Corp Strategic Plan 01152005

7/31/2019 Corp Strategic Plan 01152005

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CORPORATE STRATEGIC PLANNINGCORPORATE STRATEGIC PLANNING

Larry Steven Londre



– Sell something - ideas, goods, services, events

– Lend money

– A night’s lodging

– Provide energy

– Provide a service—Entertainment, Transportation,

Healthcare

1.1. An organization (profit and non profits) existsAn organization (profit and non profits) exists

to accomplish something:to accomplish something:

S E L LL E N DPROVIDE



– There are strengths and weaknesses in theCompany’s Resources, and opportunities andthreats in the company’s external environment.

– Corporations as mighty as General Motors,

Sears and IBM brought to their knees byignoring change.

2. Look at trends:2. Look at trends:



Trends cont.Trends cont.

– Companies

know that there will

be a road to restructuring,

but they have no plans to be the

perpetrators rather than the victims of what

they all saw coming.

– These are like waves. You can let them crash

into you or build a surfboard and

ride them. Companies must

identify major forcesof change.



- Xerox saw the future in copying – IBM and Kodak

didn’t.- Sears dismissed discounting – Target, Kmart, and

especially Wal-Mart didn’t.

- A trend has longevity, is observable across many market

areas and consumer activities.- Transistors hurt the vacuum tube business;

Xerox hurt the carbon-paper business;autos hurt railroads; television hurt

the newspaper business.- Time lag between discovery andmarket introduction is decreasing.

TrendsTrends



- A new marketing plan will be more successful if it is in

line with strong trends, rather than opposed to them.- Companies must monitor demographic, economic,

natural, technological, political/legal andsocial/cultural forces.

- US consumers will pay more for “green” products.- The opening of international markets.

- Baby boomers turning 50 and 60.

- Increasing alliances and partnerships.

TrendsTrends



- Major technological advances.

- R ise of the Pacific Rim

- Store brands more important.- R ising e-commerce.

- Increased consumption of “fast”, prepared foods.

- Men and women are living longer.- Changing of work, retirement and play schedules.

- Power and rate of technology. Exponentially.

TrendsTrends



- Medical and health issues are changing. - Power of computers and microprocessorsincreasing exponentially.

- Branding becoming more important.

- Increased use of credit cards and increasingconsumer debt.

- Global growth of e-commerce/Internet users

TrendsTrends



– What is value to ourcustomers?

3.3. Management must define its mission:Management must define its mission:

– Who is our customer?

– What should our business be

– What is our business?



– Simply not a list of yourproducts &services

Four distinct features1. Knowledge

(what you know andlearned)

2. Experience (what you’ve been through

3. Resources(what you have)

4. People what ou do and how ou d

3.3. Core Competencies:Core Competencies:



Many times, vision statements boil down toMany times, vision statements boil down to:

The purpose of Motorola is to

honorably serve the needs of thecommunity by providing products,services of superior quality at a fair

price to our customers; to do this so asto earn an adequate profit which isrequired for total enterprise to grow;and by so doing provide theopportunity for our employees andshareholders to achieve their reasonable personal objectives.

4.4. You can try to cut costs: but “what about a better informatiYou can try to cut costs: but “what about a better informati

system?”system?”

BVHE'BVHE'



BVHE'sBVHE's

Operations ManagementOperations Management

Team's MissionTeam's MissionTo be a world class supply chain that supports the organization

in the distribution of our products in an efficient, flexible, and

problem-solving manner, while simultaneously exceeding our

customers' expectations through the intelligent management of

a proactive and responsive value chain that maximizes profit and increases shareholder value.

We will foster a business environment that inspires and

encourages individuals to add value through leadership and risk management, while recognizing the creative foundation of our

products and the opportunities and constraints that it poses. We

will continually encourage our team members to challenge our

organization, maintaining the philosophy that continuous

improvement is the foundation of any world class organization.



PHILOSOPHY OF

SHAKER FURNITURE-MAKING:

•“Make every product better than it’s

ever been done before.”•“Make the parts you cannot see as well

as the parts you can see.”•“Use only the best of materials, even for

the most everyday items.”•“Give the same attention to the smallest

detail as you do to the largest."



– What’s happening to the companyand its competition:

– What they want to do about it;

– And should guide decision-making.

A vision statement shouldA vision statement should

describe:describe:



Preparing for the expected is

important, but only after preparing

for the unexpected.

Many companies start by identifyingtarget markets, markets they serve

and the pieces in the value chain-

manufacturing, wholesale, retail.



