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Key Issues. What is retail strategy statement How does it differ from “mission” and “tactics” Career-search “strategy” The building blocks of retail strategy Process of developing retail strategy The characteristics of a “window of opportunity” SWOT analysis. Strategy vs Tactics.

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key issues
Key Issues
  • What is retail strategy statement
  • How does it differ from “mission” and “tactics”
  • Career-search “strategy”
  • The building blocks of retail strategy
  • Process of developing retail strategy
  • The characteristics of a “window of opportunity”
  • SWOT analysis
strategy vs tactics
Strategy vs Tactics

StrategyTactics

Planning, Direction

Broad

Unstructured

Problem solving

Creative

External focus

Irregular

Long-term

Difficult to evaluate

Success comes from having a good strategy& executing it well

Implementation

Specific, detailed

Structured

Problem solving

Analytical

Internal focus

Regular

Short-term

Easy to evaluate

the building blocks of retail strategy
The Building Blocks of Retail Strategy
  • ControllableVariables
  • Store Location
  • Store Format & Layout
  • Merchandise Management
  • Pricing
  • Communications
  • UncontrollableVariables
  • Consumers
  • Competition
  • Technology
  • Economic Conditions
  • Seasonality
  • Legal Restrictions

What are theenvironmentalvariables?

What are the elementsof the retail mix?

e g mcdonald s retail strategy
E.g., McDonald’s Retail Strategy

What is McDonald’s …

  • Target market
  • Retail format
  • Bases for competitive advantage
  • What threats might it face in the future?
developing an overall retail strategy
Developing an Overall Retail Strategy

Target

Market

What’s the

3rd element

of retail

Strategy?

Retail Marketing Mix:

Controllable Factors

Competition & Environment:

Uncontrollable Factors

  • ControllableVariables
  • Store Location
  • Store Format & Layout
  • Merchandise Management
  • Pricing
  • Communications
  • UncontrollableVariables
  • Consumers
  • Competition
  • Technology
  • Economic Conditions
  • Seasonality
  • Legal Restrictions

Retail

Strategy

The main focus:

Bringing harmony between the controllable

variables and the uncontrollable ones.

Uncontrollable variables drive the controllable ones!

which are sustainable competitive advantages
Which are SustainableCompetitive Advantages?
  • Dropping prices
  • Building a store at the best location
  • Selling hot merchandise
  • Increasing advertising
  • Attracting better sales associates by paying higher wages
  • Providing better customer service
process of retail strategy

SituationAudit

Identify Strategic Opportunities

Evaluate StrategicAlternatives

Establish Objectives, Allocate Resources

Develop aRetail Mix

Evaluate Performance,Make Adjustments

Process of Retail Strategy

Define theMission

situation analysis
Situation Analysis

Organizational Mission Statement

Define theMission

Ownership & Management

Product Category

SWOT Analysis

form for mission statement
Form for Mission Statement

A mission statement should include:

  • The product/service to be delivered
  • The store’s claim (USP)
  • Other important claims
  • Identification of the target segment
  • What the segment will get
  • What the segment must give up
situation analysis11
Situation Analysis

Organizational Mission Statement

Define theMission

Ownership & Management

Product Category

SWOT Analysis

window of opportunity
Window of Opportunity

Strong

Weak

High

Windowof

Opportunity

Low

High

Low

swot analysis
SWOT Analysis

Strengths

Weaknesses

SWOT Analysis is a systematic approach to optimizing the fit between external & internal var’s

Retail Mix … plus

Management capabilities

Financial Resources

Overhead Cost Structure

Merchandising Capabilities

Store Management Capabilities

Store Locations

Loyalty of Customers

Retail Mix … plus

Management capabilities

Financial Resources

Overhead Cost Structure

Merchandising Capabilities

Store Management Capabilities

Store Locations

Loyalty of Customers

Identify the

Strategies

here

Opportunities

Consumer Trends

Competitiion

Economic Conditions

Seasonality

Legal Restrictions

Threats

Consumer Trends

Competition

Economic Conditions

Seasonality

Legal Restrictions

process of retail strategy14
Process of Retail Strategy

Situation

Analysis

Sales & Profit

Satisfaction of Publics

Corporate

Objectives

Image & Positioning

Identify

Consumers

As a result of theSituation Analysis

objectives statement
Objectives Statement

Any objective must be clear, concise, and realistic. Objectives are often based on profit, market share, growth, etc.

