Retail Management Assignment 2

Roll No. 2010E31,37,42, Batch 2010-13

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Symbiosis Centre for Management and Human
Resource Development [Constituent of Symbiosis International University]


Retail Management Assignment 2

Lindys Bridal Shoppe




Submitted By:
Amit Pandey 2010E31
Imanuvel Peeter 2010E37
Yugantar Lokhande 2010E42
Batch- 2010-13, SEM-IV



Retail Management Assignment 2
Roll No. 2010E31,37,42, Batch 2010-13

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Case Study No 31 Lindys Bridal Shoppe
Q .1 Could Lindy change the emphasis of her merchandise mix to increase her sales?
Ans. Yes Lindy can change the emphasis of her merchandise mix to increase the sales.
New ranges of products can be introduced in the merchandise mix and its effect on the sales
figure can be examined carefully. Lindys could add new range of designer suits and party
gowns for the premium customers. These products can be offered at a different section in her
outlet. It can give a new outlook to her business. The super rich or the premium customers
should be targeted for these offerings.
Lindy could allow some of the costlier party gowns to be taken on rent. This could be done as a
pilot study to check its effects on the sales.
Also Lindy could increase the amount of its offering in accessories.
Q. 2 which products should have more emphasis which should have less?
Ans:--Obviously the mainline products should have more emphasis and the secondary products
or the accessories should have less emphasis. The mainline products like new wedding, prom,
and party gowns should be given more emphasis than the secondary products like accessories
and slips.
Q. 3 what personal decision must Lindy face to improve her business?
Ans: -- Since being a small company Lindys could not offer premium salaries for its few
positions.
Lindys make the entire major decisions that directly affect the firms operations.
One major drawback is that Lindy also makes all the silk flowers herself. It is time consuming,
but she is not satisfied with someone elses work. We would suggest Lindy to outsource this
work to a proper agency so that it could save a lot of time for Lindy. Thus she would be able to
devote her time on taking major decisions.
Q. 4 how could someone like Lindy Armstrong balances the demands of her family and her business?
Ans:-- It is really hard for someone like Lindy Armstrong to balance the demands of her family
and business. Her earlier business of Silk flowers enabled Lindy to combine an in-home career
with child rearing. But the current business doesnt allow her to devote enough time for her
children.
Retail Management Assignment 2
Roll No. 2010E31,37,42, Batch 2010-13

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Thus the only way for a person like Lindy would be to allow some of her family friends into her
venture. In this way she could be able to give some more time to her children. As she could be
able to rely on her family friends and in turn could go out to her home more often to spend
time with her family.
Actually she should show some perseverance and have more patience at the starting part of her
new venture. Every new business demands more time at the initial phases so she should be
having these qualities as a prerequisite for her business.
Q. 5 If one of Lindy competitors were to offer her $ 150000 for her business, should she sell?
Ans:-- Some of the technical data justifying for and against the offer is as under:---

sales 200000
operating exp. 170200
Gross Profit 29800
owner salary 24000
net profit 5800

inventory 70000
inventory turnover
period 3Months

Gross Profit 15%
ROI 7%

First of all we should check how this business is going on and we should also keep in minds the
views of her owner. She wants to sell the business and want to return to nursing.
Then we have to evaluate the offer that whether the offer of $ 150,000 is justified or not.
Since the ROI is around 7.4% so it will take considerable amount of time i.e. 5years to cover the
capital employed ($78,000).
Also the nature of business is risky, as it is a seasonal business and she has to maintain
considerable amount of inventory for her business. She has to sell the old items on discount.
Keeping all these things in mind, we would suggest that she could go for the offer.
Retail Management Assignment 2
Roll No. 2010E31,37,42, Batch 2010-13

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