Nicole Dobson Master's Program Final Financial Project Plan

TOMTOM INC. STRATEGIC PLAN
TOMTOM INC.
STRATEGIC CORPORATE
PLAN
Presented to Dr. Kenneth Middleton
October 5, 2013
Submitted by:
Melissa Angell, Jennifer Chirillo, Michael Jamison, Rexroy Scott, & Nicole Winslow

Table of Contents
Executive Summary......................................................................................................................... I
Mission and Vision.......................................................................................................................... 1
Environmental Volatility Analysis & Current Competitive Position ............................................. 2
Specific Targets for Improvement/Development........................................................................ 11
Projected Strategies..................................................................................................................... 13
Strategy Implementation Plan..................................................................................................... 15
Projected Cost of Strategic Implementation............................................................................... 25
Financing of Strategy ................................................................................................................... 35
Projected Outcomes..................................................................................................................... 42
Strategy Evaluation...................................................................................................................... 48
Outcomes if Strategy Fails ........................................................................................................... 51
Appendix A: Environmental Analysis.......................................................................................... 54
Appendix B: Porter’s Six-Force Model......................................................................................... 58
Appendix C: Core and Distinctive Competencies........................................................................ 60
Works Cited................................................................................................................................... 61

I
Executive Summary
TomTom is a leader in the global positioning device industry. Their values of originality,
technology, and customer support allow them to create products that are unmatched by
competitors. Through their values and competencies, TomTom will take advantage of their
position as an industry leader and exceed the fast-growing demand for reliable, high-quality
global positioning devices, and related services.
Mission and Vision
TomTom’s mission and vision will be communicated to their shareholders through a firm belief
in open communication, honesty, and integrity in every aspect of their business operations.
TomTom will employ a series of regularly scheduled meetings with the stakeholders to keep
them abreast of all changes and considerations for future advancements:
 TomTom’s website will clearly highlight the mission and vision statements with
designated sections.
 TomTom will brand the vision statement and mission statement into its product
packaging and advertising campaigns to enforce our commitment to advancement.
 Posted mission and vision statements will be placed throughout all company space,
including offices, meeting and boardrooms, production areas, as well as on the company
letterhead.
Environmental Analysis
TomTom is a major player in an extremely competitive industry. As technology continues to
advance at an astounding rate, TomTom must ensure that they are advancing their technology
just as quickly. TomTom is heavily centered in the GPS industry, with very little diversification.
TomTom's stock value has steadily decreased over the past several years,the company is
struggling to regain their market share and profit margins. To highlight the current financial
condition of TomTom, the company has a net profit margin average of 14.78% over the past 5
years. This is significantly lower than their two main competitors, Garmin and MiTac.
Additionally, the company has been saddled with significant of debt, as evidenced by their
financial leverage ratio of 2.54. If TomTom is going to regain their former financial health, a
successful new strategy must be developed.

II
Targets for Strategic Improvement or Development
A thorough internal and external analysis revealed several available strategies to achieve the
ultimate goal of the company, which is to increase profit and reduce debt. Many strategies
were discussed only these specific strategies will be evaluated:
 Partner with automakers to create new products such as hands free PNDs.
 Focus on mining driver data through strategic partnerships to create new technology
 Focus on licensing instead of manufacturing tangible GPS products
 Enter into specialized industries such as the airplane and boat markets
 Sell the PND division to a competitor such as Garmin
 Acquire another company to diversify income
Projected Strategies
 To spur innovation from within by offering employee incentives for innovations shared
on the TomTom Think Tank and TomTom Thought Spot
 To positively recreate the company’s culture
 To provide exceptional training for all TomTom employees companywide
 To offer consumer rewards for loyalty and idea sharing
 To increase research and devlopment funding to create new technologies
 To reduce debt to renew investor confidence and interest
 To reach emerging markets
 To diversify products to meet changing demands
 To increase stock price and financial ratios
Implementation Plans
Key Strategy: Sell the TomTom fitness department to Nike to acquire necessary capital to pay
outstanding debts and perform a stock repurchase. Restructure internally to strengthen the
company culture to build synergy between departments and create a positive internal
structure. Reduce debt to relieve the company of the burden of staggering debt payments and
decreased company value. Target emerging markets in order to gain a first mover advantage.
Diversify products to remain competitive and become less reliant on revenue from PNDs.
Objective One: Diversify Products. This objective will stimulate revenue with products and
services beyond the PNDs. It will promote consumer rewards and employee incentives to
cultivate new innovations. A focus group will be utilized to create feasible new product ideas.

III
Objective Two: Reduce Debt. This objective will repay $544M in debt over the five years of the
strategic plan. It will work to strengthen the company’s overall financial health including
financial ratios and leverage. It will also decrease the likelihood of insolvency.
Objective Three: Restructure to Align With New Goals. The company’s mission statement will
be rewritten and the company culture will be positively recreated. Funds will be reallocated to
the research & development and marketing departments. Companywide employee training
programs in workplace conduct, innovation, and culture will be provided.
Objective Four: Target Emerging Markets. Emerging markets will be surveyed and analyzed.
Skilled marketing associates will be sent abroad to further expand market penetration.
Consumer trends, demands, and skills within the emerging markets will be identified and
utilized.
Projected Costs of Strategic Implementation
The total for the five year strategic plan will be $1,326,887,226. These funds will be outlaid in
each objective to include; $3,063,151.97 to achieve objective one, $574,386,485.04 to achieve
objective two, $745,981,048.04 to achieve objective three, and $3,465,540.97 to achieve
objective four.
Financing Strategy
The five year strategic plan will be financed by the $738M sale of the fitness department and
supplemented by the reallocation of $100M annually in prior fitness department expenses,
$168M in annual debt payments, and increased revenue in later years.
Projected Quantitative and Qualitative Outcomes
Quantitative
Projected quantitative outcomes will include an increase in assets to $2,383,885,000, an
increase in gross revenue of $585,395,000, an increase in net income of$453,402,000, and an
increase in earnings per share of $.21.
Qualitative
 Decrease debt by no less than 60%
 Consumer revenue increased by 5%
 Licensing revenue increased by 7%
 Probability of bankruptcy decreased by 10%
 Business revenue increased by 3%

IV
 Revenue from emerging markets increased by 9%
 Operating expenses decreased by 15%
 Supplier costs decreased by 8%
 Share price increased to $7.87
Strategy Evaluation
TomTom's leaders and department specialists will meet monthly to analyze the progress of
each designated objective. Each objective will be continuously monitored through the five year
strategic plan. The TomTom leaders will meet with the CEO, CFO, and pertinent Vice President
of marketing or research &development each quarter. The data collected by the TomTom
leaders will be compared to actual results and presented. All TomTom leaders, department
specialists, and pertinent managers will meet at the end of the fiscal year for the annual
meeting. Projected and actual outcomes will be compared and budgeting adjustments made if
necessary. The CEO and CFO will meet with the supplier’s executives annually to discuss
current satisfaction or dissatisfaction of products, quality, and schedules.
Corporate Impact and Outcomes if Strategy Fails
Quantitative
Quantitative outcomes will include; decrease in consumer section by 30% totaling a $194M
loss, 8% decrease in stock price, 8% decrease in U.S. market share, 10% decrease in European
market share, increased borrowings and interest rates, 15% decrease in raw materials, and a
workforce reduction of 10%.
Qualitative
Qualitative impacts will include workplace discontent, consumer dissatisfaction, damage to
corporate culture, increased regulation compliance, and a negative company image.

1
Missionand Vision
Mission Statement
TomTom’s mission is to providethe highest quality global positioning devices and related
support services to drivers around the world. It is our mission to provide all drivers with the
world's best navigation experience. Our customers use our navigation products on a multitude
of devices, such as our PNDs, in-dash systems, and on smartphones. Moreover, many drivers
benefit from our content on a range of third party applications and devices (TomTom, Inc.
Annual Statement).
Vision Statement
TomTom has revolutionized the world of global positioning technology through their
development of PNDs and advanced in-dash navigation systems. These systems provide
customers with real-time traffic information to lessen the negative impact of traffic-related
congestion. These devices, along with cutting edge services, such as automatic re-routing have
moved TomTom into a strong position in the global positioning industry.
Communication of Mission and Vision Statement
TomTom’s mission and vision statements will be communicated to their shareholders through a
firm belief in open communication, honesty, and integrity in every aspect of their business
operations. TomTom will employ a series of regularly scheduled meetings with the stakeholders
to keep them abreast of all changes and considerations for future advancements:
1 Website
TomTom’s website will clearly highlight the mission and vision statements. Declaring
this information publicly will allow us to effectively communicate our purpose to the
world.
2 Branding
TomTom will brand the vision statement and mission statement into its product
packaging and advertising campaigns to enforce our commitment to advancement.
3 Display Boards
Posted mission and vision statements will be placed throughout all company space,
including offices, meeting and boardrooms, production areas, as well as on the company
letterhead.

