Defining the Mission or the Purpose of the Organization
The mission statement is a statement of the long term purpose of the organization. It describes what the retailer wishes to accomplish in the markets it chooses to complete. A retailer’s mission statement normally highlights the following elements:
1) The products and services that will be offered
2) The customers who will be served
3) The geographical areas that the organization chooses to operate in
4) The manner in which the firm intends to compete in its chosen markets.
Mission statements in which the firm intends to compete in its chosen markets:
Mission statements need to provide a clear sense of direction for the organization and often reflect an organization’s values or corporate culture. Example illustrates the mission statements of some Indian retail organizations.
Some Retail Vision / Mission Statements:
Wal-Mart: To give ordinary folk the chance to buy the same thing as rich people.
McDonald’s: (QSCV) Quality, Service, Convenience and Value
Marks and Spencer: Vision – To be the standard against which others are measured.
Mission – to make aspirational quality accessible to all
Values – quality value, service, service innovation and trust
Café Coffee day: To be the best café chain in the country by offering world class coffee experience the affordable prices.
Shopper’s Stop: To be global retailer in India, and to maintain the No.1 position in the Indian market in the departments store category.
Pantaloon: We share the vision and belief that by improving our performance through innovative spirit and dedication we shall serve our customers and stakeholders satisfactorily.
Globus:- Achieve customer delight by offering quality products and services through a process of continuous innovation and adaptation.
– Build a dynamic team of committed and passionate employees through sustained learning and grooming
– Develop mutually beneficial relationships with our business partners
— employ cost effective processes and thereby create a strong organization.
Conduct a Situation Analysis:
Once the mission has been defined, the retail organization needs to look inwards and understand what its strengths and weaknesses are and look outwards and analyze the opportunities and threat that may arise in the environment. Over the years, many management experts have developed various models for conducting situation analysis. These include PEST analysis, SWOT analysis and the BCG matrix.
The PEST Analysis: The PEST analysis is a framework that strategy consultants use to scan the external macro-environment in which a firm operates. PEST is an acronym for Political, Economic, Social and Technological factors. Typically, these factors are outside the control of the retailer and may either be threats or opportunities. These factors may vary within the regions of a country and would most definitely vary form one country to another.
Key PEST factors which can affect that retail sector are listed below:
Porter’s Five Forces: An industry analysis can also be done using the framework developed by Michael Porter, known as Porter’s five forces. This framework helps evaluate entry barriers, suppliers, customers, substitute products and industry rivalry.
The situation analysis basically helps the retailer determine his position and his strengths and weaknesses. This helps formulate a clear picture of the advantages and opportunities which can be exploited and the weaknesses that need to be worked upon. This forms the basis or the core element of any strategy.
PEST Factors which affect the retail sector:
1) Political stability
2) Government policy towards investment in the sector
3) Labor laws
4) Consumer protection
5) Restrictions and regulations on the entry of foreign players in the market
1) Rate of economic growth
2) Monetary policy
3) Level of taxation
4) Consumer confidence
1) Income distribution of the population
2) Size of population
3) Demographics of the population
4) Rate of population growth
5) Age profile of the population.
1) Level of technology usage in the sector
2) Penetration on internet
3) Penetration of mobile technology.