“To be prepared is half the victory.”
- Miguel Cervantes
Retail Strategy &
Environmental Analysis
(Situation Audit)
By- Rahul Jain
Please note
Each Assessment will have :
• 50% Process Marks which will be given as
follows:
•
•
•
•
•
Professional conduct (Punctuality, Class discussion):
20%
Process Assignments: 30%
Interim Viva/Reflection (5th/10th Class) : 50%
Performer will get bonus marks
Final Output ( 50% Marks)
Our Goals


Learn to keep your eyes open for new
ideas
To be able to do Environmental Analysis
Stages in the Strategic
Planning Process
Elements in a Situation Audit
Scanning the Environment

PEST Analysis

Industry analysis

Internal Analysis

SWOT Analysis
If you win a 10 crore lottery. What
kind of work would you be doing?
PASSION COLLAGE
z List 10 possible passions; put a star next
to the five that seem to resonate most
powerfully with you:
PASSION
z American designer Tom Ford graduated from Parsons The New
School for Design with a degree in architecture, but soon realized
his love for fashion while interning at Chloe's press office. He has
gone on to work for Perry Ellis, completely transform the Gucci
brand, and become Creative Director for Yves Saint Laurent.
z In 2005 he announced the creation of the TOM FORD brand and its
first flagship store opened two years later on Madison Avenue in
NYC.
Internal Analysis

Mission & Vision, Core Comptencies

Performance Analysis - Profitability, Sales

Shareholder value analysis

Customer satisfaction

Product quality & Brand associations

New products & Product portfolio analysis

Employee capability and performance

Relative cost
E.g.: Return on equity of Bata
Scanning the Environment

International Environment

International developments affect all businesses

World is a Global Economic village

Integrated economies

Increased susceptibility to external happenings

Internationalization, Digitization, Outsourcing

One has to understand the impact of these factors

See more opportunities than threats.
Exercise .
Share your 3 events which you liked most .
Common Emotions

Being Global, Global Brands
Play
Love , Joy, festivities
Scanning the Environment

Political Environment
 Stable & conducive political climate
 Government policies
 Extensive institutional framework

Technological Environment
 Level of technology
 Rate of change in technology

Socio-Cultural Environment
 Customs, Norms and Traditions of the society
 Its crucial for the operations of MNCs
Examples



Global footwear market which is growing at a CAGR of about 5 percent
is currently estimated at approximately Rs 10.15 lakh crore and is likely
to reach Rs 12.34 lakh crore by 2015.
Nearly 70 percent of the labour-intensive footwear industry in India is
in the unorganised sector and employs about 15 lakh people, majority of
whom are rural artisans, cottage and household units, while the
organised sector accounts for remaining 30 percent and employs over 5
lakh people.
Non-leather footwear segment, there is huge demand for slippers as
they are cheap, convenient and suit the needs of the rural consumer as
it can be used as a multi-purpose footwear. Rural India accounts for
about 60 percent of slippers manufactured in Indian footwear market.
Scanning the Environment

Legal Environment
Laws of the country
 Labor laws and Legal redressal system
 Copyright acts & Trademark infringement


Economic Environment
Demand & SS
 Costs & Production

Scanning the Environment

Industry Analysis
 Study the sector or Industry conditions
 Study the industry attractiveness
 Constraints or thrust on technology, manpower & raw material
Factors for Industry attractiveness

Market growth rate

Market size

Demand variability

Industry profitability

Industry rivalry

Global opportunities

Macro-environmental factors
Dimensions of a Market Analysis

Emerging submarkets

Actual and potential market and submarket size

Market and submarket growth

Market and submarket profitability

Trends and developments

Key success factors
Market and Submarket Analysis
Figure 3.9 Comparative Market Positions of Selected Retail
Chains: An Example of a Strategic Group Map
SWOT ANALYSIS

SWOT Analysis
 Helps understand own skills & abilities
 Knowledge & experience
 Helps in understanding the competition
SWOT Analysis- Strengths





Experience & Expertise
Financial Position
Good Contacts
Capital raising capacity
Collaborations
Weaknesses





New Unfamiliar technologies
Inability to raise huge investments
Lack of Experience
Lack of trained personnel
Lack of Economies of Scale
Opportunities





Emergence of New technologies
New Products with new market
Special financing Schemes
Government Incentives
Rapid growth in market
Threats





Competition
Poor state of Economy
Change in technology
Change in Habits
New Products and services
Exercise: Individual Assignment for next class to be shown in
second class
I : One Page Key learnings
Make a folder/file of Learning Journal and
Assignments
- 33 -
Passion Collage- Example
Class Assignment – II
Group/Individual AssignmentMaintain a file:
1) Use Chart paper/ Poster : Show in Class 3.
Identify a song or any other metaphor which is related to
your one of the professional passion/end term project.(
Get the song in the next class) and collage in a chart. (
Showcasing pictures related to your passion/end term
project.) Check examples in the PPT.
Refer:
http://learningfinancialmanagement.pbworks.com/w/page
/72306332/FR-2014
, rahulkjain16@gmail.com, 9811228852