Letter To Shareholders Assignment Details: From The Text That Apply To All Areas of This Letter

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Letter to Shareholders Assignment Details This is an individual...

Letter to Shareholders Assignment Details


This is an individual assignment.
Assume you are the CEO of the organization established in your simulation team (i.e., Andrews,
Baldwin, etc.).
Your responsibility now is to construct the Annual Letter to Shareholders for this organization.
For the annual report, including information regarding the changes from round 5 into round 6
that provides stockholders with the most up to date results and identifies projected decisions and
desired outcomes expected by implementing your decisions.
Professionalism is critical when preparing the letter. Be sure that you utilize the key concepts
from the text that apply to all areas of this letter.
Your letter must include the following:
Section 1 - Review the past

 Detail your overall competitive strategy, i.e. cost leadership, focus, differentiation, or a
combination of any of the competitive strategies and why it was selected.
 Data and analysis regarding highpoints from the previous year and decisions that lead to this
success.
 Data and analysis regarding the biggest challenges and the decisions that led to poor
performance.
 Note: this section should be approximately 40% of the actual letter's content

Section 2 - Future Vision

 Based on your results, construct new strategies for the upcoming year to maximize
organizational strengths and overcome weaknesses in results by completing a detailed SWOT
matrix along with an analysis of its content. The explanation should include how you believe
this new strategy will impact / address the problem areas and which areas of the business will
ultimately be affected.
 Note: this section should be approximately 50% of the actual letter's content
 Please incorporate textbook concepts in this section, i.e., Chapter 1: Strategic Management,
Chapter 2: Analyzing the External Environment, Chapter 3: Analyzing the Internal Environment,
etc...

Section 3 - Leadership Conclusion

 Complete the Shareholder Letter with a description of your leadership style/philosophy and why
they should continue to invest in you and the firm.
 Note: this section should be approximately 10% of the actual letter's content
 Please incorporate textbook concepts in this section, i.e., Chapter 11: Strategic Leadership.

BusinessCAPS 794

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Answer & Explanation

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Answered by LieutenantMoose1672

Dear fellow shareholder year 2019 was an exceptional year in exceptional


times. We reached a milestone, our 150th but this achievement comes as
our industry is at a crossroads. Expectations of the comapany is changing
substantially as consumers embrace new trends, habits and lifestyles. We
see a reshaping of the competitive environment. We are on the brink of a
'fourth industrial revolution'; a transformation of society that will be
unlike anything we have experienced before, presenting us with
challenges but also great opportunities. We are responding by sharpening
our focus and strengthening our efforts to create value. We are investing
in science and innovation, and building new capabilities and platforms to
secure our long-term prospects while at the same time delivering the
sustainable, profitable growth you expect from us.
There was great job done Specially i would like to thanks you my
champions Andrews, Baldwin and team for such a great performance and
leadership .We have always balanced investing for the long-term with
delivering against our current financial commitments to drive growth in
today's challenging trading environment. We have increased investment
behind our brands and sustained it.
Our decisions have consistently reflected this focus. We first measure
ourselves in terms of the metrics most indicative of our market leadership
are customer and revenue growth, the degree to which our customers
continue to purchase from us on a repeat basis and the strength of our
brand. We have invested and will continue to invest aggressively to
expand and leverage our customer base, brand and infrastructure as we
move to establish an enduring franchise.
Because of our emphasis on the long term goal, we may make decisions
and weigh tradeoffs differently than some companies. Accordingly, we
want to share with you our fundamental management and decision-
making approach so that you, our shareholders Andrews, Baldwin and
team that may confirm that it is consistent with your investment
philosophy:

 We will continue to focus relentlessly on our customers.


