Aligning Financial Strategy with Customer Categorization based on Environmental Scanning

Aligning Financial Strategy with Customer Categorization Based on Environmental Scanning by Timothy Osita Anyiwe MBA, Delta State University Nigeria, 2001 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2012 Abstract Inadequate environmental scanning, poor financial strategy, and misaligned customer focus are responsible for 79% of retail profitability losses. The purpose of the qualitative study using a multiple-case study design was to explore the strategies needed to align financial strategy with customer-oriented processes in the retail industry. The research question involved understanding trends and operational risks influencing the establishment of financial alignment strategies. Porter’s five forces model of customer influence, Pearce’s environmental and economic factors affecting society values, and Albright’s strategic planning of environmental influence served as the theoretical foundations for the study. 30 executives, managers, and team leaders in 2 Midwest U.S. organizations completed interviews. Interview data were coded for emergent themes. Themes included advanced strategic planning, improved customer-buying power, enhanced business viability, and reduced business uncertainties as components of a guiding strategy needed to align financial strategy with customer-oriented processes. Implications for positive social change include increased profitability that can result in improved employment opportunities.Inadequate environmental scanning, poor financial strategy, and misaligned customer focus are responsible for 79% of retail profitability losses. The purpose of the qualitative study using a multiple-case study design was to explore the strategies needed to align financial strategy with customer-oriented processes in the retail industry. The research question involved understanding trends and operational risks influencing the establishment of financial alignment strategies. Porter’s five forces model of customer influence, Pearce’s environmental and economic factors affecting society values, and Albright’s strategic planning of environmental influence served as the theoretical foundations for the study. 30 executives, managers, and team leaders in 2 Midwest U.S. organizations completed interviews. Interview data were coded for emergent themes. Themes included advanced strategic planning, improved customer-buying power, enhanced business viability, and reduced business uncertainties as components of a guiding strategy needed to align financial strategy with customer-oriented processes. Implications for positive social change include increased profitability that can result in improved employment opportunities. Aligning Financial Strategy with Customer Categorization based on Environmental Scanning by Timothy Osita Anyiwe MBA, Delta State University Nigeria, 2001 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2012 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent on the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. All rights reserved. This edition of the work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, MI 48106 1346 UMI 3525694 Copyright 2012 by ProQuest LLC. UMI Number: 3525694 Dedication Primarily, I dedicate this study to the Lord Jesus Christ for His unconditional love and for giving me the grace to complete the doctoral journey. The dedication of this study also goes to my loving wife, Blessing Ifeanyinachukwu Anyiwe; my brilliant son, Bishop Chiemeke Anyiwe; and my adorable daughter, Evangel Chiamaka Anyiwe. Thank you for your encouragement and support, which propelled me through this tedious doctoral journey. In addition, I dedicate this project to the memories of my dear mother, Mrs. Veronica Anyiwe, and father Mr. Alfred I. Anyiwe. The wish is that you were here to witness what your son has accomplished. For sure, I am indebted to my doctoral study committee chairperson, Dr. Alice Denomme Gobeille, for the phenomenal mentoring with which she guided me in this doctoral study. You have been my mentor since the Foundations course of this program. I dedicate the successful completion of this project to you. Acknowledgments The effort of my doctoral study supervisory committee was instrumental to completing this project. You are awesome faculties with high-level professional dedication. The committee chairperson, Dr. Alice Denomme Gobeille, devoted much time to reviewing the drafts and sections of this doctoral study. Thank you for providing high quality, excellent doctoral mentoring. The second committee member, Dr. Matthew Gonzalez, expeditiously reviewed my doctoral study manuscript and provided insightful guidance that accelerated the pace of this project. Your inputs made a great difference by contributing to the success I am now celebrating. Thank you very much for pointing me in the right direction. The URR for my doctoral study project, Dr. Steven Munkeby, is a knowledgeable faculty who students and fellow faculties hold in high esteem and respect. Thank you for providing exceptional insights and helping to develop my research topic. Having you as my URR is a huge honor. Thank you, Dr. Arthur Tyler, for facilitating a practical, qualitative interview exercise that influenced my research worldview. I acknowledge the DBA Program Director, Dr. Freda Turner, for her efforts in shaping the evolution of the program. I wish to thank my host organizations and study participants. The opportunity to draw from your wealth of knowledge and experience was golden. Thank you, Dr. Diane Dusick, for editing this study and contributing to my success.