3Year Strategic Plans

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3-Year Strategic Plans
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• The BOD has charged you with developing a
  strategic direction for the company
• and crafting a strategy that delivers
  consistently good results (Players Manual p.30)

3

• Your target objectives should be at least as high
  as investor expectations
• Bonus points are awarded for setting objectives
  achieving performance higher than investor
  expectations
• Penalties in scoring are assessed for setting
  objectives achieving performance below
  expectations (Strategic Plan instructions)

4
Board/Investor Expectations

• Grow earnings per share at least 7 annually
  through Year 15 and at least 5 annually
  thereafter.
• Maintain a return on equity investment (ROE) of
  15 or more annually.
• Maintain a B or higher credit rating.
• Achieve annual stock price gains of about 7
  through Year 15 and about 5 thereafter.
• Achieve an image rating of 70 or higher (the
  image rating is tied to the styling/quality of a
  companys branded footwear and to its market
  share penetration). Players Manual p.31

5
Grading of Strategic Plan

• Was complete
• Target objectives were challenging
• As least as high as expectations (or realistic
  transition to)
• Show improvement trends
• Strategy and plans were consistent
• Projections were consistent with objectives

6
Automatic Scoring re St. Plans

• For each of the three years of your plan, the
  on-line BSG will automatically post your scores
  on the 3-yr Strategic Plan link
• These are a combination of
• How ambitious were your goals relative to the BOD
  expectations
• How well you achieved or exceeded your goals