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Student 1 Answer
What could Model Expo and Internet Hobbies do to protect their business if Revell–
Monogram and other model kit makers decided to sell directly from their web sites?
These online shops could stock hard-to-find and collector model kits, or offer a wide variety
of brands and styles in order to compete with a manufacturer selling directly to customers,
but their inventory holding costs would go up dramatically..
Why haven’t these manufacturers done so?
Likely, manufactures do not sell directly to customers due to economies of scale and the
Student 2 Answer
Model Expo and Internet Hobbies must keep offering series and tough and fell information to
keep people coming to their site instead of the manufacturer, another way to keep people
3. Construct a multi-attribute attitude model for this purchase. Use two brick and
mortar stores and the two featured online retailers and at least four appropriate
attributes. How could such a model be used by shoppers like Drew and Ian? How
could brick and mortar retailers use the results? Online retailers?
Depending on how you use the case, and how much you stress such models, this question is
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• The attitude-toward-object model is the attitude that is function of evaluation of
product-specific believes and evaluation.
4. How would the collection of sales taxes on electronic commerce transactions change
the model-buying scenario in the case?
At the time the case was written, extending the Internet Tax Moratorium was being debated
in Congress. The instructor may want to go over the early days of commercial efforts for the
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Teaching Notes
Case A38: Home Depot Changes Directions
Synopsis: Home Depot is the largest home improvement specialty retailer in the world and
the second largest retailer in the United States. The case documents recent
changes at the Home Depot after the installation of a new CEO. The case
highlights Home Depot’s growth plans, competitive considerations and shifts in
corporate culture.
Use: Chapter 5 Illustrates the strategies and operations of a large home improvement
specialty store chain.
Chapter 9 Examines the human resources management policies and shifts in corporate
culture at a large specialty store chain.
Discussion Questions
1. What is the best way for the Home Depot to continue to grow?
Home Depot is currently undergoing a major overhaul of its strategy and operations. While
the firm grew through a policy of decentralization, where store managers were given
2. Can Home Depot maintain its current market position with its new policies and increasing
competition?
For Home Depot to maintain its market leadership position, it must deal with competition
head-on. It appears to be doing just that in terms of designing and modernizing its stores to
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3. Will more efficient operations and increased centralization be effective in streamlining
Home Depot’s business?
From the case details, this appears to be so. The centralization of buying would provide
4. How might the shifts in corporate culture affect executives, management, and associates?
For executives, the shifts in corporate culture have been disconcerting, judging by the fact
that 24 of the 39 senior officers left the firm in the 19 months after Nardelli’s appointment as
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Teaching Notes
Case A39: Nolan’s Finest Foods: Category Management
Synopsis: Nolan’s Finest Foods is a full-service retailer that offers shoppers the convenience
of one-stop shopping at its high-end food-and-drug combo stores in the San
Francisco Bay area. In the face of mounting competition, Nolan’s is
experimenting with category management.
Use: Chapter 12 Analyzes how retailers plan their merchandise assortments to ensure that
they carry the appropriate type and amount of merchandise.
Chapter 13 Illustrates how retailers evaluate their merchandising performance.
Discussion Questions
1. What are the national sales trends in the shampoo category?
Exhibit 1 indicates that there has been a dramatic increase in the % New UPCs (SKUs –
Stock Keeping Units). Overall (Category), there has been a 15% increase. Specifically,
2. What are the differences in shampoo sales trends at Nolan’s compared with national
trends?
If Nolan’s has any desire to make shampoo sales a priority, then it’s performance in this
category would best be described as alarming when compared to national trends. Exhibit 4
Ancillary Cases and Teaching Notes
3. What would be causing these differences?
Exhibit 5 suggests that Nolan’s pricing may be one factor, but it probably isn’t the primary
4. Suggest a plan of action.
Based on the information that is presently available, the only logical action to take, at least
Ancillary Cases and Teaching Notes
Teaching Notes
Case A40: Macy’s Rebranding Strategy
Synopsis: Federated Department Stores over the years acquired a number of regional department
store chains. In 2006, it decided to rename all of the chains Macy’s and change
the corporate name to Macy’s. Many customers, loyal to the regional chains,
were concerned about losing the identity of their local department store chain.
Use: Chapter 16 Illustrates a rebranding strategy
Discussion Questions:
1. What do you think of when you hear the name “Macy?” Do you believe those brand
associations hurt or harm the renamed department stores?
Thanksgiving Day Parade
3. What are the advantages of a common brand, Macy’s vs. the use of the regional
department store names?
The case text mentions advantages that include national vs. local advertising and improved
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4. Federated gradually renamed the stores it acquired prior to 2003; by contrast, it rapidly
renamed the May stores. Which transition do you think was more effective?
Students should consider the different circumstances of the renaming – and most particularly
they should discuss the fact that there were already more than 400 Macy outlets by the time the
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Teaching Notes
Case A41: Restaurant Promotion
Synopsis: This case examines how are restaurant owners are working together to promote the
dining out experience, create culinary awareness, and increase repeat business and customer
loyalty.
Use: Chapter 16 Illustrates an interesting promotion for a town’s restaurants..
Discussion Questions:
1. Does the city where you live have a Restaurant Week promotion? If yes, find out when it is
held. Is it successful? If no, could it be possible to host a Restaurant Week? Which
restaurants should participate? When should it be held?
2. Why do you think Restaurant Week promotions have been so successful? What is the
appeal?
– Diners can take advantage of a multi-course dinner or lunch at a significantly discounted, set
price.
3. Besides the Internet what other types of advertising do you think could be effective in
successfully promoting Restaurant Week?
– Give diners the option to register on-line for additional information on upcoming events,
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4. Why is a short promotion period so important to the success of Restaurant Week?
– It creates a sense of urgency among diners.
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Teaching Notes
Case A42: Fresh Ideas in Grocery Store Layout
Synopsis: Results of current research in consumers’ food shopping behavior is described in
this case, including information about how shoppers move, items that attract their
attention, and what they buy. The case analysis questions ask students to consider
the research results presented, along with their own food shopping experiences, in
the context of the design concepts presented in the chapter to make design
recommendations for food shopping retailers.
Use: Chapter 18 Illustrates the advantages and disadvantage of different approaches for
displaying merchandise.
Discussion Questions
1. How is the grocery store that you shop at most frequently laid out? Describe the store
entry, departments around the perimeter, dry goods, frozen foods, special displays and
checkout.
Store Entry
Flyers, shopping carts, drink holders, child-sized carts, and prominent display of bargains.
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Frozen Food
Located near checkout to prevent melting. Usually vertical cases allow more facings per
square foot.
2. Based on the information in the case and your own shopping behavior, what store
layout and design features would improve the supermarket and make the experience
more enjoyable and convenient for shoppers and more profitable for retailers?
– A place to sit down in the store and eat or get coffee
– Bakery department with healthy options
– Convenience items close to the front of the store
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