Function Of Retail Organization Kathmandu Assessment Answer

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Question :

Describe Function of Retail Organization- The organization is Kathmandu.

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Answer :


Business Introduction Page

Page Title: The name of the organization is Kathmandu, which is situated in New Zealand. The company is dedicated to manufacturing all the essential gears for trekking. Best apparel is designed by the organization. 

Entity Type: Kathmandu, New Zealand. It is a private limited company 

Detail of owner: Jan Cameron CNZM, is the New-Zealand-Australian Businesswoman is the founder of Kathmandu clothing and outdoor equipment company. 

Number of employees:the approximate full time employees which conducts operations in Kathmandu are 1144 employees. 

Products:The products which are offered by the business organization are the outdoor and travel apparel products, accessories and gear products. 

Current target market: The target market of Kathmandu are mainly the sports person, and the persons who are associated with health and fitness. 

Year established:Kathmandu was established in 1987. 

Scope of expansion: The business observed the scope of developing their stores in the different areas of New Zealand market. 

1. Executive Summary

The main motive of the study is to describe the activities that are based on marketing, human resource activities, accounting and economic activities of the organization. There are different types of managerial gaps identified in the study along with the classified human resource activities. The study also describes the RMIS processes that are associated with the promotional processes. The RMIS process has also been evaluated on the basis of observing the benefits and the functions. This study has also focused on considering the financial management activities, and that the study has focused on illustrating the different HR related challenges, and has provided recommendations through which the employee management activities of Kathmandu can be developed. The study has also provided emphasis on developing the financial planning activities of Kathmandu, and has also sorted out ways in which staff-turnover rate of the employees can be reduced. 

2. Supply chain management (SCM)

2.1 Definition and activities of supply chain management

In the modern world of globalization, supply chain management plays an important part that is also associated with the larger concept. It ensures a different flow of goods and services and enhances the workforce of particular organizations. After ensuring all the finished activities, the supply chain management processes are ensured by the organizations(Handfield, 2020). It can be observed that there are different types of management properties such as the streamlining activities, where the maximum values are generated and the development of the market share are also done in the same processes.

On the other hand, it can be observed that supply chain management strategies and other processes also helps in the core development of particular distribution activities. It is attached to the management and inventory of the business. This ensures effective raw materials and also the production process of the raw materials. In this manner, the flow of merchandise and to ensure that the customers can receive the product can be done in the best possible manner. Therefore, the supply chain management system is one of the important parts, where the organization should ensure that the product will reach the hands of customers. There will be a great availability of products (Supply Chain Activities, 2020). It can be noted that there are also accurate locations and time of the products that are maintained by the customers. 

Undertaking of SCM

It can be observed that according to the recent market phenomenon, Kathmandu can adopt five types of SCM mechanism for the core development of production activities.

Total Quality Management 

Implementation of the concept 

It can be observed that Kathmandu follows the Total Quality Management system in broader aspects. It is because the types of customers visit the stores of the organization are diverse and they have different types of specifications also in the purchase category. Therefore, the organization has a broad detailed emphasis on the supply chain concepts(Etechgs, 2020). It can be observed that the management activities are also dependent on the individual capability that provides different types of business opportunities for the maintenance of career development activities. Example can be taken from the Sleeping bag stuff sacks, a unique product offered by the organisation. It is found that to manufacture this product, the company at first engages with suppliers, educate them and finally the product is delivered appropriately. Hence, this Total Quality Management in Kathmandu Holdings is essential for the development of unique service in the New Zealand(Kathmandu Holdings Limited, 2019). 

The advantages for application of TQM

With the help of the TQM, different tasks are managed by the organization. With the help of Total Quality Management processes, government regulations of New Zealand can be ensured along with the elevation of the market goodwill for Kathmandu. On the other hand, emerging for higher revenue and profitability also can be ensured by organizations like Kathmandu in the New Zealand market. 

Retail cost  

The retail cost for the entire quality management process that will be observed by Kathmandu will be comparatively low. As the organization will observe fewer flaws in their product, that will ensure development in the quality of the products. While developing the overall quality standards of the product, the operational costing of the organization will reduce which will help in reducing the retail cost of the product and that it will help in attracting more customers.Nevertheless, it is also important for the organisation to focus on the retail costs of competitors, as excessive low retail cost might hinder the company to gain organisational profit.

