...Strategic Initiative FIN 370 September 9, 2013 Louis Wallen Strategic Initiative IBM has played a strong and significant technological role in shaping the world in interconnection, intelligence, and new instruments. The information technology industry is highly competitive and the need for strategic initiative planning is an essential element for the organization to continue to prosper and remain an industry leader. According to IBM’s annual report one of the strategic plans is Smarter Computing designed for Big Data (IBM, 2012). IBM has committed to reshape their investments and lead the market in strategies to accomplish this strategic initiative. IBM states in their annual report that “Every two days, as much data is now generated as in all of human history up to 2003” (IBM, 2012, p. 5). Smarter Computing encompasses software-defined environments to handle the vast amounts of information housed through data centers. The infrastructure will be programmable and have individual systems capabilities as the first round of this strategic plan. This portion of IBM’s strategic plan will transform businesses and civilization giving the precise technology and correct capabilities to all aspects of organizational operations. IBM has a commitment to financial planning, sales examination, cost analysis, funding options, and has weighted the risks and the potential impact to the company in Smarter Computing strategic planning. IBM is an organization...
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...Strategic Initiative Short-term liquidity and long-term profitability are essential objectives for a successful business. The modest beginnings and impressive 50-year growth of Walmart Stores, Inc. are an example of such practice. Walmart Stores, Inc. reflects decades of continued positive return for investors in its annual report and presents a five-tiered strategic plan. The Walmart Store, Inc. 2012 Annual Report lists these initiatives as ―1) Developing our people; 2) Driving the productivity loop; 3) Winning in Global ecommerce; 4) Reinvigorating our customer-focused culture; and 5) Leading on social and environmental issues (p. 3). This essay will focus on two initiatives driving the productivity loop and reinvigorating our customer-focused culture. These two initiatives are tied to short-term and long-term financial concerns, and expansion strategies. The following details the organization’s financial planning surrounding the initiatives, the risks involved in the ideas, and the effect on revenues and expenses. Driving the Productivity Loop With strategic planning the team determines where to spend money for expansion, cut costs to reduces expenses, and invest profit for sustainably. Supporting this framework is the short-term and long-term financial plans a successful business needs to operate. According to Titman, Keown, and Martin (2011), the primary objective of both short- and long-range financial planning is the estimation of the firm’s future financing needs (p...
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...Strategic Initiative FIN/370 Finance for Business Strategic Initiative Microsoft like many other organization have developed a very strong systemic approach in order to achieve success. This systemic approach incorporates strategic planning with financial planning so that goals associated with these types of planning can help to strengthen operations, control the net value of the organization to stay in line with meeting profit goals, setting priorities to meet expectations, and ensuring that employees from the CEO downwards including the stakeholders are all working towards to help the company meet both their long-term financial obligations as well as short-term financial obligations. In this paper we will be describe how the relationship between strategic and financial planning can help Microsoft meet business needs while focusing on the needs of their customer wants. STRATEGIC PLANNING INITIATIVES AFFECTING FINANCIAL PLANNING There are several things that Microsoft must do in order to stay afloat and grow within itself. When it comes to the market price Microsoft does have to lower their prices this is mainly because their our other competitors that have come out with similar product and order to beat them and draw more business they need to lower the process. Besides the market price there are other things that can cause a decrease such as sales, volunteer’s price reduction, operating cost, advertisement, sales incentives. Also with the decrease it can cause lower...
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...Starbucks: Strategic Plans for the Future Strategic planning is the roadmap for an organization which indicates who the company is, what they do, who the customers and competition is and where the company expects to be over time. Financial planning is where the company forecasts the company’s assets and liabilities over a period of time. Starbucks financial plan consists of long term and short term investments. As mentioned in the annual report these investments are in the form of debt securities and are classified as available for sale. The securities for maturity of less than one year are used to fund operations and are considered short term. All other securities are considered long term. Starbucks has recently put a strategic plan in place as mentioned in the annual report, “Two years ago, we embarked on a strategic plan, the Blueprint for Profitable Growth, in which we would leverage multiple channels of distribution. I am proud to affirm that it is no longer theory but a true growth engine. The measure of our success can be seen in the past year’s performance.” (SBUX 2012 Annual Report Final, 2013). Starbucks lists three actions that drives their decisions and actions; keeping their commitment to their core coffee business, relative, timely innovation and continuing to honor their values. In 2011, Starbucks purchased the outstanding shares of Evolution Fresh as a completion of a strategic initiative. As indicated with any acquisition there is associated risk such as...
