You have been tasked by Bob Phillips to improve the operationalization of the Polly Gourmet Coffee Store in the context of:

1. Retail operations: managing the store (40% content)
   1. Finding the right personnel and training the employee(s)
   2. Operations functions employee scheduling, store maintenance, reducing inventory shrinkage
2. Merchandise management
   1. Merchandise planning and management (60% content)
      1. Buying - merchandise
      2. Planning forecasting sales, merchandise assortments, inventory
      3. Operations pricing, store layout and visual merchandising. Please draw your suggested store layout for Polly Gourmet Store.

Exit Fullscreen Polly's Gourmet Coffee. Bob Phibbs, a retail consultant was engaged by Polly's Gourmet Coffee to improve their business. His story goes ... Background In the late 90's it was commonplace to read about the big-boxes putting many small businesses out of business. From the arrival of the Home Depots that threatened the small hardware stores, to the Staples that were putting office supply businesses under, the business media was salivating for the "going out of business" stories. (Well, they still do but...) It was easy to paint a picture where our choices would become limited and where there was no room for the individual customer or business person. In short, it was hopeless to try... That's why, with a stagnant economy, the story about a possible second Starbucks going in about 100 feet from Polly's, who had been in Long Beach, California, for twenty years, got ink. Lots of it. Editorials were written decrying the death of the independent; worried letters to the editor were published about losing the smaller retailers, but the lease for the second Starbucks was signed and their opening date announced. I had to see what all the buzz was about. | visited Polly's on a chilly, January night and found the place a mess. The trash hadn't been emptied, the patio was dirty, the creamers were empty, the merchandise was dusty, half the overhead light bulbs were burnt out. You get the shoddy picture. While I was waiting for my cappuccino, one of the employees told his co-worker, standing right in front of me, that he had written on an employment application for another employer that he was the Polly's store manager because, ...like who would check?" The other said that when the second Starbucks opened, Polly's is going to be gone." That's why he had his resume out too. to do when that second Starbucks opens "He answered, I'm going to send them back to Seattle. I replied, And how, exactly are you going to do that?" Mike took off his glasses, looked back to the coffee roaster and said, I haven't got a clue. Where do I sign?" Getting To Work Mike was one of the founding members of the Specialty Coffee Association (SCAA.) People from around the country came to Mike to learn how to roast coffee in their own stores. Customers from around the country came to swap tales with Mike and share a cup of joe while gleaning some of his tasting secrets. Mike was the rock star of the coffee world! May 2021 BMK310/03 Retailing In spite of that, I learned that Polly's was hemorrhaging cash. We needed to turn the negative buzz about his viability around if he was to stay in business. And quick. Polly's had been losing about 10% each month from the previous month since the first Starbucks opened 10 blocks away. Mike's sleepy coffeehouse was ready for a reboot to become the preeminent choice of coffee connoisseurs and we'd make those customers our evangelists who would market Polly's to their friends. The Challenge Polly's had gotten ink before the second Starbucks opened, but it was a story of the little guy losing against the big powers. It spread organically through word of mouth and the papers. Exit Fullscreen We were going to drive the story we wanted to tell - a tale of success, not a tale of woe. You don't invite people to a party or a show you know is no good. | sat in front of the counter one day and acted like I was working on my laptop. I clearly saw and heard people ordering drinks and baker items. The coffee order was called out but as the cashier placed a bagel or other bakery item in a bag, only the drink was rung up. Happy customers were putting large tips in the tip jar. By the end of the shift the tip jar was filled with lots of $5 bills. These employees were raking it in, and all at Mike's expense because most of what they were collecting should have been his. A meeting was held at a local restaurant. I put up a picture of the Titanic. When everyone was seated, I subtly announced, Ladies and gentlemen, we're on the deck here and it's not going down on my watch. I know you're stealing from Mike and that stops right now. Two girls got up and said I couldn't talk to them that way - and stormed out the door. Sensing that I was usurping Mike's familiar relationships with them, another got up, started to cry and said, You can't do this Mike! We're family!" Mike acknowledged her feeling but said he brought me in and this is what he was going to do, right or wrong