$3-$Year Strategic Plan $(50$ marks$)$

Students will be required to use the built$-$in $3-$Year Plan module after the first three decision

rounds of the simulation. The $3-$Year Strategic Plan is undertaken as a management team,

requiring each team to $(1)$ state a strategic vision and mission for the company, $(2)$ establish

performance objectives $($EPS$,$ ROE, credit rating, stock price appreciation, and image rating$)$

for each of the next three years, $(3)$ set forth a strategy for the company, and $(4)$ prepare a

"pro forma" income statement for each of the next three years.

Having your company$$s co$-$managers put together a $3-$year strategic plan has multiple

benefits:

$$ It prompts your company's management team to think strategically about the

company's long$-$term strategic direction and future performance prospects rather than

just running the company one year$/$decision round at a time. In the real world,

managers must be concerned about taking actions that will deliver good foreseeable

results for several years ahead.

$$ It gives your company$$s management team practice in setting "stretch objectives" and

then being held accountable for making any strategic and operating adjustments that

may be needed to meet or beat the targeted levels of performance that shareholders

are expecting $($and that are built into the Investors Expectations scoring standard$).$

$$ It encourages each management team to decide whether to make any strategic

changes considering growing demand and the likely moves of rival companies.

$$ It gives co$-$managers much needed practice in developing $3-$year financial projections

and exploring the profitability of alternative strategy scenarios, sales volumes, and so

on$.$

$$ It considers the PESTEL environment in its entirety to ensure that the company is

positioned to withstand any matters from an environmental perspective.

The GLO$-$BUS simulation will formally assign and automatically grade the $3-$Year strategic

plan of your company. All$-$in$-$all, assigning a $3-$year plan gives you a golden opportunity to

understand and appreciate what is involved in preparing a plan for a business while at the

same time having you experience the discipline of being held accountable for achieving the $3-$

year performance targets you and your co$-$managers establish. In addition, collaboration

opportunities $($and knowledge sharing$)$ result from group wor