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...Strategic Initiative: General Motors Company FIN/370 1/26/2015 David Tucker The General Motors Company (GMC) made history in 2013. This reflected a major advancement on every part of the vehicle that was intended to make them more durable while still reflecting the goal to earn a reasonable profit. The goal was to work on the balance sheets, have solid earnings, and make huge investments. The company focused on the customer’s needs, demands, and desires, this increased focus will have an impact over years to come. The world is changing on a daily basis and GM is striving to meet the needs of the consumers. The goal for the future is to keep making improvements on things such as design and innovation. Annual Report These initiatives are explained further in the company’s annual report. The annual report is a way for shareholders to receive important documents and information about the business. This report includes research and development, marketing information, financial reports, and subsidiary activity for all new future plans. Each company is required to send an annual report to the shareholders to keep them abreast of the company’s current status and future goals. The most important rule is the proxy, which companies post to their homepage and the regular annual report. This report is on the Form 10-k that contains all of the company’s financial information and statements and provide the shareholders with most accurate details for...
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...Sample Starbucks Strategic Initiative In this paper, Team C will describe the relationship between strategic planning and financial planning for Starbucks Corporation. The first topic covers Starbucks strategic planning initiative and identifies a strategic initiative discussed in the organization’s annual report; from this report Team C will describe how this initiative affects Starbucks financial planning. Team C will break down and address how Starbucks initiative directly affects costs and the sales of the company’s financial plan. The final section will describe the risks associated with the initiative and the financial impact that these risks have on Starbucks. Strategic Planning Initiative Strategic initiatives are strategies outlined by an organization to achieve the goals and objectives outlined in the strategic plan. The Starbucks Corporation is one organization striving to improve the commitment of upholding and achieving organizational missions and goals. Starbucks is “committed to ethically sourcing and roasting the highest quality Arabica coffee in the world” (Starbucks Corporation, 2012, para.1). Starbucks’ mission is “to inspire and nurture the human spirit – one person, on cup, and one neighborhood at a time” ) Starbucks Corporation, 2012, para. 1). Guiding principles within the strategic plan of Starbucks ensure high quality products, ethical treatment of partners and customers, and inviting and positive neighborhood and store environment that will...
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...Importance of Strategic Initiatives Companies that have experienced success and wish to continue to do so proactively spend significant amounts of time and resources developing annual strategic plans and initiatives. Wal-Mart has become a well-known household name over the span of 50 plus years and continues to grow domestically and globally. The purpose of strategic planning initiatives within organizations much like Wal-Mart is to identify current and future markets, new trends, growth opportunities, potential earning opportunities, and overall opportunities for improvement. A well constructed strategic initiative could greatly influence and identify factors such as future source talent and logistical planning and preparation. Wal-Mart’s Strategic Planning Initiatives Save Money. Live Better; Win, Play, Show; and Fast, Friendly, and Clean. These are the initiatives that Wal-Mart introduced in early 2009 in hopes to ensure continuous success as an industry leader. In short, the initiatives were also dubbed “Project Impact” ("Wal-Mart's Strategic Initiatives", 2013). The objective of the initiatives Wal-Mart developed revolved considerably around customer satisfaction and the effects the economy has had on consumers. The idea was to ensure the return of customers as the economy improves. Research indicated that many of Wal-Mart’s customers have moved-on to newer retail chains such as Target over the last ten years. According to "Wal-Mart's Strategic Initiatives" (2013),...
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...Strategic Initiative Paper student FIN/370 Finance for Business teacher May 1, 2012 Introduction Strategic planning is the compass an organization requires to stay on the path toward successfully reaching their goals and objectives. It is paramount that businesses assess all critical areas such as management, sales, marketing, and finances with long-term health in mind. Tactical plans can be devised with the strategic plan as the guiding force. The allocation of resources, or financial planning, is what helps an organization realize its goals and achieve success. Wal-Mart successfully has accomplished this task year over year. In just under 50 years, one store has grown into an economic force. “Wal-Mart was built on the foundation of saving people money so they can live better. This mission has allowed the company to grow to more than 8,400 stores in 15 countries around the world” (Wal-Mart, 2010, p. 2). Strategic Planning Initiative Strategic planning initiatives for Wal-Mart are numerous for an organization of its size. It has initiatives that include sustainability with a commitment to reduce the greenhouse gas emissions, community involvement as well as global expansion. The organization has a global reach that has spread cost-effective, clean technologies around the world. This allows Wal-Mart to share its best practices in environmental design across all its markets. Wal-Mart’s United States, International organizations...