2
Environmental Volatility Analysis &Current Competitive Position
Assessment of Company /Industry Environmental Volatility
TomTom is a key player in an industry that is very competitive. The industry will only grow
more competitive as technology continues to evolve and new markets begin to emerge.
As new GPS based technologies are introduced into the industry, TomTom is positioned to
compete and remain competitive in many areas. TomTom offers a wide selection of GPS based
products, including personal navigation devices (PNDs), smartphone applications, in-dash
navigation devices for vehicles, GPS sport watches, and more (TomTom 2012 Annual Report).
The industry as a whole has changed dramatically in recent years. While the early years of the
GPS industry were dominated by personal navigation devices, rapid innovation, and changing
consumer needs have resulted in much more sophisticated products that have overtaken PNDs
and rendered them obsolete for many consumers (ABI Research, 2011). A large reason for the
reduced demand for PNDs is the popularity of smartphones. Smartphones became mainstream
during the past five years and are only gaining in popularity worldwide. In fact, it is estimated
that there are nearly 1.5 billion smartphone users in the world, which is nearly 1 in 5 people!
Even more astounding is the fact that the smartphone industry is growing at a rate of 44% per
year (Leonard, 2013). Smartphones and other trending devices have put pressure on the GPS
industry to innovate and deliver cutting edge products to demanding consumers.
As recently as two years ago, TomTom received over 50% of its annual revenue from personal
navigation devices. However, after seeing the demand decrease, along with revenue, TomTom
began aggressively developing other substitute products that are in high demand. As a result of
this concerted effort, in 2012, for the first time, less than half of TomTom's revenue was
derived from personal navigation devices. Instead, the company invested in products such as
licensing, selling digital map content, navigation software, HD traffic, and in-dash navigation as
stand-alone mapping solutions (TomTom 2012 Annual Report).
As the competition continues to tighten, it is important for TomTom to continue down the path
of product diversification. The entire industry is shifting towards specialized GPS products
including smartphone applications, HD real-time traffic, and mapping solutions. Strategic
factors that are important to TomTom include brand recognition and reputation, overhead
costs, product differentiation, product price, product marketing, growth, and innovation.
TomTom's efforts going forward will focus on channeling growth and innovation through
reliance on differentiated products that give TomTom a sustainable advantage (TomTom 2012
Annual Report).

3
Assessment of Current Strategies
Corporate Stock Performance Comparison
 TomTom, Inc. has two primary competitors in the GPS industry- Garmin (GRMN) and
MiTac (8122.TWO). Garmin is the industry leader, followed by TomTom. MiTac is a
diversified company that offers the Magellan line of GPS devices. The decline of PND
sales also adversely affected Garmin and they were forced to innovate to maintain their
market share advantage over TomTom. MiTac was not greatly impacted by the decline
in PNDs, as GPS devices makes up only a small portion of their overall business.
 The chart below shows an 18 month comparison of TomTom vs. Garmin. Although the
stock value of TomTom is far less than Garmin, their current strategy appears to be
working, as their stock value has increased in the last 6 months, and overallthe stock is
up over 52% over the past 18 months.
(TomTom Inc. Stock Chart | AAPL InteractiveChart -- Yahoo! Finance)

4
 The next chart shows an 18 month comparison of TomTom vs. MiTac. From the time
that MiTac began being charted in March of 2013, their stock has trended very closely
with TomTom. Both stocks are down marginally from where they were at the end of
2010. This is a good indicator of how volatile the industry has been during this time
period.
(MiTAC Inc (8122.TWO) Chart| Reuters.com.)
Stock Price History
 The following tables compare the five year stock price comparison for both TomTom
and Garmin. The charts show that TomTom has had a very turbulent past five years
compared to Garmin. Garmin has shown some volatility but has closed each year
stronger than the last. Garmin's diversified portfolio helped to offset lagging PND sales.
TomTom is much more concentrated in the PND market, however, and their sliding
stock values show that they were impacted much more deeply than Garmin. Although
slowly, TomTom stock values have started to tick back up starting at the end of 2011.

5
TomTom Inc.
High Price Low Price Close
2009 $13.65 $2.56 $6.25
2010 $7.99 $4.03 $7.89
2011 $8.03 $2.39 $3.05
2012 $4.65 $2.83 $3.8
2013 $5.12 $3.07 $4.63
Source: (Yahoo! Finance)
Source: (Yahoo! Finance)
Stock Volatility
 The beta index measures how sensitive a stock is to risk factors in the market. Particular
to a stock, this value is related to how sensitive the stock's underlying cash flow and
revenue is to economic conditions (Berk&Demarzo, 319). The average beta of a stock in
the market is 1. The beta index shows a company’s level of volatility or risk. TomTom
has a beta coefficient of 1.95. This is troubling for TomTom because it means that it is
95% more sensitive to changes in the market than the average company in the industry.
Garmin Inc.
2009 $39.65 $15.02 $30.7
2010 $40.47 $26.11 $30.99
2011 $40.58 $29.23 $39.81
2012 $50.67 $35.55 $40.75
2013 $43 $32.52 $40.77
MiTac Inc.
2009 $30.23 $11.86 $28.31
2010 $38.89 $26.28 $34.63
2011 $34.86 $24.27 $25.97
2012 $36.36 $25.24 $28.23
2013 $30.45 $23.25 $28.50
Source: (Reuters Finance)

6
Garmin has a beta of 1.33, which indicates that it is 33% more sensitive to market
changes than the average firm in the industry. Finally, MiTac has beta coefficient of .86,
which indicates that it is less sensitive to changes in the market that the average firm,
and certainly at less risk than either Garmin or TomTom.
Stock Valuation
 The price to earnings ratio (P/E) is one of the most common ways to gauge the market
value of a firm (Berk&DeMarzo, 33). The P/E ratio is used to calculate if a stock is over-
valued or under-valued. The thought process behind this is that a stock's value should
be in proportion with the earnings that it is able to generate (Berk&DeMarzo, 33).
TomTom has a P/E ration of 9.45, which is rather low compared to Garmin (16.4) and
MiTac (25.44). This indicates that TomTom's stocks are overvalued, and that they are
not leveraged as well as their competitors.
 The market capitalization of a firm equals the number of shares multiplied by the
market price per share (Berk&DeMarzo, 25). The market value of stocks depends on
how assets perform in the future (Berk&DeMarzo, 25). TomTom has a market cap of
$1.61 Billion, which is significantly lower than its competitor Garmin ($8.51 Billion) and
is higher than MiTac (491.69 Million).
 Another helpful ratio to evaluate a firm is the price-to-book (P/B) ratio. The P/B ratio is
the ratio of market capitalization to book value of stockholders' equity (Berk&DeMarzo,
26). The majority of successful companies have a P/B ratio of 1 or greater which
indicates that the assets of the firm exceed their liquidation value (Berk&DeMarzo, 26).
TomTom has a P/B ratio of 1.42 which indicates that the value of assets do exceed
liquidation value. TomTom has a much better P/B ratio than MiTac (.57) and lower than
Garmin (2.53).
Source: (Reuters Finance)
TomTom Garmin MiTac
Beta 1.95 1.33 .86
P/E Ratio 9.45 16.4 25.44
Market Capitalization 1.61B 8.51B 491.67M
P/B Ratio 1.42 2.53 .57

7
Comparative per Share Data
 Comparatively, TomTom is inferior to both Garmin and MiTac in earnings per share,
revenue per share, book value per share, and cash flow per share. Both of TomTom's
competitors are better diversified than TomTom and this has put them in a much better
position. Garmin has divisions that produce athletic, boating, and airplane navigation
devices whileMiTac has a large division that creates computer motherboards. With
TomTom's low numbers in all of the previously mentioned categories, it is no surprise
that they are the only one of the three companies that did not pay a dividend last year.
TomTom Garmin MiTac
Book Value Per Share 4.95 17.24 20.17
Dividends Per Share N/A 4.13 3.19
Earnings Per share .57 2.70 1.12
Cash Flow Per Share 4.90 15.12 24.71
Revenue Per Share 4.96 13.67 34.62
Source:(Yahoo! Finance),(MiTac 2012 Annual Report), (TomTom 2012 Annual Report),(Reuters Finance)
TomTomVs. Competitors
 Garmin has far more employees than either TomTom or MiTac, as indicated in the
following chart. Not surprisingly, as a larger company they also have more annual sales
than either TomTom or MiTac.
TomTom Garmin MiTac
Employees 3,500 9,777 1,269
Annual Sales $1.48B $2.67B $1.50B
Source: (Yahoo! Finance),(MiTac 2012 Annual Report), (TomTom 2012 Annual Report)

8
Profitability
Source: (Yahoo! Finance),(YCharts.com), (Morningstar.co.uk)
 TomTom has a gross profit margin average of 49.06% over the past 5 years. This
average is slightly higher than Garmin (47.96%), and much higher than MiTac (33.24%).
Gross profit margin shows the ratio of gross profit to sales and is a reflection of the
ability of a firm to sell a product for more than it costs to manufacture the product
(Berk&DeMarzo, 30).
 TomTom has a net profit margin average of 14.78% over the past 5 years. This average is
lower than both Garmin (19.41%) and MiTac (23.66%). The net profit of a firm is the
ratio of net income to revenue. It shows how much of a dollar in revenue is actually
available to the equity holders after the firm pays tax and interest (Berk&DeMarzo, 31).
 Otherwise known as return on investment, return on assets indicates the level of profit
relative to total assets. It shows how efficient management is at using existing assets to
generate income (Investopedia.com). TomTom has a very weak average ROA of .16%
over the past five years. This is far lower than the average ROA of Garmin (14.73%), and
is also lower than MiTac (.51%).
TomTom 2009 2010 2011 2012 2013
Gross Profit
Margin 45.89% 45.86% 46.44% 53.40% 53.72%
Net Profit Margin 13.62% 10.12% 3.33% 34.29% 12.54%
Return on Assets 3.33% 4.04% -21.82% 7.61% 7.65%
Return on Equity 8.80% 9.81% -53.28% 17.52% 16.23%
Garmin 2009 2010 2011 2012 2013
Gross Profit
Margin 45.95% 45.34% 47.69% 48.64% 52.17%
Return on Assets 21.70% 15.84% 12.44% 11.94% 11.71%
Return on Equity 28.53% 20.96% 16.77% 16.18% 16.14%
MiTac 2009 2010 2011 2012 2013
Gross Profit
Margin 32.46% 14.94% 34.15% 50.52% 34.15%
Return on Assets .63% -1.60% .63% 1.40% 1.48%
Return on Equity .92% -2.69% .84% 1.97% 1.71%

