Student Learning Objectives Retail... · Web viewUse computer technology in inventory management and reporting, including spreadsheets, databases, word processing, networked systems

AS8

Agriculture Management, Economics, & SalesRetail Operations

Unit: Retail Agribusiness Sales

Lesson Title: Retail Operations

Standards ABS.03.02.01.a. Monitor inventory to maintain optimal levels and calculate costs of carrying input and output inventory.ABS.03.02.01.b. Use computer technology in inventory management and reporting, including spreadsheets, databases, word processing, networked systems and the Internet.ABS.05.01.02.b. Recognize how changes in prices of inputs and/or outputs influence the financial statements of an AFNR business.

CCSS.ELA-Literacy.L.11-12.1 Demonstrate command of the conventions of standard English grammar and usage when writing or speaking.CCSS.ELA-Literacy.L.11-12.2 Demonstrate command of the conventions of standard English capitalization, punctuation, and spelling when writing.CCSS.ELA-Literacy.SL.11-12.3 Evaluate a speaker’s point of view, reasoning, and use of evidence and rhetoric, assessing the stance, premises, links among ideas, word choice, points of emphasis, and tone used.

Student Learning Objectives

Slide 2 in AS8 Retail Operations Lesson ObjectiveAfter completing the lesson on retail operations, students will demonstrate their ability to apply the concept in real-world situations by obtaining a minimum score of 80% on Retail Operations interview.

Enabling ObjectivesAs a result of this lesson, the student will…

1. Critique managing inventory advice and suggestions.2. Analyze how an agribusiness can determine selling price.3. Identify specific discounts offered in agribusiness.

Time: Approximately 90 minutes

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List of ResourcesBacon K., Boren N., Kirkwood V., Birkenholz R., Plain R., Rohrbach N.

(1988). Agriculture Management and Economics Instructor Guide.Columbia, MO: Instructional Materials Laboratory.

Bacon K., Boren N., Kirkwood V., Birkenholz R., Plain R., Rohrbach N. (1988). Agriculture Management and Economics Student Reference Guide. Columbia, MO: Instructional Materials Laboratory.

List of Tools, Equipment, and SuppliesAS8 PowerPoint PresentationAS8 Activity Sheet and Evaluation PacketNote cards or small sheets of paper for review activityMagazines and newspapers with discount advertisements for review activity

Key Terms:Slide 3 in AS8 Retail Operations

The following terms are presented in this lesson (shown in bold italics):InventoryPerpetual InventoryPhysical Inventory

Retail Agribusiness Sales AS8 Retail Operations

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Interest Approach: Use an interest approach that will prepare the students for the lesson. Teachers often develop approaches for their unique class and student situations. A possible approach is included here.

Slide 4-6 in AS8 Retail OperationsSuccessful Retail Business: Give each student one scenario from AS8.1. Have them answer the question: “What do I need to do to make my retail business successful?” Share results with the class.

During class discussion, drive students to topics of offering discounts, determining a profitable selling price, and effectively managing inventory.


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Summary of Content and Teaching Strategies

Objective 1: Critique managing inventory advice and suggestions.

Teaching Strategies Related Content1. Recall the discussion about inventory

from the interest approach and ask students to define inventory.

Slide 7 in AS8 Retail Operations

2. There are two types of inventory.


3. As a business owner, what are some factors you would use to help manage inventory or determine what products to stock and when?


4. Complete AS8.2, examining managing inventory suggestions and advice for use at the local level.

Inventory The amount of merchandise on hand Includes: Fixtures, Machines, and Raw

or Finished Products

Types of Inventory Perpetual – Written or computerized

record taken from sales slips and purchase records

Physical – actual count taken by hand

Managing Inventory Customer preferences – Items in high

demand by customers should be kept in adequate supply; Look at past sales records to determine

Seasonal demands Inventory turnover rate – How quickly

the business is able to sell inventory at a particular time; Bread or milk at a grocery store has high turnover rate; Machinery at a dealership has lower turnover rate

Past inventory records Anticipated price changes


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Objective 2: Analyze how an agribusiness can determine selling price. Teaching Strategies Related Content

1. Facilitate a discussion on how students think business owners determine selling price. If students in the class have a placement SAE or own a business of their own, ask them how they or their boss determine selling price, what factors they consider, etc.

Slide 10-11 in AS8 Retail Operations

2. Complete AS8.3 in small groups, tying determining selling price to the economic principles in agribusiness. If this unit was not covered, give students a brief overview of six principles or skip this step.

