Divya Madhavan

Page 1 of 25

Course Development Introduction to Retail Industry

Divya Madhavan Table of Contents

Page 2 of 25

Title I. II. III. IV. V. VI. VII. Course Description Intended Learners Instructional Goal Instructional Objective Selection of Media and Technologies Course Outline Evaluation Plan

Page 3 3 4 4 4 5 6 7 8 9 14 25

VIII. Learner Interaction IX. X. XI. XII. Administrative Support Study Guide Sample Lesson References

Divya Madhavan I. Course Description

Page 3 of 25

A European retailer recently acquired a chain of stores in the U.S. in order to expand their global footprint. The retailer provides consumers with goods and services supplied through local and global supply chain networks that ensure the right product is delivered at the right place at the right time with the right price. The retail applications that form their backbone are being supported by globally distributed service delivery teams. The purpose of this course Introduction to Retail Industry is to provide the newly appointed software engineers in India with the understanding of retail industry business model prior to their systems training. By learning key concepts, terminology and strategies employed to meet the issues and challenges associated with the retail industry, the employees will better understand impacts to the applications, enhance existing applications based on client requirements and communicate to the client in process-centric terminology. II. Intended Learners

The intended learner profile is a team of 8 India-based software engineers who are looking to equip themselves with the knowledge of U.S. retail industry in order to maintain their clients new retail applications. The team of 75% males and 25% females are in the age group of 25-38. They are a team of serious, very committed and intrinsically motivated employees who are looking to move up in the organizational ladder. This is evident from their self-initiation for knowledge acquisition, exceptional performances and outstanding achievements. They have been, thus, carefully selected from a pool of employees working in different accounts and locations within India to work on this new project. Since all learners are working professionals and would require flexibility in learning to also meet personal and professional commitments, the course will offer some degree of learner autonomy. All learners are expected to do their daily

Divya Madhavan

Page 4 of 25

online modules and assignments before or after office hours at any convenient place with internet access. By providing links to external resources, they will be encouraged to extend their study beyond the scope of this course. They have successfully completed online trainings in the organization earlier and hence, they will be familiar with using the media and technologies employed in this course. They have been associated with the organization for a minimum of 4 years. All of them have an undergraduate degree and adequate entry skills associated with the instructional goal. Their previous knowledge and work experiences include maintaining system support applications for banks, insurance companies and transportation industries. III. Instructional Goal

The Introduction to Retail Industry course will provide the newly appointed software engineers in India with the understanding of retail industry business model prior to their systems training in order to effectively manage store applications. IV. Instructional Objective

Using key concepts, terminology and strategies to meet the issues and challenges associated with the retail industry as learnt in the Introduction to Retail Industry course, the software engineers will be able to apply their knowledge and skills while assessing impacts to retail applications, enhancing existing applications based on client requirements and communicating to the client. V. Selection of Media and Technologies

The course will be delivered by using a combination of text, audio, video and interactive media and synchronous and asynchronous technologies. The course website will be built using HTML, CSS, JavaScript and jQuery. All learners will be able to access the website by using their secured login credentials. The learners will learn daily modules and participate in discussions through Google discussion group that will be embedded into the website. The 3 synchronous live

Divya Madhavan

Page 5 of 25

sessions will be conducted through learners official HP Virtual Room, the link to which will be provided in the website. General communication among learners and instructor will take place through official email and links to all email addresses will be shared through the course website. VI. Course Outline

The duration of the course is 10 days over a period of 2 weeks. There are 3 synchronous sessions to allow learners and instructor to interact real-time. The sessions will take place between 5:00 p.m. and 6:00 p.m. Indian Standard Time (IST) on Days 0, 8 and 9. All days start in IST. Date May 5, 2013 May 6, 2013 Day 0 1 Lesson Orientation Retail Industry Essentials Discussion Case study topic proposal May 7, 2013 May 8, 2013 2 3 Retail Industry Sectors Discussion May 8, 2013 May 9, 2013 May 7, 2013 Assignments Due Date

