Question 1

Which of the following is an incorrect statement regarding strategic planning?

Accepted Answer

Strategic planning is a long-term commitment of resources, and requires a long-term vision for the business. Short-term planning is typically referred to as operational planning.

Question 2

_____ signify what the retailer wants to accomplish,while _____ indicate how the retailer will attempt to achieve them.

Accepted Answer

Objectives signify what the retailer wants to accomplish, while strategies indicate how the retailer will attempt to achieve them. Plans are a more detailed outline of the steps to be taken to achieve these strategies. Mission statements, on the other hand, are broader statements of the retailer's purpose and values. Action plans are a specific type of plan that outlines the specific tasks to be completed and by whom.

Question 3

A firm's specific goals and objectives should not be identified within its mission statement.

Accepted Answer

The mission statement should capture the broad purpose and direction of the company, rather than specific goals or objectives. Specific goals and objectives should be outlined in a separate strategic plan.

Question 4

Most smaller retailers have more control over this important factor for successes than larger retailers:

Accepted Answer

Smaller retailers have more control over their location than larger retailers. This is because larger retailers are often constrained by the availability of suitable locations, while smaller retailers can more easily find and negotiate for smaller, less desirable locations.

Question 5

As a general rule,retailers should strive for an asset turnover of:

Accepted Answer

The answer of As a general rule,retailers should strive for...

Question 6

As a general rule,retailers should strive for a financial leverage of:

Accepted Answer

Retailers typically aim for a financial leverage ratio of 2.0 to 3.0 times to balance risk and return, ensuring they can cover their debt obligations while maximizing returns on equity.

Question 7

A fully-developed retail marketing strategy specifies the:

Accepted Answer

A fully-developed retail marketing strategy should include the specific target market sought, the location, the retail mix to be used, and the retailer's value proposition. This includes understanding the needs and wants of the target market, the right product assortment, pricing strategies, promotional activities, and the store's overall presentation to attract and retain customers. Financial performance and budget available are important considerations but are not the main components of a retail marketing strategy. Consumer and channel member behavior and prices of goods are important considerations but are only aspects of the overall retail marketing strategy.

Question 8

If a retailer is attempting to determine which of the closely related areas of business are underdeveloped in its market,it is assessing its:

Accepted Answer

When a retailer is attempting to determine which areas of business are underdeveloped in its market, it is assessing opportunities. This is because the retailer is looking for areas where it can potentially grow and expand its business in the market. Opportunities refer to external factors that can benefit a business, such as emerging trends or gaps in the market that a business can take advantage of.

Question 9

Less than 60 percent of all retailers have a written mission statement.

Accepted Answer

According to a survey by RetailWire, less than 60 percent of retailers have a written mission statement.

Question 10

If a retail firm is attempting to determine the potential negative effects of a new competitor entering the market,it is assessing its:

Accepted Answer

The potential negative effects of a new competitor entering the market are external factors that could pose a threat to the retail firm's success. Therefore, the retail firm is assessing its threats.

Question 11

A good mission statement states how the retailer intends to use its resources,how it expects to relate to the ever-changing environment,and how it expresses the values it intends to offer the consumer.

Accepted Answer

A mission statement should communicate the purpose and direction of a company, including how it plans to use its resources, how it will adapt to the changing business environment, and what values it upholds to serve its customers.

Question 12

Just having a written mission statement is enough for success in today's environment; after all,with all the changes taking place it would be foolish to expect a retailer to always adhere to its original mission statement.

Accepted Answer

Having a written mission statement is not enough for success in today's environment as it needs to be regularly reviewed and updated to stay relevant and effective. Retailers need to constantly align their actions with their mission statement to ensure success.

Question 13

The retailer's _____ is a clear statement of the tangible and intangible results a customer receives from using the retailer's products or services.

Accepted Answer

A value proposition is a statement that explains what benefits a customer will receive from a retailer's products or services. It outlines the unique value that the retailer offers to its customers and helps distinguish it from competitors. A mission statement outlines a company's overall goals and purpose, while a vision statement outlines its future aspirations. A customer interaction tracker and customer type indicator are tools used to categorize and analyze customer behavior.

Question 14

Success for all retailers,large and small,is generally a matter of good planning and the implementation of the plan.

Accepted Answer

Good planning and proper implementation are essential components of success for retailers, regardless of their size.

Question 15

A retailer's retail mix consists of all of the following EXCEPT:

Accepted Answer

All of the other options (A, B, C, E) are key components of a retailer's retail mix. Traffic strategy may be important but it is included as a part of a retailer's overall marketing mix rather than solely the retail mix.

Question 16

Superior planning can enable retailers to offset some of the advantages their competition may have,such as a better location.

Accepted Answer

Superior planning can help retailers strategize to overcome disadvantages, such as a less ideal location, and therefore compete effectively with their competitors.

Question 17

The aim of operations management is to:

Accepted Answer

The aim of operations management is to maximize the performance of current operations. This involves improving efficiency, reducing waste, and increasing productivity to achieve higher levels of output with the same level of inputs. While aspects such as customer service and perceived value are also important, they are not the primary focus of operations management. Advancing the merchandise mix and developing more effective long-term plans may fall under the purview of marketing or strategic management, rather than operations management specifically.

Question 18

It is necessary for retail firms to strive for high-profit performance results:

Accepted Answer

The answer of It is necessary for retail firms to...

Question 19

As a general rule,retailers should strive for a net profit margin of:

Accepted Answer

Retailers typically aim for a net profit margin of 2.5 to 3.5 percent, which is considered healthy for the industry, balancing profitability with competitive pricing.

Question 20

Essentially,a retailer's mission statement describes the fundamental nature,rationale,and direction of the firm.

Accepted Answer

A retailer's mission statement is defined as a statement that describes the fundamental nature, rationale, and direction of the firm.

Quiz 2: Retail Strategic Planning and Operations Management