Page 82 - DMGT550_RETAIL_MANAGEMENT

Unit 5: Retailing Strategy

Technological Environment of Retailing Notes
(a) New discoveries and innovations
(b) Speed of technology transfer
(c) Rates of obsolescence

(d) Internet
(e) Information technology
(f) Others
International Environment of Retailing

(a) Growth
(b) Opportunities
(c) Others
Internal Analysis

The objective of studying the internal environment of its own store is to identify the
store’s capabilities and weakness. The store will try to increase its capabilities, and overcome
the weaknesses that deter the business profit. While doing the internal analysis, the store
examines the quality and quantity of its available resources and critically analysis how
effectively these resources are used. These resources for the purpose of examining are
normally grouped into human resource, financial resources, physical resources and
intangible resources.
The questions may arise under these resources:
Human Resource
(a) Is the present strength of employees at various levels sufficient for future action?

(b) Are the employees trained and capable to perform the tasks assigned to them?
(c) Are the employees loyal to the store?
(d) Are the employees punctual and regular?
(e) Are the employees skilled matched to their assigned tasks?

Financial Resource
(a) What is the total cash flow from the store’s present activities?
(b) What is the ability of the retail store to collect money at the time of requirement/
emergency?
(c) How effective and stable are the financial policies?
(d) What is the ratio between fixed and current assets?
(e) What are the contingency plans in case of negative cash flow?

Physical Resources
(a) What is the contribution of fixed assets?
(b) What is the position of abandoned/unused assets?
(c) How effective and updated are the store’s information systems?

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