COMMERCE 4MF3 Chapter Notes - Chapter 2: Swot Analysis, Strategic Planning, Convenience Store

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 4MF3
• Professor: vijay kumar

Document Summary

Planning is the anticipation and organization of what needs to be done to reach an objective. Strategic planning: planning that ultimately leads to strategy. Involves adapting the resources of the firm to the opportunities and threats of constantly changing retail environments. Strategy: a carefully designed plan for achieving the retailers goals and objectives. Important to use strategic planning to avoid cannibalizing your own established business. For instance brick-and-click integration (when physical stores open an online store too) can lead to cannibalization. Strategic planning process has 4 components (1) development of a mission statement (2) definition of specific goals and objectives (3) identification and analysis of the strengths/weaknesses, opportunities/threats (swot. Purpose of goals/objectives: (1) specific direction and guidance to the firm for strategy formulation (2) control mechanism by standard establishment for measuring and evaluating performance. Profitability: a retailer analyzes its ability to provide an adequate profit level to continue in business.