Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

SIRRMRM002 Mapping and Delivery Guide
Develop a merchandise strategy

Version 1.0
Issue Date: April 2024


Qualification -
Unit of Competency SIRRMRM002 - Develop a merchandise strategy
Description
Employability Skills
Learning Outcomes and Application This unit describes the performance outcomes, skills and knowledge required to develop a merchandise strategy that reflects the strategic objectives of a retail organisation. It requires the ability to research and critically evaluate both internal and external factors impacting merchandise performance, develop a merchandise strategy and evaluate its effectiveness. This unit applies to individuals working in merchandise management related roles in a diverse range of retail sectors and business contexts. They operate with independence and are responsible for making a range of operational business decisions that relate to the management of retail merchandise. No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Skills must be demonstrated in a retail environment. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

relevant documentation:

retail organisational strategy and direction

merchandise performance data

sources of information related to the internal and external operating environments of a retail organisation.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors, and:

have worked in the retail industry for at least three years where they have applied the skills and knowledge within this unit of competency.
Prerequisites/co-requisites
Competency Field Merchandise Management
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Analyse the operating environment.
  • Access and review organisational strategic objectives and determine organisational priorities for merchandise performance in consultation with relevant personnel.
  • Access and review existing and previous merchandise strategies and available performance data to inform strategy development.
  • Research trends in merchandise management and use findings to inform strategy development.
  • Analyse internal and external operating environments to identify opportunities and risks related to merchandise performance.
       
Element: Develop merchandise strategy.
  • Identify key priorities and objectives of the merchandising strategy based on analysis of the operating environment.
  • Confirm merchandise strategy is consistent with the direction and objectives of the organisation.
  • Confirm strategy execution can be supported by organisational structures and resourcing.
  • Establish performance criteria to evaluate merchandise strategy performance.
  • Ensure strategy can be adapted in response to environmental opportunities and threats.
  • Develop a strategy action plan detailing key activities, responsibilities and timeframes.
  • Obtain input from relevant personnel and make adjustments to strategy based on feedback received.
  • Finalise merchandise strategy and gain required approval.
  • Communicate merchandise strategy and action plan to relevant personnel.
       
Element: Review merchandise strategy.
  • Obtain feedback from relevant stakeholders regarding merchandise performance.
  • Evaluate merchandise strategy against performance criteria.
  • Use findings to make informed conclusions about merchandise performance and make recommendations for future improvements.
       


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Analyse the operating environment.

1.1. Access and review organisational strategic objectives and determine organisational priorities for merchandise performance in consultation with relevant personnel.

1.2. Access and review existing and previous merchandise strategies and available performance data to inform strategy development.

1.3. Research trends in merchandise management and use findings to inform strategy development.

1.4. Analyse internal and external operating environments to identify opportunities and risks related to merchandise performance.

2. Develop merchandise strategy.

2.1. Identify key priorities and objectives of the merchandising strategy based on analysis of the operating environment.

2.2. Confirm merchandise strategy is consistent with the direction and objectives of the organisation.

2.3. Confirm strategy execution can be supported by organisational structures and resourcing.

2.4. Establish performance criteria to evaluate merchandise strategy performance.

2.5. Ensure strategy can be adapted in response to environmental opportunities and threats.

2.6. Develop a strategy action plan detailing key activities, responsibilities and timeframes.

2.7. Obtain input from relevant personnel and make adjustments to strategy based on feedback received.

2.8. Finalise merchandise strategy and gain required approval.

2.9. Communicate merchandise strategy and action plan to relevant personnel.

3. Review merchandise strategy.

3.1. Obtain feedback from relevant stakeholders regarding merchandise performance.

3.2. Evaluate merchandise strategy against performance criteria.

3.3. Use findings to make informed conclusions about merchandise performance and make recommendations for future improvements.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

review the strategic objectives and direction of one retail organisation and develop a merchandise strategy for a six-month trading period by:

analysing the internal and external operating environment

analysing merchandise performance data

documenting a SWOT analysis identifying:

strengths

weaknesses

opportunities

threats

document the above merchandise strategy and detail:

brand strategy

competitor strategy

pricing strategy

product strategy

promotional strategy

supplier strategy

target market strategy

store and multi-channel strategy

develop and document an action plan for the above merchandise strategy that details:

resourcing requirements

key responsibilities

performance indicators

timeframes

evaluate the merchandise strategy against performance indicators and make recommendations for ongoing improvements.

