Objectives are set to convert the strategic vision into specific performance targets. The economic and competitive forces as well as internal capabilities of the company are considered while setting the objectives to make sure that they reflect the management’s aspiration for performance. Financial objectives are related with the financial targets the company aims to achieve like expected sales and profit margin. On the other hand, strategic objectives indicate the market position, competitive strength and future business prospects (Gamble, Petaraf, & Thompson, 2015). By going through the websites of the three companies as asked by the question, the following four objectives are identified for each company and classified as strategic and financial objective:
Home Depot
Home Depot is the world’s largest home improvement retailer founded in 1970 with which is now serving with 400,000 associates and 2,286 stores spread over USA, Canada and Mexico. It has more than 35,000 products in its store while more than one million products are available online. The company generated the revenue of $100.9 billion in 2017 (Home Depot, n.d.). The priorities of the company as per The Home Depot (2017) are:
1.Strategic: Enhance customer experience by leveraging its physical and digital assets and increase value returned to shareholders in the form of dividends and share repurchases.
2.Strategic: Position itself as "One Home Depot” by investing in stores, associates, interconnected customer experience, supply chain and delivery capabilities.
3.Financial: Generate sales revenue between the range of $114.7 billion and 119.8 billion by 2020.
4.Financial: Ensure operating margin and return on invested capital ranging from 14.4% to 15.0% and 36.4% to 39.6% respectively.
Avon
Avon, the company for women was founded in 1886. It stands for beauty, innovation and optimism. It has around 6 million independent sales representatives who sell the products of recognized brands that include ANEW, Avon Color, Avon Care, Skin-so-Soft and Advance Technique in more than 70 countries around the world (Avon, n.d.). The objectives of Avon includes:
1.Strategic: Achieve profitable, sustainable top line growth by focusing on representative experience and satisfaction through enhanced training, new sales initiatives programs, and better services and improved forecasting (Avon, 2018).
2.Strategic: Place digital at the center of all actions to drive future progress and enhance digital and e-commerce capabilities.
3.Financial: Improve financial resilience by strengthening balance sheet.
4.Financial: Resource most attractive markets to grow representative base by reinvesting $350 million (Avon, n.d.).
Yum Brands
Yum brand is the world’s largest restaurant company in terms of system units that includes KFC, Pizza Hut and Taco Bell. It serves in more than 140 countries with more than 45,000 restaurants and 1.5 million employees (Yum Brands, n.d.). Its objectives comprises of:
1.Strategic: Be the best in the world at building best restaurant brands and define a global company that feeds the world (AIFarhan, AIRasheed, AIAli, Mohammad, & AIMailem, 2013).
2.Strategic: Make right changes in the business to build an enduring foundation for long-term growth and increased return for stakeholders (Yum Brands, 2018).
3.Financial: Return $6.5 to $7 billion to shareholders in 2019 through dividends and share repurchases (Yum Brands, 2018).
4.Financial: Reduce capital expenditure to $100 by the end of 2019 and limit general and administrative cost to 1.7% of the system sales.
Gamble, J. E., Petaraf, M. A., & Thompson, A. A. (2015). Essentials of Strategic Management: The Quest for Competitive Advantage (Fourth ed.). New York: McGraw Hill Education.
The Home Depot. (2017, December 6). The Home Depot Updates Strategic Priorities; Confirms Fiscal Year 2017 Sales and Diluted Earnings-Per-Share Guidance; Outlines Long-Term Financial Targets; Announces Accelerated Business Investment Plan and $15 Billion Share Repurchase Authorization . Retrieved from News Releases: ir.homedepot.com/news-releases/201...
