Harrods Research Paper Example | Topics and Well Written Essays - 1500 words

Harrods - Research Paper Example Graphs illustrated and explained in the report gives a clear idea about the position of Harrods in the market as compared to its competitors. Secondary research is conducted using credible industry sources such as Market Researech.com, Hoover’s, Harrods website, and other online database. Company Overview Harrods is a luxurious, high-end retailer, founded in London in 1834 and possess a rich heritage and history that makes them the world’s most famous department store (Harrods). The department store is situated on Brompton Road in Knightsbridge, London, England, being the one of the largest department stores in the world (store occupying 4.5acre and selling space over one million square feet across over 330 departments). As Mahoney points out, Harrods is the second-biggest store and offering an extensive section of products, a world-class shopping experience and greater customer service. The Harrods brand also stands for other business undertaken by the company which in cludes Harrods Bank, Harrods Aviation, Air Harrods and Harrods Estates. The Harrods group of companies holds its motto â€Å"Omnia Omnibus Ubique – All things for All People Everywhere† (Harrods). Though operating only in London, it has become an international retail icon with superior brand responsiveness among global consumers. History shows that the firm has gone beyond being a high-quality branded store and product designer to a fashionable society, a status icon for celebrities and commoners equally. The store faces about 300,000 customers visiting during peak days, and has a workforce of 5000 employees from more than fifty different countries. The Harrods Ltd. was sold to Qatar Holding LLC for $ 2.2 billion in 2010. The products sold through the firm’s brand ranges across women’s and men’s wear, children’s products and toys, wine and spirits, kitchen products and appliances, beauty products, bags, and accessories. Company process Reven ue: - The lion’s part of Harrods’ revenues comes from its luxury retail division operating at Knightsbridge location. The rest come from the divisions at Heathrow and Gatwick airports and from its four subsidiaries, namely, Harrods Bank, Harrods Aviation, Air Harrods and Harrods Estates. Cost: - The Costs of the company include (i) Costs of Goods Sold, (ii) Marketing and Advertising, and (iii) Other Operating Costs. The costs of goods sold include purchase of inventory, storing costs, store construction and maintenance, transportation and shipment, and other administrative expenses. The marketing and advertising costs include all the expenses incurred by the company with regard to the promotional purpose through print or audiovisual media. And other operating costs include all other expenses borne by the business while functioning. Financial Analysis Nicolini, Papaioannou, Rasheed & Subject report that on peak days Harrods receives over 300,000 customers and during sal e events, the firm takes in about $1.813 million every hour. Since the firm possesses strong brand awareness in the UK market, it does not give importance to funding on traditional methods of brand advertising or using print or news media as their public association can take the role of buzzing about the firm. Though not affected by the recent meltdown in financial markets, financial analysts forecast its future impacts on the consumer behavior and ultimately on the market. As Graham reports, the Managing director