9
 Return on Equity shows the net income of a firm as a percent of shareholder equity. It
shows the profit generated from shareholder investment activity (Investopedia.com).
TomTom had fairly good numbers in this category in 4 of the 5 years but a very poor
performance in 2011 gives them a five year average of -.92%. Garmin, however, posted
a healthy five year average of 19.72%. MiTac has an average that was higher than
TomTom with a .55% average over five years.
Liquidity/Financial Health
TomTom 2011 2012 2013
Current Ratio .58 1.00 1.07
Quick Ratio .44 .66 .95
Financial Leverage 2.54 2.06 1.94
Garmin 2011 2012 2013
Current Ratio 2.98 2.79 2.8
Quick Ratio 2.34 2.19 2.2
MiTac 2011 2012 2013
Current Ratio .57 .61 .61
Quick Ratio .35 .33 .59
Source: (Yahoo! Finance),(Advfn.com), (Morningstar.com)
 The current ratio compares the company's assets and current liabilities. It is the ratio of
current assets compared to current liabilities (Berk&DeMarzo, 28). TomTom's current
ratio improved greatly from 2011 to 2013, going from .58 to 1.07, meaning it is now in a
much better position to meet current obligations. Garmin has an excellent current ratio
history and is currently at 2.8. MiTac has a troubling current ratio of .61, meaning it may
have difficulty meeting its current obligations.
 The quick ratio compares the company's other than inventory assets to current
liabilities. The higher the quick ratio the more liquid the company (Berk&DeMarzo, 28).
TomTom has a current quick ratio of .95, which is a positive trend from 2011 when it
was .44. Garmin has the highest quick ratio, currently at 2.2. MiTac has the weakest
quick ratio, which currently stands at .59.
 Financial leverage measures the extent to which a business uses borrowed money. The
higher the ratio, the more financially insecure the company is (Financial Leverage, n.d.).
Unfortunately, TomTom has the highest financial leverage ratio of 1.94.

10
Fortunately, this number is trending down. Garmin has a financial leverage ratio of 1.3
and MiTac has the best financial leverage ratio at 1.12.
Historical Income Analysis of Apple and Competitors
 TomTom has recovered from 2011 fairly well and is the only company to have three
straight years of increasing operation cash flow going from $235.3 million to $377.3
million.
 From 2012 to 2013, TomTom has had fairly stable revenue and net income as has
Garmin. MiTac, on the other hand, has had a significant reduction in both revenue and
net income.
 Trends in the industry seem to have affected all of the companies in similar fashions.
Overall, TomTom seems to be increasing cash flow while the other companies are
holding steady or declining.
TomTom 2011 2012 2013
Revenue $1.72B $1.43B $1.37B
Net Income $-593.6M $174.4M $170.4M
Operating Cash Flow $235.3M $225.8M $377.3M
Garmin 2011 2012 2013
Revenue $2.76B $2.72B $2.67B
Net Income $521M $542M $531M
Operating Cash Flow $822M $685M $603M
MiTac 2011 2012 2013
Revenue 1.14B $962.2M $560.18M
Net Income $8.57M $19.98M $2.89M
Operating Cash Flow 8.87M $31.71M $2.42M
Source: (Morningstar.com) (MiTac 2012 Annual Report)

11
Specific Targets for Improvement/Development
The TomTom strategic team has utilized both an internal and external analysis summary to
identify potential targets for improvement and development in our business operations. While
there are many strategies that were considered we have identified specific targets that will be
considered for our strategic plan:
TomTom could partner with automakers to create new products such as hands free PNDs.
Technology is evolving at an astounding rate and partnering with auto makers to create new
products would allowTomTom to utilize their expertise in creating new products to our
advantage. Hands free PNDs and other innovative products could also make TomTom's
products more attractive to automobile companies which could result in more lucrative
contracts with auto makers.
Focus on collecting driving data from all around the world through partnerships with companies
such as Castrol. These driver behavior studies could be used to harvest a virtually endless
amount of global data from drivers who participate in the studies. This information could be
used to develop new smart technology that is cutting edge, highly desirable, and not available
from competitors.
Consider steering our strategy away from PNDs, other tangible GPS products, and towards
licensing our technology to other companies for use in their products. This would greatly
reduce the amount of overhead that the company has on the manufacturing side. It would also
increase the amount of users that are using a TomTom mapping solution. Over time, TomTom
could greatly increase market share by licensing with companies across multiple industries.
TomTom could consider entering into specialized markets to introduce new products. Markets
to consider include the aircraft and boating industry. TomTom could increase marketshare in
the GPS industry as a whole and gain a foothold in industries where we do not currently offer
products but do use GPS tracking.
The PND division of TomTom could be sold to a competitor such as Garmin. This would allow
TomTom to eliminate a division that has been in decline for several years. This would also
allow us to focus on developing all new products that are cutting edge and will be in high
demand.
Acquire another company to diversify income. This strategy would allow TomTom to offset the
risk of being centered in one industry with many external threats that could negatively impact
the company. In addition, profit gained from acquiring another company could be used to fund
research and development of new GPS based products for TomTom.

12
Rationale
The overall goal of TomTom is to increase profit and reduce debt. There are many factors that
have contributed to the recent struggles of TomTom and it is clear that decisive action must be
taken to ensure the long-term success and security of the company. All of the strategies that
have been discussed are different methods that are aimed to achieve this goal.
TomTom must develop solutions to increase market share and take advantage of opportunities
that have not been exploited. Other companies such as Garmin are large,well diversified, and
TomTom must utilize solutions that will both increase market share and diversify the company.

13
ProjectedStrategies
After strategic analysis TomTom is implementing a new five year strategic plan. The new plan
will be used to achieve the following:
 To spur innovation from within by offering employee incentives for innovations shared
on the TomTom Think Tank and TomTom Thought Spot
 To positively recreate the company’s culture
 To provide exceptional training for all TomTom employees companywide
 To offer consumer rewards for loyalty and idea sharing
 To increase research and devleopment funding to create new technologies
 To reduce debt to renew investor confidence and interest
 To reach emerging markets
 To diversify products to meet changing demands
 To increase stock price and financial ratios
The company is striving to cultivate innovation from within the company through employees by
means of the TomTom Think Tank and TomTom Thought Spot. Active participation in the new
TomTom innovation programs will be rewarded with employee incentives. This will remain
active during the next five years of operations.
Renewing a positive company culture and work environment can be achieved through creating
a new mission statement to provide a common direction and employee training programs to
educate employees on new cultural policies. The positive changes in company culture are
expected to increase morale and productivity. This will remain active during the next five years
of operations.
Employees will receive advanced training to increase innovation, productivity, and job
satisfaction. The training is expected to upgrade the skills of all company employees to expand
their abilities, increase output, and result in increased revenue per employee. Employee
training will be completed during the first year of the strategic plan.
Consumer rewards will be offered to increase brand loyalty and image. The results of the data
collected for the reward program will be used to develop new customer technologies, relations,
and marketing. The rewards for idea sharing are expected to increase customer satisfaction
and reduce negative feedback. Consumer rewards will begin in the second year of the strategic
plan and remain active throughout the fifth year.

14
Marketing and research development funding will be increased by $125M per year. Relief from
debt payments will allow more free capital to be reallocated into the marketing and research &
development departments. The extra funds will be put forth to developing new technologies,
reaching emerging markets, reaching consumers, and advancing within the navigation industry.
Increased funding will begin in the second year of the strategic plan and remain active through
the fifth year.
Debt reduction will allow the opportunity for the overall financial health of the company to
increase and to renew investor confidence. The reduction of debt, along with the other points
of the strategic plan, will increase investor interest as the company becomes more stable. The
reduction of debt and stock repurchase will increase the stock price of the company, along with
financial ratios, including ROE and ROA. Investors will also receive increased dividends starting
the second year of the strategic plan. Debt reduction will be active the entire five years of the
strategic plan.
Many markets are evolving and emerging into the global community. These markets offer a
wealth of opportunity to increase TomTom's presence and sales. Increased marketing coupled
with an outstanding market strategy will allow the company to successfully take an ascendant
position within market. The company is looking to gain a first mover advantage into many
emerging countries that are just now entering the realm of navigation systems and solutions.
Targeting emerging markets will begin in the second year of the strategic plan and remain
active through the fifth year.
Consumer surveys and feedback will be analyzed to discover the changing needs of customers.
Extended research will also aid in producing new technologies that consumers demand.
Products will be diversified to meet the demands of the consumer and business market.
Market segments such as Baby Boomers, small businesses, fleets, and commercial industries
will be scanned and assessed to provide adequate products. Product diversity will aid in
eliminating the long standing reliance on PND revenue and increase the overall financial
stability of the organization. Diversifying products will begin during the second year of the
strategic plan and will remain active through the fifth year.
The TomTom stock price has been drastically declining since 2005,totaling an estimated $30
plummet per share. The company’s financial health is also suffering which has reflected
negatively on the company’s financial ratios. Currently, many ratios are negative and extremely
poor compared to the industry. We expect to increase our stock price to $7.67 and restore the
negative ratios to positive. Correcting the financial ratios will not be considered a panacea but
rather a true reflection of the company’s recovery, stabilization, and growth. Restoring
financial health will begin in the first year of the strategic plan and remain active through the
fifth year.

