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Steps)
For the purpose of developing retail
strategies, retailers are required to follow a
step by step procedure or planning process.
The planning process discusses/involves the
present stage of business, the formulation, list
of available strategic options, and the
implementation of the selected strategies.
Considering the importance of strategic
decisions for the future success of the
business, a systematic approach is essential.
External Analysis:
The purpose of examining the stores
external environment is to study the
opportunities and threats in the retailing
environment. The external analysis studies
factors that affect the macro-environment
of retailing industry and the task
environment.
Internal Analysis:
The objective of studying internal
environment of its own store is to identify
the stores strengths and weaknesses. The
store will try to increase its capabilities,
and overcome the weaknesses that deter
the business profit. While doing the internal
analysis, store examines the quality and
quantity of its available resources and
critically analyzes how effective these
resources are used.
Financial resource:
(a) What is the total cash flow from stores
present activities?
(b) What is the ability of retail store to
collect money at the time of requirement/
emergency?
(c) How much effective and stable
financial policies are?
(d) What is the ratio between fixed and
current assets?
(e) What are the contingency plans in
case of negative cash flow?
Physical resources:
(a) What is the contribution of fixed
assets?
(b) What is the position of
abandoned/unused assets?
(c) How effective and update are the
stores information systems?
Intangible resources:
(a) What is the present capability of the
companys management?
(b) How effective is the R & D cell?
(c) How good is the competitors intelligence
system?
(d) How effective stores loyalty programmes
are?
(e) What is the capability of retail store
manager?
(f) Are customers loyal towards companys
products?