iese mba team a2 local business 4
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History of Local Business nº 4• Store started in 1985• Founded by his father • Main customers are hotels and individuals
• Best selling products are keys
• Demand is cyclical: peaks in June (due to hotels), rest of the year stable
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• A/P 60 days, A/R 30-60 days• Part of a consolidated purchasing network, which is providing them with storage and marketing• Margins: 10-30% depending on product• After crisis lost 30% of business and they had to decrease margins in order to survive• They have issues with immigrants (competition and customers) as customers are bargaining, &
60% immigrant shops, 40% nationals
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Key facts about operations
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Inventory management is based on retail experience of ownerInventory is mainly stocked in the retail area Sometimes in a mailbox system
Sometimes dispersed unorderly through the store
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Retail displays are manufacturer provided or made by the ownerManufacturer provided retail displays Owner made retail displays
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