Mission Statement Our mission is to provide a wide range of quality products to our customers. We will accomplish our mission by assessing our products for adequacy, effectiveness, and efficiency, using innovative technology. Through review of the company’s processes for planning and objective setting and for risk management, internal control, and governance over the attainment of these objectives, our employees will give constructive input toward improved processes and operations. We will maintain a dynamic, team oriented environment that encourages personal and professional growth, and challenges and rewards our employees for excelling and reaching their full potential.
Vision Statement Our vision statement is to provide the highest quality products and services that consistently meet customers’ expectations and our competitors’ capabilities while continuously improving our manufacturing process. Increase customer awareness by 20 percent for the next 5 years. Increase customer accessibility by 30 percent within the next 5 years. Reduce our emergency loans completely and increase our profit margin.
StrategyThe strategy that we have used over the past 8years has been to constantly change the size,performance, and styles of our products to keepthose products new in our customer’s eyes. WEonly have a few different products but we workhard to keep these products at a level of qualitythat meets our customers needs. Revising theseproducts and never letting them get outdated. Wenever let our age of revision be more than 2 years.For our industry to be successful in the long runwe are also minimizing our variable costs andraising our contribution margin.
What we learned• Analyse the market and its competing products• Create and execute a strategy• Coordinate company activities• The importance of the balanced scorecard• The market has different segments with different expectations.
Customer ExpectationOur customers always want perfection,but it is impractical to have “perfect”products. In many cases we had tosettle for “great” products, but thebetter the products, the higher thecosts. Our task was to give customersgreat products while still making aprofit.
Price Expectations• Each segment of customers have different price expectations. One segment might want inexpensive products while another, seeking advanced technology, might be willing to pay higher prices.• Customers wanting better technology prefer newer products. The ideal ages for these market segments are generally less than two years. Other segments prefer proven technology. These segments seek older designs.
Age expectationsAge plays an important role in the market:Each segment has different ageexpectations, that is, the length of timesince the product was invented or revised.Some customers might want brand-newtechnology while other customers mightprefer proven technology that has been inthe market for a few years.
Emergency LoansEmergency Loans are often encountered whenlast year’s sales forecasts were higher thanactual sales or when the Finance Departmentfailed to raise funds needed for expenditures likecapacity and automation purchases. We willeliminate Emergency loans by using our lastyear’s sales forecasts and making an exactestimate of the following year sales.
TrainingWe will invest as much as possible in training ouremployees in order to increase our productivityand have a lower turnover. This will favor ourcompany’s profits. We use the exact complementto ensure that we do not put our employees intoovertime and also make as many products as wecan at the level of quality of our customersdesire. Because we invest so much money intraining our employees, our turnover rates arevery low, in fact, the lowest in the market, onaverage, over the past 8 years.
How we plan to enhance yourinvestment over the next 5 years• Acquiring the capital needed to expand assets, particularly plant and equipment, in order to be able to raise our production levels and increase our sales.• Selecting and monitoring performance measures that support our strategy.• Setting accounts payable policy and accounts receivable policy to be able to determine the number of days between transactions and payments.• Driving the financial structure of the firm and its relationship between debt and equity.
Thank youWe would like to thank you for the opportunityto work with your company for the past 8years. It has been a wonderful, enrichingexperience, and if you allow us to stay andwork with your company over the course ofthe next 5 years, we guarantee we will not letyou down.