Recognizing Opportunity to Meet Strategic Goals
Developments
in the past several decades have offered advanced technology, research, and
proven theories as to the direct impact corporate operations have on behavior,
the environment, and financial measures. The “bottom line” is now an antiquated
concept in its isolated form. Today, we
recognize the multitude of variables affecting fiscal performance and find
non-financial measures valuable tools in assessing procedures and practices
within an organization. As the evolution
of business concepts awakens our ability to lead, it feeds an improved approach
to dynamic goals and strategies. The following five artifacts demonstrate the
importance of developing shared goals for an organization’s financial and
non-financial measurements, policies, and practices to meet strategic plans.
Reflection
My first artifact, Starbucks,
demonstrates one company’s ability to responsibly survive in an ailing economy.
Despite closing 6.5% of its stores in 2009, Starbucks Inc. used resources to
improve customer service, lean operations, provide quality leadership, and
innovate new products and services to customers. Additionally, customer loyalty
cards, branded coffee machines, and a hot-tea expansion validated Starbucks’
commitment to its customers (Starbucks, 2011). The organization found that
improving the products and operations had a direct effect on brand loyalty, and
ultimately its bottom line. This artifact substantiates a well-rounded approach
to strategic goals. Starbucks’ ethical sourcing and resource conservation proves
its dedication to the environment while its customer loyalty programs,
quarterly dividends, and innovative products demonstrate a commitment to
stakeholders. Ultimately, Starbucks’ record-high revenues, earnings per share,
and cash flow solidify stable financial performance. As its financial and
non-financial performance came to fruition, Starbucks can credit its shared
goals for enhanced practices and policies.
Starbucks’ achievement proves the importance of considering the many
variables that ultimately contribute to financial success.
starbucks.docx | |
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My
second artifact, Strategy in Government Contracting, reflects the importance in
aligning practices and procedures with the organization’s strategic
approach. It is especially important for
a company to clearly define shared goals for strategy when undergoing change or
direction within a department, a project, or the organization as a whole. This
artifact illustrates one Government Contractor’s ability to establish strategic
objectives for short-term and long-term projects while attempting to position
the company in new industries. Further, it explains how financial and
non-financial measures offer equal importance due to established regulations
based on Government need. Through
partnerships, joint ventures, and qualifications through the Small Business
Administration, the company is able to capitalize on opportunity to broaden
their customer base and market share. This vitally applicable business practice
not only demonstrates the importance of quality business relationships and
social responsibility but is also a great lesson in proactive planning. This
artifact is a wonderful example of how carefully executed methods of employing
financial and non-financial measures can maximize strategic success. I am very
blessed to not only be a valued member of this organization but also get the
opportunity to have a direct impact on performance.
strategy_in_government_contracting.docx | |
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My
third artifact, Kicks’ Winning Strategy, demonstrates my own mastery knowledge
of strategic approached gained through a simulated competition against three
other companies (comprised of our classmates). Together with my business
partner, Joshua Parson, Kicks Athletic Shoes was able to develop a successful
strategy employing basic business principles: allocate financial resources to
revenue-driving activities. While we
credit our world-wide success and awards to expanding our business early, there
were several financial and non-financial measures our company took to growth
our wealth and market share. By ensuring our employees were well-trained and
competitively compensated, our retention rates increased, production reject
rates decreased, and employees were well incentivized to yield quality athletic
shoes. We also found value in corporate social responsibility initiatives such
as charitable giving, ethical sourcing, and “greener” programs as they had a
direct impact on our reported image ratings.
Stock repurchasing, retailer support, paid dividends, and inventory
levels played additional roles in our company’s financial success. This was a
fantastic learning opportunity that offered real-world application of shared
goals toward strategic achievement. Not only did our company win the overall
simulation amongst our classmates, but we also won awards amongst MBA players
of the Business Simulation Game worldwide.
winning_strategy.docx | |
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My
fourth and fifth artifacts, Sarbanes-Oxley Act and Capital Structure, exhibit
the significance of managing financial aspects and measures within every
organization. Despite the important role non-financial processes play in
production performance, legal and structured financial policy cannot be
overlooked. The Sarbanes-Oxley Act artifact outlines the historical instigation
of the Act while addressing the foundational articles and guidelines within.
Cultivated from economic turmoil, the Sarbanes-Oxley Act was passed in order to
prevent and control future corporate corruption. This bill was vital to
restoring the public trust and rebuilding the country’s economic health
(Independent Sector, 2012). Today, the
Act has contributed to regulating accounting firms, accountants, auditors, and others
involved in accounting for the purpose of financial reporting. The artifact,
Capital Structure, attempts to address the importance of balancing corporate
debt and equity. While some experts suggest that the proportions of capital
structure are irrelevant and have no weight on profitability, others suggest
that there is a trade-off to leveraging capital (Surowiecki, 2009). As I
learned in the Business Simulation Game (summarized in artifact three), the
most important aspect to capital structure lies within the activity of the
resources. Using borrowed funds to create a tax shield is advantageous, as the low
fixed costs and tax deductions of debt are attractive to corporations.
Compiling money in a liquefiable cash account may offer opportunities to finance
through equity but accompanies high costs and increased investor demand.
Ultimately, there is no single capital structure that is optimal for every
corporation. Financial managers should
be prepared to modify and update their firm’s balance of debt and equity. These
two artifacts represent two vital key concepts in strategic financial approach.
As I venture into my own businesses and investments, the information gained will be
advantageous to my own financial success. Employing a balance of debt and
equity will serve my business well while clearly understanding the implications
of the Sarbanes Oxley Act will drive me to hire a licensed professional!
sarbanes-oxley_act.docx | |
File Size: | 29 kb |
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capital_structure.docx | |
File Size: | 24 kb |
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Future Learning Goals
Much
of knowledge gained from this outcome is applicable in both my corporate and personal
life. Recognizing the importance of financial and non-financial measures in a
strategic approach will becoming increasing significant as I gain
responsibilities in my professional career and expand my own business
initiatives. Specifically, a shift in mind-set in regards to acquiring debt as
an asset will be particularly advantageous. But most importantly, I would like
to apply my knowledge gained for the implications of non-financial measures and
their direct impact of corporate performance in my current position as a
Proposal Manager in Government contracting. This information will be invaluable
to not only the Proposals that I draft but also the management, staffing,
compensation, and transition plans I recommend. In the service industry,
retention is as vital as production. Thus, non-financial measures such as
training, benefits, and incentives play a major role in our strategic success.
References
Independent
Sector. (2012). Sarbanes-Oxley Act and Implications for Nonprofits. Retrieved
from http://www.independentsector.org/sarbanes_oxley
Starbucks. (2011). Starbucks Corporation: Fiscal 2010 Annual Report. Retrieved from
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual
Surowiecki, J. (2009). The debt economy. The New Yorker. Retrieved from
http://www.newyorker.com/talk/financial/2009/11/23/091123ta_talk_surowiecki
from http://www.independentsector.org/sarbanes_oxley
Starbucks. (2011). Starbucks Corporation: Fiscal 2010 Annual Report. Retrieved from
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual
Surowiecki, J. (2009). The debt economy. The New Yorker. Retrieved from
http://www.newyorker.com/talk/financial/2009/11/23/091123ta_talk_surowiecki