Retail biznes environment a1

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  • Core competencies are created by the superior resources put to use in way that no other firm can replicate. Core competencies are those things that are fundamental to a firms success. Core competencies are rare, not many firms can do what you do in this area. Core competencies are difficult if not impossible for another company to copy, usually because of the firms capability and intangible resources, not because of physical resources. Core competencies are valuable to customers, that is, the things that your company does better than anyone else, someone else must be willing to pay for else you are simply good at something but it does not create long-term success of the company. If you attempt to develop 10 core competencies, how are you going to develop and maintain all of them? Successful firms tend to focus on the 2 or 3 things they clearly do better than others.
  • Retail biznes environment a1

    1. 1. RETAIL BUSINESS ENVIRONMENT Ms Rosmin Iqbal Hussain Boptom (UKM), CMBA (UNIMAS)
    2. 2. OPPORTUNITY
    3. 3. Choices of Career <ul><li>Private practicing optometrist </li></ul><ul><li>Commercial setting </li></ul><ul><ul><li>Chain groups / optical outlet </li></ul></ul><ul><li>Multidisciplinary hospitals / clinics </li></ul><ul><ul><li>Pvt / govt </li></ul></ul><ul><li>Eye clinics / hospital practices </li></ul><ul><ul><li>Under ophthalmologist </li></ul></ul><ul><li>University Hospitals / Clinics </li></ul><ul><li>LASIK centre </li></ul><ul><li>Armed forces </li></ul><ul><li>Education / Academia </li></ul>
    4. 4. National Eye Survey, NES (1996) All Ages <ul><li>Prevalence of visual impairment : 2.73% </li></ul><ul><li>( 581,878 people) </li></ul><ul><li>Prevalence of blindness : 0.29% </li></ul><ul><li>(64,262 people) </li></ul><ul><li>Prevalence of low vision : 2.44% </li></ul><ul><li>(517,616 people) </li></ul>
    5. 5. National Eye Survey, NES (1996) All Ages <ul><ul><li>Causes of Visual Impairment : </li></ul></ul><ul><ul><ul><li>Refractive Error – 44% </li></ul></ul></ul><ul><ul><ul><li>Cataract – 36% </li></ul></ul></ul><ul><ul><ul><li>Retinal Disease and Glaucoma – 7% </li></ul></ul></ul><ul><ul><ul><li>Corneal Opacity – 3% </li></ul></ul></ul><ul><ul><ul><li>Others – 10% </li></ul></ul></ul>
    6. 6. Refractive Error Study in Children (RESC) 2003 <ul><li>Population based study on refractive error - by Selayang Hospital & WHO in Gombak </li></ul><ul><li>School children aged 7-15 years </li></ul><ul><li>Prevalence </li></ul><ul><ul><li>Blindness –1 in 1000 children ( 0.1%) </li></ul></ul><ul><ul><li>Low vision- 1 in 10 children (10%) </li></ul></ul><ul><li>Causes </li></ul><ul><ul><li>Refractive error – 89% </li></ul></ul><ul><ul><li>Amblyopia / lazy eye – 3% </li></ul></ul>
    7. 7. RESC : Unmet Need For Spectacles <ul><li>Up to 50% of children have uncorrected refractive error but : </li></ul><ul><ul><li>did not have glasses ( 43.9%) </li></ul></ul><ul><ul><li>glasses with inaccurate power ( 6.8%) </li></ul></ul><ul><li>Why children with refractive error do not get corrective glasses ? </li></ul><ul><ul><li>barrier to refractive services </li></ul></ul><ul><ul><li>financial problem </li></ul></ul><ul><ul><li>children unaware </li></ul></ul><ul><ul><li>parents or teachers unaware </li></ul></ul>
    8. 8. Ophthalmic Market <ul><li>Total estimate of </li></ul><ul><ul><li>Optometrists: 1000 </li></ul></ul><ul><ul><li>Opticians: 3000 </li></ul></ul><ul><li>Almost 80% of those with visual disorder would come to an optometrist / optical outlet </li></ul><ul><li>Even the other 20% would come to an optometrist with extra services </li></ul><ul><ul><li>Low vision </li></ul></ul><ul><ul><li>Vision therapy </li></ul></ul><ul><ul><ul><li>with retinal diseases / multiple disabilities </li></ul></ul></ul><ul><li>**still a lot of opportunities present </li></ul>
    9. 9. BUSINESS PRACTICES
    10. 10. Types of Businesses <ul><li>**Services offered at practices add to product differentiation, customer loyalty & competitive advantage </li></ul>Type of Business Sole Proprietor Partnerships Pvt Limited / Limited Groups / Chain-Stores
    11. 11. Services Offered <ul><li>Pretests </li></ul><ul><li>Power & parameters & types identification </li></ul><ul><li>Fitting </li></ul><ul><li>After care </li></ul>Contact lens Vision Therapy Pre / Post Surgical Care Low Vision Dispensing <ul><li>Tinting </li></ul><ul><li>Edging </li></ul><ul><li>Coating </li></ul><ul><li>Adjustments </li></ul><ul><li>Outsource ?? </li></ul><ul><li>In-house ?? </li></ul><ul><ul><li>Testing </li></ul></ul><ul><ul><li>Consultation </li></ul></ul><ul><ul><li>LVAids </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Referrals </li></ul></ul><ul><li>Adults / pediatric </li></ul><ul><li>BV </li></ul><ul><ul><li>Acc / verg / ocular motor </li></ul></ul><ul><ul><li>Patching </li></ul></ul><ul><ul><li>Anti-suppression </li></ul></ul><ul><ul><li>Prisms </li></ul></ul><ul><li>Refraction of pathologic eye </li></ul><ul><li>Rx -operation date far (Pt need) </li></ul><ul><li>Post surgical care </li></ul><ul><ul><li>Refraction </li></ul></ul><ul><ul><li>CL / glasses </li></ul></ul><ul><ul><li>Periodical reviews </li></ul></ul><ul><ul><li>Consultation </li></ul></ul>
