One major decision is whether to base a business around the goods and services
sold or around consumer needs. A person opening a hardware business
must decide if, in addition to hardware products, a line of bathroom vanities
should be stocked. A traditionalist might not carry vanities because they seem
unconnected to the proposed business. But if the store is to be a do-it-yourself
home improvement center, vanities are a logical part of the mix. That store would
carry any relevant items the consumer wants.
A second major decision is whether a retailer wants a place in the market as a
leader or a follower. It could seek to offer a unique strategy, such as Taco Bell
becoming the first national quick-serve Mexican food chain. Or it could emulate
the practices of competitors but do a better job in executing them, such as a local
fast-food Mexican restaurant offering five-minute guaranteed service and a cleanliness
pledge.
A third decision involves market scope. Large chains often seek a broad customer
base (due to their resources and recognition). It is often best for small retailers
and startups to focus on a narrower customer base, so they can compete with
bigger firms that tend not to adapt strategies as well to local markets
Although the development of an organizational mission is the first step in the
planning process, the mission should be continually reviewed and adjusted to
reflect changing company goals and a dynamic retail environment. Here are
examples of well-conceived retail organizational missions: