Generally, a shareholder is a stakeholder of the company while a stakeholder is not necessarily a shareholder. Some of the positive internal attributes are franchising opportunities and global brand recognition. Are there any financial threats such as cost or debt? Strategic Management is all about specifying organization’s vision, mission and objectives, environment scanning, crafting strategies, evaluation and control. Building skilled and motivated sales and service teams 4. AIAG Executive Director J. Scot Sharland coined the name Quality 2020 for the project, a reasonable timeframe to put improvements in place by 2017 and measure results by 2020. It enables businesses to market their business effectively and exploit new markets. Leaders should involve the employees in setting clear organizational goals and objectives. Stage 3: As time progressed Barnes & Noble established themselves, opened even more stores, and saw greater profits. Different interested parties can impact a company’s performance. Total Quality management is defined as a continuous effort by the management as well as employees of a particular organization to ensure long term customer loyalty and customer satisfaction. Importance of Strategic Management. Importance of the Retail Industry to the U.S. Economy . Recruiting and supervising staff 3. This is known in ecology as the r/k selection theory. In short, homogeneous cost pools are a way of logically grouping together related, Walmart is a powerhouse of a business, and one of its key strengths is its marketing mix. Although the procedures have a long history, dating back to Taylorism, the scope of their applicability has been … Or management may decide to attend quality management workshops to become acquainted with the latest strategy; exposing themselves to Six Sigma, Lean Manufacturing, Process Management, and Quality Awards and so on. Strategic management seeks to coordinate and integrate the activities of the various functional areas of a business in order to achieve long-term organizational objectives. An organization is generally established with a goal in mind, and this goal defines the purpose for its existence. Good leadershipLeadership TraitsLeadership traits refer to personal qualities that define effective leaders. The empirical research in development of service quality theory suggests that improved service quality plays important role in overall customer satisfaction. So how do we take our retail planning strategy and put it into an actionable plan? 5. Process management uses some of the techniques from product quality management and some of the techniques from customer service management. It's followed by general merchandise stores at $706 billion. Smaller shops closed down and an increasing number of customers came to Barnes & Noble. It is simply a smarter way to procure. In essence it forces the retailer to make the customer top of mind and foremost in all strategy decisions. Strategic planning may also be a tool for effectively plotting the direction of a company; however, strategic planning itself cannot foretell exactly how the market will evolve and what issues will surface in the coming days in order to plan your organizational strategy. The resulting document is called the “strategic plan”. Service quality in the hospitality industry becomes one of the most important factors for gaining a sustainable competitive advantage and customers’ confidence in the highly competitive marketplace, and therefore service quality can give the hospitality industry a great chance to create competitive differentiation for organizations. Quality management ensures superior quality products and services. Companies that take a strategic quality management are those that use market research and specific indicators to measure customer satisfaction, such as consumer complaints, returns by wholesalers for the time of the product in the inventory and sales below target. Many of the main goals of retail— be it sales and profitability, product innovation, or customer relationships—intersect with other career fields like marketing, finance, technology, loss prevention, merchandising and management. Imagine a local grocery store chain is trying to compete with Amazon pantry. It is highly imperative for the firms to plan, design, execute, and manufacture the product offerings for the target market realizing the Importance of Quality Management and maintaining the parameters of total quality management at every facet.. These principles are used by top management to guide an organization’s processes towards improved performance. Weaknesses address questions such as: What needs improving? The growth of mixed-use retail, batteries in energy management, the increased number of restaurants and medical services in retail spaces, and blockchain technology are five major trends driving the retail facilities management industry, according to the Professional Retail Store Maintenance Association (PRSM). What promotional tools will you use to influence the consumer’s purchase decision and, overall, their intention to purchase? Predict a retail strategy mix based on the characteristics, needs, and attitudes of their customers; Module 5: Strategic Retail Planning and Management Explain the importance of strategic planning to retailers. Stage 4: Although Barnes & Noble increased presence in the overall retail landscape they still mostly had traditional brick and mortar stores. First, you are addressing the needs of your target market. These principles are used by top management to guide an organization’s processes towards improved performance. These are 7 quick strategies for making quality a competitive advantage: 1. He's been using his knowledge on strategic management and swot analysis to analyze the businesses for the last 5 years. Micro (External) environment – small forces within the company that affect its ability to serve its customers. You might have heard the phrase: “The best-laid plans of mice and men often go awry.” However, when things go awry the company can return to the initial strategy of the gap they are trying to fulfill within the marketplace. Importance 6. Does your product meet your customer’s needs? It increases efficiency in processes, reduces wastage, and improves the use of time and other resources. 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