Retail strategy – a boardroom review

Tuesday, August 24, 2010 | Posted by: Fiona Cullinan
Categories: Research, Thought Leadership | Tags: innovation, report, survey, strategy, business models, retail, agenda

What questions should you be asking this year if you’re sitting on a retail board? Following on from our survey post last week Pressured retailers need to review their business models, here are some suggested questions to bring to your next board meet.

The questions were suggested following the results of our UK retail sector survey, Pressure unabated: UK retailers contemplate business model change, which found that most companies needed to review, and possibly renew, their business models to remain competitive over the next 18 months.

1. Assumptions
Review those made when the model was last discussed – are they still valid or do you need to revise them?

2. Focus
Is it too internal or on the right customers?

3. Customers
Are you satisfying the needs of an ever more value conscious, more demanding market?
What changes do you need to make to ensure competitiveness of your product/service offering?
Can you better involve customers in new services/product development?

4. Markets
Are you in the right markets, product/service/geographic – are there new growth opportunities to be exploited?
What new technologies might you use to kick-start growth?
What M&A opportunities exist? eg from competitors in distress.

5. Competitors
How have your competitors responded to the downturn?
Have they focused more on innovation and growth than pure cost-cutting?

6. Funding structure
Is it still appropriate or are there alternatives available?

7. Resources
How flexible is your organisation in adapting to the changes brought about by the recession?

8. Could you source supplies from a lower cost country?
Are outsourcing options available?

9. Financial performance
How cash generative is your business?
Where could you improve margins?
Have you identified surplus costs?
What opportunities exist to improve your operational efficiency?
Reduce overheads and shut down or mothball unprofitable workstreams.

10. Talent
Are you acquiring, identifying and nurturing the best people?
Do you have the right leadership and people in place to take your strategy forward?

11. Relationships
How are you protecting relationships with customers, staff, suppliers, stakeholders?
Are you communicating transparently with them?

Read the full report for analysis and findings: Pressure unabated: UK retailers contemplate business model change.

Image: © Christina Kennedy, 2005

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