E.g., “…to get a 15% market share and maintain a profit margin of 25% by the end of the fiscal year” for a particular store. Or, “to increase comp store sales by 15% by end of the year.”

Note that each objective must have a time frame.

15%

suggest objectives for
Suggest Objectives for:
  • Krispy Kreem
  • Wal-Mart
  • Burger King
finalizing retail strategy
Finalizing Retail Strategy

Situation

Analysis

Sales & Profit

Satisfaction of Publics

Corporate

Objectives

Image & Positioning

Image = how a retailer wants to be perceived by consumersPositioning = the strategy to project this image

Identify

Consumers

Overall

Strategy

finalizing retail strategy18
Finalizing Retail Strategy

Situation

Analysis

Corporate

Objectives

Identify

Consumers

Retail Mix Variables

Overall

Strategy

Uncontrollable Variables

Short-term operations

Specific

Activities

(Tactics)

Response to the

environment

monitoring retail strategy
Monitoring Retail Strategy

Situation

Analysis

Corporate

Objectives

Identify

Consumers

Retail Mix Var’s

Overall

Strategy

Uncontrollable Var’s

Short-term operations

Specific

Activities

(Tactics)

Response to environ.

Evaluation

Control

(Monitoring)

Adjustment

developing an overall job strategy
Developing an Overall Job Strategy

YourTarget

Jobs

What’s the

3rd element

of retail

Strategy?

Your “Marketing Mix”:

Controllable Factors

Competition & Environment:

Uncontrollable Factors

  • ControllableVariables
  • Your education
  • Job history
  • Skills
  • Interests
  • Commitment
  • Ability to distinguishyourself
  • UncontrollableVariables
  • The economy
  • Job availability
  • The “competition”
  • Etc.

Job

Strategy

The main focus:

Bringing harmony between the controllable

variables and the uncontrollable ones.

Uncontrollable variables drive the controllable ones!

your own product strategy
Your Own “Product” Strategy
  • Determine your target market
    • Area of country
    • Type of company
    • Type of position
  • Assess & exploit your competitive advantage
    • Unique skills
    • Experience
    • Knowledge
  • Develop then present yourself as a desirable “product”
what firms want

54

49

Specific BusinessConcentration

33

31

Relevant WorkExperience

Being aBus. Major

24

22

21

21

17

21

16

16

16

12

14

GPA

10

10

9

8

1

What Firms Want

%

50

40

30

20

10

How Important is this Characteristic?

0

Critically

Extremely

Very

Somewhat

Not

what firms want24
What Firms Want

% CriticallyImportant

Attribute

Integrity 96.7

Strong work ethic 86.9

Professional demeanor 85.2

Initiative 83.6

Emotional maturity 80.3

Self confidence 79.0

Leadership ability 78.7

Personable 62.9

Creativity 55.0

e g interpreting a mission
Knocking on doorsTeaching Contacts

Missionary Training

Learning a 2nd Language

Living in a Foreign Culture

Working Long Hours

Self-motivation, self-discipline, handling rejection, creativity

Training, interpersonal skills, self-confidence, goal setting

Leadership, time management, planning, communications

Learning skills, adaptability to new concepts, perseverance

Ability to work with a new culture, tolerance

Dedication & hard work

E.g., Interpreting a Mission

Action

Skill Derived

what is the interviewer really asking
What Is the Interviewer Really Asking?
  • Tell me about yourself
  • Why are you interested in this position?
  • What are your geographical requirements?
  • What are your salary requirements?
  • Tell me a story!
  • Do you have any questions?
selling yourself preparation interview

Testing

Resume

Self-

Evaluation

Placement

Center

Library

Alumni

Database

InfoTrac,

Lexis/Nexis,

Internet

Self-Knowledge

EmployerKnowledge

Selling YourselfPreparation & Interview

Network

Practice

Interviews

Cover

letter/

Resume

Information

Interviews

A Career Position

telling the same thing
Telling the Same Thing …
  • Should we tell the same story to every interviewer?
  • Should we customize our presentation?
    • … our resume?
    • … our cover letter?
  • Why? (Or why not?)
  • For the same reasons, retailers must focus their strategy on their target market