Strategic Plan: Sherwin Williams

Running head: STRATEGIC PLAN: SHERWIN WILLIAMS

Strategic Plan: Sherwin Williams

MBA580

University of Phoenix

Executive Summary

Sherwin Williams Paints has performed well financially over the last decade and now is the time to make a good thing even better. The company does face some tough challenges ahead in order to remain the largest retailer in North America including meeting the new demand for more environmentally safe paint products and the current economic downturn our country is facing. Even considering the poor state of our economy, overall demand for paint is expected to continue to rise mainly driven be the increased demand for new �Green’ coatings. The company will overcome these challenges and attain the organization’s vision of Sherwin Williams being the first choice for every customer when it comes to coatings selected and application advice. To achieve this vision Sherwin Williams will use a combination of innovation and market development grand strategies to realize the long-term objectives of improving local market position, creating a high focus on customer satisfaction, attaining high employee morale, and increasing DIY market share.

Sherwin Williams intends to overcome the challenges and take advantage of all market opportunities through committing to the strategic action items spelled out in the implementation plan. This commitment starts right at the top and is expected throughout every level of management all the way down to the frontline sales force. With an investment of $49,500 over the next three years per individual store, Sherwin Williams can expect each store to have increased sales revenue of $782,000 during that same period. Not only will revenue increase, profit margins will improve to 13% by the year 2010. Finally, over the next three years, Sherwin Williams can expect employee satisfaction to rise to 90% leading to improved employee turnover of only 17%.

Company Background

Sherwin Williams is an eight billion dollar annual revenue company that produces all forms of coatings from household products to aerospace coatings. Industrial, marine, and chemical coatings also comprise a large portion of the organization’s revenue. “Since it’s founding by Henry Sherwin and Edward Williams in 1866, The Sherwin-Williams Company has not only grown to be the largest producer of paints and coatings in the United States, but is among the largest producers in the world” (Sherwin Williams, 2008, p.1). Currently the organization is a close second worldwide to Azko Noble and is consistently ranked by Fortune magazine as one of the top 100 places to work. Sherwin Williams focuses products and services to all customers of coatings, but this strategic plan will focus specifically on the household segment of the business broken down into do it yourself (DIY) customers and painting contractors.

Vision Statement

A desirable end-state of Sherwin Williams sees the company as the first choice for every customer when it comes to coatings selected and application advice. A well thought out vision statement will focus a company’s energies and resources on attaining the desired future state. The end-state vision needs to aid the organization in fulfilling the long-term objectives set before them. Sherwin William’s vision sees customers becoming more of partners with Sherwin Williams instead of just buyers. The vision statement for Sherwin Williams is “Ask How Ask Now Ask Sherwin Williams.”

Mission Statement

The mission of the organization is a little different from the vision and focuses on the current state of the company as opposed to the desired end-state focus of the vision. The mission statement for Sherwin Williams reflects a strong focus on the most important stakeholder to any company, the customer and will read as follows: “For over 140 years, consumers have trusted Sherwin-Williams to produce paint products using the most advanced technologies, innovative methods, and to provide exceptional customer service to both the professional painter and the DIY consumer. You can count on us for the expertise and the support you need to get better results, from start to finish.” This mission statement stresses the importance of exceptional customer service throughout the entire selling process and aids the company in providing a clear picture of what the business is all about; helping a customer throughout the entire painting process instead of just selling a gallon of paint.