Annual Objectives And Policies
Annual Objectives for Family Dollar: 11.1
Family Dollar is one of the few companies who have done very well in the market even though the economy has had its downfalls for the last five years. However as all the companies who want to stay profitable Family Dollar needs set annual objectives and create policies so they stay in business and maintain their profits. An annual objective is right only when it is Quantitative, Measurable, Realistic and Timed (David, page 134). Following the criteria mentioned above our team has come up with several annual objectives which will help Family Dollar maintain their profit as well as grow more.
Objective 1: Lower annual cost of sales from 63.8% to 60%.
Objective 2: Boost annual return on investments (ROI) from 5.3% to 6.5 %.
Objective 3: Lower annual selling, general and administrative expenses from 28.7% to 26%.
Objective 4: Boost annual sales growth from 2.9% to 3.2%.
Objective 5: Strive for price stock price appreciation equal to S&P 500 average
Objective 6: Maintain a positive cash flow
Objective 7: Boost firms reputation with customers and investors
Objective 8: Capture growth opportunities
Objective 9: Introduce a new line of products
Objective 10: Support Family Dollar’s overall commitment to excellence in service.
Objective 11: Family Dollar’s goal of employee development.
Objective 12: Support the organizations culture by keeping co-workers informed of any new initiative or strategy the company will take.
Policies for Family Dollar: 12.2 Policies allow lower level management to make decisions in a day to day basis without having to consult with higher level management. Business policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization (Fraedrich, 2011).
Policies are vital to any organization, without policies companies would find it hard to survive today’s ambitious society. As every organization Family Dollar has the necessity for new policies.
Family Dollar is one of the few companies who have done very well in the market even though the economy has had its downfalls for the last five years. However as all the companies who want to stay profitable Family Dollar needs set annual objectives and create policies so they stay in business and maintain their profits. An annual objective is right only when it is Quantitative, Measurable, Realistic and Timed (David, page 134). Following the criteria mentioned above our team has come up with several annual objectives which will help Family Dollar maintain their profit as well as grow more.
Objective 1: Lower annual cost of sales from 63.8% to 60%.
Objective 2: Boost annual return on investments (ROI) from 5.3% to 6.5 %.
Objective 3: Lower annual selling, general and administrative expenses from 28.7% to 26%.
Objective 4: Boost annual sales growth from 2.9% to 3.2%.
Objective 5: Strive for price stock price appreciation equal to S&P 500 average
Objective 6: Maintain a positive cash flow
Objective 7: Boost firms reputation with customers and investors
Objective 8: Capture growth opportunities
Objective 9: Introduce a new line of products
Objective 10: Support Family Dollar’s overall commitment to excellence in service.
Objective 11: Family Dollar’s goal of employee development.
Objective 12: Support the organizations culture by keeping co-workers informed of any new initiative or strategy the company will take.
Policies for Family Dollar: 12.2 Policies allow lower level management to make decisions in a day to day basis without having to consult with higher level management. Business policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization (Fraedrich, 2011).
Policies are vital to any organization, without policies companies would find it hard to survive today’s ambitious society. As every organization Family Dollar has the necessity for new policies.