Running Head: MANAGEMENT
Nordstorm a promising and upcoming departmental store in U.S has shown phenomenal growth in the business of retail chain business. The credit for this would go to the founder and promoter’s philosophy of inverting the pyramid and putting the customer on the top, followed by employees and it was the share holders who were accorded the last place in the priority list of company. It was rationalized by the promoter that if customers are satisfied by the services and the best service could only be offered by highly motivated employee (sales force), the share holders ,promoters are bound to get their share in terms of high ...view middle of the document...
U.S law requires that disclosures be made to consumers on the effective interest rates they pay on products bought on installments. Regulatory environment in the U.S is that it provides minimum regulation of any industry and firms. Anti-trust law of U.S can only be considered to be the major regulatory force for big players like Wal-Mart, Carrefour, and Tesco etc. U.S regulations which has limited the amount of sugar that can be imported into the United States is estimated to cost each American approximately $10.00 a year.  Competitive forces shaping the Nordstorm strategy is that it is operating in highly competitive environment, where apparel sold by it are not only competing with large organized departmental chains but, also from small independent boutiques in the U.S. Example, competition has become very stiff in retail discount stores and growth has declined which has compounded the problem.
Social environment of the U.S is such that people are going more towards style and value added products and culture is to go for large retail outlets, where all the needs of a family is served under one roof. The example could be that there are innumerable large departmental as well as discount stores coming up ready to serve ready made foods, apparels, entertainment etc. Technological environment has facilitated by getting all the data online and all the customer related information can be made available at each of the retail outlets. The technology has enabled the customer to be served in a better manner. The good example is that of customer relationship management where the entire details from the list of goods, brand, quantity and customer profile of each customer is possible. Economic environment is not conducive for the growth of all industries. As GDP growth of economy has dipped and overall production of the entire sector has gone down. It would be a time for each of the firm across the industries to come up with more innovative product service solution to beat the economic downturn.
2. Discuss the positive or negative impact of the forces on marketing the department store.
Ans. The positive impact is that there are no legal, political or regulatory hurdles as such for departmental stores operating in U.S with negative could be for large departmental store as it might come under the U.S anti trust regulations. The economic environment would certainly impact negatively for the specialty departmental store chains but, could have positive impact for discount departmental chains. The U.S passing through an economic downturn may find few takers for specialty stores, where goods are priced at higher level compared to discount stores. U.S social and cultural environment would certainly force customers to go for departmental stores and stores with all the facilities under one roof.
More impulse buying would increase the rate of disposable incomes but there would be decrease in rate of savings, adversely affecting the rate of...