15
Strategy ImplementationPlan
The TomTom research team has discovered that many areas of the company are unsatisfactory.
Specific areas of concern are high operating costs that include escalated supplier costs,
extraordinarily high debt, low entry into emerging markets, sinking revenue in the consumer
sector, minimal diversity of products, underfunding of research and development, distressed
company culture, inadequate employee training, and a plummet in stock price. In order to
ensure the future success of the company the following strategy has been proposed:
Key Strategy: Sell the TomTom fitness department to Nike to acquire necessary capital to pay
outstanding debts and perform a stock repurchase. Restructure internally to strengthen the
company culture to build synergy between departments and to create a positive internal
structure. Reduce debt to relieve the company of the burden of staggering debt payments and
decreased company value. Target emerging markets to gain a first mover advantage. Diversify
products to stay competitive and become less reliant on revenue from PNDs.
To successfully execute and fulfill the goals of the strategy the TomTom research team has
identified four objectives to achieve satisfactory results. An exceptional team of trained
TomTom leaders has been assigned to execute, control, complete, and monitor each
designated objective. TomTom department specialists will be assigned to head new project
endeavors and to ensure the quality of objective outcomes.
Objective One: Diversify Products
 TomTom's profit is highly dependent on the sale of PNDs which increases the risk of
failure as the sale of PNDs declines. In order to reduce associated risks the company
must find new ideas to invest in through stakeholder interest.
 The promotion of customer rewards and employee incentives for their ideas will
promote innovation, technology enhancement, and will allow TomTom to recognize the
wants and needs of their customers.
 Each new plausible innovative idea that comes into existence must be identified to
replace an existing product, enhance an existing product, or to become a new venture.
The identification process will reduce the chance of negatively affecting other divisions
of the company.

16
 It is necessary to obtain feedback from the focus group to identify the new product's
strengths and weaknesses. The criticismwill allow the product to be adapted to
increase quality and design.
Objective One Timeline
Objective Two: Reduce Debt
 After payment has been received from the sale of the TomTom fitness department a
three year repayment plan will begin which includes payment of $350M in year one,
$112M in year two, and $112M in year three.
 TomTom has historically used debt financing to repay outstanding debts. This practice
has drastically decreased the company’s leverage, financial ratios, investor interest,
available capital, and stock price. Reduced debt will significantly strengthen the
company’s financial position and will bring ROE and ROA back to positive numbers.
Diversify Products Start Date Duration (in days) End Date
Identify ways to compensate forideas of stakeholders 10/31/2013 35 12/5/2013
Promote employee ideas through implementation of areward system 12/6/2013 1195 3/15/2017
Implement acustomerincentive program forproduct ideas 12/6/2013 1195 3/15/2017
Identify if new products will replace existing products 3/16/2017 14 3/29/2017
Create new products that would impact all target markets 3/30/2017 204 10/20/2017
Receive feedback from test group on new produts 10/21/2017 33 11/23/2017

17
 The debt burden along with other factors is pushing TomTom towards insolvency.
Currently, the likelihood of bankruptcy is calculated at 35.60% (Macroaxis, 2013). This
has left the company vulnerable to a potential takeover by Apple.
Objective Two Timeline
Objective #2Reduce Debt Start date Duration(indays) End date
Initial debtpayment 12/22/2014 9 12/30/2014
Secondyeardebtpayment 12/19/2015 5 12/23/2015
Thirdyear debtpayment 12/19/2016 5 12/23/2016
Restrainfromacquisitionsandbuyouts 12/13/2013 1825 12/12/2018
Objective Three: Restructure to Align With New Goals
 The company’s mission statement will be changed to properly align with the new goals
and direction of the company. The new mission statement will establish a common goal
to unite the company employees towards a successful future.
 Restructure the company culture to create a positive work environment in which
employee complacency and productivity will be renewed. Negative employee feedback
and job dissatisfaction will be reduced.

18
 Training programs have been developed to specialize in innovation and workplace
conduct. Companywide, all employees will complete the mandatory training sessions
during the allotted training dates during the first year of implementation.
 Funds have been budgeted for the research & development department and marketing
department. Increased funding will aid TomTom's research and development
specialiststo create new technologies and will aid the marketing specialists to expand
into emerging markets.
 Employees that successfully complete the innovation training will have the opportunity
to participate in the TomTom Think Tank and TomTom Thought Spot to be awarded
employee incentives for innovation.
Objective Three Timeline
Objective #3Restructure toAlignwithNew Goals Start date Duration(indays) End date
Sale of fitness department 12/13/2013 363 12/11/2014
Employee Training 3/13/2014 92 6/12/2014
Increasedfundingof marketingandR&D 12/15/2014 1461 12/15/2018
Employee incentivesprovided 6/16/2014 1640 12/12/2018
Consumerrewardsprovided 6/16/2014 1640 12/12/2018
Stock repurchase 12/16/2013 181 6/15/2014

19
Objective 4: Target Emerging Markets
 Currently,TomTom's main market share is in Europe. In order to decrease risk emerging
markets must be targeted. Data will be collected within the new markets and analyzed
to compare the differences between our current markets and the emerging markets.
 Previous markets that were thought to be unattainable or unprofitable are evolving,
which makes it less risky to venture into a different country. Marketing employees will
collect and analyze information on Porter's six forces within the countries that have the
greatest potential.
 In order to identify the consumer demands within emerging markets, surveys will be
collected and analyzed to determine consumer trends, wants, and new product
possibilities.
Objective Four Timeline
Target Emerging Markets Start Date Duration (in days) End Date
Collect data on new market ideas 12/13/2016 30 1/12/2017
Assess cultural differences compared to current markets 1/13/2017 25 2/7/2017
Collect information of Porter’s Five forces for the market targeted 1/20/2017 35 2/24/2017
Analyze data collected on the 5 forces 2/25/2017 14 3/11/2017
Survey the emerging market to identify innovative products 2/17/2017 33 3/22/2017
Analyze data collected to identify innovative products 3/22/2017 7 3/29/2017
12/13 1/12 2/11 3/13
Collect data on new market ideas
Assess cultural differences compared to current
markets
Collectinformation of Porter’s Five forces for the
market targeted
Analyze data collected on the 5 forces
Survey the emerging market to identify innovative
products
Analyze data collected to identify innovative
products

