Retailing Chapter 2 Dunne-lusche-carver 8th edition

Strategic Planning
Involves adapting the resources of the firm to the opportunities and threats of an ever-changing retail enviroment.
Mission Statement
Is a basic description of the fundamental nature , rationale, and direction of the firm.
the components of strategic planning
1. mission statement, 2.statement of goals and objectives, 3. strategies, 4.strengths, 5. weaknesses, 6. opportunities, 7. threats
strategic planning
involves adapting the resources of the firm to the opportunities and threats of an ever-changing reatil environment.
market share
is the retailer’s total sales divided by total market sales.
market performance objectives
establish the mount of dominance the retiler seeks in the marketplace.
financial objectives
rtailers can establish many financial objectives but hey can all bee convenietly fir into the categories of profitability and productivity.
profitability objectives
deal directly with the monetary return a retailer desires from its business.
net profit margin
is the ratio of net profit(after taxes) to the sales and shows how nuch profit a retailer makes on each dollar of sales after all expenses and taxes have been met
assat turnover
is the total sales divided by total assets and shows how many dollars of sales a rreaatiler can generate on an annual basis with each dollar invested in assests.
return on assets (ROA)
is the net profit (after taxes) divided by total assests.
financial leverage
is total assets divided by net worth or owners’ equity and shows how aggressive the retiler is in its use of debt.
return on net worth (RONW)
is net profit(after taxes) divided by owners’ equity
stockouts
are products that are out of stock and therfore unavailable to customers when they want them
productivity objectives
state the sales objectives that the retailer desires for each unit of resource inut; floor space, labor,and inventory investement.
3 productivity objectives
1.Space productivity, 2. labor productivity, 3. merchandise productivity
space productivity
as net sales divided by the total square feet of retail floor space
labor productivity
as net sales divided by the number of full-time equivalent employees
merchandise productivity
net sales divided by the average dollar invested in inventory
societal objectives
are th9odse reflect the retailer’s desire to help society fulfill some of its needs
employment objectives
relate to the provision of employment opportunities for the members of the retailer’s community
payment of taxes
the retailer’s role in helping finance societals needs tht the government deems appropriate.
consumer choice
a way a retailer gives the consumers a real alternative
being a benefactor
a retaler’s desire to underwrite a certain community activities
personal objectives
are those that reflect the retailers desire to help individuals employed in retailing fulfill some of their needs
3 personal objectives
1.self-gratification, 2. Status and respect, 3. Power and authority.
Self-gratification
focuses on the desires and needs of the owners, managers, or employees of the enterprise and the persuit of what they truly want out of life.
status and respect
the need for status amoung owners managers and employees in their community or with in their circle of friends
Power and authority
reflects the need of managers and other employees to be in the position of influence
strategy
is a carefully designed plan for acheiveng th retiler’s goals and objectives
3 strategies retslers use
1. get shoppers into your store, 2. convert these shoppers into customers by having them purchase, 3. get shoppers into your store have them ourchase at the lowest operating costs possible with consistent level of customer service your customers expect.
better forms of differentiation
1. outstanding design of the market offering,2.the selling process, 3. after-purchase satisfaction,4. location, 5. never being out of stock.
S.W.O.T.
stands for Strengths Weakness Opportunities and threats.
Strengths
the major competitive advantage over other competitors
Weaknesses
what major comptitive advantages do our competitors have over ours
opportunities
the favorable trends that might benefit us
threats
what trend may hurt us.
Target market
the grouos of customers thst sretiler is seeking to serve.
retail mix
is the combination of merchandise, price,advertising and promotion, location customerservice and selling, and store layout and design
value proposition
is a clear statement of the tangible and intangible results a customer receives from shopping at and using the retaailer’s products or services
operations management
deals with activities directed at maximizing the efficiency of the retaier’s use of resources or the day to day management