Problem solving
Problem solving is a process that is mentally inclined and forms part of a bigger problem solving process that incorporates finding the problem and shaping it to required solutions. Problem solving methods are techniques or skills used to solve life problems. They refer to an individual’s ability to reason both inductively and deductively, as well as be able to apply logic, which can help that individual to infer the problems, analyze and think critically, among others.
Methods used
The problem is an analysis of the operations of a small sporting goods retail shop. Several approaches we used in problem solving include use of interviews, SWOT analysis and PEST analysis, brainstorming, research in books and journals and review of industry publications.
Interviews
In solving the problem, we used interviews as one method. This involved engaging several store managers in a conversation, which involved asking them questions concerning the types of sporting products they stock. The outcome of the interviews were able to give us data about each store’s product price range, products they carry, services and their targeting customers, their positioning tactics and how they differentiate themselves among others.
SWOT analysis
Using this method, we were able to evaluate the strengths, weakness, opportunities and threats in sporting goods retail shop. SWOT analysis lays emphasis on the business entity as a single unit. The data from interviews were used in summarizing similarities and or differences, advantages and or disadvantages among the stores and competitiveness over one another.
PEST analysis
Using this analysis, we were able to analyze the macro-environmental framework of the sporting retail shop. PEST analysis measures the business market potential in line with external factors. This was possible since this analysis bases its focus on political, economic, social and technical views of the analysis. We used the internet for identifying external environment such as local trends, social, economic, political; technological that may affect the small sporting retail store.
Observation
The other method we used in problem solving is observation. Using this method, we did a study on several sporting retail shops regarding their web appearance, designs and did comparison among the stores. This method enabled us to identify missing contents or links that would further enhance the business’s visibility and its competitive nature.
Brainstorming
This process involves the input of a group’s creativity whereby the group tries to find solutions to problems by getting idea from each member of the group. Through this process, we were able to engage the input of the instructor when we encountered problems. Through this process, we were able to create a range of new ideas and easily solve the problems and it helped in motivating the group members since everyone had his/her input taken into consideration.
Research in books and journals
Using this method of problem solving, we were able to learn how the industry’s financial statement looks like, such as, revenue, profit margin, return on asset, inventory turnover, and asset turn over, advantage and Interest burden. This we did by using library database, which includes books and journals. When analyzing the financial statement of the sporting goods retail shop, we used marketing, accounting and finance books.
Review of industry publications
Using this method in problem solving, we were able to gather information of the sporting retail shop concerning its market share. Particularly, we used the publication of national sporting business for collecting the general data and overview of the sporting retail shop industry in the market.