20
Gantt Chart Year One: Initial Restructuring and Contracting
Initial Restructuring and Contracting Completion Date: 12/12/2014 (vertical red line)
TomTom, Inc.
[42] Start Date: 12/13/2013 (Fri)
WBS Tasks
Phase
Budget
Cumulative
Budget Start End
Duration
(Days)
WorkingDays
Overhead costs for project (phones, fax, computers, printers, etc.) 17,000
1 Phase I - Identify Target Market 962,070 $979,070 12/13/13 3/12/14 89 64
1.1a Internal Release of Plan 12/13/13 12/13/13 1 1
1.2a Introduce Rewards Program for Think Tank Participants 12/13/13 12/13/13 1 1
1.3a Launch TomTom Think Tank 12/13/13 1/09/14 28 20
1.4a Management Meeting – Discuss Restructuring 12/13/13 12/13/13 1 1
1.5a Assign Legal Team 12/16/13 12/16/13 1 1
1.6a Legal Meeting – Prepare Initial Proposal 12/16/13 12/17/13 2 2
1.7a Begin Preliminary Budget Formation 12/16/13 12/30/13 15 11
1.8a Budget Proposal 1/06/14 1/07/14 2 2
1.9a Develop New Policies and Procedures 1/02/14 1/26/14 25 17
1.10a Management Meeting – P&P Voting 2/06/14 2/07/14 2 2
1.11a Initial R&D Plan, Departmental Restructuring Plan 2/03/14 2/17/14 15 11
1.12a Supplier Relationships 2/03/14 2/28/14 26 20
1-B Phase I-B - Preparation & Planning, Second Quarter 265,000 $1,244,070 3/13/14 6/12/14 91 66
1.1b Management Meeting - Initial Plan Vote 3/15/14 3/15/14 1 0
1.2b Internal Press Release Approval 3/15/14 3/16/14 2 0
1.3b Internal Press Release - Released 3/17/14 3/17/14 1 1
1.4b Office Assignment - Employee Retention Program 3/17/14 3/19/14 3 3
1.5b Temporary Call Center Activated 3/17/14 3/23/14 7 5
1.6b Launch Employee Retention Program 3/24/14 3/30/14 7 5
1.7b Begin Training Programs - Fitness Department 3/13/14 6/12/13 92 -197
1.8b Begin Management Training 3/13/14 6/12/14 92 66
1.9b Incorporate New Policies and Procedures 3/13/14 6/12/14 92 66
1.10b Begin Innovation Training 3/13/14 6/12/14 92 66
1.11b Begin Corporate and Workplace Conduct Training 3/13/14 6/12/14 92 66
1.12b Begin Employee Training 3/13/14 6/12/14 92 66
1.13b Annual Shareholder Meeting 4/23/14 4/23/14 1 1
1.14b Management Meeting - Review Training, Assess Program 5/01/14 5/01/14 1 1
1.15b Assess Feedback, Discuss Partnership Plan and Upgrades 5/01/14 5/02/14 2 2
1.16b Approve Partnership Plan, Web Innovation, and Reward Program 5/29/14 5/30/14 2 2
1.17b Legal Team Assessment of Progress 5/29/14 5/30/14 2 2
1-C Phase I-C - Preparation & Planning, Third Quarter 10,000 $1,254,070 6/13/14 8/12/14 91 43
1.1c Public Press Release 6/16/14 6/16/14 1 1
1.2c Open TomTom Think Tank on Webpage 6/16/14 6/16/14 1 1
1.3c Initial Restructuring of Existing Departments 6/30/14 7/13/14 14 10
1.4c Begin Virtual and Regional Team Assessments 6/30/14 7/20/14 21 15
1.5c Implement Partnership Relationship Plan 7/14/14 7/27/14 14 10
1.6c Management Meeting - Discuss Progress (Training, Partnership, Initial Restructuring) 8/05/14 8/06/14 2 2
1.7c Legal Team Meeting/Update - Nike Progress 8/05/14 8/06/14 2 2
1-D Phase 1-D - Preparation & Planning, Fourth Quarter 500,000 $1,754,070 9/13/14 12/12/14 91 65
1.1d Management Meeting - Reassess Program, Plan Company Meeting 9/15/14 9/16/14 2 2
1.2d Company-wide Meetings Begin 9/29/14 10/05/14 7 5
1.3d Management and Legal Team Meeting - Discuss Counteroffers 10/13/14 10/13/14 1 1
1.4d Management and Legal Team Meeting - Draft Contracts 11/13/14 11/13/14 1 1
1.5d Management and Legal Team Meeting - Review Contracts 11/25/13 11/25/13 1 1
1.6d Management and Legal Team Meeting - Finalize Sale Contracts 12/11/14 12/11/14 1 1
1.7d Management and Legal Team Meeting with Nike - Sign Final Contracts 12/02/14 12/02/14 1 1
1.8d Management and Legal Team Bonuses 12/12/14 12/12/14 1 1
TOTAL $1,754,070
12/3/13
12/27/13
1/12/14
1/26/14
2/9/14
11/25/14
2/23/14
3/12/14
3/26/14
4/11/14
7/26/14
8/12/14
8/26/14
9/11/14
10/26/14
11/11/14
12/12/14
4/25/14
5/12/14
9/25/14
10/12/14
5/26/14
6/11/14
6/25/14
7/12/14

21
Gantt Chart Year Two: Stock Repurchase, Debt Resolution, Supplier Relations
Stock Repurchase, Debt Resolution, Supplier Relations Completion Date: 12/8/2015 (verticalred line)
TomTom, Inc.
[42] Start Date: 12/15/2014 (Mon)
WBS Tasks Phase Budget Cumulative Budget Start End
Duration
(Days)
Working
Days
Overhead costs for project (phones, fax, computers, printers, etc.) 17,000.00$
1 First Quarter 726,453,886.00$ $481,181,407 12/15/14 2/27/15 75 51
1.1 Management Meeting- Discuss R&D and Marketing Restructuring, Company Culture 12/15/14 12/15/13 1 1
1.2 Budgeted Funds For Restructuring/Strategy Are Dispersed 12/15/14 12/15/13 1 1
1.3 Nike Pays $738M FromSale of Fitness Department 12/16/14 12/16/14 1 1
1.4 Stock Repurchase Negotiations Begin 12/16/14 1/16/15 1 1
1.5 $350M Debt Payment 12/22/14 12/22/14 1 1
1.6 Second Phase Restructuring Preparation Begins 12/29/14 1/30/15 2 2
1.7 Focus Group, Incentive Committee Added 1/03/15 1/03/15 1 1
1.8 Marketing Associates, SocialMedia Specialist, and Risk Analyst Added 1/03/15 1/03/15 1 1
1.9
GeneralMarketing Begins: SocialMedia, SmallScale Advertisements (Online, Radio),
TomTomCompany Website (Including Think Tank and Thought Spot) Are Reviewed 1/12/15 2/27/15 47 35
1.10 Customer Connection Begins 2/09/15 2/09/15 1 1
2 Second Quarter 750,310.00$ $481,931,717 3/16/15 6/14/15 88 65
2.1 Management Meeting- Stock Repurchase and Restructuring Progress 3/16/15 3/16/15 1 1
2.2 Employee Incentives FromThink Tank Paid 3/16/15 3/16/15 1 1
2.3 Second Phase of Restructuring Announced 3/17/15 3/17/15 1 1
2.4 Consumer Incentive ProgramAnnounced 3/17/15 3/17/15 1 1
2.5 CallCenter Staff Reduced, Center Decidedly Stays Open 3/17/15 3/17/15 1 1
2.6 Survey Assessment Teamand Language Interpreter Added 3/18/15 3/18/15 1 1
2.7 AnnualShareholder's Meeting 6/12/15 6/12/15 1 1
3 Third Quarter 244,406,974.00$ $726,338,691 6/15/15 9/11/15 89 64
3.1 Management Meeting Supplier Relationships and Stock Repurchase 6/15/15 6/15/15 1 1
3.2 Stock Repurchase Finalized 6/15/15 6/15/15 1 1
3.3 Designated Amount is Paid for Stock Repurchase 6/17/15 6/17/15 1 1
3.4 Public Relations Specialist is Added 6/17/15 6/17/15 1 1
3.5 Negotiations With Suppliers Begin 7/06/15 7/06/15 1 1
3.6 Investor Relations Revisited & Updated Through TomTomWebsite 8/03/15 8/03/15 1 1
4 Fourth Quarter 115,195.00$ $726,453,886 9/14/15 12/08/15 85 62
4.1 Management Meeting Supplier Relationships 9/14/15 9/14/15 1 1
4.2 Remaining Debt Paid 9/15/15 9/15/15 1 1
4.3 Consumer Rewards Paid 9/15/15 9/15/15 1 1
4.4 Employee Incentives Paid 9/15/15 9/15/15 1 1
4.5 Supplier Contracts DealSigned 11/18/15 11/18/15 1 1
4.6 End of Year Review Meeting 12/08/15 12/08/15 1 1
Total $726,453,886
12/5/15
3/5/15
3/22/15
4/5/15
4/21/15
2/5/16
11/21/15
12/22/14
1/5/15
1/22/15
2/5/15
2/19/15
10/22/15
12/22/15
1/5/16
1/22/16
8/5/15
8/22/15
9/5/15
9/21/15
11/5/15
5/5/15
5/22/15
6/5/15
6/21/15
7/5/15
7/22/15
10/5/15

22
Gantt Chart Year Three: Supplier and Investor Relations
Supplier and Investor Relations CompletionDate: 12/5/2016 (verticalred line)
TomTom, Inc.
[42] Start Date: 12/14/2015 (Mon)
Duration
(Days)
Working
Days
Overheadcosts forproject (phones, fax, computers, printers, etc.) 17,000.00$
1 First Quarter 726,453,886.00$ $728,410,656 12/14/15 3/11/16 89 62
1.1 Supplier Partnership Begins 12/15/14 12/15/13 1 1
1.2 Budgeted Funds are Dispersed 12/15/14 12/15/13 1 1
1.3 Management Meeting- Marketing, Diversityand Stock Price Evaluation 12/16/14 12/16/14 1 1
1.4 Second DebtPayment of$112M is Issued 12/16/14 1/16/15 1 1
1.5 Third Phase ofRestructuringAnnounced 12/22/14 12/22/14 1 1
1.6 MarketingBegins BabyBoomers, US Market Targeted 12/29/14 1/30/15 2 2
2 SecondQuarter 750,310.00$ $729,160,966 3/16/15 6/14/15 86 65
2.1
Management Meeting- Stock Price ContingencyPlanCreated, Investment Opportunities
Discussed 3/16/15 3/16/15 1 1
2.2 Employee Incentives Paid- TomTomThink Tank 3/16/15 3/16/15 1 1
2.3 Customer Rewards Paid 3/17/15 3/17/15 1 1
2.4 InternalPress Release ofPlanto Increase Dividends 3/17/15 3/17/15 1 1
3 ThirdQuarter 244,406,974.00$ $973,567,940 6/15/15 9/11/15 89 64
3.1 Management Meeting- Stock Price and Investment Opportunities Explored 6/15/15 6/15/15 1 1
3.2 Public Press Release ofPlanto Increase Dividends 6/15/15 6/15/15 1 1
4 FourthQuarter 115,195.00$ $973,683,135 9/14/15 12/08/15 65 62
4.1 Management Meeting- Investments PlanFinalized, Stock Price Discussed 9/14/15 9/14/15 1 1
4.2 Employee Incentives- TomTomThink Tank Paid 9/15/15 9/15/15 1 1
4.3 Consumer Rewards Paid 9/15/15 9/15/15 1 1
4.4 AnnualSupplier Relationships Meeting 9/15/15 9/15/15 1 1
4.5 End OfYear Meeting- StrategyReview, Budget Discussed 11/18/15 11/18/15 1 1
Total $973,683,135
5/3/16
5/20/16
6/3/16
6/19/16
7/3/16
7/20/16
10/3/16
10/20/16
12/20/16
8/3/16
8/20/16
9/3/16
9/19/16
11/3/16
2/3/17
2/17/17
3/3/17
3/20/17
11/19/16
12/21/15
1/4/16
1/21/16
2/4/16
2/18/16
12/3/16
3/3/16
3/20/16
4/3/16
4/19/16
5/20/17
1/3/17
1/20/17
4/3/17
4/19/17
5/3/17
6/3/17
6/19/17

