Strategy Statement Example

(Company Name Changed to Protect Client Confidentiality)

Direction Statement: ABC will consistently deliver: products that meet or exceed safety
standards; provide outstanding technical services; and use leading edge technology in the
retail/professional market to be recognized as the number one provider of access controls
manufactured in the United States.

External Environment: It has been determined that the following conditions will exist
over the planning horizon:
1. Retail
a. Two major growth opportunities exist – security and convenience purchases in
the AGO market
b. Customers will demand more from their vendors – to include what has been
thought of as commercial grade products in the past
c. E-commerce will grow in importance with greater demand for ERP, CRM and
on-line ordering
d. Consolidation will occur as big box players become more powerful
e. New competition will enter the market – both foreign and domestic

2. Professional
a. Consolidation within distribution channels expected over the plan period
b. End user base will continue to expand – GDOs, security and access controls,
etc.
c. More pro installers will align as installation arms for big box players
d. Blurring between traditional pro and retail markets will occur and competition
will intensify.
e. E-commerce will grow in importance
f. This is a global supply market

Strategic Priority Issues: ABC will focus strategically on the following three issues:
1) Manage the growth of the enterprise
2) Use technology to enhance current offerings and enter new markets
3) Ensure qualified people are in all key positions

Corporate Objectives: As a company, ABC will achieve the following performance

levels as a minimum:
1. Corporate sales of at least $50 Million by 2008
2. Access controls will be 17% of total sales by 2008
3. Sustain gross margins of at least 58% over plan period
4. Achieve a net profit of 16% as a minimum
5. Achieve a productivity per employee of $450,000 by 2008
Market Priorities: ABC will focus on the following business segments over the plan
period:
1. Professional division expansion to west coast
2. Focus on serving fewer but larger customers
3. Increased penetration of key “big box “chains
4. Develop on-line business segment to account for at least 1% of total revenues
5. Generate $8.5 Million in sales by the end of the plan period through new
product development (AC products, access controls, accessories)

Strategic Thrusts: In order for ABC to achieve its stated business direction we will focus
on:
1. Superior customer service – being highly responsive to customer needs;
continue to outdistance the level of service provided by our competitors
2. Technical Support – ABC will continue to provide solutions for customer
issues and challenges. We will provide better products more rapidly and
enhance our customers profitability
3. New product development – ABC will continue to expand its presence
through the development of new products for existing customers as well as the
development of new products for new markets

Internal Strategies: In order for ABC to accomplish its external strategies, we will have
to build and maintain competencies superior to those of our competitors in the following
areas:
1. Manufacturing/distribution systems: scheduling, production, quality control
and shipping
2. Customer Service: installation assistance, troubleshooting, automated
assistance, warranty claims, etc.
3. Sales and technical staff: training department for skills development
throughout the distribution channel, accurate product knowledge, regional
service, efficient telephone and electronic support
4. Reputation and brand awareness: market expansion, creative marketing efforts

Strategic Fixes: The following weaknesses were identified in the SWOT analysis that
must be addressed:
1. Not considered a strong presence in the industry. This will be addressed in the
brand awareness expansion effort
2. Lack of a nationwide network. This is addressed in the expansion action plan
3. AC product and product knowledge. Addressed in the technology plan to have
new products in this category account for 17% of the sales growth over the
plan period

2
Action Plans Selected:

1. Priority Issue: Managed Growth

AP: West Coast Expansion – Achieve $5M in new volume by 08.
Holliman/Pearson
a. Market study of west coast segments complete 1/05
b. Add Western RSM and reps in selected territories 9/05
c. Add distribution warehouse 1/07

2. Priority Issue: Managed Grow

AP: Marketing Campaign – Expand awareness and strengthen brand identity
Williams
a. Research markets that will benefit ABC in access controls 9/05
b. Determine means for reaching customers - TV, radio, or print 9/05
c. Retain an Ad agency to help build a campaign 3/06
d. Launch campaign 1/07
e. Measure worth and success quarterly from 4/07

3. Priority Issue: Managed Growth

AP: Price management – Improve profitability by $275,00 per year through
effective pricing Martin
a. Create a profitability matrix by customer 9/05
b. Focus on selling to fewer, bigger customers e.g. big boxes 9/05
c. Institute zone delivery pricing for each region 1/06
d. Realign pricing in both PRO and retail divisions 1/07

4. Priority Issue: Qualified People

AP: Improve people competency – Achieve productivity per employee of at
least $450,000 by end of 2008 Martin/Williams
a. Determine skill sets required for all key positions 6/05
b. Create stronger new employee orientation program 9/05
c. Switch to a pay-for-performance compensation structure 3/06
d. Ensure there is a back up in place for all key positions 1/07

5. Priority Issue: Technology

AP: New product development – generate $8.5M in annual gross sales from
new products in the access control sector Bender
a. Hire a qualified EE 1/05
b. Complete research on product needs for new markets 9/05
c. Introduce five new product lines to the market 1/07
d. Determine product priorities for development annually