Strategic objectives are the things that organizations or companies must achieve in order to stay competitive, improve or handle a major change in the present or future (DeThomas & Grensing-Pophal, 2001).
Basically strategic objectives are meant to ensure that an organization stays focused on its desired direction. One might argue that the mission and vision statements of a company suffice to give to focus. However those statements tend to be broad focused hence the need for objectives, which typically are Specific Measurable, Attainable, Realistic and Time framed. (DeThomas & Grensing-Pophal, 2001). This is what is normally termed as SMART objectives. The strategic objectives of an organization make the mission statements operational by charting out the way the organization will achieve its goals.
That said it is important to note that strategic objectives will be time framed mainly in three distinct time schedules i.e. long term, middle term and short term objectives. Moving away from that brief explanation of strategic objectives and their purposes, this paper focuses on setting the strategic objectives of Able corporations in its intention to penetrate the global market place.
This presentation will discuss the strategic initiatives of the corporation in the duration of 1 to 10 years strategic objectives.Brief background of Able Corporation.Able Corporation, located in Tennessee, US is a successful manufacturing company that deals in manufacture of lawn mowers, future, power tools among others. These products are locally produced and are chiefly sold to huge retailers such as sears, home Depot, Wal-Mart and Best buy. Its main marketing technique is the sale papers which are inserted in every Wednesday and Sunday Newspaper highlighting best bargains for the day. This has ensured that it enjoys thriving business in the US and Canada.
However, it is time the company broke into other global markets so as grow and sustain its competitive edge. In that regard the first step before Able Corporation should take, is to draw up strategic objectives and present them to the strategic offers steering committees from the patient company (Walden international Inc) so that with their consent they can launch a full blown business plan, for taping into the global market.Corporate levelStrategic objectives 1: To achieve annual revenue of $2.5 billion and profit margins of at least $65milion by the year 2017.The objective will ensure that the company has intensifies its efforts so as to meet the targeted profit margins if the company can attain this targets sustainable for two or three years then it will have sufficient capital to spread not only in United States but also ot the European markets. This means that all the organizations functions have to be directed towards achieving these goals. For example the production, sale and marketing human resources, financial, public relations among others. Their input at varying degrees contributes to cumulating the profits for the company.
Strategic objective 2: To be the most preferred company for investors by increase earning per unit share by at least 10% yearly by 2017 and the subsequent yearsThis objective will affect the functions of all departments in terms of requiring high performance from each worker. In order to do this then Able corporation will emphasis on performance centered appraisal of workers which in turn will increase the profits of the company. This will reflect in the increased shareholder value.Functional level.Strategic objective 2: To increase brand awareness by 35% in the new global markets by the year end of 2008.This awareness will be achievable at the onset of the business since the company is well known in the US and Canada.
Out marketing strategies will be more focused on penetrative approach and curving a market niche enough to sustain the company in the first few months. Afterwards the company will increase the target objective for brand awareness to up to double the initial target. Primarily the marketing team will have to intensify its marketing strategies to incorporate market segmentation and strengths and weakness analysis and so on.
Strategic objective 2: To reduce the cost of production and number of faulty or damaged products through the approach of total quality management and cost containment approaches.This strategic objective will ensure that the number of faulty products leaving the factory is kept at zero. This is because faulty products tarnishes the loyalty of customers to a brand which is detrimental to the company especially when entering new markets.Operational levelStrategic objectives 1: To increase profit margin by 5% while also increasing the market share by 12% by June 2008These two objectives will go hand in hand and root from the rationale that the bigger the market share the bigger the profit. This means that the resources aligned or deployed to facilitate increased market share, say more advertising and promotions will be constrained with the objective of making profit. This introduces an element of how low Able Corporation will go to facilitating the achievement of the two objectives. A SWOT analysis in the business plan will detail all the intricacies of how to go about maintaining the 5% profit margin and attaining the 12% increased market share.
Strategic objective 2: To improve customer satisfaction in the new target market hence capture market base of 5%.This objective will necessitate changes and improvement in the internal processes and relationship with customers. The implication will be that enhanced technologies for marketing save for the sale paper will need to be developed. These technologies for marketing save for the sale paper will need to be developed.
These technologies will foster creative and innovative ways of thinking and marketing. Additionally, it will mean employment of new tactics such as customer relationship management, business intelligence, and increased product enhancement ideas and so on. If these tactics are implemented at the operational level then they will create greater satisfaction and loyalty in customers as well as improve brand imagesBusiness levelStrategic objective 1: To enter into partnership with at least 5 major retailers stores in each global market in the entry point of each marketThis will ensure that the company after producing its products has a place to sell them. This major retail stores will ensure that many customers are reached. The stores will also have the capacity of display the products comfortably without constraints of limited space and so on.Strategic objective 2: To reduce the pricing of our products so that the can be competitive in the global market.This objective will ensure that all the factors that lead to increased overall price of a product say excess labor, expensive production technologies, distribution channels and so on are reduced significantly.ConclusionThe strategic objectives of the company will basically guide the company in the areas they target in reaching the goal of the company and that is to expand into other global markets.