Retail Industry Business Discussion Model

May 9, 2013 May 10, 2013 May 13, 2013 May 14, 2013

4 5 6 7

The competitive landscape Sector trends Retail Industry Challenges

Discussion Discussion Discussion

May 10, 2013 May 13, 2013 May 14, 2013 May 15 & 16, 2013

Strategies for overcoming Case Study Presentation challenges

May 15, 2013 May 16, 2013 May 17, 2013

8 9 10

Case Study Presentation Case Study Presentation Final Quiz Final Quiz Monthly Report May 17, 2013 June 17 Nov 17, 2013

Divya Madhavan VII. Evaluation Plan

Page 6 of 25

The mid-year performance appraisal rating takes into consideration the successful completion of this course with a minimum grade of 70%. The deliverables for the course are explained below. 1) Discussions At the end of each topic from Day 1 through Day 7, learners will participate in the discussion board. 2) Case Study Presentation On Day 1, learners will pair up with a colleague off-shore and submit a proposal for case study topic. On Days 8 & 9, the groups will discuss their case studies in synchronous meeting. 3) Final Quiz On Day 10, learners will take a 10-minute paper-based quiz that will contain 7 multiple choice questions based on the content of this course. They will be supervised by offshore Project Lead during the quiz. 4) On-the-job Application After the completion of the course content, learners are expected to submit a monthly report to Project Lead for the next 6 months, describing their application of knowledge when assessing impacts to the retail applications, enhancing the existing applications based on client requirements and communicating to the client. The grading structure is provided below. Deliverables Discussions Points Percentage

4 points X 7 discussions 28% 30% 12% 30% 100%

Case Study Presentation 30 Final Quiz On-the-Job Application 12 30 Total

Divya Madhavan VIII. Learner Interaction

Page 7 of 25

1) Student with Content The daily modules will be learnt asynchronously at anytime during the day in any convenient location. The learners will learn the subject through text and illustrations, watch relevant video, listen to embedded audio, practice learning through interactive exercises and write their reaction to the topic guided by the discussion questions. Interested learners will be encouraged to gain deeper knowledge about course topics from external resources that will shared in the website. 2) Student with Instructor The learners will still receive instructional support, guidance and encouragement during and after instruction. During the instruction, the instructor from Boston, U.S.A. will answer questions, teach additional concepts and share experiences upon request through email, phone and Skype and also facilitate learning through synchronous sessions. The learners can expect email response from the instructor within 8 hours. Skype appointment will be arranged through email based on mutual convenience. However, learners do not need appointment to phone the instructor from Monday to Friday between 3:30 p.m. and 10:30 p.m. IST. The instructor will conclude all discussions and enter a dialogue with each learner through prompt and constructive response to assignments and presentations. After the instruction, on-site project leader for the new project will provide learners personal support and guidance whenever needed. He will also recognize and appreciate learners who use their skills towards contributing to progress within the organization. 3) Student with Student As the learners will continue to work in their respective locations in their present projects until the completion of this course and start of their new project, they will interact primarily through response to comments in online discussion group. They will also email or call one another at their will, to discuss about the subject, form study groups and decide on

Divya Madhavan

Page 8 of 25

collaborative tool to work on case study assignment. In addition to it, there will be discussion forums to allow the learners to share previous knowledge about the course topic, how they envision the application of their learning to work, news on latest trends and professional groups. They will post questions and answers to enhance their understanding of topics in the course. 4) Student with Administration All questions or problems will be emailed to the instructor or on-site Project Lead as there will not be a separate administrator for the course. For the case study assignment that requires the learners to work in pairs, the learners will decide how to collaborate and accordingly receive support for using the collaborative tool. They will also be able to contact the organizations IT Support Center throughout their training period to resolve any technical glitches. IX. Administrative Support

In order to create a friendly atmosphere and familiarize learners with course requirements, there will be an orientation session prior to the beginning of instruction. It will be a 60-minute synchronous video conferencing session for all the learners and instructor. The instructor will facilitate the interaction by allowing everyone to introduce themselves with a short account of their past experiences, professional interests and relevance of this course to their career. The instructor will then brief about the working model of this course, upcoming live sessions, additional assistance, assignments and job relevance. The learners will receive a sample lesson immediately after the orientation to assess their level of comfort with the pace and complexity of the topic. They will be advised to voice their feedback to the instructor within the next 48 hours. Thus, the course will provide the desired flexibility for accommodating requests that are feasible within the training period. Learners will direct all their questions and concerns about their

