Strategic planning for retail trade enterprise
Management of the Company
Strategic planning of activity of trade enterprises include: 1) analysis and assessment of the situation; 2) determining strategic capability (ability); 3) evaluation of strategic alternatives;
4) determination of specific goals and objectives; 5) evaluation of activities and adjustment.
The purpose of situation assessment is the determination of: a) possibilities to trade; b) the need of consumers in different markets; C) opportunities to meet the needs of consumers.
Analysis and assessment of the situation consists of three elements: 1) assessment (analysis) of an attractive retail markets in which the company competes or may compete; 2) analysis and evaluation of objectives and capability (ability) of the competitors; 3) evaluation (self-analysis) strengths and weaknesses of the company relative to its competitors.
Evaluation (analysis) attractiveness of the market consists of determining how attractive the retail market. For this purpose, such indicators: 1) size and market growth; 2) competition; 3) the level of influence of environmental factors.
For example, retail markets, specialty stores are more attractive because they are growing faster than Department stores or supermarkets. As a rule, the markets, the intensive development, prices and profits is higher because competition is less intense than in Mature markets.
Attractive retail markets are those paths that cross high barriers to entry (the availability of similar or larger enterprises, which intensively develops in size and volume of sales and the range has a clear and competitive advantage).
To assess the impact of environmental factors is needed to guide commercial enterprises to determine whether the developed strategy is consistent with projected changes in the economy, the legal conditions of activity of the enterprise, the situation of the consumer market, development of scientific and technical progress etc.
Analysis and evaluation of the goals and capabilities of competitors associated with the analysis of the actions they can take, in order to understand their intentions, to plan a more effective strategy that will allow them to compete today and to predict their actions in the future.
Assessment (self-analysis) strengths and weaknesses of the enterprise involves identifying how the company uses opportunities, and avoids external threats. In the evaluation process is determined by how the company has filled a market niche chosen and the corresponding segments of the consumer market, examines the competitive position of enterprises in key financial indicators and the standard of customer service, is considered a promising assortment policy of the enterprise etc.
The definition of strategic options involves the analysis and determination of potential possibilities of the enterprise (opportunities for the development of new forms of sale of goods, the growth of volumes of sales, diversification, extension of market of goods and services to consumers, etc.).
Assessment of options (alternatives) strategy entails conducting enterprise analysis of potential sustainable competitive advantage and profit in the long term for each of the options considered. The company should concentrate on the opportunities, the implementation of which involves the fullest use of its strengths - competitive advantages.
After assessing the options (alternatives) enterprise strategy identifies specific goals and objectives. The main strategic objectives may be assigned: 1) the extension of the segment of the consumer market; 2) the search and occupation of new market niches; 3) the increase in the profits of the enterprise; 4) increase the amount of equity and increase in market value of the company; 5) maintaining a high level of organizational culture management, etc.
Today becoming increasingly popular formulation of the task of diversifying and gaining a certain market share, as a rule, contributes to the achievement of high financial and other performance of the company.
At the last stage of strategic planning is assessing the results of implementation of business strategy. If the company reached that goal, completed the task, you need to make any changes in its activities is not necessary. Otherwise, you must re-analysis, which usually begins with an assessment of program implementation, but in its course you may find that you need a revision of the strategy (or mission) of the enterprise. In this case, begins a new strategic planning process, including a new assessment strategy.