A vision for a smarter world
An ARM case study

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Page 4: Delivering a strategy

Behind every business strategy are tactics. Tactics are the means by which the strategy will be implemented. Objectives, which can be set at a function level or for the whole business, outline the outcomes the business needs in order to achieve its aims. The SMART objectives model helps ensure that objectives are achievable. It states that objectives should be:

Arm 18 Diagram 2Through the setting of SMART objectives, ARM is able to plan for the future to aid the achievement of its business strategies. ARM SMART objectives are influenced by many factors, for example, the innovative and technical nature of the business requires a highly skilled workforce. A functional objective for its HR strategy is that 30% of new recruits in 2013 will be graduates. This figure will increase to 40% in 2015 and 50% by 2017. A tactic that supports this objective is that ARM has a strong presence at the leading universities’ careers fairs around the world. It also runs a two-week Global Graduate Conference that enables new graduates to become more effective in a shorter space of time. This objective and tactic supports its business aim to attract and retain the best talent globally, as well as promoting the company’s value of personal development.

Arm 18 Image 1Another ARM SMART objective is to have an overall market share of between 40% and 50% by 2017. In 2012 ARM’s market share was 32%, an increase of 2% to 3% per year for the last five years. The growth drivers of increasing market penetration and value per smart electronic device support this objective, and as ARM partners use ARM technology in more of their products the company’s market share is set to continue to grow.

In relation to increasing penetration in new markets, a SMART objective has been set that by 2017 ARM aims to have a 10% to 15% share of the IT server market. This supports the growth strategy of market penetration. Networking servers are a new market where ARM technology is increasingly being used by its partners, however, ARM had no market share. To evaluate and test its technology in this market ARM invested in R&D throughout 2012. This enabled ARM to generate technology used in several commercial products in 2013.

ARM | A vision for a smarter world