Monday, June 6, 2011

Consumer Trends Trump, but Business Strategy Catches On

Between 2009 and 2011, successful execution of business strategy gained the highest momentum among retailers perception of risks. Retailers are less worried about the consumer spending, however, the consumer trends still rule: Retailers still want to know what interests consumers most and how to translate that into their merchandise on the shelf. imageAnother significant finding from the BDO USA’s report on retailers’ perception of risks in 2011 reveals that they are much more focused on defining and executing a successful business strategy. The report is based on SEC 10-K filings of the 100 largest US retailers.   

In fact, the focus on business strategy seems to be gaining ground in a very substantial way: The frequency at which the failure to execute business strategy was mentioned as a risk grew from 32% in 2009 to 80% in 2011. A newfound focus on business strategy should definitely help the retailers in the current situation that is more volatile and competitive than any other similar historical situation.
imageSome of the other concerns that gain retailers’ attention are shown in the top 10 list.
However, refactoring the top 10 list by the amount of change from 2009, a more interesting picture emerges: Business strategy appears to have gained the most momentum from 2009, followed by changes in regulatory & legal concerns. Loss of key management appears moves into top 5 as well, as the economy  improves and mobility among the employees becomes a reality.
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© Vivek Sehgal, 2011, All Rights Reserved. Want to know more about supply chain processes and supply chain strategy? Check out my books on Supply Chain Management at Amazon.

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