Total Productivity Management

Implementation of the concept 

It can be noted that Kathmandu has previously implemented that total productivity management concepts for making the adventure apparels and shoes in the best possible manner. In this way, productivity also became much better. Implementation of diverse techniques and tools have been done by the organization that has established distinguished collaboration between product management activities(Suito, 2019). It can be observed that there are also some of the final processes in the organization, which are accomplished by Kathmandu through different internal strategies. 

The advantages of implementing this process

In recent years, Kathmandu became one of the largest Australian retailers and having the tagline of Certified B Corporation, the organization has started following sustainability in the production processes(Our Story, 2020). The materials that are used in making the products are used sustainably. Finding newer sustainability goals and establishing the sustainability hub of Kathmandu has been the greatest advantages of the SCM process.Also, the process should be implemented with greater caution as failing to implement the Total Quality Management process will restrain the organisation to reach its sustainability goals effectively.

Retail cost 

While considering the retail cost, Kathmandu needs to reduce the pricing of their products, and the organization also needs to consider the product management, which is related to the overall lean management process of the business, and it will reduce the chances of observing higher wastage of the products, and that the overall costing of the products of production will be reduced, and will help in reducing the retail costs of the products.It is found that the women’s clothing starts from $269.98, which is expensive in comparing with other company products. Hence, a slight reduction in cost might help Kathmandu Holdings to operate its lean management process substantially.

Just-in-time (JIT)

Implementing the concept 

The activities of Kathmandu are associated with developing outdoor sports and gear products, and this particular concept will ensure a better flow of materials, which is required for obtaining and managing the inventory of the business. The JIT activity will develop the supply of the goods and will ensure that the employees can obtain the products before its requirement(Cleartax, 2020). JIT is also associated with developing the relationship of the suppliers to that of the organization.

Advantages of implementing the concept 

In the business operations of Kathmandu, the JIT process is important for reducing the level of waste of the organization and will help in enhancing the overall production process(Knowledgehut, 2018). The activity will develop the overall flow of the organization and that the business will attain the optimum production level. Further, it can be said that implementing the JIT concept will not only reduce wastages, but it will also maintain sustainability of this organisation.

Retail costs

JIT is associated with developing maximum production, and that the required time frame will be reduced which is associated with development in the entire production process, and Kathmandu will observe a reduction in the labor cost, which will also help in reducing the retail costs.


Implementing the concept

Gathering information regarding the preferences of the customers is the most important factor for the business, and obtaining information helps in developing the supply chain activities, which also increases the opportunities of the organization.Hence, it is necessary to implement a significant Information management system for the Kathmandu Holdings, as it will help the organisation to maintain its entire supply chain activities. Generally, the supply chain process consists of several steps, such as delivery, warehouse and others. Nevertheless, addition of an Information management system will provide value to the entire supply chain process of this organisation.

Advantages of implementing the concept 

Sharing of the information is observed directly associated with the effective supply chain process, and that it helps in developing the collaboration between the stakeholders of the organization(Gargeya, 2018). Obtaining suitable information helps in developing the overall decision-making activity of the organization, and brings optimization within the organization.    

Retail costs

Information will help in maintaining the financial stability for the organization, as information will develop the overall planning of the business, and will bring development in the market position of Kathmandu, which will be reducing the retail costs of the products.


Implementing the concept 

While developing the supply chain of the business, it is important for the organization to consider transportation. It is important for Kathmandu to consider the different transportation modes, starting from air transport, railways, and also by water. However, selecting alternative routes, best medium of transportation and selection of supplier location also influence the entire transportation process of this organisation. 

Advantages of implementing the concept 

With the development in the transportation activity, the supply chain of the business tends to be developed, and the business can evaluate the different transportation costs and will observe the opportunity of selecting the most appropriate mode of transportation(SUPPLYCHAINDIVE, 2018).

Retail costs

While considering development in the transportation activity, the retail costing of the products will be reduced, as the business will be undertaking the RFID costing of space utilization, and that the relationship of the organization and the supplier will be developed.

