RUNNING HEAD: Case Application 2 – Shifting Direction 1

Case Application 2 – Shifting Direction

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Kimberly A. Marks

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Centenary University

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September 23, 2016
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 Case Application 2 – Shifting Direction 2

8-18. What role do you think goals would play in planning the change in direction for the
company? List some goals you think might be important. (Make sure these goals have the
characteristics of well-written goals.)

I think that goals would play a large role in planning the change in direction for the company.
The company now has to shift their focus from free standing GPS systems to GPS systems that
are integrated into cars, boats, aircrafts, etc.

Garmin’s mission statement: “To be an enduring company by creating superior products for
automotive, aviation, marine, outdoor, and sports that are an essential part of our customers’
lives.”

Some goals might include:

1. Penetrating the automotive industry. Garmin currently works with Jeep, Dodge, and
Chrysler. They also work with Honda and Toyota in the Asian markets. One of Garmin’s

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goals could be to penetrate the automotive market in the other countries they service such

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as Canada, Belgium, Norway, Spain, and Romania.

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2. Penetrating the luxury automotive industry. For example, Garmin can form business

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relationships with some of the top luxury car companies in the world such as Porsche,

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Lamborghini, etc. Currently, Garmin does not have any relationships with these
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companies or any luxury car line.
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3. Set timed goals: Within the next five years, completely penetrate the Asian market; within
the next five years, create at least three new Garmin innovations to include during next
launch of product line; within five years, work with cellphone manufacturers such as
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Samsung to install Garmin GPS systems on smart phones.

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8-19. What types of plans would be needed in an industry such as this one? (For instance,
long-term or short-term, or both?) Explain why you think these plans would be important.

Both long-term and short-term plans would be needed in an industry such as this one. Short-term
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plans cover one year or less. Short-term goals would help Garmin with the change in direction.
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Short-term plans are important because they allow for the company to plan for the change. Long-
term plans have time frames beyond three years. This would be help Garmin continue to
transition and grow as technology changes. It is important for Garmin to have long-term plans
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because technology is rapidly changing. At the time Garmin created their first GPS, they were
considered innovative and ahead of their time. Years later, technology has changed drastically.
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They are now considered to be behind the times. Long-term plans allow them to adapt with the
ever-changing advances in technology and avoid falling behind other competitors.
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8-20. What contingency factors might affect the planning Garmin executives have to do?
How might those contingency factors affect the planning?

1. Degree of environmental uncertainty: The environment in which Garmin operates is

rapidly changing. As technology changes, GPS devices are being integrated into
automobiles, boats, aircrafts, cellphones, etc. Devices have become considerably smaller

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 Case Application 2 – Shifting Direction 3

in size while simultaneously becoming more advanced in technology and capabilities.

Garmin must account for the changes in technology, GPS capabilities, GPS
size/integration and adjust accordingly.

2. Length of future commitments: Garmin must stay on top of currents trends and
advancements. They do not want to fall behind their competitors as they once have with
previous GPS models. They must ensure that their projects release on time, keeping up
with changes in the market and consumer demands.

8-21. What planning challenges do you think Garmin executives face with continuing to be
the global market leader? How should they cope with those challenges?

Garmin executives face many challenges with continuing to be the global market leader. One of
the biggest challenges is competition. For example, most cellphones come equipped with Google
maps as the main GPS provider. Competitors like Google maps are always coming out with

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advancements in their technology. Google maps automatically updates when changes to the App

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occur, ensuring all customers receive the newest, latest updates in software. To cope with this

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challenge, Garmin must think along the same lines. They have to be able to keep up with the

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advancements in technology and ensure that customers are capable of receiving software updates

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and/or new product information. Another challenge that may affect executives is the
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marketplace. At one time, GPS navigation systems such as Garmin were a necessity for travelers.
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Now, automobiles, cellphones, aircrafts, etc., come equipped with integrated navigation systems.
Automobiles are advancing with each new model and consumers appreciate it. Garmin has to be
able to keep up with such innovations and provide their consumers with the same level of
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advancement. They must take consumer needs and wants seriously in order to maintain their spot
in the marketplace. In order to cope with this challenge, executives can strategically plan for
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such changes in the marketplace, technology, and innovations. Garmin executives should
monitor the smallest changes in these areas to ensure that they are one step ahead of competitors
and consumers alike.
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 Case Application 2 – Shifting Direction 4

References

Robbins, S.P., & Coutler, M. (2013). Management (13th ed.). Upper Saddle River, NJ: Pearson

Prentice Hall. ISBN-10: 0133910296 ISBN-13: 978-0133910292

G. (n.d.). VIRB® ULTRA 30. Retrieved September 23, 2016, from http://www.garmin.com/en-

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