Development of a Strategic Plan for a Retail Company in the Kingdom of Saudi Arabia using Balanced Scorecard

Abstract

The sales of the beauty care department in a leading retail company has shown a negative trend due to economic crises, VAT implementation, and introduction of foreigner’s renewal fees. The present study aims to identify the problems and develop a 360 strategic plan for the beauty care department. The objective is to enhance department sales and regain the lost market share. Data has been collected from the company data repository (BI) and Nielsen market share. Analysis reveals that strategic decisions like promotion adjustment and introduction of new brands can grow the sales up to 13%. Moreover, the margin of the department has been enhanced by 5% due to the application of blue ocean strategy. Inventory management especially under Covid19 crises is one of the elements, which can be tackled under the financial perspective. Similarly, customer awareness can be created by focusing on flyers and social media. The two segments of higher ticket brands can be used to uplift the basket size of the department and encourage customers to spend more money on these items. Furthermore, Balanced Scorecard is used to develop a strategic plan covering the perspectives of financial, customer, internal processes, and organizational learning. The findings of the study can be beneficial for organizational leaders to enhance the productivity and profitability of their respective organizations in the challenging times of COVID-19.