good morning grade 12 i am going to be recording this session at school so i do apologize if there's any background noise and if there's any any voices that come over the intercom i'll just quickly push pause and then carry on and resume okay so chapter one we're going to be looking at your environment and in particular we're looking in the retail space remember in ib you're going to be asked on all retail kind of stores so you need application to that environmental scanning they love asking about environmental scanning and all it is is that you're scanning the various environments which is your micro macro market environments in order to see if there are opportunities that management can then make decisions and and make strategies for the year so you always start off with looking at your vision and mission and in any business that's the first thing we need to look at whatever we saying we are are we doing what we say we're doing and if we're not you might have to look as a strategy to re-look your vision so look at your vision and your mission and you're going to understand are we doing what we say we're doing and if we're not this is what we're going to do once you've looked at your vision of mission you're going to formulate a strategy what is the strategy it's a fancy word for the word for a plan of action for a plan you're going to put a plan together in terms of discussing how you're going to achieve what you want to achieve in any kind of step situation you're always going to implement the strategy and you're going to evaluate and control when i went for kimberly clark when we did evaluation and control we would call it key learning outcomes key learning perspectives and that's what we would then do to um look at what we've done and if it's working okay so let's move on to the next slide and that is looking in your micro environment micro environment is the business so we're looking at checkers fp campaign there are 10 in any business and you know that these 10 business functions what are they we did them in grade 10 it is production procurement or purchasing marketing pr hr human resources you're looking at administration you're looking at general management we're also looking at finance and the other two that come into play in grade 12 is i.t which is information technology and risk management i think a little star next to risk management because we do need to have a look at the risks that each of these functions pose and that is in your textbook the consumer textbook there was a question about that about two years ago in an ieb paper where matrix had to identify the risks and then come up with strategies okay so don't get confused with the word risk risks are challenges that any business has so you then looking at your resources okay and your visas are financial resources human resources the building themselves etc policies what policies do you have in play um in your business different policies like in school you've got hair policy and uniform policy in businesses you've also got dress code policies and all of that structure is how does the business what's the reporting structure who do i report to how does the buzz structure at all structure and then your culture each a company has a different culture and it depends where you work and how they work and you would then see if you can fit and adapt into that so you are now looking at your business so let's look at checkers and let's do a swot analysis for checkers and you would do this i would suggest you would do this once a year especially the beginning of the year just before you launch into yeah so understand what strategies and what plans we're going to be doing for that year so a strength for checkers could be brand you know it's got a strong brand heritage another strength could be that they are um their portfolio ensures that they are covering all the lsms living standards measured maybe talk about lsm's all the time another strength could be that they've got um they you know they're bought in that simply good i think it's called simply good um brand where they are offering better products where it's got less sugar and less things that are bad for you so that could be a strength weakness for checkers could be this um quality could be a weakness could also possibly be staff friendliness um another weakness could possibly be the stores you know the stores look and feel it's not doesn't feel the same as others like a woolies for example so that could be a weakness remembering your weaknesses now become your opportunities so an opportunity could be to do staff training to do a staff wellness program especially with the staff working during covert you know i think the staff morale is definitely i'm going to be affected so we should be aiming at that from the simply um from the weakness point of equality we could look at suppliers we could also look at bringing in total management procedures um another opportunity could also be marketing or whatever that whatever else you've said in your weakness right twelve your threats uh is everything from pesto everything that is uncontrollable do not put competitor in weakness it's not a weakness remember strengths and weaknesses are everything that you can do internally rates could be competitors inflation covered load cheating elections anything that's got to do with that would be then your threat you could be asked to do a swot analysis they'll give you a retail store and you must know how to do that let's go to resource-based analysis so first of all we're gonna understand there are five steps to resource-based analysis what is this it's a tool that managers use in order to see how they can be better okay so all these tools are part of environmental scaling to see how can we be better how can we add more value so a resource-based analysis is looking at a resource gap so let's do pick and pay now checkers just if one arc is always looking at your competitors checkers has launched those new fresh x concept stores which are targeted at your higher lsm's so possibly a resource gap could be for pick and pay is that let us look at dailies because that that the ticker stores these apparently in them so people might do the same and we say you know what we're gonna have a bit more of a daily um feel to our stores that's a resource there the next question you're going to ask is does this idea does bringing dailies into the company add value to my store the third thing you're going to ask is how can we edit it how can we utilize it better than what our competitors are doing so for example if people is looking at the demis they might say you know what we're going to take it one step further we're going to do it as a community drive within our communities as a csr program we're going to actually offer training to people that want to be chefs those chefs will then work in our days those dailies can then also have workshops where they offer it to customers to say come to our daily at seven o'clock at night you pay a fee and we're going to show you how to make thai food how to make sushi how to make your own bread whatever the case is so pick a paste decided we're going to take it one second the fourth step is is are we would we have a competitive advantage will there be a return on our investments and we're going to say yes there is going to be a return because our workshops are going to pay for themselves and we're going to show customers by using pick and pay products how you're going to have these amazing meals we could also do it online and charge online once you've gone through those four steps and you said yes there's going to be a return in business normally you're going to be doing numbers now you're doing you're actually going to be setting out objectives and finalizing the the budgets to this and seeing whether you are actually going to be making money you're then going to go into a strategy okay to have an acronym so you you should have an acronym um to understand and to remember the