“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