23
Gantt Chart Year Four: Investment Opportunities, Adding Value, Stabilizing
InvestmentOpportunities, AddingValue, Stabilizing CompletionDate:12/5/2016 (verticalred line)
TomTom, Inc.
[42] StartDate:12/14/2015 (Mon)
Duration
(Days)
Working
Days
Overheadcosts forproject(phones, fax, computers, printers, etc.) 17,000.00$
1 FirstQuarter 237,132,195.00$ $1,201,063,861 12/14/15 3/11/15 89 62
1.1 ManagementMeeting- Progress, InvestmentExploration, NewTechnology 12/16/15 12/15/15 1 1
1.2 Budgeted FundsDispersed 12/16/15 12/15/15 1 1
1.3 EmployeeIncentives- TomTomThink Pad 12/16/15 12/16/15 1 1
1.4 CustomerRewardsPaid 12/16/15 1/16/15 1 1
1.5 DividendsPaid 12/22/15 12/22/15 1 1
1.6 Third DebtPaymentof$112MisIssued 12/29/15 12/29/15 1 1
1.7 InvestmentPlanAnnounced 3/11/16 3/11/16 1 1
2 SecondQuarter 115,195.00$ $1,201,179,056 3/16/16 6/14/16 86 65
2.1 ManagementMeeting- InvestmentPlanReview 3/16/16 3/16/16 1 1
2.3 ConsumerRewardsPaid 3/17/16 3/17/16 1 1
2.4 DividendsPaid 3/17/16 3/17/16 1 1
2.5 AnnualShareholder'sMeeting 6/10/16 6/10/16 1 1
3 ThirdQuarter 115,195.00$ $1,201,294,251 6/13/16 9/09/16 58 41
3.1 ManagementMeeting- Technology 6/15/16 6/15/16 1 1
3.2 DividendsPaid 6/15/16 6/15/16 1 1
3.3 PublicPressReleaseForNewTechnology 9/09/16 9/09/16 1 1
4 FourthQuarter 115,195.00$ $1,201,409,446 9/13/16 12/05/16 84 58
4.1 ManagementMeeting- NewTechnology, InvestmentUpdates 9/13/16 9/13/16 1 1
4.3 CustomerRewardsPaid 9/15/16 9/15/16 1 1
4.4 DividendsPaid 9/15/16 9/15/16 1 1
4.5 AnnualSupplierRelationsMeeting 11/14/16 11/18/15 1 1
4.6 NewTechnologyUnveiled 11/21/16 11/21/16 1 1
4.7 End ofYearMeeting 12/05/16 12/05/16 1 1
Total $1,201,409,446
4/3/17
4/19/17
5/3/17
6/3/17
6/19/17
12/3/16
3/3/16
3/20/16
4/3/16
4/19/16
5/20/17
2/17/17
3/3/17
3/20/17
11/19/16
12/21/15
1/4/16
1/21/16
2/4/16
2/18/16
12/20/16
1/3/17
1/20/17
8/3/16
8/20/16
9/3/16
9/19/16
11/3/16
2/3/17
5/3/16
5/20/16
6/3/16
6/19/16
7/3/16
7/20/16
10/3/16
10/20/16

24
Gantt Chart Year Five: Growth, Evaluation and Control
Growth,Evaluation&Control CompletionDate:12/5/2017 (verticalred line)
TomTom, Inc.
[42] StartDate:12/13/2016 (Tue)
Duration
(Days)
Working
Days
Overheadcosts forproject(phones, fax, computers, printers, etc.) 17,000.00$
1 FirstQuarter 125,132,195.00$ $1,326,541,641 12/13/16 3/10/17 88 51
1.1 ManagementMeeting- Prepare ForNewStrategy, ReviewTechnology&Investments 12/13/16 12/13/16 1 1
1.2 BudgetFunds Dispersed 12/13/16 12/13/16 1 1
1.3 Dividends Paid 3/15/17 3/15/17 1 1
2 SecondQuarter 115,195.00$ $1,326,656,836 3/16/17 6/09/17 85 62
2.1 ManagementMeeting- Investments and NewStrategy. NewTechnologyProfits Reviewed. 3/13/17 3/13/17 1 1
2.3 CustomerRewards Paid 3/15/17 3/15/17 1 1
2.4 Dividends Paid 3/15/17 3/15/17 1 1
3 ThirdQuarter 115,195.00$ $1,326,772,031 6/13/17 9/11/17 91 64
3.1 ManagementMeeting- NewStrategyFinalized, Technology&Investments Reviewed 6/13/17 6/13/17 1 1
3.2 Dividends Paid 6/15/17 6/15/17 1 1
3.3 InternalPress Release ofNewStrategy 9/11/17 9/11/17 1 1
4 FourthQuarter 115,195.00$ $1,326,887,226 9/13/17 12/05/17 83 60
4.1 ManagementMeeting- Prepare ForNewStrategy, ReviewTechnology&Investments 9/13/17 9/13/17 1 1
4.3 ConsumerRewards Paid 9/15/17 9/15/17 1 1
4.4 Dividends Paid 9/15/17 9/15/17 1 1
4.5 Public Press Release ofNewStrategy 10/18/17 10/18/17 1 1
4.6 AnnualSupplierRelations Meeting 11/14/17 11/14/17 1 1
4.7 End ofYearReviewMeeting- Overall5 YearStrategyPerformance Review 12/05/17 12/05/17 1 1
Total $1,326,887,226
4/2/18
4/18/18
5/2/18
12/2/17
3/2/17
3/19/17
4/2/17
4/18/17
2/2/18
2/16/18
3/2/18
3/19/18
11/18/17
12/19/16
1/2/17
1/19/17
2/2/17
2/16/17
10/19/17
12/19/17
1/2/18
1/19/18
8/2/17
8/19/17
9/2/17
9/18/17
11/2/17
5/2/17
5/19/17
6/2/17
6/18/17
7/2/17
7/19/17
10/2/17

25
ProjectedCosts of Strategic Implementation
Current Resources
The items in the following table were identified as the lead management members, executive
members, and board members for TomTom. The figures are identified as their salaries, with
benefits and other perks not included. The total cost is the previous year's salary for the listed
individuals which will remain unchanged until anticipated profits and growth are realizedby the
company.
The current resources that were used in the diversification of products were used primarily in
implementation of new incentive programs. The two main programs that were implemented
include the employee incentive program for employees who identify new profitable products as
well as the customer reward program for loyalty and idea sharing. All of research and
developments resources were used during the execution of this strategic plan.
Resource Description C/N # of Resource Cost/Resource Total Cost
Chief Executive Officer C 1 375,000.00$ 375,000.00$
Chairman of the Board C 1 61,000.00$ 61,000.00$
Vice Chairman of the Board C 1 47,000.00$ 47,000.00$
Director C 5 49,000.00$ 245,000.00$
Chief Financial Officer C 1 400,000.00$ 400,000.00$
Chief Technology Officer C 1 167,070.00$ 167,070.00$
Managing Director: Automotive & Licensing C 1 113,470.00$ 113,470.00$
Managing Director: Business Solutions C 1 115,679.00$ 115,679.00$
Managing Director :Consumer C 1 125,121.00$ 125,121.00$
General Manager C 1 375,000.00$ 375,000.00$
Chief Information Officer C 1 154,079.00$ 154,079.00$
2,178,419.00$
Diversify Products C/N # of Resource Cost/Resource Total Cost
Manager of Research & Development C 3 65,348.00$ 196,044.00$
R&D Specialists C 12 38,746.00$ 464,952.00$
Director of Software Development C 1 118,565.00$ 118,565.00$
Vice President of IT C 1 110,091.00$ 110,091.00$
889,652.00$

