Volvo 2014 Annual Report Download - page 22

All work within the Volvo Group is based on a sus-
tainability perspective, which will contribute to
long-term success. Assuming responsibility for a
sustainable development is deeply rooted in our
culture and has its base in our corporate core val-
ues and policies in the Group’s Code of Conduct. We strive to
assume economic, environmental and social responsibility for the
operation, products and services in the areas where the Group
has the potential to infl uence. This will enable us to strengthen
our brands and relations with business partners and thus create
new business opportunities that offer long-term growth and
improved profi tability.
Long-term plans and strategic objectives
Long-term plans defi ne the direction in a 5–15 year time perspec-
tive. They serve as a tool for management to drive change, protect
strong positions and prioritize with regard to fi nancial conse-
quences. Examples include product plan, industrial plan, sales and
marketing plans and service offering plan. The plans are aligned
and reviewed regularly. Some long term-plans are Group common
and some are specifi c to Group Trucks or an individual business
area. The plans may impact activity plans for strategic objectives.
Strategic objectives are made on Group Trucks and business
area-level, for one fi xed three year period at a time. Each strategy
consists of a number of key focus areas, which in turn contain
Strategic objectives
2019–2021
Strategic objectives
2016–2018
Strategic objectives
2013–2015
Long-term plans 5–15 years
strategic objectives. The strategic objectives are broken down
into a large number of road maps and activity plans – ultimately
affecting employee’s Personal Business Plans.
Both the long-term plans and the strategic objectives aim to
reach the Wanted Position, which consists of fi ve statements that
describe where the Group wants to be by the year 2020. They
represent important milestones towards achieving the Vision.
Adaptation of governance
We have made extensive efforts to adapt the Volvo Group to the
conditions and expectations of the business world and the future
– and to achieve our wanted position by 2020. The efforts resulted
in us taking a step toward governance as one Group with clarifi ed
roles and responsibilities. We have established a distinct brand
portfolio and have moved from a regional focus with individual
brands to a globally coordinated approach. In addition, we have
created a more distinct distribution of responsibility with measur-
able targets. It is necessary to have all of this in place prior to the
commencement of work based on the new strategies. Our structure
for governance encourages close monitoring, as well as rapid and
effi cient decisions and early adjustments, when necessary. The sys-
tem also aims to involve all employees, by clarifying how each individ-
ual is important to achieving the targets.
Strategic framework
Strategies can be viewed as maps that guide everyday work and
decision-making in order to achieve the Volvo Group Wanted
Position 2020 and the Vision. The strategies are part of the
overall Volvo Group strategic framework. Corporate core values,
Group policies, directives and guidelines lay the foundation for
how the Volvo Group operates and conducts business.
A GLOBAL GROUP 2014
STRATEGY
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