Go to the company investor relations websites for Starbucks (investor.starbucks.com), Pfizer(www.pfizer.com/investors), and Salesforce (investor.salesforce.com) to find examples of strategic andfinancial objectives. List four objectives for each company, and indicate which of these are strategic andwhich are financial.
The Correct Answer and Explanation is :
Here is a summary of strategic and financial objectives from the investor relations websites of Starbucks, Pfizer, and Salesforce:
Starbucks
- Increase Revenue through New Products (Strategic): Expanding product offerings, including premium beverages and snacks, to drive growth.
- Reduce Environmental Impact (Strategic): Sustainability initiatives aimed at reducing waste, carbon footprint, and improving the company’s environmental footprint.
- Achieve Double-Digit EPS Growth (Financial): Starbucks aims for sustained double-digit growth in earnings per share (EPS) to benefit shareholders.
- Open New Stores Globally (Strategic): Expanding its footprint in key international markets, focusing on growth in China and other emerging markets.
Pfizer
- Advancing mRNA Technology (Strategic): Focus on developing next-generation vaccines and therapies leveraging mRNA technology.
- Increase Market Share in Oncology (Strategic): Expanding Pfizer’s portfolio in oncology, with an emphasis on leadership in cancer treatments.
- Achieve $20 Billion in Sales from New Products (Financial): A financial target for revenue from new product innovations.
- Maintain Strong Operating Margins (Financial): Striving to keep operating margins above a set threshold to ensure profitability.
Salesforce
- Lead the AI and CRM Market (Strategic): Reinforcing its leadership in the AI-driven customer relationship management (CRM) space.
- Achieve Revenue Growth of 20% Annually (Financial): Salesforce aims to grow its revenue at a consistent rate of 20% per year.
- Expand Customer 360 Offerings (Strategic): Continued investment in its Customer 360 platform to drive integrated data and customer success.
- Improve Operating Cash Flow (Financial): A focus on enhancing operating cash flow to support investment and strategic initiatives.
Explanation:
Strategic objectives focus on long-term goals such as market leadership, innovation, and sustainability, while financial objectives emphasize measurable outcomes like profitability, revenue growth, and cost management. Strategic objectives guide the company toward future success, while financial objectives measure how well the company is executing its strategy in terms of tangible financial outcomes.