Performance Report

The goal in quarter 4 is to evaluate the results of your test market, learn from your experience, and skillfully adjust your business strategy and tactics in order to improve your performance.

There are many measures that will be used to measure your performance. Each will provide different information that can be used to adjust your tactical decisions, and thus your success in the marketplace.

The most important measures are:

1) balanced scorecard,

2) market demand and market share in targeted segments,

3) profitability analysis,

4) manufacturing productivity and quality and

5) customer satisfaction with your brands, prices, and advertising.

You should review each of these sources of information and then adjust your strategy and tactics, as needed. Your performance should improve substantially in quarter 4 as a result of this market and operational feedback.

Looking ahead to quarter 5, you should position your firm to substantially expand your business program and capture significant demand and profits from this market.

Do not be too proud. If your competitors have done something well, learn from them and imitate their good decisions.

If you find that you missed one target segment but hit another, then you might wish to revise the strategy to go after the market where you have been successful.

In Quarter 2, your executive team developed a preliminary strategic plan for the firm. For the last two quarters, you and your fellow executives have worked to implement that strategic plan within each person's area of responsibility.

You now have the results of your first test market. Which aspects of the strategy were successful and which were unsuccessful? Almost certainly, there will be a need to modify the tactical execution of the plan, and perhaps the strategic plan itself.

Before you start making critical adjustments to your strategy and tactics, perform a strategic analysis first. Here is how to proceed.

First, evaluate the international business climate, your competition, and the functional strengths, weaknesses, opportunities and threats that face your firm. Next, pool this information into a corporate SWOT analysis. Finally, decide how you are going to adjust your strategy and tactics in response to the problems and opportunities that you discover.

In all probability, your initial test market experience will reaffirm your overall strategy. However, you will certainly want to change your tactics to move the firm closer to its strategic objectives and thrusts.

But do not be afraid to skillfully adjust your initial core strategy. Your newfound knowledge may lead you to different