Report: Assessing Value Generation in Angela Zhang's Retail Business

This report analyzes Angela Zhang's retail business, which focuses on golfing, camping, mountaineering, and outdoor products. The report assesses which products generate the most value, identifying personal accessories like watches and eyewear as top performers. It also examines retailer types, concluding that outdoor shops provide the best value due to direct customer communication and trust-building. Furthermore, the report evaluates order-taking methods, highlighting the web as the most effective due to its accessibility and cost-effectiveness. The report recommends focusing on cost-effective measures, implementing advanced technology for order tracking, improving customer service to enhance loyalty, using social media marketing, and leveraging advanced analytics for targeted offers to increase profitability.

Accounting Information Analysis

Contents
Executive Summary.........................................................................................................................3
Products Generating the Best Value for Business...........................................................................3
Retailer Type generating the best value for the business................................................................4
Order taking form generating the best value...................................................................................6
Conclusion and Recommendation...................................................................................................7
Refereces..........................................................................................................................................8

Executive Summary
This report is about Angela Zhang’s business Inc. She has a retail range of golfing products,
accessories along with camping, mountaineering and outdoor products. The owner is so business
oriented that she tests the products in personal life and then sell them through different means of
distribution. The report focuses on answering the questions products generating the best value for
business, retailer type and order taking form generating the best value to the business.
Out of the range of the products company generates higher revenue through the products in the
category of personal accessories. The products include watches, eyewear and knives etc. The
most suitable form of order taking is Web as it is easily accessible to all the people and cost
effective means of communication.
The retailer type generating the best value for the company is outdoors shop. Online shopping is
liked by all groups of people. The trust between the customer and the retailer helps in
maintaining the loyalty of the customers.
The company should focus on using various software to track the order and sales to maximize its
sales and obtain the accurate data. The company is generating good value through its range of
products and means of distribution.
Products Generating the Best Value for Business
Angela Zhang loves golf and outdoors. She retails a range of golfing products, accessories along
with camping, mountaineering and outdoor products like tents, sleeping bags, lanterns, rope,
watches, eyewear, knives, sunscreen, first Aid, watches, irons, putters, insect repellents and
woods. An average of 8.7% of total population participates in golf, which increases the demand
of golf accessories in market. The company retails a variety of products like personal

accessories, Outdoor Protection, Mountaineering Equipment, Camping Equipment and Golf
Equipment (Ernst and Young, 2004).
Camping Equipment
Golf Equipment
Mountaineering Equipment
Outdoor Protection
Personal Accessories
0 50000000 100000000 150000000 200000000 250000000 300000000
203128292.98
91584829.83
65733094.13
6330135.23
284034608.35
Product Type by Revenue
Product Type Revenue
The bar graph has been prepared from the sales data of different products of the company. The
bar graph shows revenue generated by each of the product type from 2012-2014. The company
has the highest sales of personal accessories like watches, eyewear, Binoculars, knives and
navigation etc. in the market share. Sales have direct relation with the revenue. A higher sale
gives the higher profit to the company. Thus the products generating the best value to the
company comes in the category of personal accessories. The value adding products of the
company are camping equipments. The market demand of such products depends upon people’s
interest towards the camping and other such activities (Jacobs, 2018).
Retailer Type generating the best value for the business
Retailers sell goods and services to consumer through different channels of distribution for
making money. Various types of retail outlets are used by the retailers like departmental store,
Supermarkets, Warehouse Retailers and E-tailer etc. The various retailer types used by the
company are Outdoors Shop, Eyewear Store, Direct Marketing, Sports Store, Departmental

Store, Ware house Store, Golf Shop and Equipment rental store etc. (Management Study Guide,
2018)
Retailer Type by Revenue
The retailer type generating the best value for the company is outdoors shop. Outdoor shop is
retail outlet where products are sold to public directly. It provides a better communication with
the consumers. Better communication is the key to trust and it helps in building relationship and
maintaining loyalty towards the product. Outdoor stores are the highly value generating retail
store for the company. It includes a variety of products that attracts the attention of the
consumers. They are the online outlets providing a range of products. Various schemes like free
shipping and other payment options help in increasing the sales. Internet provides unlimited
trading areas to the retailers. Customers have shifted from physical stores to online stores in their
preference of shopping (Bell et al., 2012).
De p a r t m e nt S t o r e
Di r e c t M a r ke ti n g
E qu i pm e n t R e n t a l S t or e
E ye w e a r S t or e
G ol f S h op
O ut d o or s S h op
S por t s S t o r e
W a r e h o u s e S t o r e
0
50000000
100000000
150000000
200000000
250000000

