Strategic Objectives

Strategic Objectives

اسلاید 1: “If you don’t know where you are going, any road will take you there.”The Koran“Management’s job is not to see the company as it is . . . but as it can become.”John W. Teets

اسلاید 2: Strategic Objectives Strategic objectives operationalize the mission statement. They provide guidance on how the organization can fulfill or move toward the organizational mission and vision

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اسلاید 4: Strategic Objectives Strategic objectives are an organization’s performance targets-the results and outcomes it wants to achieve. They function as yardsticks for tracking an organization’s performance and progress

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اسلاید 6: Benefits of Strategic ObjectivesThey help to channel employees throughout the organization toward common goalsChallenging objectives can help to motivate and inspire employees throughout the organization to higher levels of commitment and effortThey resolve conflicts when they ariseProvide a yardstick for rewards and incentives

اسلاید 7: Financial Strategic ObjectivesNonfinancial Strategic ObjectivesStrategic ObjectivesTypes of strategic objective

اسلاید 8: Outcomes focused on improving financial performanceOutcomes focused on improving long-term competitive business positionFinancial Objectives Strategic Objectives$Types of Objectives Required

اسلاید 9: X % increase in annual revenuesX % increase annually in after-tax profitsX % increase annually in earnings per shareAnnual dividend increases of X %Profit margins of X %X % return on capital employed (ROCE)Increased shareholder valueStrong bond and credit ratingsSufficient internal cash flows to fund 100% of new capital investmentStable earnings during periods of recessionExamples: Financial Objectives

اسلاید 10: Winning an X % market shareAchieving lower overall costs than rivalsOvertaking key competitors on product performance or quality or customer serviceDeriving X % of revenues from sale of new products introduced in past 5 yearsAchieving technological leadershipHaving better product selection than rivalsStrengthening company’s brand name appealHaving stronger national or global sales and distribution capabilities than rivalsConsistently getting new or improved products to market ahead of rivalsExamples: Strategic Objectives

اسلاید 11: Short-Term vs. Long-Term ObjectivesShort-term objectivesTargets to be achieved soonMilestones or stair steps for reaching long-range performanceLong-term objectivesTargets to be achieved within 3 to 5 yearsPrompt actions now that will permit reaching targeted long-range performance later

اسلاید 12: To achieve long term prosperity, strategic planners commonly establish long-term strategic objectives in seven areas:ProfitabilityProductivityCompetitive positionEmployee developmentEmployee relationsTechnological leadershipPublic responsibility

اسلاید 13: For strategic objectives to be meaningful they must be:•Specific: there must be at least one indicator (or yardstick) that measures progress against fulfilling the objective•Measurable: this provides a clear message to what needs to be accomplished•Appropriate: it must be consistent with the vision and mission of the organization.•Realistic: it must be an achievable target given the organization’s capabilities and opportunities in the environment. In essence, it must be challenging but doable.•Timely: there needs to be a time frame for accomplishment of the objective. After all, as the economist John Maynard Keynes once said, “in the long run, we are all dead

اسلاید 14: Qualities of Long-Term Strategic Objectives •Acceptable•Flexible•Measurable•Motivating•Suitable•Understandable •Achievable

اسلاید 15: Networking of Missions, Goals/Objectives, and StrategiesLevel 1Level 2Business-LevelManagersLevel 3Functional ManagersLevel 4Plant Managers,Lower-LevelSupervisorsCorporateLevelObjectivesCorporate-wideStrategicVisionCorporateLevelStrategyBusinessLevelObjectivesBusinessLevel StrategicVisionBusinessLevelStrategiesFunctionalObjectivesFunctional MissionsFunctionalStrategiesOperatingObjectivesOperatingMissionsOperatingStrategiesCorporate-Level Managers

اسلاید 16: General Motors Strategic Goal and Objectives

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اسلاید 18: GM Objective 2003Global ObjectivesIn 2003, GM established a global energy use reduction target of 10 percent and a global CO2 reduction target of 8 percent between 2000 and 2005 consistent with global goals for energy and water usage over this time period. The global energy use and CO2 targets have been met successfully.

اسلاید 19: General Motors Goal (2007)“ to take the lead in development and production of more fuel-efficient vehicles and the conversion to alternative power, such as electricity and hydrogen fuel cells, to power vehicles” , Larry Burns, vice president of research and development and strategic planning

اسلاید 20: GM’s GoalFuel Efficiency, Zero Emissions

اسلاید 21: Building Community CapitalEngaging employees and Facilities Improving Education Generating Public Interest GM Green Annual Report

اسلاید 22: GM Green Products

اسلاید 23: Bank One corporation (Nonfinancial strategic objective) To be one of the top three banking companies in terms of market share in all significant markets we serve

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اسلاید 26: 3M Corporation’s Financial and Strategic ObjectivesTo achieve annual growth in earnings per share of 10% or better, on averageA return on stockholders’ equity of 20-25%A return on capital employed of 27% or betterHave at least 30% of sales come from products introduced in the past four years

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اسلاید 28: A company exhibits strategic intent when it relentlessly pursues an ambitious strategic objective and concentrates its competitive actions and energies on achieving that objective!Concept of Strategic Intent

اسلاید 29: Nike’s Strategic Intent Nike’s strategic intent during the 1960s was to overtake Adidas (which connected nicely with Nike’s core purpose “to experience the emotion of competition, winning, and crushing competitors”).

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اسلاید 31: Honda’s Strategic Intent When Yamaha overtook Honda in the motorcycle market, Honda responded with a warlike strategic intent: Yamaha wotsubusu “we will crush, squash, slaughter Yamaha”