Question

Steps involved in developing a retail strategy

Answer 1

Management begins the planning process by identifying the organization's mission or purpose. The mission statement describes what the firm plans to accomplish in the markets in which it will compete for customers it wants to serve. A mission statement normally includes the following elements:
What products and services will be offered, what customers will be served, and what geographic areas will be covered.
How the physical assets, financial assets, and human resources will be used to create customer satisfaction.
How the firm intends to compete in its chosen markets.

One of Mark's Work Wearhouse's goals is to provide quality products at competitive prices.
Courtesy Mark's Work Wearhouse

The mission statement provides a clear sense of direction for the organization and distinguishes the firm from all others. Retail Highlight 6-1 provides examples of Canadian retailers' mission and goal statements, presented in their annual reports. Most of these retailers have more detailed mission statements that are provided to their employees.
Mission statements often reflect an organization's values or corporate culture. Corporate culture establishes the values of greatest importance to the organization. These are values on which emphasis is constantly placed. Often these values reflect the personal goals of top management. A firm's values are often stated in the company motto, as shown in the following examples:
McDonald's: (QSCV) Quality, Service, Convenience, and Value. This slogan is emphasized to all employees as they are brought into the organization.
Eaton's: Satisfaction guaranteed or your money refunded. This motto has been a policy of Eaton's since its beginning over 120 years ago.


Retail Highlight 6-1
Canadian Retailers' Mission and Goal Statements
Many retailers today are focussing on customer satisfaction as their primary goal. Listed below are mission statements from a number of Canadian retailers. Which retailers seem to have adopted a mission of customer satisfaction?

Mark's Work Wearhouse provides quality name brand, private, and captive label products competitively priced and supported by active sales promotion. Our stores are easily accessible, one stop retail outlets offering a complete range of workwear, casual wear, and related apparel including custom uniforms.

The company's mission is to grow consistently as a mature and stable enterprise known for:

Being the most customer-sensitive and responsive specialty retail organization in the markets in which it operates.

Having a people-oriented work environment where people are allowed the greatest possible freedom\E to carry out their responsibilities, own what they do, have fun, learn, and earn fair financial rewards.

Providing a superior financial return to investors as a result of being customer driven and people oriented.

Empire (the diversified Canadian food and pharmaceutical retailer and distributor) has three components to its mission statement:

Goal: Empire is committed to building shareholder value through long-term profitability and growth by becoming a market leader in its core operating businesses and by investing in opportunities to augment this growth in value.
How: Empire will achieve this goal by treating employees in ways that create extraordinary customer service and shareholder value.
Value: Empire will be a good corporate citizen, upholding the highest standards of integrity and ethical conduct.

Sears Canada is a full-time, full-service department store and catalogue retailer dedicated to providing its customers with quality merchandise and exceptional service, coast to coast. Our vision is to be Canada's most successful retailer . . . providing total satisfaction for our customers, opportunities for our associates to grow and contribute, and superior returns for our shareholders.

Canadian Tire's vision, which guides the daily activities and long-term strategy of the enterprise, is to be the best at what customers value most. To achieve