Objectives are set to convert the strategic vision into specific performance targets. The economic and competitive forces as well as internal capabilities of the company are considered while setting the objectives to make sure that they reflect the management’s aspiration for performance. Financial objectives are related with the financial targets the company aims to achieve like expected sales and profit margin. On the other hand, strategic objectives indicate the market position, competitive strength and future business prospects (Gamble, Petaraf, & Thompson, 2015). By going through the websites of the three companies as asked by the question, the following four objectives are identified for each company and classified as strategic and financial objective:
Home Depot
Home Depot is the world’s largest home improvement retailer founded in 1970 with which is now serving with 400,000 associates and 2,286 stores spread over USA, Canada and Mexico. It has more than 35,000 products in its store while more than one million products are available online. The company generated the revenue of $100.9 billion in 2017 (Home Depot, n.d.). The priorities of the company as per The Home Depot (2017) are:
1.Strategic: Enhance customer experience by leveraging its physical and digital assets and increase value returned to shareholders in the form of dividends and share repurchases.
2.Strategic: Position itself as "One Home Depot” by investing in stores, associates, interconnected customer experience, supply chain and delivery capabilities.
3.Financial: Generate sales revenue between the range of $114.7 billion and 119.8 billion by 2020.
4.Financial: Ensure operating margin and return on invested capital ranging from 14.4% to 15.0% and 36.4% to 39.6% respectively.
Avon
Avon, the company for women was founded in 1886. It stands for beauty, innovation and optimism. It has around 6 million independent sales representatives who sell the products of recognized brands that include ANEW, Avon Color, Avon Care, Skin-so-Soft and Advance Technique in more than 70 countries around the world (Avon, n.d.). The objectives of Avon includes:
1.Strategic: Achieve profitable, sustainable top line growth by focusing on representative experience and satisfaction through enhanced training, new sales initiatives programs, and better services and improved forecasting (Avon, 2018).
2.Strategic: Place digital at the center of all actions to drive future progress and enhance digital and e-commerce capabilities.
3.Financial: Improve financial resilience by strengthening balance sheet.
4.Financial: Resource most attractive markets to grow representative base by reinvesting $350 million (Avon, n.d.).
Yum Brands
Yum brand is the world’s largest restaurant company in terms of system units that includes KFC, Pizza Hut and Taco Bell. It serves in more than 140 countries with more than 45,000 restaurants and 1.5 million employees (Yum Brands, n.d.). Its objectives comprises of:
1.Strategic: Be the best in the world at building best restaurant brands and define a global company that feeds the world (AIFarhan, AIRasheed, AIAli, Mohammad, & AIMailem, 2013).
2.Strategic: Make right changes in the business to build an enduring foundation for long-term growth and increased return for stakeholders (Yum Brands, 2018).
3.Financial: Return $6.5 to $7 billion to shareholders in 2019 through dividends and share repurchases (Yum Brands, 2018).
4.Financial: Reduce capital expenditure to $100 by the end of 2019 and limit general and administrative cost to 1.7% of the system sales.
References
AIFarhan, F., AIRasheed, M., AIAli, L., Mohammad, L., & AIMailem, S. (2013). LinkedIn . Retrieved from slideshare.net/Falfarhan/yum-prese...
Avon. (2018, August 2). Avon Reports Second-Quarter 2018 Results . Retrieved from http://investor.avoncompany.com/file.aspx?IID=3009091&FID=394481307
Avon. (n.d.). About Avon . Retrieved from avoncompany.com/aboutavon/index.html
Avon. (n.d.). Investor . Retrieved from investor.avoncompany.com/interacti...
Gamble, J. E., Petaraf, M. A., & Thompson, A. A. (2015). Essentials of Strategic Management: The Quest for Competitive Advantage (Fourth ed.). New York: McGraw Hill Education.
Home Depot. (n.d.). About Us . Retrieved from corporate.homedepot.com/about
The Home Depot. (2017, December 6). The Home Depot Updates Strategic Priorities; Confirms Fiscal Year 2017 Sales and Diluted Earnings-Per-Share Guidance; Outlines Long-Term Financial Targets; Announces Accelerated Business Investment Plan and $15 Billion Share Repurchase Authorization . Retrieved from News Releases: ir.homedepot.com/news-releases/201...
Yum Brands. (2018). Annual Report 2017 . Retrieved from yum.com/annualreport/
Yum Brands. (n.d.). About . Retrieved from yum.com/company/