Strategic Plan: Army Air Force Exchange Service

Strategic Plan

MBA580

University of Phoenix

Executive Summary

Today customers of the Army Air Force Exchange Service (AAFES) demand more as competition from category killers and discounters lure them to their establishments. AAFES faces several challenges in the next five years. Despite the weak US economy cutting into disposable income, customer’s perception of value will go beyond best price. With 80% of customers having some college, a college degree, or beyond, AAFES customers are highly educated. They research products, and compare prices before entering an AAFES brick and mortar retail facility. New metrics of value will include best practices in environmental awareness, knowledgeable staff, and appeal to Generation Y. AAFES must achieve long-term objectives to remain competitive in the upcoming years.

Internal stakeholders must do their part to assure the strategies are realized. Buy in, communication, flexibility, and customer acceptance will be the critical success factors to assure the mission of AAFES becomes a reality. AAFES can move closer to its vision, but internal stakeholders must do their part to assure that AAFES is perceived by customers as a benefit not just another place to shop. Achieving these goals will require investing in improving the supply chain. Trend research to improve product selection, along with training to assure employees are aware of the features and benefits of products will require additional investment. In achieving the long term objectives, AAFES will maintain continuous increases to earnings to support Morale Welfare and Recreation.

Company Background

Since 1895 AAFES has provided goods and services to military service members, and their families. “AAFES operates more than 3,000 facilities worldwide, in more than 30 countries, five U.S. territories and 49 states,” (AAFES, 2008). AAFES has a successful retail, e-commerce, and catalog division. Additionally AAFES operates fast...