Contribute To Strategic Direction

Activity 1.1

Paxar Corporation is a global leader in providing innovative identification and tracking solutions to retailers, apparel manufacturers and related markets. Paxar manufacture its own products in warehouses across the globe and distribute to a wide range of clients offering a complete package in hardware, software and support. . We can begin to assess the nature of the environment in which Paxar Corp. operates in by analysing the three key dimensions of dynamism, complexity and unpredictability.

Dynamism

In the manufacture and supply of tracking solutions, eg. barcode printers, software, scanners, consumables etc. Paxar corp. sustain an increasing role in a high-tech battle against counterfeiting and theft. The intensity and frequency of change is high. As a result, we compete in a highly Dynamic environment.

This is due to the frequent changes in technology, which affect the industry. Changes are required to keep up with this fast paced environment forcing manufacturers like Paxar to come up with new solutions more frequently to be in a position to keep up with competitors.

Complexity

Paxar Corp. manufactures a wide range of products, which it distributes to an extensive number of markets, experiencing high levels of complexity. Paxar offers design and manufacture of tickets, tags and labels, and provides the technology--including the printers, software control systems and necessary supplies--for retail product identification. These products and services are used in the complete distribution chain from warehouse storage to retail and point of sale.

Unpredictability

Paxar Corp. is in a highly unpredictable environment. Backlog is not a reliable indicator of future sales activity because more than 80 percent of annual sales consist of orders that the Company typically fills within one month of receipt. The balance of the orders is for products that are ordered to individual customer specifications for delivery within two to three months.

The fact that we are leaders in tracking and identification systems and in most cases set the trend for competitors to follow helps in some instances to plan ahead. Key accounts like WalMart in the US and Australia Post, Coles Myer and Nike in Australia are requralry reviewed for new requirements and required changes are made to meet them. Paxar works together with these larger accounts to design/manufacture new hardware and software to keep up with changes.

Conclusion

Frequent changes in technology and the production of a complex product and service means that Paxar Corporation operates in a highly dynamic and complex environment as it competes, domestically and internationally, with a number of medium to large companies. Many of the factors that affect the Company's business and operations involve risk and uncertainty. Risks associated with significant international operations and Company planning to successfully develop and introduce new products, could have adverse affects to its financial condition and results of operations.

These changes can make it difficult to make effective plans with less certainty for the future. Being ahead of the competitors with constant communications with key accounts will be crucial to continuous success and to future plans. Information will be everything and working with key accounts Paxar Corporation can make future outcomes more predictable.

Activity 1.2

The emergence of the global market place, influx of foreign competitors, technology substitution, rapid shifts in customers' needs, wants and attitudes, and governmental and social changes, means that Paxar Corporation operates in a complex and discontinuous environment. Changes are taking place at a rapid rate and the future is difficult to predict. Production efficiency, marketing effectiveness and product responsiveness are all important determinants of our success and their relative importance are constantly adjusted by management in response to changes in the marketplace.

Our competitiveness and profitability levels will depend on how well we match our strategies and capabilities to the environment in which we operate. To be successful in a discontinuous environment we will need to be ready to adjust our historical position and must continually look at the new opportunities that may arise in the environment. Paxar is prepared to move to where it perceives the profits to be.

Paxar Corporation seeks to progressively improve their products and services in anticipation of the evolving needs of their customers. Management's ongoing strategy includes implementing process improvements to reduce costs in all of its manufacturing facilities, re-deploying assets to balance production capacity with customer demand and expanding production in new and emerging markets.

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Activity 1.3

Mission and Goals

Our reinvigorated strategic planning process translates our goals and objectives into actionable and measurable activities in order to track their progress.

Developing strategic plans has helped Paxar Corporation identify ways in which it can compete in the future by maintaining a strategic fit between its goals and capabilities as well as its 'changing' marketing opportunities. To adapt to the changing global environment, Paxar initiated a broad strategic plan to improve responsiveness to customer needs, accelerate innovation and drive growth. Paxar's mission is to be the leading provider of identification solutions to the retail and apparel industry worldwide offering new ideas and products, with quality, reliability and value. To achieve this goal, five 'winning' strategies have been implemented that are driving global activities. These are:

* Responsiveness -- to win by being responsive to customers' needs every day, everywhere. The goal is for Paxar to be the first choice of all their customers.

* Relationships -- to deepen relationships with customers and grow customer base by providing global solutions that utilize the full breadth of Paxar's capabilities.

* Innovation -- to be the "first to market" with meaningful innovations.

* Information -- to offer customers a truly global, superior information management capability to easily access, monitor and track orders