Retail Strategic Planning and Operations Management

Question 1

It is the anticipation and organization of what needs to be done to reach an objective.

Answer 1

Planning

Question 2

It involves adapting the resources of the firm to the opportunities and threats of an ever-changing retail environment.

Answer 2

Strategic Planning

Question 3

What are the four components consists in Strategic Planning?

Answer 3

1. Development of a mission (or purpose) statement for the enterprise;
2. Definition of specific goals and objectives for the enterprise;
3. Identification and analysis of the retailer’s strengths, weaknesses, opportunities, and threats – referred to as SWOT analysis;
4. Development of strategies that will enable the enterprise to reach its objectives and
   fulfill its mission.

Question 4

It is a description of the fundamental nature, rationale, and direction of the enterprise. It provides the employees and customers with an understanding of where future growth for the enterprise will come from.

Answer 4

Mission Statement

Question 5

These should be derived from and give precision and direction to the retailer’s mission statement.

Answer 5

Goals and Objectives

Question 6

It establishes the amount of dominance the retailer seeks in the marketplace.

Answer 6

Market Performance Objectives

Question 7

It refers to the retailer’s total sales divided by total market sales or the proportion of total sales in a particular geographic or product market that the retailer has been able to capture.

Answer 7

Market Share

Question 8

Retailers can establish many of this type of objectives, but they can all be conveniently fit into the categories of profitability and productivity.

Answer 8

Financial Objectives

Question 9

It deals directly with the monetary return a retailer desires from its business.

Answer 9

Profit-based Objectives

Question 10

It is the ratio of net profit (after taxes) to net sales. It shows how much profit a retailer makes on sales after all expenses and taxes have been met.

Answer 10

Net Profit Margin

Question 11

It is computed by taking the retailer’s annual net sales and dividing by total assets. This ratio tells the retail analyst and retail management how productively the retailer’s assets are being used.

Answer 11

Asset Turnover

Question 12

This is where an annual net profit divided by total assets, depicts the net profit return the retailer achieved on all assets invested regardless of whether the assets were financed by creditors or by the firm’s owners.

Answer 12

Return on Assets (ROA)

Question 13

It is the total assets divided by net worth or owners’ equity. This ratio shows the extent to which a retailer is using debt in its total capital structure.

Answer 13

Financial Leverage

Question 14

It is a net profit divided by net worth or owner’s equity. This is used to measure performance from the owner’s or shareholder’s perspective.

Answer 14

Return on Net Worth (RONW)

Question 15

It highlights the retailer’s concern with broader issues in our society.

Answer 15

Societal Objectives

Question 16

In which were especially significant during the recent recession, relate to the provision of employment opportunities for the members of the retailer’s community. In good economic times, they may be even more specific and related to hiring the disabled, social minorities, or students.

Answer 16

Employment Objectives

Question 17

It is the retailer’s role in helping finance societal needs that the government deems appropriate, from welfare programs to national parks.

Answer 17

Payment of Taxes

Question 18

A retailer may have an objective of competing in a way that gives consumers a real alternative. A retailer with such an objective desires to be a leader and innovator in merchandising and thus provide the consumer with choices that previously were not available in the trade area.

Answer 18

Consumer Choice

Question 19

This type of objectives reflects the retailer’s desire to treat the consumer and suppliers fairly and not endanger their living conditions.

Answer 19

Equity Objective

Question 20

This is where the retailer may desire to underwrite certain community activities.

Answer 20

Being a Benefactor

Question 21

This type of objectives can relate to the personal goals of any of the employees, managers, or owners of the retail establishment.

Answer 21

Personal Objectives

Question 22

It focuses on the needs and desires of the owners, managers, or employees of the enterprise and the pursuit of what they truly want out of life.

Answer 22

Self-gratification

Question 23

In stating this objective, one recognizes that the owners, managers, and employees need status and respect in their community or within their circle of friends.

Answer 23

Status and Respect

Question 24

It reflects the need of managers and other employees to be in positions of influence. Retailers may establish objectives that give buyers and department managers the maximum flexibility to determine their own destiny.

Answer 24

Power and Authority

Question 25

It is carefully designed plan for achieving the retailer’s goals and objectives. It is a course of action that when executed will produce the desired levels of performance.

Answer 25

Strategy

Question 26

It is a group or groups of customers that the retailer is seeking to serve.

Answer 26

Target Market

Question 27

It is whether a traditional store in a geographic space, a person’s home in relation to a print catalog or television shopping, or a virtual store in cyberspace.

Answer 27

Location

Question 28

This is where a retailer intends to use to appeal to its target market and thereby meet its financial objectives is the combination of merchandise, price, advertising and promotion, location, customer services and selling, and store layout and design that the retailer uses to satisfy the target market.

Answer 28

Retail Mix

Question 29

It is a clear statement of the tangible and intangible results a customer receives from using the retailer’s products or services.

Answer 29

Value Proposition

Question 30

The behavior of consumers will obviously have a significant impact on the retailer’s future, the retailer will need to understand the determinants of shopping behavior so it can identify likely changes in that behavior and develop appropriate strategies.

Answer 30

Consumer Behavior

Question 31

This refers on how competing retailers behave will have a major impact on the most appropriate strategy.

Answer 31

Competitor Behavior

Question 32

This is where the retailer must understand how economic and demographic trends will influence revenues and costs in the future and adapt its strategy according to these changes.

Answer 32

Socioeconomic Environment

Question 33

It refers to the technical frontiers of the retail system encompass new and better ways of performing standard retail functions.

Answer 33

Technological Environment

Question 34

It is where the retailer should be familiar with local, state, and federal regulations of the retail system.

Answer 34

Legal and Ethical Environment

Question 35

It concerned with maximizing the efficiency of the retailer's use of resources and with how the retailer converts these resources into sales and profits. All of these activities require day-to-day attention.

Answer 35

Operations Management.