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...Strategic Initiative Strategic planning is used by organizations to define the strategies and direction of the organization. Strategic planning is also used to make decisions for organizations like the allocation of resources and financial investments. The main purpose of strategic planning is to convey and organization’s purpose and to set long-term and short-term goals. There are different types strategic planning techniques like SWOT analysis, STEER analysis, and PEST analysis. Financial planning is influenced by and related to strategic planning. This research paper will address the relationship between strategic planning and financial planning by addressing Starbucks’ strategic planning initiative, how it affects financial planning such as costs and sales, and the risks associated with strategic initiative. Starbucks’ Strategic Planning Initiative On July 1, 2008, the Starbucks Corporation announced the next step in its multi-faceted plan to transform the company (Starbucks, 2008). This plan was to close approximately 600 underperforming company-operated stores in the U.S. market (Starbucks, 2008). The decision to close these stores was a result of a rigorous evaluation of the U.S. company-operated store portfolio and included the 100 stores targeted for closure in the company’s previously announced plans (Starbucks, 2008). In addition to the closures, Starbucks expected to open fewer than 200 new U.S. company-operated stores in fiscal year 2009 (Starbucks, 2008)...
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...Strategic Initiative By: Instructor: FIN/370 Strategic Initiative Strategic planning is the focus of an organization’s plan for the upcoming year. According to “All About Strategic Planning” (2013), the plan depends on the organization’s leadership, culture, environment, size, and expertise of its planners. As the largest developer of operating systems and other technology products, Microsoft’s vision of cloud computing, a unique computing system that no other company is working on will enable the organization to meet its goal. Current Strategic Planning Initiative The 2012 fiscal year was a very big year for the Microsoft Corporation. There were several accomplishments made throughout the past year. Revenue grew to 73.7 billion dollars. Cash flow from operations increased 17% from the prior year to 31.6 billion dollars. 10.7 billion dollars was also returned to shareholders from dividends and stock buybacks. Microsoft continues to transform itself into a “devices and services company.” This goal effects how the company’s new products and experiences are marketed for both consumers and businesses. Devices with end-user services continue to be a focus for the Microsoft Corporation. There are over 1.3 billion Microsoft users all over the world. Microsoft wants to continue to provide continued convenient access to the Microsoft world with various different devices. One of the primary focuses for the upcoming year is the new Windows 8 operating system...
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...Strategic Initiative Paper "Disney" Marquita Lacy-Polk, Diana Dorsey, Kim Jenkins, Joshua Snooks FIN/370 January 29, 2014 Strategic Initiative Paper "Disney" Disney has grown exponentially to become a household name and a global leader in the industry of family entertainment. Shortly after as a small cartoon company, Ellas Disney, founder of Walt Disney grew the Disney Corporation into something that no one could have imagined. Ellas Disney was always known for his innovation and abilities and still reminiscent today as it was in the 1920s. The company attributes are a majority of and to the success that they have built. In order for organizations to be successful and to survive requires planning for the future, with creative ideas and motivated personnel with an open mind and a strong drive. Two essential business functions are financial and strategic planning, with the great success that Walt Disney has accomplished, then till now there are still financial impacts and risks that still should be considered when making certain decisions when it comes to the company. In this paper our team will be discussing in more detail the current strategic initiatives and the possible new initiatives that Disney has in play, along with the financial impacts and the risk of putting those decisions into effect. The Walt Disney’s annual reports are very important when it comes to strategic and financial planning because it provides a variety of financial information which is helpful...
