Shareholder Value or Financial Perspective
Almost each business strategic direction is guided by three major economic goals. Strategic directions are guided by these goals irrespective of whether they are stated in the mission statement or not (Hitt, Ireland & Hoskisson, 2011). The goals show the company’s prospects of survival by way of growth and maximized profitability, which is achieved after all the other strategic objectives are achieved and is in overall set at 60% growth. The VMO’s of Kmart are to provide online products that are likely to ensure the supplies reach the customers as and when they are on demand. The major aim is to provide such products at very high quality and enough quantity. Quality has to be provided since customers currently do not have time to walk around comparing quality and prices across several shops.
This has given Kmart a competitive edge over its competitors like Target and Tesco. The company has clear consideration towards the shareholders value and financial perspective of the business since these are the determinant factors for any business growth. Kmart has very clear structures towards increasing its market share right from provision of a variety of products in its vast departmental stores. Market share are likely to ensure survival. In a span of 3 years Kmart targets to capture about 70% of the market leaving only 30% for the other competitors (Hitt, Ireland & Hoskisson, 2011). These it intends to achieve by maximizing revenue sources while minimizing all forms of costs hence consistent increase in profitability from the ventures operations. By majoring on its strengths of brand recognition by most Americans, exploited use of technology the company cuts a competitive edge. Moreover, thorough exploitation of presented opportunities is fundamental. Such opportunities are the willingness of customers to access goods online and the growing popularity of store brands (Hitt, Ireland & Hoskisson, 2011). Customer value perspective At the core of any business operations and success, the customer is a central and core aspect that must be handled with all the care it deserves (Hitt, Ireland & Hoskisson, 2011).
The customer must therefore be provided with what they need and when they need it so that they are satisfied. Kmart’s strategic objective in line with this is therefore to provide high quality and quantity, listen to the customer requirements and provide them timely. This will ensure that customer value is well taken care. With satisfactory customer value, Kmart is able to create customer loyalty through retaining their current customers and adding new ones, therefore, customer turnover is largely reduced. To ensure customer satisfaction, Kmart was one of the first retailers to offer online ordering and purchase as well as timely delivery to their client as an opportunity. Furthermore, the management of the company is in the verge of aligning its operations to the required legal, environmental and ethical standards. This largely ensures that a good relationship is attained with its stakeholders. The issues are fundamental and acme to limelight after Kmart was penalized in the year 2007 for being below such standards (Hitt, Ireland & Hoskisson, 2011). Process or Internal Operations Perspective The Kmart Corporation appears as a company with great prospects because of how its internal operations and processes are institutionalized, organized and operated. The ability of the firm to survive in a highly dynamic and competitive environment depends on the company’s operation frameworks.
The strategic objective of the firm in line with the requirements posed is to establish clear and well-defined structures accompanied by excellent management personality and recruitment criteria (Hitt, Ireland & Hoskisson, 2011). This it will perform by suggesting several structures and frameworks derived from companies with the same style of operation, pilots are then put in place to look at how they operate that is the efficacy before actual implementation is done. When success is achieved, constant reviews will frequently be conducted due to the rectifications required. Effective and efficient controls are also at the verge of being instituted; this is where an effective system of measurement is in place. Measurement of current operations is recorded to be used for future control purposes. This would enhance the productivity of Kmart by 60% on the metric scale Strategic plan. (2008). Learning and Growth (Employee) Perspective The performance of any organization depends on its employee handling techniques. Employee handling is diverse and runs from how the welfare is handled all the way to employee compensation and remuneration. Good employee procedures defines the rate of employee turnover and retention, it also defines the level of organizational capability in terms of performance of its employees Strategic plan. (2008).
The strategic objective of Kmart is therefore to put in place an up to standard employee handling system where recruitment is free and fair and with the utmost employee welfare system. This is arrived at by first establishing a substantive organizational culture. The climate under which an organization operates must be tranquil and very conducive. The company will employ the most modern technological applications in its recruitment procedures. This will ensure that the organization’s employees are recruited, trained and posted in their relevant workplaces in time. This is also in the interest of saving the company on unnecessary costs Strategic plan. (2008). The company estimates that in 3 years time Kmart should have achieved an employee growth to a tune of about 68%. The safety of the environment of the employee operation should be given an upper hand.
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2011). Strategic management: competitiveness & globalization. (9th ed.). Mason, OH: South-Western Cengage Learning.
Strategic plan. (2008). Victoria, B.C.: BC Timber Sales.