strategic retail management process
Retail Mix is the blend of various retail activities which in total present the whole concept of retailing. Afterwards we will discuss how to develop the retail mix to implement the retail strategy as well as evaluating performance. This process reveals the fact that understanding ‘what customer wants?’ is the success key to retail positioning in the market. Before publishing your articles on this site, please read the following pages: 1. Even the best laid out plans can fail with the absence of a well defined roadmap. It also allows for a business planning strategy within the retailer. (e) Are the employees skilled in their assigned tasks? No discussion of strategic planning can ignore the micro and macro factors that are relevant in the success and possible failure of the retail business. Deciding the store’s philosophy, mission and objectives:. (b) What is the ability of retail store to collect money at the time of requirement/ emergency? Under retail positioning, a retailer conveys the message that its products are totally different and as per customers’ requirement. Business (or Strategic) managementis the art, science, and craft of formulating, implementing and evaluating decisions that will enable an organization to achieve its long-term objectives. The cost, and therefore prices, become higher for the retailer in this stage. What is the emergency planning? Look at these slides reporting on a SWOT analysis of GAP Inc then let’s walk through a SWOT analysis for the GAP below. The retail mix will differ based on the store and the type of product offered to the customer. This could also be dependent upon the area in which you are located as well as the needs of the customer. Here is a video that walks you through the first five steps of the strategic retail planning process. Stores’ objectives are defined as ends which the store seeks to achieve by its USP (Unique Selling Preposition) and operations. Internal store objectives, on the other hand, are those that define how much is expected to be achieved with the available resources, e.g. Some of the positive internal attributes are franchising opportunities and global brand recognition. (d) How effective store’s loyalty programmes are? Michael Porter wrote in 1980 that formulation of competitive strategy includes consideration of four key elements: https://en.wikibooks.org/wiki/Business_Strategy/Overview_of_Strategic_Planning, https://en.wikipedia.org/wiki/File:SWOT_en.svg, https://commons.wikimedia.org/wiki/File:Pest-analysis.jpg, https://en.wikipedia.org/wiki/Market_environment, https://en.wikipedia.org/wiki/Strategic_planning#Strategic_planning_vs._financial_planning, https://commons.wikimedia.org/wiki/File:Retail_mix.jpg, Differentiate between macroenvironment and microenvironment considerations in strategic planning, Classify the general steps of strategic planning in retail. (c) How much effective and stable financial policies are? The store will try to increase its capabilities, and overcome the weaknesses that deter the business profit. It includes how the retailers select a target market, determine the appropriate retail format, and buisl sustainable competitive advantages. These elements are considered throughout the strategic planning process. Here is a quick look at the steps in the strategic retail planning process. Take a few moments before we move on and see if you can provide an example using your favorite retailer we discussed initially. The three levels of the environment are. It is the process of specifying the organization’s mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. There is also an opportunity for growth in Asia. Therefore, stores should take positive steps to reduce this resistance to change and to convince the employees that it in a long term will be beneficial for both the store and employees. Process Definition. (d) Are the employees punctual and regular? While doing the internal analysis, store examines the quality and quantity of its available resources and critically analyzes how effective these resources are used. What type of product do you intend to carry? In addition, PEST (Political, Economic, Social, and Technological) as well as Porter’s 5-Forces analysis is also used as a way to understand new competition, the threat of new competition, the bargaining power of suppliers and customers, and the level of competition. (c) How good is the competitor’s intelligence system? These steps need not be part of every strategic retail plan but they are a good guideline as to what should be considered nonetheless. The positive steps include the following: It means after implementing the retail strategies, retailer should assess how effectively strategies are being implemented, how far the strategic objectives are being achieved and what has been left to be achieved in the store’s objectives list. Content Filtrations 6. Very generally, we can see it as composed of seven steps. Imagine the scope of a business with stores in seven countries. In looking at those external opportunity factors affecting Gap that are positive you can see they have a market for plus size women’s apparel and they are growing the online business. Employers, employees, and stakeholders in a company all play a pivotal role in the strategic planning process. (b) Are the employees trained and capable to perform the tasks assigned to them? The Gap has strong competition, slow economic recovery, and increased labor costs. It is also an interactive process, so that the draft output of each stage is checked to see what impact it has on the earlier stages and is amended as necessary. The implementation of new retailing strategies sometimes require changes in the way of functioning and duties that can lead to resistance from employees. What are the hours of operation for your store? Smaller shops closed down and an increasing number of customers came to Barnes & Noble. (d) What is the ratio between fixed and current assets? You must make sure you calculate your retail price based on the markup you receive and not the costs involved. (e) What is the capability of retail store manager? The retailing concept is an idea that examines the evolution of the and transformation of the retail life cycle. This concept was first introduced by Professor McNair from Harvard University. The purpose of examining the store’s external environment is to study the opportunities and threats in the retailing environment. Strategic management can be beneficial to a company, department or team in many ways. In addition, there are also other factors such as customer demand, new technologies, and competition that impact the industry as well. (b) What is the position of abandoned/unused assets? How a store will work and accomplish its day to day operations? In addition, the retail mix should always have the target market in mind. What are the graphics that set your store apart? Generally, marketing strategy is developed on the basis of product and/or market segmentation instead of the market as a whole. Weaknesses address questions such as:  What needs improving? Will you be located in the mall? In this stage, after analyzing the store’s capabilities in terms of HR, finance, physical and intangible resources, a store manager formulates retail strategy with regard to marketing, retail positioning and retail mix. The main elements a retail store manager has to face are: viii. Under external analysis, retailer studies these parameters: (iv) Socio-cultural environment of retailing, (v) Technological environment of retailing, and. Let's say that you own a store. Lastly, it would also help them focus on whether or not they are placing efforts and resources on those areas that will drive productivity and profitability. What is your anticipated turn as well as inventory levels? Report a Violation, Strategic Planning : Concept and Process | Business Management, Merchandise Pricing : Introduction, Options, Objectives and Pricing Strategy. The strategic retail planning process can be seen as a conglomeration of steps used to figure out what to sell, when to sell, and how to sell and what is the best way to earn long term profits. Amazon entered the market allowing customers to browse the book selection and have it delivered right to their door step! The critical environmental factors in the world of retailing are: The planning process discusses/involves the present stage of business, the formulation, list of available strategic options, and the implementation of the selected strategies. What is my pricing strategy? Strategic planning is the formal consideration of an organization’s future course. The first step in the retail management decision process is getting an understanding of the world of retailing. This is where you can also include a general description of the responsibilities of each associate along with some type of detailed info on the organization’s structure.

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