Order taking form generating the best value
Order taking is the process of receiving an order for the company’s product from the customer.
Various means of order taking are available nowadays like internet, mobile and fax etc. Different
methods of orders are used by different customers according to their suitability. The retailers use
different methods of order taking to attract more number of customers and increase the
profitability. The various methods of order taking used by Angela Zhang are Fax, Telephone,
Mail, Web, Sales Visit, and Special.
0% 1% 1%
6%
0%
6%
85%
Revenue by Order Taking Method
E-mail
Fax
Mail
Sales visit
Special
Telephone
Web
Order type Revenue
According to the above pie chart “Web” is the highest value generating form of order taking for
the organization. Around 85% of the company’s revenue from 2012-2014 has been generated
from this order taking method. Internet is the most famous among the youth. Placing orders
online is the demand of modern age. Young individuals like to place orders and shop online.
Retailers also use mobile order taking app to record the orders and also to track their supplies
(Wired, 2014).

Taking orders online is easy and cost effective. People from anywhere can select and place the
order according to their need and suitability. The internet is better means of communication
between the customers and the retailers. The web method of order taking helps in dealing with or
taking orders from more than one customer at a time. Web has made shopping easy and
convenient (Marg Compusoft, 2018).
Conclusion and Recommendation
The company has the highest sales of personal accessories like watches, eyewear, Binoculars,
knives and navigation etc. in the market share. The retailer type generating the best value for the
company is outdoors shop. Web is the highest value generating form of order taking for the
organization. Online shopping is the first choice of the customers. The organization need to build
trust among the people. The better relationship with the customer helps in word of mouth
publicity that helps in acquiring new customers and retaining the existing ones.
Below are some recommendations to increase the profitability of the organization:
 The Company should focus on costs to compete on cost effective measures in the external
environment.
 The company should implement advanced technology to track the orders, supplies and
calculate the actual amount of revenue
 To improve long term loyalty of the consumers the company should focus on improving
customer service.
 Social media marketing should be used. (Retaildoc, 2017)
 Advanced analytics should be used to make offers and deliver in time.
 Promotional marketing activities should be used. (Mackenzie et al., 2013)

References
Bell, D.R., Choi, J. & Lodish, L., 2012. What Matters Most in Internet Retailing. MIT Sloan.
Ernst and Young, 2004. The Golf Retail Industry in Australia. [Online] Available at:
http://www.golf.org.au/site/_content/document/00017548-source.pdf [Accessed 01 May 2018]..
Jacobs, S., 2018. Smaller stores, faster consumers: how Australian retail is adapting to the new
consumer world. [Online] Available at: https://www.businessinsider.com.au/heres-how-
australian-retailers-are-shifting-their-strategy-in-a-tough-environment-2018-3 [Accessed 01 May
2018]..
Mackenzie, I., Meyer, C. & Noble, S., 2013. How retailers can keep up with consumers. [Online]
Available at: https://www.mckinsey.com/industries/retail/our-insights/how-retailers-can-keep-
up-with-consumers [Accessed 01 May 2018].
Management Study Guide, 2018. Types of Retail Outlets. [Online] Available at:
https://www.managementstudyguide.com/types-of-retail-outlets.htm [Accessed 01 May 2018]..
Marg Compusoft, 2018. We make eRetail Apps for Retailers. [Online] Available at:
http://www.margcompusoft.com/eretail_retailers_order_app.html [Accessed 01 May 2018]..
Retaildoc, 2017. 8 Proven Strategies For Retail Success. [Online] Available at:
https://www.retaildoc.com/blog/8-proven-strategies-for-retail-success [Accessed 01 May 2018]..
Wired, 2014. The Evolution of the Internet and Its Impact on Retail Spaces. [Online] Available
at: https://www.wired.com/insights/2014/07/evolution-internet-impact-retail-spaces/ [Accessed
01 May 2018].