Strategic planning challenges faced by clothing retail SME's in Cape Town, South Africa

Abstract

The main objective of this study was to investigate the challenges faced by SMEs in relation to strategic planning and factors affecting strategic planning in the clothing retail industry in Cape Town. The main research question was “what are the strategic planning challenges faced by SMEs within the clothing retail industry in the Cape Town. A mixed method methodology consisting of both qualitative and quantitative question was adopted. A survey questionnaire including in-depth questions as well as open-ended questions administered to 56 clothing retail store managers were used. This study employed a descriptive research design which aimed to describe the problem as it exists, identifying and obtaining data. The convenience sample was used to identify the targeted participants of 56 SMEs clothing retail owners. Rigor is based on the quality of being exact, the quality of being thorough and accurate, on the study rigor was used on measuring the reliability of the phenomenon on strategic planning challenges through the questionnaire of the study. Trustworthiness also was used to the point of trust, confidence and which readers have in results/findings. Based on the study the participants have shown the truthfulness of the phenomena on strategic planning based on the same experience. The research results show that clothing retailers in Cape Town faced a variety of strategic planning challenges. These challenges include: the non-communication of strategic planning to all levels of the business, not prioritizing strategic planning, neglecting strategic planning, and poor strategic plans. Government regulations, industry competition and lack of management skills are the key factors that have an impact on the strategic planning process. Recommendations from findings managers and owners have been confusing strategic plan and strategy implementation. This confusion can develop to complicate strategic planning.