Divya Madhavan

Page 9 of 25

experience with the course to the instructor or their on-site project lead who will then work together with the learners to resolve their issues. X. Study Guide

******************************Start of Study Guide****************************** Welcome to 'Introduction to Retail Industry' course. Please spend few minutes to read about the course requirements from sections A to H before you start the lessons. To help you balance work and study time, all information required to organize your study in order to successfully complete the course are provided in this study guide. A. About the Course You are about to begin a 10-day course on Introduction to Retail Industry. Our retailer has recently expanded their global footprint by acquiring a chain of stores in the U.S. The retailer supplies consumers with goods and services through local and global supply chain networks and ensure that the right product is delivered at the right place at the right time with the right price. You will soon become part of the Retail Support team in Chennai to enhance their retail applications suite. The goal is to help you gain retail process understanding prior to systems training and the objective is to enable you to use key concepts, terminology and strategies to meet the issues and challenges associated with the retail industry as learnt in this course while assessing impacts to the retail applications, enhancing the existing applications based on client requirements and communicating to the client. You are encouraged to share your experiences, ask questions and challenge yourself while doing this course work. B. Study Resources There are no required texts for this course. Provided below are some related textbook references for furthering your knowledge on this subject.

Divya Madhavan

Page 10 of 25

Evans, J.R., Berman, B.R. (2012). Retail Management: A Strategic Approach (12th Edition). Publisher: Pearson Education, Limited. Zentes, J., Morschett, D., Schramm-Klein, H. (2012). Strategic Retail Management: Text and International Cases (2nd Edition). Publisher: Gabler Verlag. C. Guide to Effective Time Management and Study Techniques The duration of the course is 10 days over a period of 2 weeks. To complete each learning module and corresponding discussion requires about 45 minutes each day. The information is presented in short chunks to provide you the flexibility to break at appropriate segment and return back to resume at another time. You can do your daily modules, interactive exercises and assignments before or after office hours at any convenient place with internet access. As you will have to present a final case study in pairs, you will be assigned a partner on Day 1 based on factors like mutual interest, proximity and past experience. Plan in advance on how to collaborate and work with your colleague. You will receive IT support by the end of Day 3 with implementation of the collaborative tool of your choice. Your team will be required to finish your case study work before Day 8 for live presentation through HP Virtual Room. D. Course Outline There will be three synchronous sessions through HP Virtual Room to interact with other learners and instructor. Please be sure to participate in all the live sessions. The sessions will take place between 5:00 p.m. and 6:00 p.m. Indian Standard Time (IST) on Days 0, 8 and 9. Please see below the course outline for the upcoming weeks. All days start in IST.

Divya Madhavan Date May 5, 2013 May 6, 2013 Day 0 1 Lesson Orientation Retail Industry Essentials Discussion Case study topic proposal May 7, 2013 May 8, 2013 2 3 Retail Industry Sectors Discussion Assignments

Page 11 of 25 Due Date

May 7, 2013

May 8, 2013 May 9, 2013

Retail Industry Business Discussion Model

May 9, 2013 May 10, 2013 May 13, 2013 May 14, 2013

4 5 6 7

The competitive landscape Sector trends Retail Industry Challenges

Discussion Discussion Discussion

May 10, 2013 May 13, 2013 May 14, 2013 May 15 & 16, 2013

Strategies for overcoming Case Study Presentation challenges

May 15, 2013 May 16, 2013 May 17, 2013

8 9 10

Case Study Presentation Case Study Presentation Final Quiz Final Quiz Monthly Report May 17, 2013 June 17 Nov 17, 2013

E. Course Requirements Your mid-year performance appraisal rating takes into consideration your successful completion of this course with a minimum grade of 70%. The deliverables are explained below. 1) Discussions At the end of each topic from Day 1 through Day 7, you will need to participate in the class discussion. You will have to accept email invitation sent to you on Day 0 to join the group. At the end of each lesson, go to Connect >> Discussion Board and post your discussion

