Friday, March 20, 2009

Location, Location

Back home i visited our local grocery store. I noticed somethings about its location. Location is everything for a business. Location decisions have strategic importance because they can help to develop sustainable competitive advantage. The grocery store is a food lion. Its located in a small shopping center like a little strip mall. There is a movie gallery, cvs, zeno restaurant, a small clothing store for women, and a bargin store kind of like a dollar general. This is the grocery store my parents always go to. I dont think for no particular reason just that its closer to our home. We live in a small town there are two grocery store. I think the food lion is in a good place for location. Also in close surroundings is a small doctors office, a bank, small hotel, and a convenient store. This is a very good setting for a grocery store and good for their business. This is the last thing you go buy when leaving town. So most people when they are on the way home may stop here for something last minute. Also being by the bank its very convenient for someone who maybe just can to town to get money and randomly thought of something they needed. With the restaurant close maybe while you are eating you think of something you needed or may need later. Also with the cvs being close you may think wouldnt be a good thing but cvs can be quite expensive with somethings. Its a place you may go for one thing no a abunch of groceries, and there is a pharmacy located inside the cvs. Maybe you need to pick up a perscription and groceries. This can all be done in one stop because everything is so close together, you can park once and walk. Making the trip less costly for gas also. There arent really any new advancements within these store because they have been there so long I doesnt really hurt there business because the town is so small its really not something that they are used to. Most people who shop here are going in for their weekly grocery shop where they get things that last a while.

Friday, March 6, 2009

Many stores today are stuggling with business due to the decling of the economy. Stores like Sharp, Claire's, Goody's, and more are all dealing with the hardship of keeping up there business. Many of the businesses filed for bankruptcy or completely shut down their stores.

Linens N' Things filed for chapter 11 backruptcy in May 2008. Which means when a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 11, most of the time the debtor remains in control of its business operations as a debtor in possession and is subject to the oversight and jurisdiction of the court. After nobody was able to rescue the home decor shop they are now going out of business. "It ultimately collapsed amid downturns in the housing market and the larger economy in general." - This is very understandable. People today, with the economy pushing itself futher into a recession, nobody is wanting to purchase a home. As stated about the housing market is down. Linens N' Things sold things such as sheets, pillows, designer bedding, bath accessories, etc. Since fewer people are buying homes today there is nothing to decorate or they either want to spend money on the neccessities. Like why fix something thats not broken, why bye somethine new if you don't really need it. This article says "Even if we never hit a classical recession, the consumer is in a recession," she said. "It may just be a mental recession, but as long as people are feeling fear, they're not going to spend the way they did before." I feel like this does play a major role in the way we shop and will continue to shop. Not ever knowing what is going to happen with the economy it makes you ver consious of what your money goes to now. People are not wanting to spend money on things for fun because they want to save for the long run. I have become very consious with how I spend my money for these reason. I also watch my friends and family members being very scarce with their earnings