Question : Case Study: ABC Retail Chain
ABC Retail Chain is a popular brand with multiple stores across the country. The company is planning to expand its product range and enter new markets to attract a wider customer base.
What is the first step ABC Retail Chain should take in the planning process for its expansion?
Option 1: Setting objectives and goals
Option 2: Identifying potential risks
Option 3: Allocating resources
Option 4: Evaluating alternatives
Correct Answer:
Setting objectives and goals
Solution : The correct answer is (a). Setting objectives and goals.
Setting objectives and goals is a crucial initial step in any expansion strategy as it helps define the direction and purpose of the expansion. By clearly outlining what the company aims to achieve, ABC Retail Chain can provide a framework for the entire planning process. This involves determining specific, measurable, achievable, relevant, and time-bound (SMART) objectives that align with the overall vision and mission of the company.
While identifying potential risks, allocating resources, and evaluating alternatives are all essential components of the expansion planning process, they are typically undertaken after establishing objectives and goals. Objectives set the foundation for subsequent steps, allowing the company to make informed decisions and prioritize activities based on the desired outcomes.