Determining Selling Price Cost plus market – Many businesses

simply determine cost of an item and add on an additional amount to cover business operating costs and a reasonable profit

Suggested retail price – Sell name products and charge suggested retail price; Manufacturers of these products have more control over price than local business selling product

Lose leaders – Businesses such as grocery and clothing stores use this pricing; Certain products are reduced below cost to attract customers; Logic = After customers are drawn in, they will usually buy more than one item, and the business can recapture its loss with additional sales

High markup item – Place certain items in checkout lanes; Individuals buy these items on impulse while waiting in line; Items are very profitable for store because they have a large markup

Clearance pricing – Store has too much inventory on particular item or it has purchased particular item at lower-than-normal cost so it uses clearance pricing; Prices are reduced to approximately the actual cost; Lower prices encourage customers to purchase the items, clearing out excess inventory

Discounts – Serve as a price adjustment; Used to stimulate sales; Used to help manage inventory; Give discounts for early season purchases to reduce amount of time and cost of carrying item in inventory


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Objective 3: Identify specific discounts offered in agribusiness.

Teaching Strategies Related Content1. Offering discounts is a common pricing

strategy in retail businesses. What are some specific discounts that attract you as a customer? Remind students that discounts are typically given so that money can be reinvested more quickly.

2. Discuss discounts that can be used in agribusiness.

3. As discounts are revealed, have students discuss what the discount is and why it would be effective. Then reveal explanation on PowerPoint slide.


3. Complete AS8.4 in pairs, identifying specific businesses or types of business that would offer each type of discount.

Discounts in Agribusiness Cash Discount – Cash discount for

paying cash at time of purchase; 2-3% discount on purchase price; Cash = currency, coins, and checks; Encourages customers to pay cash so business can quickly reinvest money; Discount is figured after all other discounts have been applied

Quantity Discount – More convenient for business to sell a large quantity rather than a very small amount; Discount for volume purchases

Bulk Discount – Livestock feed can be purchased in 50-pound or 100-pound sacks or without being packed called bulk form; Feed mill does not have to package or handle feed by hand, so mill has lower costs; Savings are passed on to customer

Early Season Discount – Encourage customer to buy items before the season in which they will be needed; Helps business save storage space and plan quantity of items needed

Prepay Discount – Discount on total bill for paying prior to completion of service; Lawn mowing service offering a 5% discount for customers who prepay for the total of their mowing contract

Promotional Sales & Items – Discounts given on particular days, for limited time, or on special items; Black Friday sales, after Christmas sales; Memorial Day weekend sale, etc.


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4. Share results with other groups or as an entire class.

Review/SummarySlide 14 in AS8 Retail Operations

To maintain customer satisfaction and to reduce overhead costs, it is essential to maintain a good inventory management system and to price merchandise at a level that will assure profit, yet encourage buying.

Review: Identify this discount: Use magazines, newspapers, Internet business website, and other sources to find advertisements offering retail discounts. (The Sunday edition of a major paper offers many retail discounts to examine.) Students need to find ten examples of discounts, print or cut them out, and place them around the room for a gallery walk. Have students walk the gallery of discounts, identifying the specific type of discount by name.

Slide 15 in AS8 Retail OperationsExit cards: Students will answer the following questions on a note card or small slip of paper and hand to teacher as they exit:

What did you learn today about retail operations? What questions do you still have about retail operations?

Application

Extended ActivitiesExamine the local FFA chapter’s fundraising records to identify how selling price is determined for fundraising items. Invite the representative from the fundraising company to come to class and talk to students about how to determine selling price. At the conclusion of the visit, have students continue their examination, making suggestions for improvements. Present these suggestions to FFA officers and the advisor at the next officer meeting.

Examine students’ agribusiness ownership Supervised Agricultural Experience Programs and identify the price markup of items/services sold. Create a budget after increasing costs by 5% and another budget after offering one of the discount types discussed in this lesson. Share results and ideas for improvements with advisor during next SAE visit.


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In preparation for the lesson evaluation, invite a local business owner to class. Have students craft 5-8 questions about managing inventory, determining selling price and discounts. At the conclusion of class, have students write a one-paragraph summary for each of the topic areas for three paragraphs total. Also include an introductory paragraph and a paragraph concluding the thoughts of the paper.

EvaluationRetail Operations Interview AS8.5

Alternate - Paper-pencil Quiz Evaluation AS8.6

Answers to EvaluationEvaluation AS8.5Answers will vary. Use scoring guide on AS8.5 to assess student work.

Alternate Evaluation AS8.61. A2. E3. C


Documents

Student Learning Objectives Retail... · Web viewUse computer technology in inventory management and reporting, including spreadsheets, databases, word processing, networked systems