Lecture Notes: Environmental Scanning in Retail
Introduction
- The lecture is about environmental scanning in the retail space.
- Focus on the IB curriculum and the importance of retail store application.
- Key concept: Environmental scanning involves analyzing micro, macro, and market environments to find opportunities for management decisions and strategies.
Vision and Mission
- Start by examining the business's vision and mission.
- Ensure the alignment of actions with stated goals.
- Adjust strategies if actions don't align with the vision.
Strategy Formulation
- Define strategy as a plan of action.
- Steps involve implementing, evaluating, and controlling.
- Example from Kimberly Clark, focusing on key learning outcomes.
Micro Environment
- Micro environment refers to the business itself.
- Key business functions (10 total):
- Production
- Procurement
- Marketing
- Public Relations (PR)
- Human Resources (HR)
- Administration
- General Management
- Finance
- Information Technology (IT)
- Risk Management
- Pay attention to risks posed by these functions.
SWOT Analysis
- SWOT analysis for a company like Checkers.
- Strengths:
- Strong brand heritage
- Covers various living standards measures (LSMs)
- Product offerings like Simply Good
- Weaknesses:
- Quality issues
- Staff friendliness
- Store look and feel
- Opportunities:
- Staff training and wellness programs
- Supplier management
- Marketing
- Threats:
- Competitors
- Inflation
- COVID-19
- Load shedding
- Elections
Resource-Based Analysis
- Tool to identify resource gaps and add value.
- Steps:
- Identify resource gap.
- Assess value addition.
- Utilize resources better than competitors.
- Competitive advantage and ROI.
- Finalize objectives and budgets.
- Example of Pick n Pay's deli initiative.
Value Chain Analysis
- Process to add value to business.
- Primary Activities (Checkers example):
- Trolleys
- Stock (SKUs)
- Cashiers
- Add value through innovations like AI-enhanced trolleys and efficient cashier systems.
- Secondary Activities:
- Marketing strategies (social media, promotions)
- Human resources (training, wellness programs)
Balanced Scorecard
- Tool for evaluating business perspectives.
- Acronym: FICKL
- F: Financial Perspective
- Low-cost strategies, supplier negotiations.
- I: Internal Perspective
- Equipment upgrades, process improvements.
- C: Customer Perspective
- CRM plans, loyalty programs, promotions.
- L: Learning and Growth
- Training programs, staff development.
Conclusion
- The lecture covered tools for environmental scanning in the micro environment.
- Focus on using SWOT, resource-based analysis, value chain, and balanced scorecard to gain a competitive advantage.
- Emphasis on continuous improvement and adaptation strategies.
These notes provide a high-level overview of the lecture content. They are organized to help study and remember the key concepts discussed.