2.2 Retail Management Information System (RMIS)

The five different benefits and functions of the RMIS process are illustrated below: 

Reducing the costs 


Enhancing the overall functional activities of Kathmandu, while help in managing the operational activities and that the RMIS process of the organization will be developed overall, which is important for managing the overall operational costing of the business, and that the business will observe the scope of managing their expense structure. 


RMIS will increase the opportunity of the organization in reducing the manufacturing costs, as the waste level of the organization will also be reduced(Rhodes, 2020). The most important benefit is that RMIS will be providing to Kathmandu is by considering automation within their business operations.  

Enhancing the level of output 


RMIS will provide Kathmandu with long term sustainability benefits, as the system will help in providing emphasis on managing only the necessary information of the study. Further RMIS, will be significant for ensuring collaboration within the different departments of Kathmandu(Riskonnect, 2019).  


RMIS will provide an opportunity to Kathmandu for monitoring the output level which is produced by the business. It will also help in managing the supply chain activities of the organization, and that it will help in developing the quality standards of the different departments of Kathmandu.  

Developing the processing speed


While managing the different processes at a similar point in time, RMIS will ensure development in the processing speed of the organization, as the errors, and the mistakes of the business will be evaluated in a similar point of time, and that the production process will become fast(Tech-Trans System Limited, 2020).


With the development in the production speed of the organization, RMIS, will provide Kathmandu with the scope of developing their marketing channels, and that the overall information system if the business will be enhanced, which will help in developing the information system of Kathmandu. Also, increase in production speed, will also require the company to increase its distribution speed, as improper distribution might create inventory management issue for the organisation and the company might face multiple problems during the process of inventory forecasting.

Enhancing the profit level


As Kathmandu operates their production activity with an effective team of employees, it helps in developing the profit level of the business, and that the error of the business will reduce. Eliminating the flaws from the product will help in developing the profit level, and will guarantee the business with long sustainability of their business operations(Origami Risk., 2020). 


Enhancement in the profit level will also provide Kathmandu with higher opportunities, and that the business will be able to conduct research and development in higher quantity, and that the organization will be able to invest more funds, in the different operational sector, and that the overall activity of Kathmandu will be enhanced.

Ensuring business cooperation 


RMIS help in determining organizational goals, and that provides the organization with the scope of maintaining transparency within their business process and that an interactive communication will be fostered in between the employees and the management of the organization. As found in the literature, communication is the ultimate key to achieve organisational success. Hence, this can also be applied in case of Kathmandu Holdings as development of a streamlined communication will ensure the entire application of RMIS, which will help the company to achieve ultimate success.


RMIS will provide Kathmandu with the benefit of developing cooperation between the business and customers, which will foster enhancement in the satisfaction level of the customers and that the brand image of the organization will be developed, along with development in the market availability of their products(WALSH, 2018). 

3. Financial management

3.1 Evaluating the scope of financial management planning

The terms which are associated with financial management planning of Kathmandu are discussed below: 

Financial management and accounting 

Accounting and financial management are directly associated with one another, and in association with the different circumstances, Kathmandu lacks in the proper management of the accounting activities, and it is mostly observed because of the managerial gap. This process tends to increase the responsibility of the management to monitor the trade records of the organization and develop the system of management(Toppr, 2020). The financial manager of Kathmandu will focus on enhancing the security of information, and that it is also necessary for developing the security process of the data transactions, and will ensure the business with higher profit level, with the end of every financial year.

Financial management and marketing 

Financial management is also associated with marketing activities, and that the marketing decision of the individuals will be developed. The marketing decision also tends to influence the profit level of the business, and it ensures that the pricing of the products of Kathmandu will be reasonable and accurate and that the revenue and the employee satisfaction activity of the organization both will be developed (Bizmove, 2020). The business also needs to provide emphasis on expansion of the market, and that the overall advertisement process of Kathmandu will also be enhanced.  Based on the financial management, the organisation should also focus on the marketing process also, as a proper tally between financial management of operational activities will enhance the quality of marketing by adding much value. 

Financial management and Human Resources 

Human resource activities and financial cost in Kathmandu is associated with the development of job costing process, and that the employees of Kathmandu provide with accurate benefits and that the employees of the organization are provided with comfortable working conditions, along with bonus and other incentives, and will develop the production process which is associated with obtaining higher revenue at the end of the financial year(Chand, 2019). 

