Retail Strategic Planning and Operations Management Flashcards
It is the anticipation and organization of what needs to be done to reach an objective.
Planning
It involves adapting the resources of the firm to the opportunities and threats of an ever-changing retail environment.
Strategic Planning
What are the four components consists in Strategic Planning?
- Development of a mission (or purpose) statement for the enterprise;
- Definition of specific goals and objectives for the enterprise;
- Identification and analysis of the retailer’s strengths, weaknesses, opportunities, and threats – referred to as SWOT analysis;
- Development of strategies that will enable the enterprise to reach its objectives and
fulfill its mission.
It is a description of the fundamental nature, rationale, and direction of the enterprise. It provides the employees and customers with an understanding of where future growth for the enterprise will come from.
Mission Statement
These should be derived from and give precision and direction to the retailer’s mission statement.
Goals and Objectives
It establishes the amount of dominance the retailer seeks in the marketplace.
Market Performance Objectives
It refers to the retailer’s total sales divided by total market sales or the proportion of total sales in a particular geographic or product market that the retailer has been able to capture.
Market Share
Retailers can establish many of this type of objectives, but they can all be conveniently fit into the categories of profitability and productivity.
Financial Objectives
It deals directly with the monetary return a retailer desires from its business.
Profit-based Objectives
It is the ratio of net profit (after taxes) to net sales. It shows how much profit a retailer makes on sales after all expenses and taxes have been met.
Net Profit Margin
It is computed by taking the retailer’s annual net sales and dividing by total assets. This ratio tells the retail analyst and retail management how productively the retailer’s assets are being used.
Asset Turnover
This is where an annual net profit divided by total assets, depicts the net profit return the retailer achieved on all assets invested regardless of whether the assets were financed by creditors or by the firm’s owners.
Return on Assets (ROA)
It is the total assets divided by net worth or owners’ equity. This ratio shows the extent to which a retailer is using debt in its total capital structure.
Financial Leverage
It is a net profit divided by net worth or owner’s equity. This is used to measure performance from the owner’s or shareholder’s perspective.
Return on Net Worth (RONW)
It highlights the retailer’s concern with broader issues in our society.
Societal Objectives
In which were especially significant during the recent recession, relate to the provision of employment opportunities for the members of the retailer’s community. In good economic times, they may be even more specific and related to hiring the disabled, social minorities, or students.
Employment Objectives
It is the retailer’s role in helping finance societal needs that the government deems appropriate, from welfare programs to national parks.
Payment of Taxes
A retailer may have an objective of competing in a way that gives consumers a real alternative. A retailer with such an objective desires to be a leader and innovator in merchandising and thus provide the consumer with choices that previously were not available in the trade area.
Consumer Choice
This type of objectives reflects the retailer’s desire to treat the consumer and suppliers fairly and not endanger their living conditions.
Equity Objective
This is where the retailer may desire to underwrite certain community activities.
Being a Benefactor
This type of objectives can relate to the personal goals of any of the employees, managers, or owners of the retail establishment.
Personal Objectives
It focuses on the needs and desires of the owners, managers, or employees of the enterprise and the pursuit of what they truly want out of life.
Self-gratification
In stating this objective, one recognizes that the owners, managers, and employees need status and respect in their community or within their circle of friends.
Status and Respect
It reflects the need of managers and other employees to be in positions of influence. Retailers may establish objectives that give buyers and department managers the maximum flexibility to determine their own destiny.
Power and Authority
It is carefully designed plan for achieving the retailer’s goals and objectives. It is a course of action that when executed will produce the desired levels of performance.
Strategy
It is a group or groups of customers that the retailer is seeking to serve.
Target Market
It is whether a traditional store in a geographic space, a person’s home in relation to a print catalog or television shopping, or a virtual store in cyberspace.
Location
This is where a retailer intends to use to appeal to its target market and thereby meet its financial objectives is the combination of merchandise, price, advertising and promotion, location, customer services and selling, and store layout and design that the retailer uses to satisfy the target market.
Retail Mix
It is a clear statement of the tangible and intangible results a customer receives from using the retailer’s products or services.
Value Proposition
The behavior of consumers will obviously have a significant
impact on the retailer’s future, the retailer will need to understand the determinants of shopping behavior so it can identify likely changes in that behavior and develop appropriate strategies.
Consumer Behavior
This refers on how competing retailers behave will have a major impact on the most appropriate strategy.
Competitor Behavior
This is where the retailer must understand how economic and demographic trends will influence revenues and costs in the future and adapt its strategy according to these changes.
Socioeconomic Environment
It refers to the technical frontiers of the retail system encompass new and better ways of performing standard retail functions.
Technological Environment
It is where the retailer should be familiar with local, state, and federal regulations of the retail system.
Legal and Ethical Environment
It concerned with maximizing the efficiency of the retailer’s use of resources and with how the retailer converts these resources into sales and profits. All of these activities require day-to-day attention.
Operations Management.