    12. 12. BUSINESS ENVIRONMENT
    13. 13. Introduction <ul><li>A business does not function in a vacuum </li></ul><ul><li>It has to act and react to what happens outside & inside the office walls </li></ul><ul><li>These factors that happen within the business are known as </li></ul><ul><ul><li>Internal factors or influences </li></ul></ul><ul><ul><li>External factors or influences </li></ul></ul><ul><ul><li>**These will affect the main internal functions of the business and possibly the objectives of the business and its strategies </li></ul></ul>
    14. 14. Business Analytical Framework Internal
    15. 15. SWOT Analysis Framework <ul><li>Business Environmental Scan </li></ul><ul><li>Internal Analysis External Analysis </li></ul><ul><li>Strengths Weaknesses Opportunities Threats </li></ul><ul><li>SWOT Matrix </li></ul>
    16. 16. SWOT Analysis <ul><li>S trength </li></ul><ul><li>W eakness </li></ul><ul><li>O pportunities </li></ul><ul><li>T hreat </li></ul><ul><li>Provides information that assists in matching business practice resources and capabilities to the competitive environment in which it operates </li></ul>INTERNAL EXTERNAL
    17. 17. INTERNAL ENVIRONMENT
    18. 18. S - Strengths <ul><li>Are a biz’s resources & capabilities to develop competitive advantage </li></ul><ul><li>Patents of products </li></ul><ul><ul><li>Frames / lenses / glasses / CL </li></ul></ul><ul><li>Strong brand names </li></ul><ul><ul><li>Chain stores </li></ul></ul><ul><ul><li>Frames / lenses / glasses / CL </li></ul></ul><ul><li>Good reputation among customers </li></ul><ul><li>Extra after sales services </li></ul><ul><li>Exclusive access to high grade products </li></ul><ul><li>Favorable access to distribution networks </li></ul><ul><ul><li>From supplier </li></ul></ul><ul><ul><li>To customers </li></ul></ul>
    19. 19. W - Weaknesses <ul><li>Absence of strengths are viewed as weaknesses </li></ul><ul><li>Lack of patent / brand protection </li></ul><ul><li>A weak brand name </li></ul><ul><li>Poor reputation among customers </li></ul><ul><li>High cost structures </li></ul><ul><li>Lack of access to the best products/resources </li></ul><ul><li>Lack of access to key distribution channels </li></ul>
    20. 20. Factors of Internal Environment <ul><li>Identifying, developing, protecting, and deploying </li></ul><ul><ul><li>Resources </li></ul></ul><ul><ul><li>Capabilities </li></ul></ul><ul><ul><li>Core competencies </li></ul></ul>
    21. 21. Resources <ul><li>Resources are inputs into a firm’s production process such as capital equipment, skill of individual employees, patents, finance, and talented managers </li></ul><ul><ul><li>Tangible Resources – Assets that can be seen and quantified </li></ul></ul><ul><ul><li>Intangible Resources – Family commitment, networks, organizational culture, reputation, intellectual property rights, trademarks, copyrights </li></ul></ul><ul><li>***By themselves, resources do not create a strategic advantage for the firm </li></ul>
    22. 22. Capabilities <ul><li>Capacity to deploy resources that have been purposely integrated to achieve a desired end state </li></ul><ul><li>Primary base for the firm’s capabilities is the skills and knowledge of its employees </li></ul><ul><li>Just because the firm is strong in deploying resources does not mean it has a competitive advantage </li></ul><ul><li>If there are two identical practices but one is doing better than the other, it is the capabilities of the managers to use and to make the right short and long-term decisions about the allocation of resources to the various pursuits of the company that likely makes the difference </li></ul>
    23. 23. Core Competencies <ul><li>Resources and capabilities serve as a source of competitive advantage for a firm over its rival </li></ul><ul><li>Not all resources and capabilities are core competencies </li></ul><ul><li>Many suggest that firms should identify and concentrate on only 3 or 4 core competencies </li></ul>
    24. 24. Identifying & Building Core Competencies <ul><li>Core competencies must be distinctive . </li></ul><ul><ul><li>Capabilities that are done better than competitors </li></ul></ul><ul><li>Identifying core competencies is key to development of sound strategy </li></ul><ul><li>Core competencies are valuable to customers, that is, the things that your company does better than anyone else, someone else must be willing to pay for else you are simply good at something but it does not create long-term success of the company </li></ul>
