Strategic Compensation Decisions

Companies seeking to earn profits face many challenges as leadership strives to meet financial objectives (e.g., return on investment) and market objectives (e.g., 10% annual sales growth). Companies must scan the external environment to identify opportunities for success and threats for loss. For example, the major retailer Sears did not anticipate the growth and importance of e-commerce and online retailers such as Amazon, which posed a threat to its success. As the staggering number of Sears brick-and-mortar stores closed, the company's online presence came too late. Your textbook contains examples of threats and opportunities some companies face. the "Competitive Strategy and Sportsman Shoes" case analysis assignment gives you an opportunity to identify threats and opportunities.