Divya Madhavan

Page 12 of 25

under the thread on the Days topic. You will receive email notification of new posts and threads. You can also choose to post your reply by directly logging on to course or from email. You will be graded for organization of thoughts and quality of writing and discussion points. 2) Case Study Presentation On Day 1, you will need to pair up with your colleague off-shore and submit a proposal for your case study topic. On Days 8 & 9, you will be required to go to Connect >> Live Classroom and follow the link to HP Virtual Room and discuss your case study as a pair with other learners. Please refer to Lesson >> Days 8 & 9 for grading criteria. 3) Final Quiz On Day 10, you will need to take a 10-minute paper-based quiz by going to Lessons >> Day 10. The quiz will contain 7 multiple choice questions based on the content of this course. You will be supervised by your off-shore Project Lead during the quiz. 4) On-the-job Application After the completion of the course content, you are expected to submit a monthly report to your Project Lead for the next 6 months, describing the application of your knowledge when assessing impacts to the retail applications, enhancing the existing applications based on client requirements and communicating to the client. F. Grading Structure Your discussions, case study proposal, case study presentation and final quiz will be promptly evaluated and posted under Grades >> Day X where you can view instructor comments along with your grade for each assignment. The grading structure is provided below. Deliverables Discussions Points Percentage

4 points X 7 discussions 28% 30% 12% 30%

Case Study Presentation 30 Final Quiz On-the-Job Application 12 30

Divya Madhavan Total 100%

Page 13 of 25

G. Learner Interaction You can email, call or Skype to ask any questions related to the subject. You can expect an email response from the instructor within 8 hours. To set up Skype appointment, please send an email with couple of convenient times, preferably from Monday to Friday between 3:30 p.m. and 10:30 p.m. Indian Standard Time. You do not require an appointment to phone the instructor during the above mentioned time. The contact information and availability of the instructor are as below. Office Phone: 617-770-6628/ Cell Phone: 646-207-4972 Email: ramanan.santhanagopalan@hp.com/ Skype: ramanan.s1982 To help you easily communicate with other learners in this course to discuss about the subject, form study groups and decide on collaborative tool to work on case study assignment, all email IDs and contact information are provided below. Name Email Phone

Learner1 learner1@hp.com xxx-xxx-xxxx Learner2 learner2@hp.com xxx-xxx-xxxx Learner3 learner3@hp.com xxx-xxx-xxxx Learner4 learner4@hp.com xxx-xxx-xxxx Learner5 learner5@hp.com xxx-xxx-xxxx Learner6 learner6@hp.com xxx-xxx-xxxx Learner7 learner7@hp.com xxx-xxx-xxxx Learner8 learner8@hp.com xxx-xxx-xxxx You can also copy your email to all learners including the instructor by clicking email everyone.

Divya Madhavan Contact IT Support Center for any technical issues during this course period H. Next Steps

Page 14 of 25

Start your daily lesson by logging on to the course using your login credentials and clicking Lessons >> Day 1. Please be sure to watch videos, listen to audio, try interactive exercises and participate in discussion. Hope you find this a valuable learning experience! *******************************End of Study Guide****************************** XI. Sample Lesson

The video and audio controls provided in this lesson are only models and hence, not functional. ****************************Start of Sample Lesson****************************** Day 1- Lesson 1 - Retail Industry Essentials A. Performance Objectives At the end of this topic, you will be able to 1) Discuss the development of retail industry 2) Define what is meant by retail 3) Explain the importance of retail industry to global economy 4) Name all the four key business drivers 5) Describe the key business drivers in detail by drawing relevance to the field today B. Deliverables 1) Discussion From your experience as a customer to a retail store, discuss the different point-of-sale systems that you have observed.

