Strategic Orientations that a company can adopt:

1. Product Orientation: Focus on a specific product (SaaS/Legacy)

2. Competitor Orientation: Focus on winning market share against Netware
3. Market Orientation: Focus on Emerging Markets or Developed Markets

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Tactics/ Decisions that a company can adopt to achieve its Strategic Orientation:

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1. R&D: Invest in SaaS feature performance to bring SaaS to feature-parity or above relative to legacy

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offerings

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2. Price: Pricing tactics to either: a. Lower prices so products are attractive to mid-market and small business

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customers, or b. Maintain prices and increase margins
3. Marketing: Marketing tactics to either: a. Target marketing efforts to mid-market and small business

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customers, or b. Target marketing efforts to enterprise customers
4. Operational Efficiency: Invest in marketing automation to improve marketing efficiency and reduce costs.

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5. Network/ Ecosystem: Grow the ecosystem so that developers prefer LegaSoft over NetWare
6. New Product/ Module: Develop HCM module through acquisition or investment

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These tactics can be combined in different ways to form coherent strategies. There are several strategic
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objectives that students can pursue in the simulation:
1. Grow SaaS sales
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2. Maintain legacy sales

3. Compete against NetWare
4. Collude with NetWare to create Barriers to Entry for New Entrants
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5. Focus on emerging markets

6. Focus on developed markets
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 STRATEGIC ORIENTATION
PRODUCT COMPETITOR MARKET

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TACTICS Grow Grow Focus Compete Collude Focus on Focus on Focus on

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SaaS Legacy on Both Emerging Developed Both
Sales Sales Markets Markets Markets

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R&D

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Price

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Marketing
Operational

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Efficiency

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Network/
Ecosystem

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New
Product/
Module
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Balanced Scorecard
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Financial Objective Metric

Increase Asset Turnover Asset Turnover
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 Increase Dividends per Share Dividends per share
Increase Earnings per Share Earnings per share
Increase Interest Coverage Interest Coverage
Improve Gross Margin % Gross Margin %

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Improve Operating Income Margin % Operating Income Margin %

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Improve Operating ROA % Operating ROA %
Improve ROE % ROE %

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Increase Sales Sales

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Maximize Dividends Per Share over time Cumulative Dividends Per Share, from base year

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Maximize Earnings Per Share over time Cumulative Earnings Per Share, from base year

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Customer Objective Metric
Align Goals with Customers’ Strategic Objectives # of BSC Objectives Shared w/ Strategic Customers

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Co. Perceived as Highest Quality Provider % Customers Rank Co. "Best in Class" in Quality

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Competitive Price for Customers % of Customer Contracts with Price Protection
Educate Customers on Firm Integration Capabilities # Customers in Company Sponsored Training

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Improve Customer Satisfaction % of Customers Who Would Recommend Co.
Increase Customer New Product Trials
Increase Financial Ties with Customers
co rc % of Customers Requesting Test Products
% of Customer Contracts with Dedicated Investments
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Increase Lead Supplier Partnerships # Auto Models Where Company is Lead Supplier
Perceived as Valued Partner for Luxury Segment % OEMs Rating Company as Desirable Partner
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Reputation As Leading Low Cost Supplier % Economy Customers Rank Co. Low Cost Supplier
Reputation for Innovation & Technology % of Customers who View Co. as "Innovative"
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Reputation for Standing Behind Quality % Customers Rank Co. Guarantee “Best in Class”
Valued Development Partner in Luxury Segment # of R&D Partnerships with Luxury Customers
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Process Objective Metric

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 Align Co. Spending with BSC Objectives % of Dept Budgets Linked to BSC Initiatives
Design for High Quality % of New Designs with Wear-Resistant Parts
Develop Products with Low Costs % of Products with a “Target Cost” Plan
Enhance Skills for Multi Co. Team Mgmt. % Managers Trained In Multi-Company Team Management

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Highly Effective New Product Development % of R&D Projects Advancing to Next Development Stage

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Improve Assembly Line Efficiency Assembly Throughput Rate % of Base Year
Improve Durability of Parts Produced % Parts with Top Rating for Durability

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Improve Innovation Processes Skills % R&D Employees Trained in Innovation Processes

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Improve Supplier Efficiency % of Suppliers with Low Cost “A” Rating

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Increase Quality of Supplied Components Supplied Component Defect Rate %
Leverage Supplier Technology # Leading Technology Products from Suppliers Used

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License 3rd Party Innovative Technology # New Technology Innovations Licensed
Maximize Use of Customer Info. Feedback System # of Customers In Feedback Data Capture Project

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Offer High Performance Products % of Products w/ Leading Performance
Reduce Administrative Costs Administrative Costs, % of Base Year

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Reduce Investment in Working Capital Net Working Capital % of Annualized Revs.
Reduce Plant Overhead Costs Plant Overhead Costs % of Base Year

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Supplier On-site Engagement in Quality Programs # Suppliers with a Quality Engineer Onsite
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Learning & Growth Objective Metric
Align Employees with BSC Objectives % of Employees Scoring >90% on BSC Quiz
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Align R&D Department with Strategic Initiatives % Products Using Decision Analysis & Strategy Maps
Anticipate Luxury OEM Product Needs Technology Product Trends Identified
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Eliminate Product Defects Manufacturing Defect Rate %

Enhance Cust. Data Exchange Capabilities # Customer Actions Via Data Exchange Portal
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Enhance Reputation as Employer % Job Candidates Ranking Co. "Desirable" Employer

Enhance Workforce Skills in TQM % of Engineers Certified in TQM
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 Enhanced Infrastructure for Collaboration % R&D Department with Latest Sharing Systems
Improve Low-Cost Sourcing Employee Skills % of Buyers Certified in Low-Cost Sourcing
Improve the Quality of Suppliers % of Suppliers with High Quality “A” Rating
Improve Understanding of Product Costs % Indirect Costs Allocated Using ABC

a
Improve Workforce Skills in JIT/Lean % of Employees trained in JIT & Lean

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Improve Workforce Skills in Six-Sigma % of Employees Certified in Six-Sigma Processes
Increase Amount of Talent in JIT/Lean # of JIT/Lean Process Engineers

d
Leading Edge R&D Tools % of R&D Tools Considered State-Of-Art

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Leading Workforce Capabilities in R&D % R&D Engineers Trained on Latest Technology

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Make Customer Integration an Employee Priority % Employees Scoring > 90% on Customer Integration quiz
Make Quality a Priority for All Employees % of Employees scoring > 90% Qual. Aware Quiz

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