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Low risk investments: 10%–Medium risk investments: 15%–New ventures other high risk: 25%•Replace Itech in year 8 for $25,999•Hester machines last for 10 years•No impact for inflation, work in constant dollars•Cost of calibration and consumables increase with revenue increases.•No increases to cost of annual service contract
Strategic, Operational, and Budgetary Planning
Strategy:•Creates a unique sustainable advantage.•Common Elements of Strategy–Long-term and consistent goals.–Deep understanding of the competitive environment.–Objective assessment of resources and capabilities.–Effective execution to reach the goals.•Strategy Aim: Creating Value (Profitability and growth)–Sam Walton (Walmart): offered lower prices.–Steve Jobs (Apple): “put a ding in the universe.”–Mark Zuckerberg (Facebook): made the world connected.–Larry Page & Sergey Brin (Google): made information accessible.•Key Questions:–Where to compete?–How to compete?
Strategic Planning & Management•Integrates strategic, operational, financial plans and objectives•Reflects situational analyses: Process is iterative!•Aligns plans, resources, incentives•Portfolio management:•Common competencies but different application/market•Use appropriate expectations and goals•Make tough decisions.•Force tough decisions regarding “ugly” businesses.•“Plan to Plan”:•Process of planning is informed by management’s vision•Planning process can rejuvenate or update the company•Planning requires:•Identifying those who will be involved and their role•Defining the stages and roles at each stage•Accepting that the process is iterative and is a process of learning.