Divya Madhavan

Page 15 of 25

Explain the differences in the impact of retail industry, if any, to the growth of U.S. and Indian economies? Identify the key business indicators of retail industry and draw relevance to the field today. 2) Case Study Topic Proposal Today before 10:00 a.m. IST, you will receive email about the colleague assigned to your team. Contact your colleague and work together on the case study topic proposal which is due by the end of Day 2. This proposal will need to provide a brief description of your case study topic and answer 1) why you selected this case study topic and 2) how you think analyzing this topic will improve our understanding of this subject. Continue reading about the presentation requirements below for guiding your topic selection. The case study presentation and grading criteria details are given below. For this assignment, you will need to select a U.S. based retailer, for example, Wal-Mart and Costco, study the following sections, create a presentation using PowerPoint and present your study using HP Virtual Room on Days 8 and 9. There are no limitations on your slide count but keep it minimum to present within 20 minutes. Provide the context of your case study by addressing What, Who, When, Where, Why (5%). Explain the value chain and business model of the case study (10%). Report on its sectors and competitors (7%). Describe its present-day operational challenges, if any and strategies adopted to overcome those challenges (8%). C. Training Length 45 minutes

Divya Madhavan D. Retail Industry Essentials

Page 16 of 25

In this topic, you will have an overview of retail industry and learn the key business drivers affecting the industry today. Please be sure to watch the instructor video introduction before you proceed.

1. Introduction The retail industry has gone through many changes over the years, from peddlers and informal markets to the giant, global industry it is today. Key developments that have shaped the industry include the transition from informal trade to formal markets and peddlers, the establishment of supermarkets and large retail facilities; the advent of computers in retail and the use of the bar code to manage items; and the development of advanced point of sale systems. 1.1. Beginnings of Retail Before the advent of money, people with a surplus of goods, such as farmers who grew more crops than needed to feed their families, traded those surpluses for other things they needed. The advent of money and the gradual separation between traders and producers led informal markets to become more formal and permanent. Some traders set up shops, while others traveled to sel their goods. These traders, or peddlers, became the first retailers.

Divya Madhavan 1.2. Establishment of Retail Facilities

Page 17 of 25

The second half of the 20th century saw the supermarket emerge as the main grocery retail establishment in North America and Europe. Supermarkets and large retail facilities were convenient to consumers. Instead of having to visit several different shops, such as the butcher shop and the pharmacy, to obtain what they needed, they would find a variety of goods in one place. 1.3. Computers in Retail and Bar Codes

The invention of the bar code meant that stores could manage thousands of items and their prices. Computer systems enabled stores to track inventory more effectively and check out customers quickly. This increased tracking and management meant that retail facilities could expand the number of products they offered, and led to the birth of the superstore.

Divya Madhavan 1.4. POS Systems

Page 18 of 25

Point of Sale, or POS, refers to the location where the sale takes place, or checkout. A POS system can include a computer, monitor, bar code scanner, customer display, cash drawer, weight scale, credit and debit card processor, and receipt printer. Advanced POS systems are able to handle many transactions including sales, returns, layaways, and exchanges. POS systems can also be used to process gift cards, discounts, customer loyalty programs, coupon validation, promotional sales, currency conversion, and multiple payment types. 2. What is retail?

Retail involves the selling of goods to customers. Goods refers to a wide variety of items, including clothing, cars, electronics, groceries, sporting goods, household appliances, furniture, cosmetics, and pharmaceuticals.

Divya Madhavan 2.1. Why is retail industry important to global economy?

Page 19 of 25

The retail industry is tremendously important to the global economy for two reasons, the consumer spending on retail goods drives much of the global economy, and retail industry employs a large number of people. There are a large number of people and companies involved in the production, distribution, and retail of goods. When consumers purchase goods, retailers must order more goods to replenish their stock. In turn, the factories must manufacture the goods for the retailers. The factories then purchase more raw materials to use to manufacture more goods. This is how consumer spending is able to drive much of the economy. Consumer spending is also affected by the state of the economy. When the economy is good, people have money to spend. But factors such as high energy prices, market uncertainty, and tight credit lines lead to less consumer spending, which in turn leads to a slowdown in economic growth. The second reason that retail is important to the economy is the industrys role as an employer. The retail industry employs a large number of people worldwide, providing both fulltime and part-time career opportunities. Typically, the top 250 global retailers have combined sales of approximately $4 trillion USD. The top ten retailers account for $1.2 trillion USD, or about 30% percent of those sales. 2.2. Interactive Exercise As you look at the value chain below, listen to the concept and case study on an edible oil supply chain by playing the audio.