26
The debt reduction objective has utilized current resources based on the contract to sell the
fitness department to Nike. After lawyer, finance, and accounting fees are paid the remaining
funds will be distributed throughout the organization to maximize profit and reduce debt.
Restructuring of the organization has utilized all human resources and current resources by
building a retention program, a training program, and maintaining a call center. Due to
employee layoffs from the sale of the fitness department legal fees will be reserved for
potential lawsuits relating to these layoffs. Current equipment such as projectors, computers,
tables, chairs, and rooms will be used for 30 training sessions that will help employees cope
with the layoff of fellow coworkers and to develop contemporary job skills.
In order to target emerging markets all of the marketing department will be utilized to
maximum capacity. Data will be collected and analyzed to compare the current markets to the
emerging markets. These tasks will assess any commonalities between markets which should
allow us to promote and design products that are customized to the market we are entering.
Reduce Debt C/N # of Resource Cost/Resource Total Cost
Senior VP of Deveopment & Treasurer C 1 85,645.00$ 85,645.00$
Certified Public Accountants C 13 56,334.00$ 732,342.00$
General Counsel C 1 152,070.00$ 152,070.00$
Lawyers C 12 67,500.00$ 810,000.00$
Manager: Consumer C 4 54,223.00$ 216,892.00$
Procurement Manager C 1 67,441.00$ 67,441.00$
2,064,390.00$
Restructure C/N # of Resource Cost/Resource Total Cost
Head of Human Resources C 1 86,789.00$ 86,789.00$
Human Resource Representative C 11 32,101.00$ 353,111.00$
Lawyers C 4 67,500.00$ 270,000.00$
Training Equipment C 30 7,236.00$ 217,080.00$
926,980.00$

27
The current resources incurred from restructuring, reducing debt, and diversifying products
totals to $6,496,618.00.
New Resources
Due to the considerable amount of effort put into diversification of products the research and
development department will require additional employees to collect information and to
design new innovations for products. The consumer focus group will be a section of 500
individuals in 10 different countries that will identify differentiation in customer demand.
These countries include the United States, Amsterdam, Netherlands, Egypt, Morocco, Thailand,
Argentina, Brazil, Italy, and Switzerland. The identification of the demands for each country will
increase the need for marketing associates to determine the target market segments. Also,
surveys will be conducted during each customer's visit to TomTom’s website in order to
determine customer's wants and needs which in turn will increase the need for information
technology specialists.
Target Emerging Markets
Marketing Manager C 3 53,099.00$ 159,297.00$
Marketing Associates C 6 28,977.00$ 173,862.00$
Advertising Specialist C 2 52,009.00$ 104,018.00$
437,177.00$
Current Resources
Grand Total of Current Resources 6,496,618.00$
Diversify Products C/N # of Resource Cost/Resource Total Cost
R&D Specialists N 8 30,204.02$ 241,632.16$
Incentive Committee N 8 33,333.00$ 266,664.00$
Consumer Focus Group N 5000 50.00$ 250,000.00$
IT Specialists N 9 33,210.00$ 298,890.00$
Survey Assessment Team N 8 25,600.00$ 204,800.00$
1,261,986.16$

28
The sale of the fitness department to Nike will increase the need for legal associates to oversee
negotiations, provide legal advice, and draft contracts. Additional accountants are vital as it is
necessary to produce feasible strategies to decrease debt and to determine which departments
will be provided with increased funding. One viable option to decrease debt is to forge a
procurement department to establish the cheapest arrangement to buy raw materials from
various supplier organizations. A risk analyst will help to assess the prospective risks, as well as
to recognize how to detect profitable ventures and avoid dangerous investments. There will be
three loan payments which will reduce our debt to equity ratio.
The implementation of companywide training and the call center will escalate the need for
supplementary employees in these departments. Thirty training sessions will be held which will
require significant resources and materials to properly guide and prepare our employees for the
next stage of restructuring. During restructuring, the company will be subjected to heightened
traveling expenses while employees are on assignments in other countries. Expatriate
expenses will increase as more employees are stationed abroad. Once the fitness department
is sold a substantial portion of the profit will go towards repurchasing 15% of the company’s
stock.
Reduce Debt C/N # of Resource Cost/Resource Total Cost
Legal Associates N 10 52,000.00$ 520,000.00$
Accountants N 9 44,000.00$ 396,000.00$
Procurement Associate N 5 37,549.76$ 187,748.80$
Risk Analyst N 1 45,272.63$ 45,272.63$
Loan Payment N 3 190,087,186.61$ 570,261,559.83$
571,410,581.26$
Restructure C/N # of Resource Cost/Resource Total Cost
Call Center Manager N 3 42,000.00$ 126,000.00$
Call Center Representative N 6 21,450.00$ 128,700.00$
Human Resource Representative N 11 23,500.00$ 258,500.00$
Training Center Manager N 4 32,567.00$ 130,268.00$
Training Materials and Tools N 30 4,587.00$ 137,610.00$
Travel Expense N 15 6,788.70$ 101,830.50$
Moving Expense N 50 4,714.99$ 235,749.50$
Stock Repurchase N 33,303,528 7.33$ 244,246,667.00$
Market Scanning Software N 45 1,652.02$ 74,341.15$
Implementation cost for new ideas N 20 15,000,000.00$ 300,000,000.00$
Advertising costs for new products N 20 9,935,144.41$ 198,702,888.10$
744,142,554.25$

29
The marketing department will be divided into three distinct sections- North America, Europe,
and the rest of the world. Employees will be appointed to each section based on their expertise
of the designated market. This will allow individuals in separate divisions to focus on one
particular culture in order to gain full knowledge of market demand. Three language
interpreters will provide assistance to translate and communicate multiple languages. Social
media experts will be employed to properly administer communications to customers regarding
new products and special offers. These practices will lead to enhancement of the company's
corporate image by accommodating the desire of customers to have an outlet to voice their
opinions and concerns.
The total amount of new resources that will be utilized in the restructuring, reducing of debt,
and diversifying of products is $1,326,887,226.00.
With the addition of new employees many aspects of the organization’s office space will be
limited. The purchase of one additional level of office space is required to provide adequate
capacity for employees to complete their work successfully. With a total of 140 additional
employees, 115 new offices must be created which will include computers, desks, chairs, filing
cabinets, telephones, and general office supplies. The two amounts allotted for office supplies
are for Xerox copiers, scanners, and fax stations for all employees to utilize as well as paper and
Target Emerging Markets C/N # of Resources Cost/Resource Total Cost
Marketing Associate - North America N 13 25,676.00$ 333,788.00$
Marketing Associate - Europe N 13 25,676.00$ 333,788.00$
Marketing Associate - World N 17 25,676.00$ 436,492.00$
Advertising Associate N 10 32,856.00$ 328,560.00$
Language Interpreter N 3 39,445.00$ 118,335.00$
Information Technology Specialist N 6 35,122.00$ 210,732.00$
Social Media Specialist N 9 38,461.70$ 346,155.30$
2,107,850.30$
Grand Total of New Resources 1,326,887,226.00$
New Resources

30
toner expenses. Due to the notable changes a public relations specialist will be hired to engage
the media and handle necessary public relations.
The new resources that were purchased to diversify products, reduce debt, restructure the
organization and reach emerging markets exceed the amount of resources currently utilized by
the organization.
Grand Total C/N #of Resources Cost/Resource Total
Total Current and New Resources C/N 1,325,419,589.97$
Other Expenses for Objectives: N
Public Relations Specialist N 1 45,112.00$ 45,112.00$
Office Space N 1 50,007.49$ 50,007.49$
Computer Supplies N 115 249.50$ 28,692.50$
Office Supplies N 2 2,000.00$ 4,000.00$
Telephone Expenses N 115 20.00$ 2,300.00$
Management Bonuses N 100 5,000.00$ 500,000.00$
Dividends Payout N 4 160,780.00$ 643,120.00$
Exit Packages N 5 10,000.00$ 50,000.00$
IT and R&D Costs N 4 36,101.01$ 144,404.04$
Grand Total for All Resources 1,326,887,226.00$
Objectives Current New
Diversify Products 889,652.00$ 1,261,986.16$
Reduce Debt 2,064,390.00$ 571,410,581.26$
Restructure 926,980.00$ 744,142,554.25$
Target Emerging Markets 437,177.00$ 2,107,850.30$

31
Cost Breakdown of Current and New Resources
The cost for all resources is $1,326,887,226.00. The majority of funding is needed for reduction
of debt. The cost is rather high due to the fact that one of the main objectives is to perform a
stock repurchase following the sale of the fitness department. Although it will be costly to
implement the sale will provide the necessary capital to fund our auspicious endeavor.

