Smart goals for a clothing company.

“We will increase spending in marketing by 25% in each period for the next 6 periods.”

This is NOT a goal but is a promise. Your company is promising to increase this expense over the next 6 periods whether it makes sense or not, whether you have the sales to sustain it or not. This is not a goal.

“We will increase customer satisfaction”

This is NOT a goal, it is not timely, measurable or even specific enough.

In making your goals you want to use things that you can measure within the simulation easily. For example

“We want to reduce employee turnover to 5% by Period 8 and maintain those levels going forward”

This is a great goal and meets all the parameters, IF the simulation you are using provides turnover rates, I do not believe this one does.

Goals should push you to try and make it, not simple ones like we will sell 10 more goods by Period 10 than we did in Period 1. Not achieving goals is not necessarily a bad thing. When trying to create your goals ask yourself what is the first thing your eyes go to when you open the simulation to see results. What are the first things you look at? These are the ones you want to set SMART goals on.

Here is my simulation result.

 

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Quarter Start 1 2 4 6. 10 11 12 Decisions / Forecast Current Cash $2,000 Projected Tops Sales 1,528 x $21 $32,088 Projected Pants Sales 1,628 * $32 $52.096 Interest and Other Income $0 Projected Cash Available $86,184 Purchase Tops 2,150 x $10 $21,500 Purchase Pants 2,200 x $15 $33,000 Equipment Purchase $0 Marketing Expense $7.605 Staffing Expense $30.964 Est. Operating Expense (less shrinkage and depreciation) $10,717 Other Expense $200 Estimated Tax (30% of profits) $(6.096) x 03 Payment on Loan Principal $2.500 Dividend Paid $0 Projected Cash Required $106,486 Projected Ending Cash $(20,302) atis2020 Quarter Start 1 2 4 6. 10 11 12 Decisions / Forecast Current Cash $2,000 Projected Tops Sales 1,528 x $21 $32,088 Projected Pants Sales 1,628 * $32 $52.096 Interest and Other Income $0 Projected Cash Available $86,184 Purchase Tops 2,150 x $10 $21,500 Purchase Pants 2,200 x $15 $33,000 Equipment Purchase $0 Marketing Expense $7.605 Staffing Expense $30.964 Est. Operating Expense (less shrinkage and depreciation) $10,717 Other Expense $200 Estimated Tax (30% of profits) $(6.096) x 03 Payment on Loan Principal $2.500 Dividend Paid $0 Projected Cash Required $106,486 Projected Ending Cash $(20,302) atis2020

Answer rating: 100% (QA)

1 Increasing Sales in every period reaching 20 high till period 8 from period 2 and 30 till per... View the full answer