case study 1-2 Pg and 15 slide Power point

A.   Current Performance

Discuss the performance of the corporation over the past year in terms of ROI, market share, and profitability.

B.    Strategic Posture

(!) Important: In this section, keep in mind the following flow:

Vision/mission leads to objectives.  Objectives are achieved through strategies.  Strategies are supported by policies.

                                             1.     Vision – Identify the present vision of the corporation and specify whether it is explicitly stated or implied.

                                             2.     Mission – Identify the present mission of the corporation and specify whether it is explicitly stated or implied.

(!) Important: To be effective, a mission statement should address three factors:

      WHAT need is being satisfied – Defines the products or services.

      WHO is being satisfied – Defines markets or customer groups.

      HOW customer needs are satisfied – Defines the technologies used and the functions performed.

                                             3.     Objectives – Identify the present objectives of the corporation.  In this discussion, both financial and strategic objectives should be identified.

a.     Strategic Objectives – These objectives involve a corporation’s competitive strength and market position.

Examples of Strategic Objectives

      A bigger market share

      Lower costs relative to key competitors

      Broader or more attractive product line than rivals

      Increased ability to compete in international markets

      Expanded growth opportunities

(!) Important: Both financial and strategic objectives should include timeframes (e.g., “lower costs relative to key competitors by the fourth quarter of 2004.”)  A company should have both short-run and long-run objectives:

      Short-run Objectives – Target performance levels to be achieved soon (usually within a year).

      Long-run Objectives – Target performance levels to be achieved later (within three to five years).

b.     Financial Objectives – These objectives involve financial performance targets.  Financial objectives can be specific or general:

Examples of Financial Objectives

      Achieve revenue growth of 10% per year

      Increase earnings by 15% annually

      Increase dividends per share by 5% per year

      Boost annual returns on invested capital from 15% to 20%

      Improvement in bond and credit ratings

                                             4.     Strategies - Identify and present the strategies of the corporation.  Strategies should be presented in order of their hierarchical significance (as listed here):