retail biznes environment a1
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RETAIL BUSINESS ENVIRONMENT
RETAIL BUSINESS ENVIRONMENT
Ms Rosmin Iqbal HussainBoptom (UKM), CMBA (UNIMAS)
Ms Rosmin Iqbal HussainBoptom (UKM), CMBA (UNIMAS)
OPPORTUNITYOPPORTUNITY
Choices of CareerChoices of Career
Private practicing optometrist Commercial setting
Chain groups / optical outlet Multidisciplinary hospitals / clinics
Pvt / govt Eye clinics / hospital practices
Under ophthalmologist University Hospitals / Clinics LASIK centre Armed forces Education / Academia
Private practicing optometrist Commercial setting
Chain groups / optical outlet Multidisciplinary hospitals / clinics
Pvt / govt Eye clinics / hospital practices
Under ophthalmologist University Hospitals / Clinics LASIK centre Armed forces Education / Academia
National Eye Survey, NES (1996)All Ages
•Prevalence of visual impairment : 2.73% ( 581,878 people)
•Prevalence of blindness : 0.29%(64,262 people)
•Prevalence of low vision : 2.44%(517,616 people)
National Eye Survey, NES (1996)All Ages
• Causes of Visual Impairment :Refractive Error – 44%Cataract – 36%Retinal Disease and Glaucoma – 7%Corneal Opacity – 3%Others – 10%
Refractive Error Study in Children (RESC) 2003
•Population based study on refractive error - by Selayang Hospital & WHO in Gombak•School children aged 7-15 years•Prevalence
Blindness –1 in 1000 children ( 0.1%) Low vision- 1 in 10 children (10%)
•Causes Refractive error – 89% Amblyopia / lazy eye – 3%
RESC : Unmet Need For Spectacles
•Up to 50% of children have uncorrected refractive error but :
did not have glasses ( 43.9%) glasses with inaccurate power ( 6.8%)
•Why children with refractive error do not get corrective glasses ?
barrier to refractive services financial problem children unaware parents or teachers unaware
Ophthalmic MarketOphthalmic Market
Total estimate of Optometrists: 1000 Opticians: 3000
Almost 80% of those with visual disorder would come to an optometrist / optical outlet
Even the other 20% would come to an optometrist with extra services Low vision Vision therapy
• with retinal diseases / multiple disabilities
**still a lot of opportunities present
Total estimate of Optometrists: 1000 Opticians: 3000
Almost 80% of those with visual disorder would come to an optometrist / optical outlet
Even the other 20% would come to an optometrist with extra services Low vision Vision therapy
• with retinal diseases / multiple disabilities
**still a lot of opportunities present
BUSINESS PRACTICESBUSINESS PRACTICES
Types of BusinessesTypes of Businesses
Type of BusinessType of Business
Sole ProprietorSole Proprietor
PartnershipsPartnerships Pvt Limited / Pvt Limited / LimitedLimited
Groups / Groups / Chain-StoresChain-Stores
**Services offered at practices add to product differentiation, customer loyalty & competitive advantage
**Services offered at practices add to product differentiation, customer loyalty & competitive advantage
Services OfferedServices OfferedContact lensContact lens
Vision TherapyVision TherapyPre / Post Surgical Pre / Post Surgical CareCare
Low VisionLow Vision
DispensingDispensing
PretestsPretests Power & Power &
parameters & parameters & types types identificationidentification
Fitting Fitting After careAfter care
PretestsPretests Power & Power &
parameters & parameters & types types identificationidentification
Fitting Fitting After careAfter care
Tinting Tinting Edging Edging Coating Coating AdjustmentsAdjustments Outsource ??Outsource ?? In-house ??In-house ??
Tinting Tinting Edging Edging Coating Coating AdjustmentsAdjustments Outsource ??Outsource ?? In-house ??In-house ??
