Retail Management Simulation
Student Report Description
Each student will be responsible for writing a brief management report that describes their
performance during the retail management simulation. This report should cover the student’s basic
strategies and performance analysis of their products.
To aid students in the preparation of this report and to help them understand what issues should be
under consideration during the simulation, please refer to the following list of questions. While far
from inclusive, it is a good representation of the type of questions they should consider. Naturally not
all of these will be covered – given the length of the paper – but they should help guide you as you
decide on what to write. Focus should be on the key issues that you believe impacted your overall
performance.
FORMAT: The paper should be singled spaced and no longer than two pages. The main headings of
your paper should be 1) Market Analysis and Strategy and 2) Product Performance Review. These are
outlined below. You may add appendices – as you see appropriate – beyond this limit. These may be
graphs of your performance or additional data tables.
1. Market Analysis and Strategy

What was your product-by-product analysis of their respective markets?
o How did you assess and/or measure a product’s historic period to period change in
volume?
o How does it react to changes in pricing?
o How does it react to changes in promotion?
o At what rate did volume change over time? Year over year? Why do you think it
changed/stayed the same?

What was your product-by-product strategy?
o In general, how did your analysis impact your decisions?
o Based on your analysis of a product’s period-to-period historical changes in volume,
how did you use that information to predict future market volume?
o On a product-by-product basis, what was your pricing strategy (e.g., pursuing higher
margins while giving up volume or pursuing smaller margins while achieving higher
volume)?
o Was this strategy the same or different for each product? Why?
o How did you decide your level of promotional support at the beginning on a product-byproduct basis?
o What was your strategy in selecting specific products in the simulation?
o What was your strategy regarding which vendor to select for those products you
carried? Promotional offers, pricing, quantity discount levels?
o What was your rationale for the set promotional level between products?
o What information formed the basis of your purchase volume and timing strategies for
each product at the outset of the simulation?
o What specific steps did you use to estimate the potential profitability of products and
the impact of your various strategies (e.g., pricing, promotion, purchasing) on the
profitability?
2. Product Performance Review

What was your product-by-product analysis of your individual product and total results?
o What factors – be that your company’s decisions or competitive decisions – impacted
your product-by-product results? By how much? Why?
o How did your key metrics (e.g., return on assets, gross margin return on inventory
[GMROI], sales, inventory utilization, gross profit, net profit) change from period-toperiod?
o What should you have known or better anticipated given what you knew after each
decision?
o What were the key impacts on your period-by-period and total return on assets (e.g.,
changes in inventory turnover, gross margins, operating expenses?)
o By how much did period-to-period revenue (comp sales) change by product? What
were the key impacts on your sales changes?
o What factors impacted your product-by-product gross profit margins and total gross
profits and by how much?
o What impacted individual gross margins, net margins and gross margin return on
inventory (GMROI) figures for each product after each decision?

What analysis did you conduct regarding your competitors?
o How would you describe your top competitors’ overall strategy based on what you
know (e.g., pricing, market share) and what you can only estimate (e.g., promotional
level and purchase volume)?
o What impact did the analysis of your competitors have on your own strategies (e.g.,
changes to pricing, promotion, purchasing)?
o What impact did your competitors’ pricing have on your sales? Can you quantify that
impact?
o How did you anticipate your competitors behaving going forward based on your analysis
of their actions to date?
o How do you specifically think your competitors’ would react to your actions to date?
o In hindsight, how close were you to anticipating your competitors’ behavior?

How did your strategy evolve during the simulated year?
o Based on your analysis, what changes did you make to your pricing strategy on a goingforward basis? What was the rationale for these changes? What quantified estimate
did you set for future sales based on this change?
o Based on your analysis, what changes did you make to your product-by-product
promotional allocation? How about changes to your corporate promotional allocation?
o What changes in your inventory management did you make as a result of your past
analysis and going-forward strategies? What formed the basis of these changes?
o How did you quantify the impact of any of your strategic changes (e.g, change in pricing,
change in promotional levels and allocation, change in purchasing behavior) on
potential future results?
Paper Rubric
Writing
Effectiveness
Weight
7
Excellent (4 points)
The writer’s decisions
about focus,
organization, style/tone,
and content made
reading a pleasurable
experience. Writing
could be used as a model
of how to fulfill the
assignment. The purpose
and focus of the writing
are clear to the reader
and the organization and
content achieve the
purpose well.
The writer’s analysis
concerning initial
strategic decisions is
clear, concise and
effectively presented.
Decisions are based on
clear understanding of
market facts and indicate
a strong logic.
Good (3 points)
The writer has made
good decisions about
focus, organization,
style/tone, and content
to communicate clearly
and effectively. The
purpose and focus of the
writing are clear to the
reader and the
organization and content
achieve the purpose
well.
Average (2 points)
The writer’s decisions
about focus,
organization, style/tone,
and/or content
sometimes interfere
with clear, effective
communication. The
purpose of the writing is
not fully achieved.
Poor (1 points)
The writer’s decisions
about focus,
organization, style/tone,
and/or content interfere
with communication.
The purpose of the
writing is not achieved.
The writer’s analysis
concerning initial
strategic decisions is
generally clear and
presented effectively.
Decisions are based on a
basic understanding of
market facts and
demonstrate an overall
logical argument.
The writer’s analysis
concerning period-toperiod decision results is
fairly well defined and
presented effectively.
Use of company, market
and competitors’ data to
support positions and
going-forward decisions
is provided and
somewhat persuasive
but is slightly
incomplete.
Report format is
generally consistent.
The writer’s analysis
concerning initial
strategic decisions is
occasionally clear but is
generally ineffectively
presented. Decisions are
marginally based on
market facts with weak
logic in the argument
The writer’s analysis
concerning initial
strategic decisions is
wholly unclear and
presented poorly. There
is no obvious logic to the
decisions that are not
based on presented facts
about the market.
The writer’s analysis
concerning period-toperiod decision results is
slightly unclear and is
only marginally
presented well. Use of
company, market and
competitors’ data to
support positions and
going-forward decisions
is only marginally
presented and is not
overly persuasive.
Many departures from
required report format.
The writer’s analysis
concerning period-toperiod decision results is
very unclear and
presented ineffectively.
Use of company, market
and competitors’ data to
support positions and
going-forward decisions
is largely absent and
what is provided is not
persuasive or relevant to
decision-making process.
Work fails to follow
required report format.
Minor errors.
Minor errors.
Several errors.
Several errors.
Numerous errors.
Numerous errors.
EXCEPTIONAL
SATISFACTORY
MINIMAL
UNACCEPTABLE
120-95 points
94-70 points
69-45 points
44-0 points
Analysis:
Strategy
8
Analysis:
Performance
Review
8
The writer’s analysis
concerning period-toperiod decision results is
well-defined and
presented very
effectively. Use of
company, market and
competitors’ data to
support position and
going-forward decisions
is comprehensive, logical
and persuasive.
Report
Structure/Format
3
Spelling
Grammar
Overall
Performance
2
2
Report format is
consistent throughout
including heading styles,
fonts, margins, white
space, etc.
Negligible errors.
Negligible errors.
Total
Points
TOTAL