Our vision from Fortune Magazine:




A. Premier; leading; preeminent; world-class; growing

B. Innovative; cost-efficient; focused; diversified; high quality

C. Products; services; products and services

D. To serve the global marketplace; create shareholder value;

fulfill our covenants with shareholders; delight our customers

E. In a rapidly changing Information-solutions; business-solutions; co

financial solutions industry.



A. Premier; leading; preeminent; world-class; growing

B. Innovative; cost-efficient; focused; diversified; high quality

C. Products; services; products and services

D. To serve the global marketplace; create shareholder value;

fulfill our covenants with shareholders; delight our customers

In a rapidly changing

E. Information-solutions; business-solutions; consumer-solutions;

financial solutions industry.


To be a

Company that provides



5.5. The company’s specific mission or purpose isThe company’s specific mission or purpose is

usually clear when the company is founded.usually clear when the company is founded.

– Over time the mission may change due to

changing market conditions

– Or the corporation makes changes.Adds new products and services



6. Successful companies raise these questions6. Successful companies raise these questions

constantly. The answers are shaped by:constantly. The answers are shaped by:

– History of company’s aims, policies, achievements

– Current preferences of management

– Market environment

– R esources

– Distinctive competencies – Honda with its core competency of

making engines motorcycle, auto, lawnmowers, snowmobiles, power

tillers, outboard motors.

– A well-worked out mission statement gives direction, shared

purpose and opportunities to employees, stockholders, suppliers,

distributors, and other groups.



LLogitech Internationalogitech International, the world’s largest, the world’s largest

maker of mice:maker of mice:

- Mission Statement for their New Ventures Group:

“To provide Logitech with profitable growth andrelated new business areas.”

- With input from Scott Adams creator of Dilbert, asmission expert, Ray Mebert.

- His credentials included work with Procter &Gamble on new “Taste Bright Project”. P&G’ssupposedly secret effort to boost soap categorysales by improving the taste of soap:



– “To scout profitable growth opportunities in

relationships, both internally and externally, in

emerging, mission inclusive markets, and explore

new paradigms and then filter and communicate

and evangelize the findings.”



Volkswagen of AmericaVolkswagen of America

– VW engineered a mid-1990’s comeback amid a

national love-in over the New Beetle and tons of free PR.-Early 2005: VW is trapped again by sliding sales and dismal

reliability scores and cash rebates to move cars.

-For 2000-2005 many disgruntled owners.

-Marketing cars priced $40K to $100K.

-Far ahead of the affordable core image

-German driving experience.



Volkswagen of America

Sales: 569,696 cars sold (U.S.) in ’70

“Brand had a unique

image of a trusted friend. Morethan a car. People has suchaffection for it.”

-275,000 cars sold in ’75







Ad Theme from Arnold in ’95

“On the road of life there are passengers

and there are drivers. Drivers wanted.”-316,000 cars sold in ’99

Named Marketer of the Year in ’98

-356,000 cars sold in 2001

September 2001: Best selling month

for VW since ’73.




Vehicles sold in U.S.:

256K in ’04 (-40% fewer than ’01)

and 302K in ’03.In US, VW has been struggling with

aging products, rising competition

from Asian brands. Company’sbiggest headache is currency. As the

dollar loses value, vehicles imported

from Germany become more costly.

V lk f A i



Volkswagen of America:

The company had hoped to sell 300K in ’04,

and 500K is following years.

VW chairman said: “On VW’s per-

formance in US and North America is

“a catastrophe.”

“We are going to concentrate on profits, not

selling 500K cars or market share. (Lost $2,250 per vehicle sold in US in ’04)

Quality is 33rd; out of 37, after three

years of ownership, in J.D. Powers study.



A couple of other thoughts:thoughts:

FromFrom “Who Says Elephants Can’t Dance?

By Louis Gerstner, Jr. CEO of IBM

– If it’s broken, fix it. IBM had a host of revenue-

draining assets, and even problems with its owninternal information technology tools. Gerstneradded the right vision and strategy, plus valuedresources to support.

– In simplest terms, if a company’s revenue, gross

profit and expenses are all moving in the rightrelationship, the net effect is growing profits andpositive cash flow. In ’93 they were all wrong atIBM.

– He reengineered the IBM business



A couple of other thoughts:thoughts:

FromFrom “Who says Elephants Can’t Dance?

By Louis Gerstner, Jr. CEO of IBM

– Revenue was slowing (slowing mainframe sales),gross profits were shrinking (discounting prices, to

try to sell) and expenses were way out of control.

– He reengineered the IBM business

– Expenses were the first issue tacked.

– $8.9 Billion was slashed out of the budget.

– 45K jobs cut in ’92 (first layoff in company’s

history) and 35K job cut in ’93.



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Corp Strategic Plan 01152005

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