Retail Strategic Planning

and Operations Management

Good execution can never

overcome bad planning.
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Learning Objectives
Explain why strategic planning is so
important and be able to describe the
components of strategic planning:
statement of mission; goals and
objectives; an analysis of strengths,
weaknesses, opportunities, and
threats; and strategy.
Describe the retail strategic planning
and operation management model.
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Components of Strategic
Planning
Planning
Is the anticipation and organization of
what needs to be done to reach on
objective.
Strategic Planning
Involves adapting the resources of the
firm to the opportunities and threats of
an ever changing retail environment.

Elements of a Retail strategy

Situation
Analysis

Organizational Mission
Goods/service Category

Objectives

Sales, Profit, Satisfaction, Image

Consumer
Identification

Mass, Concentrated, Differentiated Marketing

Overall
Strategy

Controllable and uncontrollable variables

Specific
activities

Control
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Situation analysis
Identifying Opportunities and Threats
along with Strength and weaknesses
of the company

Goods/Service Category
Durable
Goods
Store

Nondurable
Goods
Store

Automotive goods
Furniture and appliances
Jewelry Store
Hardware Group

Apparel group
Food group
General Merchandise
CNG stations
Drug Stores
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Services

Personal Services

Laundries and Dry Cleaning

Barber/beauty Shop
Photographic Studio
Health care service

Amusement Services
Hotel Services

Hotels
Motels
Camps

Repair Services

Automobile repairs
Car wash
Appliances repair shop
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Retail Strategic Planning and

Operations Management Model
Competitive Environment:
Behavior of Consumers, Competition and Channel Members
Strategic Planning

SWOT
Mission

Goals and
Objectives

Strengths
Weaknesses
Opportunities
Threats

Social and Legal Environment:

Socioeconomic Environment, State of Technology, Legal System, Ethical Behavior
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Components of Strategic
Planning

Mission Statement
is a basic description of the fundamental
nature, rationale, and direction of the firm.
How the retailer uses or intends to use its
resources?
How it expects to relate to the everchanging environment?
The kinds of values it intends to provide in
order to serve the needs and wants of the
consumer?
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Strength and weaknesses

HR

Are the employees trained to perform the task?

Are the employees loyal to store?
Are the employees punctual regular

Financial Resources

what is the total cash flow from stores present activities?

How much effective and stable financial policies are?
Ratio b/w current and fixed assets

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Components of Strategic
Planning

Goals and Objectives

Are the performance results intended to
be brought about through the
execution of a strategy.

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Statement of Goals and

Objectives
Market Performance Objectives
represents how a retailer desires to be
compared to its competitors.
Sales Volume
Growth
Market Share
Is the retailers total sales divided by
total market sales.

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Image (Positioning)
Retail Positioning is Possible under
Three circumstances
1. Differentiating the Store merchandise
2. High level of Service
3. Low pricing policy

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Retail Mix
Set of Controllable elements retailer or
can use to satisfy customer needs and
influence their buying behavior and
compete effectively in target segment
1. Store Location
2. Merchandise assortment
3. Pricing policy
4. Customer Service
5. Personal Selling Efforts
6. Advertising efforts

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