Strategic Vision: A section describing company's strategic vision. Performance target forecasting: A section shows performance targets EPS, ROE, credit rating, image rating year-end stock price -managers set years (assuming simulation continue).
Strategic vision and performance target forecasting
Our organization focuses on the distribution of our products and services within the utmost highest quality of standards. We not only employ the required standards, but we take one step ahead and fully satisfy the needs and wants of our customers. We envision ourselves as the leaders of the industry and the first choice of the customer base. In other words, the strategic vision can be enunciated as follows:
The company seeks to become the leader of the industry and the first choice of the customers. We aim to attain this organizational objective through the full satisfaction of the needs and wants of our stakeholders.
The strategic vision of the firm has a twofold feature. On the one hand, it states the company objective of becoming an industry leader. On the other hand, it reveals the strategic action which would be implemented in the attainment of this objective. Instead of simply focusing on the retail of our products and services, we will be striving to attain the company goals through the satisfaction of the needs and wants of as many stakeholder categories as possible. At the general level, these stakeholder categories refer to: the staff members, the customers, the business partners, the purveyors, the general public and the non-profit and governmental agencies and institutions.
At the level of the staff members, emphasis is placed on the creation of a family like working environment in which the firm focuses on the personal and professional development of all individuals. At the level of the customers, emphasis is placed on the quality of the products and services, as well as on the commitment to enhance the customer experience. At the level of the share owners, the emphasis is placed on the creation of value for the investments made by the share holders. At the level of the general public, the focus falls on the organizational commitment to operate in a socially and environmentally responsible manner.
In order to accomplish its vision, the firm acts and decides in accordance to the following philosophies:
Honesty
Integrity
General well-being
Environmental responsibility
Social well-being
Respect for everything that surrounds us.
In terms of actual projections, these refer to financial estimations of five important financial figures, namely:
Earnings per share
Return on equity
Credit rating
Image rating and Stock price.
The table below reveals the current figures as well as the projections for the following two years.
2010
2011
2012
Earnings per share
0.05
0.10
0.20*
Return on equity
0.07
0.11
0.22**
Credit rating
Low
Medium
Medium
Image rating
Low
Medium
Medium
Stock price
$1.00
$1.50
$1.75
* The increase in the EPS is expected to lead to a total value of 0.2 in 2012, indicating as such a substantial increase in organizational profitability.
** The return on equity is expected to follow the same ascendant trend as the earnings per share and the 2012 value would also reveal a significant increase in organizational profitability as the shareholder investments are able to generate more money. Despite the fact that the figures are still low, they are explained by the fact that the firm is a startup and still encounters high expenditures. Nevertheless, the figures indicate sustained growth and as such positive prospects.
References:
Bose, D.C., 2006, Fundamentals of financial management, PHI Learning Pvt. Ltd.
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