TestingTesting ConsultationConsultation LVAidsLVAids TrainingTraining ReferralsReferrals
TestingTesting ConsultationConsultation LVAidsLVAids TrainingTraining ReferralsReferrals
Adults / pediatricAdults / pediatric BVBV
• Acc / verg / ocular Acc / verg / ocular motormotor
• PatchingPatching• Anti-suppressionAnti-suppression• PrismsPrisms
Adults / pediatricAdults / pediatric BVBV
• Acc / verg / ocular Acc / verg / ocular motormotor
• PatchingPatching• Anti-suppressionAnti-suppression• PrismsPrisms
Refraction of pathologic Refraction of pathologic eyeeye
Rx -operation date far (Pt Rx -operation date far (Pt need)need)
Post surgical carePost surgical care• RefractionRefraction• CL / glassesCL / glasses• Periodical reviewsPeriodical reviews• ConsultationConsultation
Refraction of pathologic Refraction of pathologic eyeeye
Rx -operation date far (Pt Rx -operation date far (Pt need)need)
Post surgical carePost surgical care• RefractionRefraction• CL / glassesCL / glasses• Periodical reviewsPeriodical reviews• ConsultationConsultation
BUSINESS ENVIRONMENTBUSINESS ENVIRONMENT
IntroductionIntroduction A business does not function in a vacuum It has to act and react to what happens
outside & inside the office walls These factors that happen within the
business are known as Internal factors or influences External factors or influences
**These will affect the main internal functions of the business and possibly the objectives of the business and its strategies
A business does not function in a vacuum It has to act and react to what happens
outside & inside the office walls These factors that happen within the
business are known as Internal factors or influences External factors or influences
**These will affect the main internal functions of the business and possibly the objectives of the business and its strategies
Business Analytical Framework
Business Analytical Framework
Internal
SWOT Analysis FrameworkSWOT Analysis Framework
Business Environmental Scan
Internal Analysis External Analysis
Strengths Weaknesses Opportunities Threats
SWOT Matrix
Business Environmental Scan
Internal Analysis External Analysis
Strengths Weaknesses Opportunities Threats
SWOT Matrix
SWOT AnalysisSWOT Analysis
Strength Weakness Opportunities Threat
Provides information that assists in matching business practice resources and capabilities to the competitive environment in which it operates
Strength Weakness Opportunities Threat
Provides information that assists in matching business practice resources and capabilities to the competitive environment in which it operates
INTERNAL
EXTERNAL
INTERNAL ENVIRONMENTINTERNAL ENVIRONMENT
S - StrengthsS - Strengths Are a biz’s resources & capabilities to develop
competitive advantage Patents of products
Frames / lenses / glasses / CL Strong brand names
Chain stores Frames / lenses / glasses / CL
Good reputation among customers Extra after sales services Exclusive access to high grade products Favorable access to distribution networks
From supplier To customers
Are a biz’s resources & capabilities to develop competitive advantage
Patents of products Frames / lenses / glasses / CL
Strong brand names Chain stores Frames / lenses / glasses / CL
Good reputation among customers Extra after sales services Exclusive access to high grade products Favorable access to distribution networks
From supplier To customers
W - WeaknessesW - WeaknessesAbsence of strengths are viewed as
weaknesses Lack of patent / brand protection A weak brand name Poor reputation among customers High cost structures Lack of access to the best
products/resources Lack of access to key distribution channels
Absence of strengths are viewed as weaknesses
Lack of patent / brand protection A weak brand name Poor reputation among customers High cost structures Lack of access to the best
products/resources Lack of access to key distribution channels
Factors of Internal Environment
Factors of Internal Environment
Identifying, developing, protecting, and deploying Resources Capabilities Core competencies
Identifying, developing, protecting, and deploying Resources Capabilities Core competencies
ResourcesResources
Resources are inputs into a firm’s production process such as capital equipment, skill of individual employees, patents, finance, and talented managers Tangible Resources – Assets that can be seen and
quantified Intangible Resources – Family commitment,
networks, organizational culture, reputation, intellectual property rights, trademarks, copyrights
***By themselves, resources do not create a strategic advantage for the firm
Resources are inputs into a firm’s production process such as capital equipment, skill of individual employees, patents, finance, and talented managers Tangible Resources – Assets that can be seen and
quantified Intangible Resources – Family commitment,
networks, organizational culture, reputation, intellectual property rights, trademarks, copyrights
***By themselves, resources do not create a strategic advantage for the firm
CapabilitiesCapabilities
Capacity to deploy resources that have been purposely integrated to achieve a desired end state
Primary base for the firm’s capabilities is the skills and knowledge of its employees
Just because the firm is strong in deploying resources does not mean it has a competitive advantage
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
Capacity to deploy resources that have been purposely integrated to achieve a desired end state
Primary base for the firm’s capabilities is the skills and knowledge of its employees
Just because the firm is strong in deploying resources does not mean it has a competitive advantage
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
Core CompetenciesCore Competencies
Resources and capabilities serve as a source of competitive advantage for a firm over its rival
Not all resources and capabilities are core competencies
Many suggest that firms should identify and concentrate on only 3 or 4 core competencies
Resources and capabilities serve as a source of competitive advantage for a firm over its rival
Not all resources and capabilities are core competencies
Many suggest that firms should identify and concentrate on only 3 or 4 core competencies
Identifying & Building Core Competencies
Identifying & Building Core Competencies
Core competencies must be distinctive. Capabilities that are done better than competitors
Identifying core competencies is key to development of sound strategy
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