VALUE CHAIN

Divya Madhavan

Page 20 of 25

Now, build the edible oil supply chain below by dragging and dropping the items on the left white box into the right blue grids. Check the correct answer at the end of this lesson. Edible Oil Supply Chain Oil Markets Process Units Farm Gate Supplies Consumer Distributors/ Wholesalers Retail Large Consumer

3. Industry Drivers Like all industries, the retail industry is subject to various business drivers. Business drivers are influences, both internal and external, that significantly impact the direction of an industry. The key drivers of the retail industry today are disposable incomes, demographics, changing consumer habits, and multichannel retailing. 3.1. Disposable Incomes

Divya Madhavan

Page 21 of 25

The first key business driver is disposable incomes. The retail industry depends on customers who have enough disposable income to spend on goods and services. Changes in economic cycles mean changes in the amount of disposable income that people have. Factors such as lower savings rates and higher debt levels in developed markets are leading to slow growth in retail industry. In comparison, in developing markets such as China and India, the number of middleincome consumers is increasing, leading to a high growth rate for retail. 3.2. Demographics

The next key business model is demographics. Different segments of the population are looking for different products and shopping environments. To be successful, retailers need to know who they are trying to sell their products to. Population growth is currently occurring in the older and younger generations. The younger generation people aged 35 and under tend to be more interested in entertainment and recreation, and are less attracted to large chains than the older generation. An increase in the number of senior citizens and the number of unmarried people means a trend toward smaller households. Products that are geared toward smaller living spaces and family units will be in greater demand. The younger generations, who have grown up with

Divya Madhavan

Page 22 of 25

technology, will be in the market for products that reflect individualism, self-fulfillment, and personal involvement. To appeal to these people, retailers need to enable them to create or recreate products to suit their individualistic needs. 3.3.Changing Consumer Habits

The third key business driver is changing consumer habits. Consumers have changed their spending habits over the years, and retailers must adapt to these changes to be successful. In some countries in the 1950s, families typically spent more on food than they did on housing clothing, fuel and transportation combined. The 1970s brought big changes in lifestyles and spending patterns. Consumer interest in products such as lard and paraffin wax was replaced with the growing popularity of items like record players and prepared foods like instant mashed potatoes. In the 1980s and 1990s, premium and luxury products became more available to the average consumer. Consumers were purchasing products like microwave ovens and personal cassette players. From 2000s, increased internet usage and advances in mobile technology have changed the ways consumers make their purchases, and given consumers greater ability to research before buying. Global economic uncertainty has seen a shift in spending habits to less

Divya Madhavan

Page 23 of 25

expensive, non-brand name products. Although consumer spending patterns change over time, the parameters behind the spending remain the same. These parameters are income levels, disposable income, demographic profile and shopping goals. Many consumers today are looking for retailers that share their values and provide good corporate citizenship. Retailers must adjust to serve these consumers and their multi-dimensional communities. 3.4. Multichannel Retailing

The last key business driver is multichannel retailing. Multichannel retailing involves online retailing, which is a relatively new market in the retail industry, but many retailers have successfully forayed into it. Retail growth in the future is expected to be driven by online sales. To achieve continued success, retailers should invest in multichannel retailing now so they are ready for the future. Investing in multichannel retailing requires more than just setting up an online store. Retailers must move away from having areas of business operating in silos to focusing on cross-channel services, such as cross-channel stock merchandising and management, home delivery, and visibility of customer transaction data across channels.

Divya Madhavan 4. Answer to the Interactive Exercise

Page 24 of 25

E. Summary In this topic, you learned about the history of the retail industry, the importance of retail to the global economy and the key drivers affecting the industry today. The key drivers of the retail industry are disposable incomes, demographics, changing consumer habits and multichannel retailing. F. References Chandrasekaran, N. (2010). Supply Chain Management: Process, System and Practice. New Delhi, India: Oxford University Press. *****************************End of Sample Lesson******************************

Divya Madhavan XII. References

Page 25 of 25

Moore, M., and Kearsley, G. (2012). Distance Education: A Systems View (3rd Edition.). Belmont, CA: Wadsworth Cengage Learning.