Melissa was directed to examine her department's performance. Within two days, Melissa must analyze the performance of the Children's Accessories Department, compare it with the department's six month plan, calculate the department's open-to-buy for the remainder of October, and identify feasible options for getting the department back on track. Melissa reviewed her six-month plan for Orchard Creek's Children's Accessory Department, including the actual performance for August and September. (See the attached spreadsheet.] She also observed the department's current performance from October 1 through October 15. In her midmonth analysis, Melissa observed the following: • Actual sales from October 1 through October 15 were $3,529.00 • The value of merchandise on-order scheduled to arrive before the end of October is $2,749.00 • Actual markdowns taken from October 1 through October 15 were $715.00 • Stock on hand as of October 15 is valued at $22,160.00 DISCUSSION QUESTIONS FOR CASE STUDY 1 1. As of October 15, how is the Children's Accessories Department performing compared with the department's six-month plan? 2. What is the open-to-buy remaining for the month of October? 3. What immediate steps should Melissa take to improve her open-to-buy? 4. What additional information would Melissa want to review that would be helpful in making an informed decision? 5. What are at least two actions Melissa could propose to improve the sales performance of the Children's Accessories Department? After graduating from college, Melissa Malone landed a position with Orchard Creek, one of the finest children's boutiques in the Boston area. Three years ago, Melissa was promoted to Assistant Buyer. Among her other responsibilities, Melissa is now the sole buyer for the Children's Accessories Department. Orchard Creek has successfully been selling children's clothing for over 25 years. Its merchandise assortment includes classic children's clothing, fashionable accessories, and unique gift items for infants, toddlers, boys, and girls. Employees take great pride in the store. The boutique, well known for its merchandise quality and exceptional customer service, has received many awards, including the "Readers" Choice Award" and "Top Pick" for Best Children's Clothing from local newspapers as well as a regional magazine. This fall, however, the Children's Accessory Department is falling short of meeting its sales goal. During an October meeting with the department sales manager, the merchandise manager, and the advertising manager, Melissa was directed to examine her department's performance. Within two days, Melissa must analyze the performance of the Children's Accessories Department, compare it with the department's six month plan, calculate the department's open-to-buy for the remainder of October, and identify feasible options for getting the department back on track. Melissa reviewed her six-month plan for Orchard Creek's Children's Accessory Department, including the actual performance for August and September. (See the attached spreadsheet.] She also observed the department's current performance from October 1 through October 15. In her midmonth analysis, Melissa observed the following: • Actual sales from October 1 through October 15 were $3,529.00 • The value of merchandise on-order scheduled to arrive before the end of October is $2,749.00 • Actual markdowns taken from October 1 through October 15 were $715.00 • Stock on hand as of October 15 is valued at $22,160.00 DISCUSSION QUESTIONS FOR CASE STUDY 1 1. As of October 15, how is the Children's Accessories Department performing compared with the department's six-month plan? 2. What is the open-to-buy remaining for the month of October? 3. What immediate steps should Melissa take to improve her open-to-buy? 4. What additional information would Melissa want to review that would be helpful in making an informed decision? 5. What are at least two actions Melissa could propose to improve the sales performance of the Children's Accessories Department?

Answer rating: 100% (QA)

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