    25. 25. External Environment
    26. 26. O - Opportunities <ul><li>The external environmental analysis of competitors weakness may reveal certain opportunities for profit & growth </li></ul><ul><li>An unfulfilled customer need </li></ul><ul><li>Arrival of new technologies / machines / equipments / products </li></ul><ul><li>Loosening of regulations </li></ul><ul><li>Removal of international trade barriers </li></ul><ul><ul><li>Lower cost / taxes </li></ul></ul>
    27. 27. T - Threats <ul><li>Changes in external environmental may present threats to the biz </li></ul><ul><li>Shifts in customer’s tastes away from the firm’s products </li></ul><ul><li>Emergence of substitute products to those offered by biz practice </li></ul><ul><ul><li>Better Q / cheaper / more function </li></ul></ul><ul><li>New regulation </li></ul><ul><ul><li>Optical acts loosened eg </li></ul></ul><ul><li>Increased trade barrier </li></ul>
    28. 28. External Environment Factors
    29. 29. Demographic Environment <ul><li>How consumers, households and communities behave and their beliefs </li></ul><ul><li>For instance: </li></ul><ul><ul><li>Changes in attitude towards health & eye care </li></ul></ul><ul><ul><li>Increase awareness on visual needs, therapy and examinations </li></ul></ul><ul><ul><li>Changes in education importance: more readings / eye muscle stress </li></ul></ul><ul><ul><li>A greater number of pensioners in a population: increase in presbyopes </li></ul></ul><ul><ul><li>A sudden “baby boom”: decrease mortality rate & premature babies living gives rise to ROP? Etc </li></ul></ul><ul><ul><ul><li>More pediatric Pts </li></ul></ul></ul>
    30. 30. Political & Legal Environment <ul><li>The way in which legislation in society affects the business </li></ul><ul><ul><li>Changes in employment laws on working hours </li></ul></ul><ul><ul><li>Changes in optical laws & enforcement of practicing professional: optician VS optometrist </li></ul></ul><ul><ul><ul><li>CL practice </li></ul></ul></ul><ul><ul><ul><li>Refractive practice </li></ul></ul></ul><ul><ul><li>How changes in government policy might affect the business </li></ul></ul><ul><ul><ul><li>Govt’s decision to create a national healthcare insurance plan inclusive of Visual Therapy(as in Europe) </li></ul></ul></ul>
    31. 31. Economic Environment <ul><li>How the economy affects a business in terms of </li></ul><ul><ul><li>Taxation of company reduces profit </li></ul></ul><ul><ul><li>Government spending increases more money in the market, more consumer spending </li></ul></ul><ul><ul><li>General demand increase / decrease for offered products/competitors products/substitute products </li></ul></ul><ul><ul><li>Interest rates increase/decrease causes higher rates for bank loans for biz start-up or expansion </li></ul></ul><ul><ul><li>Exchange rates increase/decrease influences imported products prices </li></ul></ul><ul><ul><li>European and global economic factors contagious effect / supplier effect </li></ul></ul>
    32. 32. Technological Environment <ul><li>How the rapid pace of change in production processes and product innovation affect a business </li></ul><ul><ul><li>Keratoconus lens: Rose-K </li></ul></ul><ul><ul><li>New CL: higher DK value </li></ul></ul><ul><ul><ul><li>Old stock?? (wat happens) </li></ul></ul></ul><ul><ul><li>Better improved lens design M/Focal </li></ul></ul><ul><ul><li>Better, precise equipments </li></ul></ul><ul><ul><li>Cheaper Quality products: increase in economies of scales </li></ul></ul><ul><ul><li>Replacement of petrol: cheaper transportation cost </li></ul></ul>
    33. 33. Social / Ethical Environment <ul><li>What is regarded as morally right or wrong for a business to do </li></ul><ul><ul><li>Should it have biz dealings with suppliers that go into retail biz & sell own products cheaper </li></ul></ul><ul><ul><li>The business also needs to be aware of their social responsibilities. These are the way they act towards the different parts of society that they come into contact with </li></ul></ul><ul><ul><ul><li>LV Pt / customers from the lower group income </li></ul></ul></ul>
    34. 34. Changing External Environment <ul><li>Markets are changing all the time </li></ul><ul><li>How a business needs to react or lose customers </li></ul><ul><li>Some of the main reasons why markets change rapidly </li></ul><ul><ul><li>Customers develop new needs and wants: UV SGlasses </li></ul></ul><ul><ul><li>New competitors enter a market </li></ul></ul><ul><ul><li>New technologies mean that new/improved Q products </li></ul></ul><ul><ul><li>A world or countrywide event happens e.g. global economic slump </li></ul></ul><ul><ul><li>Government introduces new legislation e.g. increases minimum wage </li></ul></ul>
    35. 35. BREAK TIME!

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