Nordstrom Case Summary

With the high competitiveness that comes along with the full-line market of fashion, there is a fast growing market with the off-price market as well. Over the next five years according to Adams, Nordstrom Rack stores will continue to outpace full-line Nordstrom stores in the United States, and continuing to grow within the market and gain the market share.

Nordstrom’s is classified as a department store. They are one of the largest U.S. department store chains, along with Macy’s, JC Penny’s, and Sears. As with the other department stores, each of Nordstrom’s departments are treated as separate buying centers. Each group operates independent from each other, being headed by a buyer who is responsible for the types and quality of merchandise sold, as well as any promotions that may be used. “The company has also benefited from a new computerized inventory system that gives buyers and salespeople the necessary data to make smarter decisions about

Target Corporation uses an interesting capital-budgeting system. Projects are proposed using Capital Project Requests (CPRs) and must be approved before money can be spent. The level of approval needed depends on the amount being requested. For projects requiring less than $100K, lower management can approve, but anything above this amount goes to the Capital Expenditure Committee (CEC) which is comprised of 5 executive officers. For projects requiring greater than $50 million, the Board of Directors must approve.

The every store use to give balloons to children, employees all over the store would stop and talk with them and a lot of the mannequins were placed together (a man with a woman, or a child). Now the mannequins are all placed individually around the store, and it is rare enough to see a kid, let alone a kid with a balloon. In order to retain market share Nordstrom has shifted its focus more toward the individual. It has

With Topshop's heavy establishment in the UK and the beginning of expansion into North America, further focus on market penetration in markets outside of the UK is key. For example, China could be a profitable opportunity for Topshop due to its large population, which provides many potential

Nordstrom objective is to expand and implement resources with new assignments. It is imperative to observe Nordstrom revenue and income that will allow the company to implement resources, invest in tremendous opportunities that may bring profitable rewards, redesign business models and ultimately maximize stakeholders return. For instance, the capital progress would be a theory that would allow the company to protect cash stores and leverage for assistance restrict the opposing impact on advantages to stakeholders. In addition, Nordstrom is inclined to require finances to arranged seasonal employees that should start the expansion. Also, Nordstrom profitability and finances are in the positive because the interest that is paid on a capital

Founded by J.W. Nordstrom in 1880 as a small shoe store, by 1995 Nordstrom had become a giant retailer with net earnings of $203 million and over 35,000 employees. Nordstrom remains a family operation to date. The idea of the ‘Nordstrom Way’ - with strong commitment to the firm, emphasis on proactive service, no external hiring, and a decentralized management structure (e.g., Nordstrom has no CEO) - is central to their employee relations, and is seen as central to their success. Average compensation within the company is above industry average.

Two-way communication with customers is restricted to trained personnel and managers of the official Nordstrom social platform accounts. • If conversation involving Nordstrom business on a personal account is unavoidable, you must disclose your affiliation with Nordstrom and state that the views expressed are your own and not that of the company. • When engaging and participating through a Nordstrom regulated account, use a professional and positive tone. Refrain from making statements that could be perceived as harassing, threatening, retaliatory or discriminatory.

We don’t rely on promotions, be it one-day sales, coupons, or “friends of friends” sales. We think our regular pricing has to have integrity.” Fifth is presentation, where the stores image is determined. Nordstrom is known for its relaxed upscale image. Sixth is personnel or customer service, where employees assist customers with their shopping experience. Nordstrom’s personnel are outstanding while they may not serve customers champagne they definitely will go out of their way to assist customers. I think that their personnel have to be the reason behind their success. Whether the story about the customer buying one shoe or the customer returning tires are true or not, gives the current and potential customers a sense of comfort and good customer service beats prices any day.

International marketing is defined as “the process of identifying the goods and services that customers outside the home country want and then providing them at the right price and place” (Rugman & Collinson, 2009; 324). Global expansion strategy uncovers the three fundamentals of retail – having the right product, at the right price and at the right time. Entering the Australian competitive retail market can turn into a competitive advantage, as our company will force itself to become more efficient and effective and increase its own competitiveness (Porter 1990). Yet, the major challenge for us is to find a balance between being “global or local”; to standardize or customize, to integrate across all dimensions of the business or respond to

Time value of money. With the initial $700 million expansion investment, and growth projected at 3% year-over-year for the next five years, the best-case scenario would be most beneficial for Nordstrom to pursue. Whereas, the best-case scenario’s cash flows are 20% higher than the average-case scenario, and the worst-case scenario’s cash flows are 20% less. The conclusion that the best-case scenario is the most lucrative investment opportunity for Nordstrom is based on the factors of Net Present Value (NPV), Internal Rate of Return (IRR), and pack back values, with a discount rate of 10%, and a payback goal of five years. Together, NPV, IRR, and payback values, shed light on factors based on predictability, and are outlined in Table 2. However,

Our choices led to a constant increase in net income over the three years. Short term debt increase by approximately 100% percent but steadily reduced over the next three years. We were happy with the positive growth of the company and the fact that we were able to pay off most of the initial short term funding required by the increase in working capital requirement. Overall the current situation of the company in 2018 is good, although the total value created is less than 20% of that created in phase 1. From this we learned that the value of the firm can be significantly increased more through a reduction in working capital requirement than through increasing the firm’s sales and net income.

This report examines the value of Nordstrom Inc. stock and offers existing shareholders and prospective shareholders an insight into the value of the company. The purpose of this report is to provide potential shareholders with information as to why they should buy into the company and existing shareholders with information as to why they should hold their stock.

Weaknesses - Although Nordstrom has substantial strength, the organization is not without weaknesses. First, although Nordstrom’s has a superior selection in comparison to the majority of other retail clothing companies, their quality also comes at a cost that many consumers are not willing to pay. In a period of economic instability and uncertainty, consumers are turning to online retailers such as Amazon in order to fulfill their clothing needs. Moreover, consumers are looking for more convenient ways of purchasing products and clothing is typically something where overnight shipping is acceptable versus an immediate need. Additionally, another weakness of Nordstrom is the geographic dispersion of their retail locations which are most commonly associated with shopping malls. Coincidentally, shopping malls are also struggling to compete with online retailers, thus Nordstrom experiences less opportunistic walk-in customers. On the same token, the opportunity costs for underserved

To lower the debt, we suggest that it is better to close some stores which cannot make money or has a lot of losses. Also, it is very important to review all the new investment and expansion plans, and only approve those plans which will have higher chances to gain more profit and market share.