resource-based analysis so let's come up with an acronym let's use g gap and let's call it bronze all the grants out there give us a way okay so grants let's use the word value in our acronym so grant value let's use the word you utilize better or we can use the word competition let's go grant values carrots they choose the word advantage and and let's use the word strategy as strawberries so every time you want to remember a resource-based analysis you're going to remember grant value carrots and strawberries because he does he finds value in those vegetables but remember it's not the acronym you must remember the words that go under that okay right let's go into value chain analysis value chain analysis is exactly right you're asking how can i add value to my business all these tools are about and trying to be better so how do you start a value chain analysis the first thing you need to do is you need to look at your primary activities so let's take checkers what are the primary activities in children the first one is definitely i would say trolleys okay that's the primary activity as i go in i need a trolley a secretary activity i think would be stock or skus sku and like um the acronym for that is i'm hoping i can remember it is stan stuck keeping units i'm going to confirm that with you but you're going to talk about excuse skus skus okay because that's what we talk about in retail you're going to look at your stock third primary activity in checkers i think would be your totals your cashiers now we've identified our primary activities awesome let us now ask the question how do i add value to this so for my trolleys how can i add value to a trolley i don't know let's go let's make an auto an automatic tummy i have a sanitizing system inside the trolley because i mean it's covered and that would be pretty relevant and pretty current let's have a trolley that as you put in an item it's got um artificial intelligence that can read the barcode and pop up information about the product that you just bought and give you recipe ideas what i mean that's next level are you adding value to charlie's at the moment you're kind of thinking out the box from me remember that through slide you're going to then develop a strategy implement your strategy and evaluate your strategy okay the second primary activity we said was stock or skus let's make sure that we've got total quality management let's make sure that we've got houses are trained that they know how to stock the items let's ensure that we maybe have new suppliers so that's how you're going to avoid the third primary activity was ah cashiers or tilts let's make sure that you've got the latest technology and tools that customers don't have to wait um you could even have a self checkout system you know that you could look at doing and that's how we the second step to your value chain analysis is to look at your secondary activities now secondary activities are those activities that are not important they're not not important they're very important but they're behind the scenes so i always say to my students right there marketing and human resources and how marketing well we're going to do social media we're going to do promotions we're going to do niche marketing which is customer relationship marketing we're going to get a database we're going to talk to customers directly or you can then look at your secondary activity with the um hr and that is training and we can also bring in our staff wellness programs to ensure that our staff are being um fitted well let's have a look at your balance scorecard what i always say to you to them again through their acronym little gators and that is balanced scorecards are fickle they're not really difficult they're actually very good but we're going to call it thicker the f stands for financial perspective the i internal perspective the c customer perspective and the our learning and growth respect so if we do a balanced score again i'm just reiterating it's managing a management having a look at the business in the internal business and saying we need to come up with strategies we need to have a competitive advantage so you use any one of these tools swat resource-based analysis value chain analysis or a balanced scorecard to gain a competitive advantage to force you to how can we be better okay so from a finance point of view you need to have a look at your financial perspective the financial department within the business and you're going to say you can use the same words as we did with value is how can we add value so checkers we're looking at our financial department we are going to put together a low cost strategy with are we going to ask our suppliers to have a look at their pricing how much more do we need to buy in order to get economies of scale and we're going to then put that in place we're going to make sure that we have budgets for everything that we do and that we are going to conform to the ratios the industry ratios the quick at the asset test ratio the current capital solvency ratio profitability ratios so you can name all of them and all you're going to say is to ensure that we maintain the industry norm i'm going to take you through those ratios in my next video so don't stress about that for now all you need to say is capital range current capital ratio assets solvency ratio profitability ratio and i'm going to maintain the industry norm with all those ratios i'll get those marks so internally what could we do internally in checkers to ensure that we are adding value so internally i'm going to look at our equipment i'm going to look at our trolleys we're going to invest in a whole new range that are easier to push but it's better for the customers that's got ais in it that every time you buy a product you are going to then let the trolley scan it and it will bring you a whole lot of product information awesome i'm going to equip the point of view we're going to get a snazzy new i want to say juicy but snazzy new tool system that's going to that things are going to go quicker at the tool system even you're paying you know the payment method we're going to ensure that you've got that latest technology that it's literally a tap and a go and you are sorted the customer can leave immediately so internally we're going to look at our processes we're going to put in total quality management any one of those things will be right but just remember you're looking in the business customer perspective now we're looking at our customers how can we add value to our customers we're going to put together a customer relationship marketing plan we're going to put a loyalty program together they're going to earn more points on that checkers use save card we're going to be putting promotions together by this by that the third one free whatever the case is and then don't forget social media okay the fourth elements your l is your learning and growth and there is how are we going to ensure that we keep learning that we keep growing within our business so checkers can send their staff on training programs checkers can ensure staff wellness days to ensure that they start is good because remember your staff at the tools especially is the forefront of your business and i know things are hectic at the moment um especially with that um taylor's being at the face of this covered epidemic so it would be good to check checkers head office good for checkers management to look after the staff to say to them you know what we're going to have stress management courses ensure that every wednesday we cook your breakfast to say thank you for everything you do whatever the case is remember also you could also do other um career development courses for the cashier to say you know we value you where do you see yourself in the future and is there scope for you to live okay so grade 12 that is your micro we are environmentally scanning our micro environment and how do we do it with these four tools have a fabulous day and i will see