Page 100 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 4: Retailing Structure

A business makes many decisions about the direction to go based on the success, or lack Notes
thereof, of its competitors.

From the customers; standpoint, competition provides choice. Businesses must analyze
competitors to find and exploit weaknesses to gain increased market share.
The retail industry business has been around for centuries in the United States. It all
started with a community general shop where people of the community would shop for
items of necessity.

Today, retail is one of the biggest employers in the world and a large portion of the world
economy. The retail industry is a sector of the economy that is comprised of individuals
and companies selling finished products to end user consumers.

4.6 Keywords

Continuous improvement: It is a culture whereby all employees are constantly involved in
making improvements to quality

Just-in-time production: Materials are received just as they are needed, eliminating the need to
maintain large stock levels
Macro environmental components: These are demographic, economic, natural, technological,
political, and cultural forces.
Micro environmental components: These include the company, suppliers, marketing channel
firms (intermediaries), customer markets, competitors, and publics which combine to make up
the company's value delivery system
Retail offering: It is a bundle of benefits that the customer purchases when entering the store.
Time-based management: It is an approach that aims to reduce the time wasted in business
operations. This usually requires a multi-skilled and flexible workforce.
Total quality management (TQM): It is a quality assurance ideal where all workers have a
responsibility for getting it 'right first time'

4.7 Review Questions

1. “The micro environment are the company, suppliers, marketing channel firms
(intermediaries), customer markets, competitors, and publics which combine to make up
the company’s value delivery system”. Discuss the importance of each of these components
with respect to retail sector.

2. What do you mean by macro environment?
3. “Retail Competitive Environment.” Discuss.
4. What are the policies of the government in relation to retail industry of India?

5. Discuss the developments in retail industry.
6. What do you mean by single and multi retail branding?
7. “FDI in Retail industry in India.” Discuss.

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