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As more people do more of their shopping online, department store chains are cutting back on the number of stores they keep open. This is proving disastrous to some shopping malls.

a) Suppose you are the operations manager for Sears. Based on material you have studied in MBA 505 this semester, how do you decide which stores to keep open and which stores to close?

b) Assuming that the shift in shopping from face-to-face to online is permanent, what will the closing of more department stores mean for the following key economic indicators for shopping malls in the SHORT and LONG run: price (rent they can charge to tenants), output (square footage rented), profits (total revenue minus total cost), and number of malls. Be sure to explain your answer using course concepts.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M92503930
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