MOM AND POP STORE SURVIVING IN A CORPORATION ECONOMY

Liza G. Ramirez
Gabriela Rodriguez
JoAnn Suarez
Maria Norma J. Navarro
February 24, 2016
Dr. Erasmus Addae
ORGL 4341- Management Theory I

INTRODUCTION
Small mom and pop businesses compete for customers continually against
large corporations. In a smaller city, such smaller stores struggle to compete
with stores that enter the market. They have a larger payroll, inventory, and
surplus of money at hand posing challenges for small businesses. The
challenges they face often become too large to continue operation when
costs rise in the area of inventory, personnel, and advertising. This forces
them to rely on other ways to compete such as their quality customer
satisfaction, retention, and recruitment.
GOAL
The goal for this research is to provide a framework for success of small
retail shops in the Rio Grande Valley.
PURPOSE
This paper will explain how small retail owners can use strategic planning to
improve ability to compete for customers with large retail stores in the Rio
Grande Valley.
RESEARCH QUESTIONS
The study will be guided by the following research questions:
1. What is the need for strategic planning in a small retail store?
2. What is the performance of small retail stores that use strategic
planning as opposed to those that do not use?

3. What are the challenges faced by small retail stores that plan
strategically?
4. What factors are essential for effective strategic planning and how do
they affect the overall performance?
Literature Review and Synthesis of Evidence
In order to compete with large corporations, small retail stores need to
formulate a strategic plan. By finding a niche, incorporate employee training,
develop a management philosophy and establishing a financial plan, a small
retail business will be able to compete in the world of large corporations
(Stefano, 2004). For a small business, a niche sets them apart from the large
corporations. By specializing, they are able to offer a special and more
personalized service that customers will appreciate. Training employees in
the area of customer service will enhance the shopping experience and thus
retaining the base of customers. In order for employees to work for
managers, they must respect them and be respected (Stefano, 2004). Given
the proper tools in the form of training, employees will serve the customers
better. Any management philosophy must be clearly defined. The behavior of
top management will permeate to the employees (Carmine Bianchi, 2016).
This will ensure all employees are focused on the same goal. Financial
controls are also necessary if not crucial to a small business in competition
with a large corporation. The larger corporation has capital at its disposal.
The small business must be aware at all times of their financial position and
their projected cash flow (Stefano, 2004). By creating a realistic budget, it

can serve as a road map for the future of the business. Without a strategic
plan in place, large corporations will dominate the area and monopolize the
customer base (McKee, 2014).
Project Plan Methodology
The research will utilize a combination of primary and secondary data.
Secondary data will be gathered through library research while primary data
will be gathered through interviews of business professionals such as
managers, vendors, investors and customers.
The secondary data will be categorized and indexed for the purposes of this
research in order to gain insight into competitive factors against mom and
pop retail business. The interviews will be transcribed and coded to be
analyzed using Excel.
Resources Available for Project
Available resources for the project included charts, articles, textbook
literature, discussions, and reflection on past lessons.
Conclusion
The research conducted is useful to small businesses that are trying to
survive and thrive in a corporate world. By following the strategic plan, small
businesses can feel like they can confidently compete with larger
corporations. Small businesses can gather the necessary tools like creating a
niche, training staff, setting goals, and have a financial plan and use them to

Small Retail Business SWOT Analysis

their advantage. By identifying the necessary tactics and strategies, they can
improve their competitive edge. Lack of quality customer satisfaction and
the personal attention becomes lost in a larger corporate chain. Utilizing that
advantage in a smaller business will target the customers to remain loyal. By
focusing on the personal aspect of customer retention, the smaller business
will have a completive advantage in a highly volatile economic market. In
establishing a loyal customer base, they will be more comfortable with the
ease of access to items they normally purchase. The smaller business can
ensure the needs of the customer are met by strategically stocking the items
that are popular to that customer base.

Internal
External

Potential Impact for management and Organizational Leadership

STRENGTHS
Ability to build loyal customer base
Establish community ties
Location
Established business
Exceptional Customer Service
Personal Attention
Attitude
Quick response to change

WEAKNESSES
Limited cash flow
Vulnerabilities
High cost structure
Economy predictability
Weak brand name

OPPORTUNITIES
Niche (specialization)
Ease of access
Unique Selling Points
Ability to change quickly
Unfulfilled customer need
Fashion influences
Lifestyle trends

THREATS
Financial Control
Volatile market
Competitor pricing
Competitor extended hours
Political effects
Legislative effects
New technology

Timeline

Week 1 Establish the topic and title for the proposal.

Week 2 Assign specific assignments to each member of the group.
Week 3 Collect data based on group member experiences.
Week 4

Gather resources and combine group member

contributions to proposal.

Week 5 Submit progress thus far in the form of a draft proposal.

Week 6 Utilize feedback and make necessary revisions.
Week 7 Submit final proposal.

References
Brown, C. M. (2014, February 14). Why Small Companies Can Compete Against Big
Corporations. Retrieved March 1, 2016, from Black Enterprise Wealth for Life:
http://www.blackenterprise.com/small-business/why-small-companies-cancompete-against-big-corporations/
Carmine Bianchi, G. W. (2016). Sustainable Strategies for Small Companies
Competing Against Multinational Giants. Retrieved February 28, 2016, from
Academia:
http://www.academia.edu/1397930/SUSTAINABLE_STRATEGIES_FOR_SMALL_C
OMPANIES_COMPETING_AGAINST_MULTINATIONAL_GIANTS
How Can Small Businesses Compete With Big Competitors? (2013, December 5).
Retrieved February 29, 2015, from The Wall Street Journal:
http://www.wsj.com/articles/SB1000142405270230356290457922850189941
0702
Leinbach-Reyhle, N. (2015, January 31). Independent Retailer? Here's How You Can
Step Up Your Game to Compete With Big Box Stores. Retrieved February 28,

2016, from Forbes:

http://www.forbes.com/sites/nicoleleinbachreyhle/2015/01/31/independentretailer-heres-how-you-can-step-up-your-game-to-compete-with-big-boxstores/#5b61cda152bf
McKee, A. (2014). Management A Focus on Leaders (Vol. 2nd Edition). New Jersey:
Pearson.
Stefano, T. F. (2004, December 3). Small Strengths-Competing with the Big Boys.
Retrieved February 28, 2016, from Commerce Times:
http://www.ecommercetimes.com/story/38409.html