Demonstrated knowledge required to complete the tasks outlined in the elements and performance criteria of this unit:

retail merchandise strategies:

purpose

common objectives and priorities

key stakeholders:

organisational decision-makers

strategy influencers and drivers

influence on merchandise budget and planning

trends

role of critical path in merchandise strategy development and execution

external operating environmental factors and their impact on a merchandise strategy:

competitor

consumer behaviour

economic

environmental:

sustainability

seasonality

ethical

political

social

technological

target markets:

current

potential

trends

internal operating environmental factors and their impact on a merchandise strategy:

organisational:

objectives and direction

resourcing

gross margin

percentage contribution mix

supply arrangements

logistics

current merchandise strategy

stock positions

product and sales trends

space management

store changes:

openings

refurbishments

closures

role and interrelationship of key retail functions in merchandise management:

buyers

logistics

marketing

planners

production

retail operations

senior management

visual merchandisers

key aspects of a merchandise strategy:

brand strategy

competitor strategy

pricing strategy

product strategy:

growing

maintaining

exiting

promotional strategy

supplier strategy

target market strategy

store and multi-channel strategy

key inclusions in an action plan for merchandise strategy execution:

resourcing requirements

key responsibilities

performance indicators:

qualitative

quantitative

timeframes.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Analyse the operating environment.

1.1. Access and review organisational strategic objectives and determine organisational priorities for merchandise performance in consultation with relevant personnel.

1.2. Access and review existing and previous merchandise strategies and available performance data to inform strategy development.

1.3. Research trends in merchandise management and use findings to inform strategy development.

1.4. Analyse internal and external operating environments to identify opportunities and risks related to merchandise performance.

2. Develop merchandise strategy.

2.1. Identify key priorities and objectives of the merchandising strategy based on analysis of the operating environment.

2.2. Confirm merchandise strategy is consistent with the direction and objectives of the organisation.

2.3. Confirm strategy execution can be supported by organisational structures and resourcing.

2.4. Establish performance criteria to evaluate merchandise strategy performance.

2.5. Ensure strategy can be adapted in response to environmental opportunities and threats.

2.6. Develop a strategy action plan detailing key activities, responsibilities and timeframes.

2.7. Obtain input from relevant personnel and make adjustments to strategy based on feedback received.

2.8. Finalise merchandise strategy and gain required approval.

2.9. Communicate merchandise strategy and action plan to relevant personnel.

3. Review merchandise strategy.

3.1. Obtain feedback from relevant stakeholders regarding merchandise performance.

3.2. Evaluate merchandise strategy against performance criteria.

3.3. Use findings to make informed conclusions about merchandise performance and make recommendations for future improvements.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Access and review organisational strategic objectives and determine organisational priorities for merchandise performance in consultation with relevant personnel. 
Access and review existing and previous merchandise strategies and available performance data to inform strategy development. 
Research trends in merchandise management and use findings to inform strategy development. 
Analyse internal and external operating environments to identify opportunities and risks related to merchandise performance. 
Identify key priorities and objectives of the merchandising strategy based on analysis of the operating environment. 
Confirm merchandise strategy is consistent with the direction and objectives of the organisation. 
Confirm strategy execution can be supported by organisational structures and resourcing. 
Establish performance criteria to evaluate merchandise strategy performance. 
Ensure strategy can be adapted in response to environmental opportunities and threats. 
Develop a strategy action plan detailing key activities, responsibilities and timeframes. 
Obtain input from relevant personnel and make adjustments to strategy based on feedback received. 
Finalise merchandise strategy and gain required approval. 
Communicate merchandise strategy and action plan to relevant personnel. 
Obtain feedback from relevant stakeholders regarding merchandise performance. 
Evaluate merchandise strategy against performance criteria. 
Use findings to make informed conclusions about merchandise performance and make recommendations for future improvements. 

Forms

Assessment Cover Sheet

SIRRMRM002 - Develop a merchandise strategy
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SIRRMRM002 - Develop a merchandise strategy

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