Financial management and Economics  

Economic activities and financial management are associated with one another, and that the managerial activities of the study will be enhanced. It has also been noted that the managerial activities are associated with corruption, and that it becomes important for the financial management department to evaluate the GDP process, and will also consider fluctuation in the GDP trends, and that the assistance received by Kathmandu will be developed(Fao, 2018). 

3.2 Elements of financial management and planning

The elements of financial planning and management which are associated with employee costs are illustrated below: 

Financial planning 

Retail management activities are associated with financial planning, which is important for developing economic operations. Development in financial planning helps in developing standards of business operations and manages the timeframe of the organization. The operations of Kathmandu, and that the business will observe development in the supply chain process, and will ensure development in the budgetary process, and will increase the profit planning process(Management Study Guide, 2020). The financial process activities will provide Kathmandu with better management of the inventory, and maintains the hierarchy of the business. 

Example: Activities of financial management are associated with merchandise activities of managing the budget process, and the sessional activities are important for managing the sales target and will develop the inventory system of the business. The same can be applied to Kathmandu Holdings, as a proper set of merchandise activities will help the organisation to ensure the latest development in financial planning, which will suffice the need of other financial requirements too.

Inventory management 

The inventory activities are associated with developing the organizational authority, and that Kathmandu, will observe development in the sales level of the organization. Furthermore, the inventory management activity will ensure development in the retail process of the organization. The inventory management activities are associated with the development of the timeframe, and that the retail process activities tend to be developed on the basis of the retail management(Tradegecko, 2020).  

Example: The activities of the oldest units are associated with the development of the inventory management activities, and helps in the expiry of the products. The business activities of Kathmanduis considered with utmost priority. 

Budget and Budgetary control 

Budgetary activities of Kathmandu are associated with maintaining the income and expense of the business organization, and for Kathmandu, it becomes important for monitoring the financial position of the business in the global competitive market(Osborne Book Shop, 2015). On the basis of the budgetary control activities, Kathmandu will be developing their business, which is required for ensuring the long-term sustainability of the organization.

Example: On the basis of the budget and budgetary control process, it becomes important forKathmandu to focus on determining the accurate calculation of the organization. Kathmandu is associated with managing the financial scope of the process. The production activities of Kathmandu is associated with reducing the operational expense of Kathmandu. 

Dividend decisions

The dividend process of Kathmandu helps in evaluating the decision-making level of the business organization and that the process, is directly associated with reducing the rate of dividends of the organization. Kathmandu focuses on maintaining the interests of the shareholders while providing them with dividend returns at an accurate period(Efinancemanagement, 2020). The management activities of Kathmandu is important for getting information, and that the activities will help in developing the financial benefits.  

Example: Kathmandu provides emphasis on reducing the level of corruption, which is associated with management, and focuses on maintaining the interests’ level of the business(Business Jargons, 2018). Kathmandu activities are associated with the management of the equity shares, and it helps in overall reducing the managerial risks of the business process.

4. Industry Related Employee Management

4.1 Job application and recruitment practices

The recruitment practice along with job application of Kathmandu are illustrated below: 

Considering modern recruitment software

Conducting recruitment by using modern software will help in managing the human resource process and that Kathmandu will observe the scope of recruiting only talented employees within the organization(Erica, 2019).Further, the availability of a high-end software will also help the organisation to evaluate the potential of candidates and based on such data interpretation, future candidates can also be decided by the HR department of Kathmandu Holdings. 

Developing recruitment market strategies 

Promotion of job availability in the online market will help in attracting talented employees within the business, and that Kathmandu can undertake online promotion of their jobs, which will focus on the development of the skills and knowledge of the entire employees of the business.  

Compare and contrast of information 

In association with the industrial activities of Kathmandu, the primary objective of the business needs to be the management of the organizational procedures, and that the entire process of developing the recruitment activities needs to be monitored. Online application for a job will also ensure that the jobs are provided to the candidates on the basis of their talents(Nicasio, Francesca, 2019). While comparing in between the two different recruitment processes, modern recruitment software activities are associated with direct activities of the organization, and in comparison to the market strategies, third party activities tend to get associated, and that the retailing activities maintain the competitive position of the business.

