Identification of the best and the worst examples

1. Please review the following company vision statement and identify the best and the worst examples. Use the characteristics of vision statement as your guideline. Briefly explain why you selected each of the options.
 
Red Hat- To extend our position as the most trusted Linux and open source provider to the enterprise. We intend to grow the market for Linux through a complete range of enterprise Red Hat Linux software, a powerful Internet management platform, and associated support and services.
 
Wells Fargo- We want to satisfy all of our customer’s financial needs, help them succeed financially, be the premier provider of financial services in every one of our markets, and be known as one of America’s great companies.
 
Hilton Hotels corporation- Our vision is to be the first choice of the world’s travelers. Hilton intends to build on the rich heritage and strength of our brands by:
-Consistently delighting our customers
-Investing in our team members
-Delivering innovative products and services
-Continuously improving performance
-Increasing shareholder value
-Creating a culture of pride
-Strengthening the loyalty of our constituents
 
The Dental Product Division of 3M Corporation- Become THE supplier of choice to the global dental professional markets, providing world-class quality and innovative products. [Note: All employees of the division wear badges bearing these words, and whenever a new product or business procedure is being considered, management asks “Is this representative of THE leading dental company?”]
 
Caterpillar- Be the global leader in customer value.
 
eBAY- Provide a global trading platform where practically anyone can trade practically anything.
 
H.J.Heinz company- Be the world’s premier food company, offering nutritious, superior tasting foods to people everywhere. Being the premier food company does not mean being the biggest but it does mean being the best in terms of consumer value, customer service, employee talent, and consistent and predictable growth.
 
 
 
2. Please review the following company objectives and identify the best and the worst examples. Use the SMART-C approach as your guideline. Briefly explain why you selected each of the options.
 
Nissan- Increase sales to 4.2 million cars and trucks by 2008 (up from 3 million in 2003); cut purchasing costs 20% and halve the number of suppliers; have zero net debt; maintain a return on invested capital of 20%; maintain a 10% or better operating margin.
 
McDonald’s- Place more emphasis on delivering an exceptional customer experience; add approximately 350 net new McDonald’s restaurants; reduce general and administrative spending as a percent of total revenues; achieve systemwide sales and revenue growth of 3% to 5%, annual operating income growth of 6% to 7%, and annual returns on incremental invested capital in the high teens.
 
H.J. Heinz company- Achieve 4-6% sales growth, 7-10% growth in operating income, EPS in the range of $2.35 to $2.45, and operating free cash flow of $900 million to $1 billion in fiscal 2006; pay dividends equal to 45-50 percent of earnings; increase the focus on the company’s 15 power brands and give top resource priority to those brands with number one and two market positions; continue to introduce new and improved food products; add to the Heinz portfolio of brands by acquiring companies with brands that complement existing brands; increase sales in Russia, Indonesia, China and India by 50 percent in fiscal year 2006 to roughly 6 percent of total sales; and by the end of fiscal 2008, derive approximately 50 percent of sales and profits from North America, 30 percent from Europe, and 20 percent from all other markets.
 
SEAGATE TECHNOLOGY- Solidify the company’s No. 1 position in the overall market for hard-disk drives; get more Seagate drives into popular consumer electronics products; take share away from Western Digital in providing disk drives for Microsoft’s Xbox, maintain leadership in core markets and achieve leadership in emerging markets; grow revenues by 10 percent per year; maintain gross margins of 24-26 percent hold internal operating expenses to 13-13.5 percent of revenue.
 
3M CORPORATION- To achieve long term sales growth of 5-8% organic plus 2-4% from acquisitions; annual growth in earnings per share of 10% or better, on average; a return on stockholders’ equity of 20%-25%; a return on capital employed of 27% or better; double the number of qualified new 3M product ideas and triple the value of products that win in the marketplace; and build the best sales and marketing organization in the world.