Core competencies must be distinctive. Capabilities that are done better than competitors
Identifying core competencies is key to development of sound strategy
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
External Environment
External Environment
O - OpportunitiesO - Opportunities
The external environmental analysis of competitors weakness may reveal certain opportunities for profit & growth
An unfulfilled customer need Arrival of new technologies / machines /
equipments / products Loosening of regulations Removal of international trade barriers
Lower cost / taxes
The external environmental analysis of competitors weakness may reveal certain opportunities for profit & growth
An unfulfilled customer need Arrival of new technologies / machines /
equipments / products Loosening of regulations Removal of international trade barriers
Lower cost / taxes
T - ThreatsT - ThreatsChanges in external environmental may
present threats to the biz Shifts in customer’s tastes away from the
firm’s products Emergence of substitute products to
those offered by biz practice Better Q / cheaper / more function
New regulation Optical acts loosened eg
Increased trade barrier
Changes in external environmental may present threats to the biz
Shifts in customer’s tastes away from the firm’s products
Emergence of substitute products to those offered by biz practice Better Q / cheaper / more function
New regulation Optical acts loosened eg
Increased trade barrier
External Environment Factors
External Environment Factors
Demographic EnvironmentDemographic Environment How consumers, households and communities
behave and their beliefs For instance:
Changes in attitude towards health & eye care Increase awareness on visual needs, therapy and
examinations Changes in education importance: more readings /
eye muscle stress A greater number of pensioners in a population:
increase in presbyopes A sudden “baby boom”: decrease mortality rate &
premature babies living gives rise to ROP? EtcMore pediatric Pts
How consumers, households and communities behave and their beliefs
For instance: Changes in attitude towards health & eye care Increase awareness on visual needs, therapy and
examinations Changes in education importance: more readings /
eye muscle stress A greater number of pensioners in a population:
increase in presbyopes A sudden “baby boom”: decrease mortality rate &
premature babies living gives rise to ROP? EtcMore pediatric Pts
Political & Legal Environment
Political & Legal Environment
The way in which legislation in society affects the business Changes in employment laws on working hours Changes in optical laws & enforcement of
practicing professional: optician VS optometristCL practiceRefractive practice
How changes in government policy might affect the businessGovt’s decision to create a national healthcare
insurance plan inclusive of Visual Therapy(as in Europe)
The way in which legislation in society affects the business Changes in employment laws on working hours Changes in optical laws & enforcement of
practicing professional: optician VS optometristCL practiceRefractive practice
How changes in government policy might affect the businessGovt’s decision to create a national healthcare
insurance plan inclusive of Visual Therapy(as in Europe)
Economic EnvironmentEconomic Environment How the economy affects a business in terms of
Taxation of company reduces profit Government spending increases more money in the
market, more consumer spending General demand increase / decrease for offered
products/competitors products/substitute products Interest rates increase/decrease causes higher rates for
bank loans for biz start-up or expansion Exchange rates increase/decrease influences imported
products prices European and global economic factors contagious
effect / supplier effect
How the economy affects a business in terms of Taxation of company reduces profit Government spending increases more money in the
market, more consumer spending General demand increase / decrease for offered
products/competitors products/substitute products Interest rates increase/decrease causes higher rates for
bank loans for biz start-up or expansion Exchange rates increase/decrease influences imported
products prices European and global economic factors contagious
effect / supplier effect
Technological EnvironmentTechnological Environment
How the rapid pace of change in production processes and product innovation affect a business Keratoconus lens: Rose-K New CL: higher DK value
Old stock?? (wat happens) Better improved lens design M/Focal Better, precise equipments Cheaper Quality products: increase in economies
of scales Replacement of petrol: cheaper transportation cost
How the rapid pace of change in production processes and product innovation affect a business Keratoconus lens: Rose-K New CL: higher DK value
Old stock?? (wat happens) Better improved lens design M/Focal Better, precise equipments Cheaper Quality products: increase in economies
of scales Replacement of petrol: cheaper transportation cost
Social / Ethical Environment
Social / Ethical Environment
What is regarded as morally right or wrong for a business to do Should it have biz dealings with suppliers
that go into retail biz & sell own products cheaper
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• LV Pt / customers from the lower group income
What is regarded as morally right or wrong for a business to do Should it have biz dealings with suppliers
that go into retail biz & sell own products cheaper
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• LV Pt / customers from the lower group income
Changing External Environment
Changing External Environment
Markets are changing all the time How a business needs to react or lose customers Some of the main reasons why markets change
rapidly Customers develop new needs and wants: UV SGlasses New competitors enter a market New technologies mean that new/improved Q products A world or countrywide event happens e.g. global
economic slump Government introduces new legislation e.g. increases
minimum wage
Markets are changing all the time How a business needs to react or lose customers Some of the main reasons why markets change
rapidly Customers develop new needs and wants: UV SGlasses New competitors enter a market New technologies mean that new/improved Q products A world or countrywide event happens e.g. global
economic slump Government introduces new legislation e.g. increases
minimum wage
BREAK TIME!BREAK TIME!