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...WEEK 5 –DQ STRATEGIC INITIATIVES A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer requests (Chapora, S. & Meindl, P. 2013 P1). In order to meet customer demands efficiently management use strategic initiatives. These strategic initiative have a common goal which is to achieve long term competitive leverage but with each initiative having a different focus to attain that goal. The following are the strategic initiatives: EFFICIENT CONSUMER RESPONSE (ECR) ECR dates from as far back as the early 1990s when it was started; it was mainly designed to have an efficient response to the demand of consumers for grocery products. The main focus of improvement for ECR is on demand, supply, enabling technology and integration. All the parties involved in the supply chain follow the ECR initiative to analyze the market so as to understand the consumer demands and eventually come up with the most effective way to respond to these demands. Furthermore, the supply management monitor stocks and work at coming up with the most responsive method of replenishment. JIT/LEAN SYSTEM JIT was originally called Toyota Production System and it is associated with Japanese management techniques. JIT aims at eliminating waste by brining a product when is needed to satisfy a need. With JIT organizations aim at keeping little or no inventory except for what is required to satisfy a need. Lean is a westernized version of JIT as it aims at measuring...
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...Strategic initiatives can be defined as the means through which a vision is translated into practice and are collections of finite – duration discretionary projects and programs, outside of the organization’s day – to – day operational activities, which are designed to help the organization achieve its targeted performance (en.wikipedia.org). The strategic initiatives from our list include the following: 1. Efficient Consumer Response (ECR): Lean Manufacturing Japan (2008) stated that ECR “is a strategy to increase the level of services to consumers through the close cooperation among retailers, wholesalers and manufacturers. Lean Manufacturing Japan (2008), also stated that “ECR reduces the opportunity loss, inventory level, and entire cost, increases monetary profitability by sharing the purpose of customer satisfaction. 2. Just – in – Time (JIT): simply means getting the right quantity of goods at the right place and right time and it originated from Japan after World War II by Toyota Motor Company (Reid & Sanders, 2007). There are three elements of JIT which are: Just in time manufacturing, Total Quality Management and Respect for people. 3. Lean System: Also known as Just – in – Time. Lean simply means the elimination of waste, with perfect quantity to meet demand instantaneously. Lean has four elements which are: Customer focus, synchronized flow, behavior and waste elimination (Slack &Lewis, 2011). Lean operations help to reduce cost, gives higher quality, reduce lead...
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...William J Spivey Discussion Board 4 Strategic Management Strategic Initiative In this report we are going to talk about General Motors (GM) and what they have to offer to the commitment to the environment. First let look at what is GM where did they come from, GM was Found in 1908 By a William Durant, he build a company for horse-drawn vehicles to moving to the automobile industry. This is more then 100 years, in automotive care in the history of this come. (GENERAL MOTORS, 2013) When comes to the GM commitment to the environment, they have may many changes to make changes to the environment. Back in 1994 they have make significant improvement to reduce it factory emission, GM made a environmental Pledge to endorsing the “Ceres Principles” this was a tem point code of corporate environmental conduct. The Boston-based Ceres is a coalition of investor groups, representing over $300 billion in invested capital, and major U.S. environmental organizations, aligning financial and environmental interests. (Fleming, 2002) With GM Environmental and Ceres Principles describe goals for protecting human health, natural resources, and the global environment. With both of these come they are required to disclose the information on environmental impact and progress in al annual report. GM have increased the recycled content used in it vehicles they are increased the recyclability of it vehicles, they have also increased vehicle fuel economy model. "GM has shown, historically, its commitment...
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...Strategic Initiative Paper A major part of a company’s success is planning. A business needs effective strategic planning to remain competitive and grow financially. For a company to reach its full financial potential, a planning process must exist. Strategic planning serves as the roadmap for a company’s financial efficiency. Wal-Mart developed the strategic planning initiative of Every Day Low Price (EDLP), which prices it products at low, affordable prices. Wal-Mart’s strategic planning has made the store one of the best known organizations and industry leaders in low prices. The strategic planning initiative effects costs and the sales within the organization that can also create risks; however, if managed effectively can make the discount giant even more profitable. Strategic Planning Initiative, Financial Planning Wal-Mart has grown from modest beginnings to become one of the most recognizable store chains in the world by operating almost 11,000 stores in 27 countries with more than two million employees (Wal-Mart, 2012). With such a large, well-known organization the company strives to remain competitive within a global market. To succeed, the company used strategic planning to identify an aggressive strategy within their 2012 annual report. Wal-Mart management entitled the strategy“Delivering Everyday Low Price (EDLP). According to Wal-Mart’s 2012 annual report, the EDLP strategy represents an essential component of its message of delivering the lowest prices...
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