1. Chapter 3: Strategic Planning in Retailing

2. Chapter Objectives
To show the value of strategic planning for all types of retailers
To explain the steps in strategic planning for retailers: situation analysis, objectives, identification of consumers, overall strategy, specific activities, control, and feedback
To examine the individual controllable and uncontrollable elements of a retail strategy, and to present strategic planning as a series of integrated steps
To demonstrate how a strategic plan can be prepared

3. Ownership and Management Alternatives
SBA Small Business Planner
A sole proprietorship is an unincorporated retail firm owned by one person
A partnership is an unincorporated retail firm owned by two or more persons, each with a financial interest
A corporation is a retail firm that is formally incorporated under state law; it is a legal entity apart from its officers

4. Figure 3-4: Checklist for Purchasing an Existing Retail Business
Checklist to Consider When Starting a New Business

5. Sources and Uses of Funds
Start-Up Capital
How Start-Up Capital Works
Sources and Uses of Funds
Cash Flow Planning
Inventory
Fixed Assets (buy/lease, “lease-hold” improvements)
Accounts Receivable, Insurance, etc.
Expected Negative Cash Flow
Contingency Funds

6. Strategic Implications of Target Market Techniques
Retailer’s location
Goods and service mix
Promotion efforts
Price orientation
Strategy
Figure 3-7:
Selected Retail Positioning Strategies

7. The overall plan or framework of action that guides a retailer
One year in duration
Outlines mission, goals, consumer market, overall and specific activities, and control mechanisms
Retail Strategy
Sample Business Plans
More Sample Business Plans
SBA Business Plan Advice
See Also
Tables 3-5, 3-6
Figure 3-1: Elements of a Retail Strategy

8. Organizational Mission
Retailer’s commitment
to a type of business
and to a distinctive role in the marketplace
Figure 3-2:
The Focused Organizational Mission of Frisch’s Restaurants

9. Table 3-4: Legal Environment and Retailing
Store Location
zoning laws
blue laws
environmental laws
direct selling laws
local ordinances
leases and mortgages
Merchandise Management and Pricing
trademarks
merchandise restrictions
product liability laws and lemon laws
sales taxes
unit-pricing laws
collusion laws
sale prices
price discrimination laws
Managing the Business
licensing provisions
personnel laws
antitrust laws
franchise agreements
business taxes
recycling laws
Communicating with the Customer
truth-in-advertising and selling laws
truth-in-credit laws
telemarketing laws
bait-and-switch laws
inventory laws
labeling laws
cooling-off laws
Uncontrollable
Variables:
Consumers
Competition
Technology
Economic
conditions
Seasonality
Legal restrictions
Controllable
Variables:
Store location
Managing business
Merchandise
management
and pricing
Communicating
with customer
Retail
Strategy
Figure 3-9: Developing an Overall Retail Strategy

10. Additional Concerns for Global Retailing
Factors Affecting the Success of a Global Retailing Strategy
Additional Concerns for Global Retailing
Timing
A balanced international program
A growing middle class
Matching concept to market
Solo or partnering
Store location and facilities
Product selection
In addition to the strategic planning process:
assess your international potential
get expert advice and counseling
select your countries
develop, implement, and review an international retailing strategy
Figure A3-1: Factors to Consider When Engaging in Global Retailing
Chapter 3 Discussion Questions: 1, 3, 6, 9