Clean air exhausts case study - Coursework Example

CORPORATE OBJECTIVES Commitment to our Shareholders We create value for our shareholders through achieving sufficient profit to finance growth and through achieving our corporate objectives. Commitment to EmployeesWe believe that our employees are our best assets. We are committed to providing the best possible work environment for them. We ensure that our promotion and reward systems are based on their performance.Commitment to the EnvironmentWe are committed to protecting our environment and to conserve our natural resources.

We only manufacture and market products that are safe and efficient to use, environment-friendly and can be reused, recycled or disposed safely. Commitment to CustomersWe value our customers and we strive to provide quality products and services that exceed our customers’ expectations and earn our customers’ respect and loyalty. Commitment to Growth and InnovationWe look for ways to improve our products, technologies and processes. We will seize each and every opportunity to grow our business and to explore new products, markets, ideas and technologies.

FINANCIAL STRATEGIESThe company will have two sets of financial strategies – one has a short-term outlook (within two or three years from date of organization) and another is for the long-term:Short-term1. We are a start-up company engaged in developing a new product or new products. We are a capital-intensive venture and as such, we are sourcing our capital for the development of the company and its products through any or all of the following:a. Investors, such as venture capitalists or stockholders; or,b.

Debt financing (long-term). 2. During our first three years as a company, we are focusing our capital and finances to the following priority areas: a. Research and development to enhance or improve or innovate the product and develop more products. b. Advertising and promotions to introduce the company and/or its products. c. Development of a dynamic sales force that will market the products.3. Our critical targets for the company’s investors for the first three years of operations are the following: a.

A return on investment of not less than 10% to ensure that we will be able to retain our current investors and to attract new investors. b. A Debt to Capital ratio of 30:70 to minimize financing costs.Long-termAs the company starts to grows, our financial strategies will also change to address our ever-growing needs. The following are our financial strategies in the long-term:1. The company will list its stocks in the stock exchange. We are going through this endeavor to provide any venture capitalists that we may have an effective exit mechanism, to establish value for our stocks and to retire debt.

A portion of the proceeds from our initial public offering will also be used for the expansion of the company, its market and its products.2. We will obtain new debt financing to ensure that we will have ample capital for our planned expansion. Our target debt to capital ratio will also change and will become 50:50.3. We plan to institutionalize our production system to reduce costs. However, we will ensure that reducing our costs will not affect the quality of our products.4. We may merge or acquire a business that we feel will enhance our company and its products and services.

WORKS CITEDCorporate Objectives and Shared Values (2008). Hewlett-Packard Development Company, L.P. (Online) Available at: http://www.hp.com/hpinfo/abouthp/corpobj.html. Environmental Affairs Policy. International Business Machines Corporation. (Online) Available at: http://www.ibm.com/ibm/environment/policy/.Holman, Tom. 1995. “Financial strategies of small, public firms: a comparative analysis with small, private firms.” Entrepeneurship: Theory and Practice. Available from: http://www.allbusiness.

com/accounting/debt/579815-1.html.