 We will continue to make investment decisions in light of long-term
market leadership considerations rather than short-term profitability
considerations or short-term Wall Street reactions.
 We will continue to measure our programs and the effectiveness of
our investments analytically, to jettison those that do not provide
acceptable returns, and to step up our investment in those that
work best. We will continue to learn from both our successes and
our failures.
 We will make bold rather than timid investment decisions where we
see a sufficient probability of gaining market leadership
advantages. Some of these investments will pay off, others will not,
and we will have learned another valuable lesson in either case.
 When forced to choose between optimizing the appearance of our
GAAP accounting and maximizing the present value of future cash
flows, we'll take the cash flows.
 We will share our strategic thought processes with you when we
make bold choices (to the extent competitive pressures allow), so
that you may evaluate for yourselves whether we are making
rational long-term leadership investments.
 We will work hard to spend wisely and maintain our lean culture. We
understand the importance of continually reinforcing a cost-
conscious culture, particularly in a business incurring net losses.
 We will balance our focus on growth with emphasis on long-term
profitability and capital management. At this stage, we choose to
prioritize growth because we believe that scale is central to
achieving the potential of our business model.
 We will continue to focus on hiring and retaining versatile and
talented employees, and continue to weight their compensation to
stock options rather than cash. We know our success will be largely
affected by our ability to attract and retain a motivated employee
base, each of whom must think like, and therefore must actually be,
an owner.

Step-by-step explanation
Failure needs to scale too also -
As a company grows everything needs to scale, including the size of your
failed experiments. If the size of your failures is not growing you're not
going to be inventing at a size that can actually move the needle. Our
Company will be experimenting at the right scale for a company of our
size if we occasionally have multibillion-dollar failures. Of course, we
won't undertake such experiments usally but we will work hard to make
them good bets, but not all good bets will ultimately pay out. This kind of
large-scale risk taking is part of the service we as a large company can
provide to our customers and to society. The good news for shareowners
is that a single big winning bet can more than cover the cost of many
losers.
Our Company focus is on hiring and retaining versatile and talented
employees who can think like owners. Achieving that requires investing
in our employees and as with so many other things we use not just
analysis but also intuition and heart to find our way forward.
There were many Good and bad experiences that happened but we
learned alot of lessons from both the experiences .Sometimes in business
you do know where you are going, and when you do, you can be efficient.
Put in place a plan and execute. In contrast, wandering in business is not
efficient but it's also not random. It's guided - by hunch, gut, intuition,
curiosity, and powered by a deep conviction that the prize for customers
is big enough that it's worth being a little messy and tangential to find our
way there. Wandering is an essential counter-balance to efficiency. You
need to employ both. The outsized discoveries - the "non-linear" ones -
are highly likely to require wandering.
As stated above also there were different strategies used and
implemented and many worked out also and some resulted in Failure also.
A company vision statement is an important part of a business plan's
overview. It is one part your dream for your company and another part the
path you're laying for your business in the future. The vision statement is
generally written with a long-term perspective in mind.
We are still in the early stages of learning how to bring new value to our
customers through Internet commerce and merchandising. Our goal
remains to continue to solidify and extend our brand and customer base.
This requires sustained investment in systems and infrastructure to
support outstanding customer convenience, selection, and service while
we grow. We are planning to add music to our product offering, and over
time we believe that other products may be prudent investments. We also
believe there are significant opportunities to better serve our customers
overseas, such as reducing delivery times and better tailoring the
customer experience. To be certain, a big part of the challenge for us will
lie not in finding new ways to expand our business, but in prioritizing our
investments.
We are optimistic, we must remain vigilant and maintain a sense of
urgency. The challenges and hurdles we will face to make our long-term
vision for our Company are aggressive, capable, well-funded competition;
considerable growth challenges and execution risk; the risks of product
and geographic expansion; and the need for large continuing investments
to meet an expanding market opportunity. . We feel good about what we
have done and even more excited about what we want to do.
Last year was indeed an incredible year. We are grateful to our customers
for their business and trust, to each other for our hard work, and to our
shareholders for their support and encouragement.

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