Reference no: EM132868244

All of the topics are complex in nature as they are composed of many parts. As such, your midterm exam will have multiple parts to complete: 2 essay questions. I want you all to focus on the following:

Provide an analysis (own word) Just as you have provided an analysis (own word) about various topics from week to week in our course, I want you to do the same for this exam. What does the scenario mean to you? How would you approach the situation? What would you consider? What questions would you ask? As you probably know by now, your response isn't necessarily right or wrong as long as it's supported and relevant.

Apply key and applicable terms. Assess the situation in regard to the key terms/related chapter and apply those aspects to your response.

Provide a response. Ensure that you actually provide a response to the question(s) that is presented.

Chapter of Focus: Evaluating Entrepreneurial Opportunities

Taking Your Store to Your Customers

There are several channels that producers can use to get their products to the market. Sometimes these distribution channels may be long and complicated, using several intermediaries between the producer and consumer. However, as Sara Hammet, owner of Feeling Special Fashions, has shown, it does not have to be that complicated.

Hammet sells clothing specially designed for senior citizens. It is called "adaptive" clothing - dresses and separates for seniors whose mobility and dexterity are restricted. Hammet bypasses the usual intermediaries, such as retail stores, and takes her product directly to the customers. She sells clothing at 50 nursing homes and retirement communities in two states and the District of Columbia.

Four days out of the week, every spring and fall, Hammet and an assistant load half a dozen racks of clothes into the back of a van and hit the road. She conducts fashion shows and offers individual consultations at every facility they visit. This type of personal selling has been effective for Hammet, who thought up the idea in the early 1980s while visiting her elderly father in a Kentucky nursing home. She was appalled by the careless and drab manner in which patients were dressed. Hammet perceived a need and stepped in to fill it.

The clothing she sells is manufactured by Comfort Clothing Inc., which is located in Canada. The items are stylishly designed and come in various colors and prints. The clothing is different in that armholes are bigger, buttons often hide Velcro fastenings, and waists are uncinched and come with optional belts. The garments can be stepped into rather than pulled on over the head. They are washable and cost between $40 and $60. Through a combination of creative merchandising and personal selling, Hammet has established a growing business.

Consideration:

Consider the types of distribution channels Feeling Special Fashions used as well as the different economies.

Question:

Should Sara Hammet consider other business opportunities such as selling through intermediaries - like retailers? Discuss the advantages and disadvantages as it relates to different economies.