Holt Renfrew
Situational Analysis Item | So What? | Holt Renfrew is owned by The Wittington Group, headed by Canadian business leader Galen Weston | The owner of Holt Renfrew is quite large, likely has the financial resources available to back up any capital investments required. | Tony Kelly is a new employee to Holt Renfrew | New employees in an organization are often more likely to pick up on areas for improvement than someone who has been in that environment for so long. More able and willing to promote and implement radical change. | They stores peak seasons are March/April, July/August, November/December | This means that 6 months of the time Holt Renfrew sales fall significantly. This is half of the year! Significant…show more content… This supports the fact that there does not seem to be a stocking location system, they should know exactly where product is at any given time whether it be through having a fixed location system or computerized records of where product is stored in a random location system
Alternatives Alternative | Pros | Cons | Resources | Feasibility | Do Nothing | -No work required | -No fix to problems-Likely cause long term problems with Holt Renfrew resulting in lost customers-May eventually lead to the company having to close-Does not solve anything | None | Not Feasible At All | Get rid of secondary warehouse and build mezzanine level | -Save money (Payback is only a little over a year)- significant cost reduction-Do not have the secondary facility as an option to cover up or hold excess, you will need to be more proactive on deciding what to do with it | -Investment required in a turbulent time for the company | $1 Million dollars | Feasible | Implement fixed stocking location system | -Will always be able to find products required to pick -Will reduce stockouts for stores-In turn improves customer service-Reduce amount of inventory lying around causing potential safety issues | -takes up a great deal of space in the facility, space that is not available | Additional capital investment required if adequate racking is not available | Somewhat Feasible | Implement random stocking location system | -Will always be able to find products required to