Recommendations for resolving HR challenges 

The recommendations which can be considered by Kathmandu are illustrated below: 

  • Kathmandu needs to focus on training activity, which will help in developing the skills of the employees and will also help in developing the standard of production activities(Yello, 2020).  
  • It is important for Kathmandu to focus on developing the management which will provide the employees with flexibility, and will help in resolving the internal disputes, and will develop the interactive activities.

4.2 Seasonal Staff demand

a) Evaluating the seasonal staff demand

While conducting business operations in New Zealand, the retail sector observed the scope of conducting seasonal employment, and that it becomes the responsibility of companies to develop trade agreements. In case of Kathmandu Holdings, the demand of seasonal staff is not exceptional as the company hire more seasonal staff during the high-pressure times. Nevertheless, a written agreement of further a certificate of employment during the season will help the company to evaluate its seasonal staff effectively. The SCM activities also need to be enhanced as the production unit of the organization tends to be developed, and that the delivery process is also necessary to be enhanced(BusinessWire, 2020). The activities of the employees are associated with the development of international activities, and that it is important for maintaining the competencies, and for developing the skills of the employees. The seasonal staff activities are important for managing the health requirements, and for developing the structure of work.

b) Impact of seasonal demand over the staffs of Kathmandu

Within the business operations of Kathmandu, it becomes important for the business to evaluate the preferences of the customers, and Kathmandu observes the scope of developing the seasonal activities, and that the demand of the customers tends to develop the recruitment contracts, and Kathmandu also observed the development of the profit level and the revenue of the organization(Verdon, 2019). The seasonal demand activities of the retail industry are mostly higher in the summer season because the sports activity increases, and that it tends to reduce a bit in the winter section.

c) Present practices of Kathmandu in managing the seasonal staff demands 

The current practices of Kathmandu are illustrated below: 

  • Kathmandu needs to provide effective job descriptions, and the regulation needs to be different for seasonal employment, and the employers need to ensure that the work is provided on the basis of the interest of the individuals(Disha, The Retailer’s Guide to Seasonal Hiring For 2018 Holiday Season, 2020).  
  • Kathmandu needs to develop different practices in the current situation of Covid-19, and that the complications of the system need to be resolved, and that the employees should observe the capability of managing the demand of the customers.   

d) Recommendations for managing HR issues

  • Kathmandu needs to provide emphasis on managing the demand technologies which is required for managing the job requirement, and that the organization should develop an award system for managing the seasonality activities(OmotayoOlubiyi, 2019).  
  • The HR department of Kathmandu should develop a plan for monitoring the inventory and the sales, before conducting the staffing of the seasonal staff.  

4.3 High Staff Turnover

Evaluating the reason of high staff turnover in the retail sector 

The reasons for high staff turnover are illustrated below:

Low wages

The most important reason for observing high turnover within the staff is that Kathmandu tends to provide the staff with low wages, which tends to reduce the satisfaction level, and in the end increases the turnover rate of the employees(Wolters Kluwer , 2020).  

Competitive job market

As the opportunities in the job market of New Zealand are high, the employees tend to obtain higher opportunities in the market, which increases the rate of staff turnover of Kathmandu. 

Comparing the reasons for employee turnover in Kathmandu

While comparing the activities of Kathmandu, the issues of staff turnover mostly occur because of the conflict which tends to be present in between the tasks. The issues of the competitive market are associated with evaluating the activities of the HR managers the role of the individuals tends to be developed(Neelie, 2018). It is important for the recruitment process to focus on managing the well-board process, and the problem of low wages of the employees needs to be developed, which is important for reducing the employment issues.  

Recommendations for managing the HR-related challenges

The recommendations for managing the HR challenges are illustrated below: 

  • It is important for Kathmandu to understand the salary requirements, which is important for managing the work premises, and that the overall security level of the employees also needs to be developed(Nicasio, The Cost and Causes of Employee Turnover (and How to Reduce It), 2016). The salary of the employees should also be developed for ensuring motivation. 
  • Kathmandu needs to consider the skill assessment activities, which will provide the employees of the organization with career development opportunities, and that it is important for developing leadership skills.