DECA Retail Merchandising Practice Exam

In the retail planning process, which step involves establishing objectives and allocating resources?

1. Defining the mission

2. Evaluating performance

3. Identifying opportunities

4. Developing the retail mix

The correct answer is: Defining the mission

In the retail planning process, establishing objectives and allocating resources is integral to defining the mission. This step is foundational as it sets the overall direction for the business. By articulating the mission, a retailer clarifies its purpose, values, and long-term goals, which informs all subsequent decisions and strategies. This includes identifying specific objectives that the business aims to achieve, such as sales targets, market expansion, or customer satisfaction levels. Additionally, resource allocation during this phase ensures that the retailer can adequately support these objectives by distributing financial, human, and material resources where they are most needed to drive success. Other steps in the retail planning process, such as evaluating performance, identifying opportunities, and developing the retail mix, focus on assessing current strategies, exploring potential market gaps, or configuring specific product offerings and promotions. While these steps are crucial in their own right and follow the definition of the mission, they do not fundamentally involve the initial establishment of objectives or the allocation of resources. Therefore, defining the mission is the correct step associated with both setting goals and determining how to achieve them effectively.