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BJ’s: Profiting in Recessionary Times Report

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Updated: Jan 13th, 2022

BJ’s has varying business strategies as evident in the case. The firm is customer-focused and always dynamic to remain relevant and competitive in the market. Although its industry of operation is competitive, it has managed to expand in more than 16 states with lucrative stores. From the case, BJ’s has three major strategies meant to propel its endeavours in the business realm. Firstly, the company strives to create value for its clients. This is evident in the quality of goods and the cheap prices it offers. Consequently, customers have always felt valued. Secondly, BJ’s strives to make shopping an exciting venture for all customers. Lastly, an efficient supply chain has proved lucrative for the business.

Distinguishing between Merchandise planning process for a traditional electronics store such as best buy and BJ’s

Businesses have different planning processes for their merchandise. This is evident in some traditional stores such as Best Buy compared to contemporary ones like BJ’s. For instance, BJ’s has a stronger in-store inventory where the packaging and sale of its products occur in the house. This helps the company to reduce costs and increase revenues. The cost of hiring a warehouse for storage is higher and might affect the company negatively in the realms of finance. Conversely, businesses like Best Buy have their merchandising processes streamlined and connected to a chain of suppliers, which coordinate with warehouse stores for an ultimate service provision. Another evident phenomenon is that BJ’s runs stores with perishable commodities hence must plan for their sales before their spoilage. This makes the business challenging since its products must remain fresh every time. It is crucial to consider such aspects before differentiating the merchandising planning process between the two businesses. It is easy for best buy to plan extensively with its products compared to BJ’s, which relies on the season and fluctuating prices of groceries.

Developing a plan for minimizing inventory shrinkage at BJ’s

The stock of commodities at BJ’s should remain high following the increasing number of clients served. Since the business is growing tremendously, it needs a viable plan that will prevent its inventory from shrinking. One of the strategies in the plan is to deal with reliable and committed suppliers who willfully stock its stores every season. Suppliers are among the core players in this business. They can influence it devastatingly in case they fail to perform. Another strategy in the plan is to purchase more products at once and store them under viable conditions. Since most of the grocery products are perishable, the company can enhance its cold storage devices to serve this purpose. This will ensure increased reliability in the stock levels. Keeping stocks at higher levels is important in the business realm. Accordingly, the company can incentivize farmers to grow more vegetables, especially during dry seasons. This will ensure that the supply flow remains constant. The company depends on the output of farmers. In case farmers do not produce substantially, suppliers might fail to deliver the required amount of products. This will affect the stocking capacity, varying prices, and reduce sales.

Describing five major logistics performance goals at BJ’s

For BJ’s to remain relevant and competitive in the market, it must consider the aspects of logistics in its endeavours. The flow of goods from one point to the next aiming to meet customers’ demands with promptness is crucial. One of the logistics performance goals in this context is the proper management of information from one point to the next. This is helpful when the goods are in transit to the required destination. Prompt and reliable information delivery and management will ensure that entire business stakeholders achieve satisfaction. Another aspect is a reliable transport mechanism. This ensures that goods are moved from one place to the next with limited hindrances. The next component in the logistical plan is the security of the goods on transit, in-store, and ordered ones. The business strives to attain maximum security for its merchandise. Concurrently, proper warehousing or storage mechanism is another logistical consideration aimed by BJ’s. This provision ensures that the company has a reliable supply of commodities to its clients. This increases customer satisfaction and retention. Lastly, considerable packaging and handling of commodities are other logistical goals aspired by the BJ’s.

Whether BJ’s should cut back on its in-store inventory during weak economic times (Pros and Con of doing so)

BJ’s should strategize its operations during weak economic times. The company should not cut back its in-store inventory since this might affect its stocking capability, condense variety, and reduce sales. Despite this claim, some advantages characterize the cut back phenomenon. Firstly, the move will reduce the risk of handling spoilt commodities. The company will only stock fast-moving commodities hence assured of sales. Excess stocking is inappropriate at weak economic times operational costs might surpass the profits. Conversely, there are disadvantages to making such moves. Customers might miss preferences from the store. This will lead to disappointments and loss of customers. Another demerit of this move is that the company might close some of its outlets hence reducing its market saturation and ultimate sales. Notably, economic times are seasonal. The company should just strategize on how to sail through it minus interfering with its stocking systems and business endeavours.

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IvyPanda. (2022, January 13). BJ’s: Profiting in Recessionary Times. https://ivypanda.com/essays/bjs-profiting-in-recessionary-times/

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IvyPanda. "BJ’s: Profiting in Recessionary Times." January 13, 2022. https://ivypanda.com/essays/bjs-profiting-in-recessionary-times/.

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IvyPanda. 2022. "BJ’s: Profiting in Recessionary Times." January 13, 2022. https://ivypanda.com/essays/bjs-profiting-in-recessionary-times/.

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IvyPanda. (2022) 'BJ’s: Profiting in Recessionary Times'. 13 January.

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