Charting a Company’s Direction Generate Vision and Mission (Ch. 2) Set Objectives to Achieve Vision (CH. 2) Develop Strategy to Achieve Objectives – Evaluate company’s external situation (Ch. 3) – Evaluate company’s internal situation (Ch. 4) – Identify strategic options (Ch. 5) – Evaluate options and choose one or more (Chs. 5 & 6) Execute Strategy (Chs. 10 & 11) Monitor Progress / Performance and Adjust

Vision Vision: describes where the company is going in the future. – Distinctive to company and specific (not generic) – Give direction to employees – Samsung Electronics Through innovative, reliable products and services; talented people; a responsible approach to business and global citizenship; and collaboration with our partners and customers, Samsung is taking the world in imaginative new directions. – Burger King Burger King aims to be the most profitable QSR business, through a strong franchise system and great people, serving the best burgers in the world.

Mission – Describes present business and purpose Identify products/services Identify customer/market served

Mission Trader Joe’s mission – The mission of Trader Joe’s is to give our customers the best food and beverage values that they can find anywhere and to provide them with the information required for informed buying decisions. – We provide these with a dedication to the highest quality of customer satisfaction delivered with a sense of warmth, friendliness, fun, individual pride, and company spirit. OSHA – To assure the safety and health of America’s workers by setting and enforcing standards; providing training, outreach and education; establishing partnerships; and encouraging continual improvement in workplace safety and health.

Objectives Objectives measure the company’s performance progress toward vision. Should be a balance of: – Financial objectives (profitability, financial/investor attractiveness) – Strategic objectives (market standing, competitive position) Should be specific and measurable. Should be set at all organizational levels.

Objectives Yum! Brands (KFC, Pizza Hut, Taco Bell) – Increase emerging markets operating profits from 48% to 57% in 2015 – Open 100 new Taco Bell units in 2015 – Increase number of KFC units in Africa from 65 to 2,100 in 2020 Pepsico – Improve water use efficiency by 20% per unit of production by 2015 – Reduce total packaging weight by 350 million pounds

Strategy Strategy articulates how the company will act to achieve the objectives. Strategic action plan cascades through all company levels: – Corporate – determine markets, diversification – Business unit – support corporate objectives – Functional area – production, marketing, R&D, etc. – Operational – brand management, quality control, etc.

Strategy Execution See Walmart 2015 talk to investors. – pgs. 11 and 18 See Walmart 2015 talk to investors. Target Corp Plans to Transform Business – Which are strategic objectives and which are financial objectives?