Short-term actions that might weaken the business in the longer term..
To be able to survive in the long run, a company should be able to be favored by customers and needs to win their loyalty and trust. A retail chain of stores like Pick n Pay is heavily dependent on understanding the customer's needs and make offerings that would keep them interested in the brand. Also with increasing competition and reducing margins, companies are more focused on selling volumes and reducing margins so that they can sell enough to attain desired profits. Thus the only mantra to achieve this is to expand the customer base and widen the scope of activities and ways to reach customers. In the modern-day world, such retail stores are severely hit by smaller stores in the vicinity and online sales and thus it is high time for Pick n Pay to consider its sales strategy and reconsider its new mission and vision for attaining higher sales and profitability with offering lower prices and increasing Fan Score and getting positive feedback and also rewarding franchisees and better performing stores (Islam, et al, 2016).
The vision needs to be long term and attainment of medium-term goals so that the company is measured and there is a reality check for their performance and measuring variation if any and take steps to align them with long term goals. Many times it is important to understand what not to do equally as we wish to know what to do. Let us understand certain measures which Pick n Pay should avoid and not be doing to keep their focus on their long term objective attainments (Criticos, 2019). It is observed and understood that besides long term planning and objectives, it is important to keep the focus on attaining short term goals and targets as they eventually translate into short term and medium-term success which would be vital to achieve long term goals and help strategically. For an organization with the business model as that of Pick n Pay, wherein global giants are trying to make inroads and domestic companies are vying to eat market share and expanding their presence, it is important for the store to not only work on their long term strategy but also to focus and understand competitors plans and strategies (Battersby, 2017).
It is also important to keep on the conversion rate for short term goals and attain success in medium-term targets as well so that the momentum is there to go for a big kill. With the change in technology and e-commerce business, the store needs to act smart and explore online sales as well wherein they would be cost-effective and be in the competition as well. Also, there is a need to think, plan, and execute for smaller stores that are near residential areas to grab maximum footfall and ensure volumetric sales. Such a strategy would also discourage the competitors and new entrants and they would either not enter or exit soon from the market and thus there would be market capture by Pick n Pay stores (Madlala, 2016).
To conclude, that multiple dynamics both internal and external could change while teamwork for long term goals, it is important to focus on short term priorities and strategies a swell and team cannot be ignorant of them at any point of time. It is also important to realign long term strategies from time to time and with feedback from the team so that the company stays relevant to the customers and win over their loyalty and trust at all times. It is to be noted that customer loyalty would take any company afloat as many times, a loyal customer would purchase only from Pick n Pay and would not explore any other avenue irrespective of the fact that there possibly could be better offers elsewhere. Such practices and approaches would help Pick n Pay to reach their long term plans and strategies and help them stay afloat and sustainable and in the business
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