32
Functional Areas Impacted
Finance and Accounting
 TomTom will finance a large portion of debt with internal outlets such as retained
earnings and the sale of the fitness department. This will reduce the risk of external
debt thus decreasing our debt to equity ratio.
 The finance and accounting department will be laden with the major tasks of
implementing the budgets, providing accurate data to decision makers, and analyzing
the implementation of the strategic plan.
Objective Costs Cumulative Costs
Diversify Products 3,063,151.97$ 3,063,151.97$
Identify ways to compensate for ideas of stakeholders 122,332.67$
Promote employee ideas through implementation of a reward system 982,493.07$
Implement a customer incentive program for product ideas 617,355.07$
Identify if new products will replace existing products 184,768.49$
Create new products that would impact all target markets 871,305.83$
Receive feedback from test group on new produts 284,896.84$
Reduce Debt 574,386,485.04$ 577,449,637.00$
Sell Fitness Department to Nike 2,035,021.45$
Identify suppliers who are efficient and inexpensive 483,068.25$
Analyze company financials to reduce risk 1,487,138.08$
Loan Payment 570,381,257.26$
Restructure 745,981,048.04$ 1,323,430,685.04$
Employee Training 266,876.21$
Increased marketing and r&d 500,066,876.21$
Employee incentives 466,876.21$
Consumer rewards 866,876.21$
Stock Repurchase 244,313,543.21$
Target Emerging Markets 3,456,540.97$ 1,326,887,226.00$
Collect data on new market ideas 1,128,924.82$
Assess cultural differences compared to current markets 610,608.23$
Collect information of Porter’s Five forces for the market targeted 632,125.42$
Analyze data collected on the 5 forces 441,382.56$
Survey the emerging market to identify innovative products 389,120.60$
Analyze data collected to identify innovative products 279,379.34$
Total 1,326,887,226.00$

33
Research and Development
 The research and development department will become more customer service
oriented through the implementation of newly created ideas for product innovation
that was facilitated by primary stakeholders.
 Receiving opinions from customers and implementing their ideas will increase customer
satisfaction which will in turn increase sales. Employees in the research and
development department will receive special training in how to receive constructive
criticismand how to provide outstanding customer service.
 The increase in funding for the research development department will allow for further
innovations, creation of new technologies, and detailed research which will expand the
need for more employees.
Human Resources
 The human resources department will offer exceptional resources to employees that are
laid off to assist in securing a suitable position with another company. The placement
assistance provided to laid off individuals will support an increasingly positive image of
the company.
 Retained employees will be assigned a new position within the company. Job
placement will identify the need for additional training.
 The employee incentive systemwill be implemented and tracked by the human
resources department. Human resources will determine the employees eligible to
receive incentives and calculate the amount of compensation to be received.
Legal Department
 With an increase in the rate of hiring and terminating employees the legal department
will need to be expanded due to possible lawsuits arising from allegations of wrongful
termination, discrimination, or violations of the Equal Employment Act.
 The sale of the fitness department will also add to the legal department’s work load as
an increasing volume of legal documents, advice, and presence are required.

34
IT Department
 The TomTom website will be reconstructed to coincide with the new strategy and
mission. The IT Department will include new graphics, information, and links that will
increase the usability and accessibility for all stakeholders.
 Synergy is expected to be established between the IT department and the research and
development department. The IT department will assist the research and development
department with graphic designs of new products prior to their creation which will allow
the research and development department to assess the strengths and weaknesses
through the new product's computerized blue prints.
 Through the implementation of the new customer reward program TomTom will need
to provide support with both receiving new ideas through online outlets and providing
the collected data to analysts for review.
Procurement
 The procurement department will meet with company suppliers to distinguish cost
savings for raw materials. Contracting with new suppliers will increase buyer power and
will reduce the reliance on previous suppliers.
 Procurement will develop a reasonable form of payment to allow contracted suppliers
to receive their payments in an expeditious manner with the lowest possible cost and
risk to both parties. Procurement will broaden in size due to these performed tasks.
Manufacturing and Distribution
 The manufacturing and distribution systems will increase in efficiency and effectiveness
as decision makers identify and implement cost saving measures with new
manufacturing strategies.
 Manufacturing employees will be cross-trained and their duties will be separated to
reduce the reliance on one employee.

35
Financing of Strategy
Funding Requirements for Objectives
The diversification of products objective requires substantial financing as TomTom seeks ways
to discover new ideas for products. Stakeholders, such as customers and employees can
provide their ideas and in return they will be compensated or rewarded. Once new ideas have
been obtained the organization must analyze if it is profitable, feasible, and must determine
how it will affect current business. When a product is recognized as a valuable investment the
product must be created and distributed to test groups where TomTomwill be able to receive
feedback from the analysis. The largest portion of funding to diversify products is the cost of
rewarding employee’s ideas at 34% while the lowest funded section is the identification of ways
to compensate for ideas of stakeholders at 2%.
TomTom Objective #1 Diversify Products Budget Breakdown

36
Objective 2 of the strategic plan is the reduction of debt which includes selling the fitness
department, identifying suppliers who provide cost savings, analysis of company financials to
reduce risks, and loan payments. Three loan payments will be dispersed totaling
$574,386,485.00, which will allow TomTom to be free of staggering long term debt. The largest
loan payment is in year one with 61% of the financing, while years two and three are the same
amounts.
TomTom Objective 2: Reduce Debt
Diversify Products 3,063,151.97$
Identify ways to compensate for ideas of stakeholders 122,332.67$
Promote employee ideas through implementation of a reward system 982,493.07$
Implement a customer incentive program for product ideas 617,355.07$
Identify if new products will replace existing products 184,768.49$
Create new products that would impact all target markets 871,305.83$
Receive feedback from test group on new produts 284,896.84$

37
Objective three is restructuring the company to align with company goals which includes
employee training, increasing financing to marketing and R&D departments, employee
incentives, consumer rewards, and renewing a positive company culture. The employee
incentives and consumer rewards are methods to promote new and innovative ideas for
technology while compensating the creators. Once a remarkable idea has been cultivated, R&D
and marketing will need a considerable amount of funding to promote and create the new
products. The project funding accounts for 67% of the financing for this objective. The stock
repurchase is the remainder of the 33% as 33,303,528 shares will be purchased for $5.50.
TomTom Objective 3: Restructure to Align With Company Goals
Reduce Debt 574,386,485.04$
Sell Fitness Department to Nike 2,035,021.45$
Identify suppliers who are efficient and inexpensive 483,068.25$
Analyze company financials to reduce risk 1,487,138.08$
Loan Payment #1 350,128,828.35$
Loan Payment #2 112,128,828.35$
Loan Payment #3 112,128,828.35$

38
The fourth objective is to target emerging markets which includes gathering data on new
market ideas, assessing cultural differences, collecting information on Porter’s six forces,
surveying the emerging market, and analyzing the aggregated data. Many countries that are
emerging were never before thought of as being financially beneficial. Now as these countries
are evolving they allow for considerable opportunities. If TomTom offers a product in a country
before major competitors, they may have and maintain first mover benefits. Collecting data is
the largest section that needs financed, with 32% of the objective, while analyzing data
collected to identify innovative products is the lowest at 8%.
TomTom Objective 4: Target Emerging Markets Budget Breakdown
Restructure 745,981,048.04$
Employee Training 266,876.21$
Increased marketing and r&d 500,066,876.21$
Employee incentives 466,876.21$
Consumer rewards 866,876.21$
Stock Repurchase 244,313,543.21$

39
Five Year Budget Requirements
One of TomTom’s primary objectives is to greatly reduce the amount of debt over the next five
years. Currently TomTom has $554M in borrowings which incur large amounts of interest.
TomTom is financing our debt reduction $544M, stock repurchase $244M, and restructuring
with the $738M sale of the fitness department. The stock repurchase of $244M will allow for
the purchase of 15% of the current stocks outstanding, which equals 33,303,528 at the price of
$5.50/share. The following budget chart depicts the required capital over the next five years.
The budget requirements are $1,326,887,226.00 and the sale of the department is $738M. The
cost savings from the restructure, interest charges, and renewed efficiency will satisfy the
remaining budget requirements.
Rate and Length of Loan
Currently the loan outstanding is $554M with an interest rate of 6.956%. By the time TomTom
completely pays off the loan we will pay $20,386,485.05 in interest. The goal is to have the
standing $544M paid off by the third year of the strategic plan. After the debt burden is
reduced we will be able to invest in profitable investments with the opportunity of long term,
sustainable growth.
Target Emerging Markets 3,456,540.97$
Collect data on new market ideas 1,128,924.82$
Assess cultural differences compared to current markets 610,608.23$
Collect information of Porter’s Five forces for the market targeted 632,125.42$
Analyze data collected on the 5 forces 441,382.56$
Survey the emerging market to identify innovative products 389,120.60$
Analyze data collected to identify innovative products 279,379.34$
Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
1 979,070.00$ 477,700.00$ -$ 500,000.00$ 1,956,770.00$
2 479,224,637.00$ 750,310.00$ 244,406,974.00$ 115,195.00$ 724,497,116.00$
3 237,132,195.00$ 115,195.00$ 115,195.00$ 115,195.00$ 237,477,780.00$
4 237,132,195.00$ 115,195.00$ 115,195.00$ 115,195.00$ 237,477,780.00$
5 125,132,195.00$ 115,195.00$ 115,195.00$ 115,195.00$ 125,477,780.00$
Total 1,079,600,292.00$ 1,573,595.00$ 244,752,559.00$ 960,780.00$ 1,326,887,226.00$

40
Impact of Debt on the Organization
Positive Impacts of Debt Reduction on the Organization
 TomTom has absorbed too much debt and is gravely overleveraged. This indicates that
we may soon be unable to satisfy our debt payments and are at a high risk of potential
insolvency. (Investopedia, 2013)
 The reduction of shares outstanding for TomTom will increase shareholder value,
decrease dilution of the stock, and increase earnings per share.
 Financing internally, avoiding unfavorable ventures, restraining from acquisitions, and
avoiding investments that do not align with companies goals will increase our chance of
survival, stabilization, and regrowth.
 If we reduces our debt according to the strategic plan we will have over $168M annually
to reallocate and invest within the organization.
 The sale of the fitness department will have a positive effect on most TomTom
departments as we are no longer tied to Nike with their investment, have a larger free
flow of capital, and have cash reserves.
Negative Impacts of Debt Reduction on the Organization
 A reduction in debt could decrease leverage which allows a company to magnify their
returns and increasing profits.
 The sale of TomTom’s fitness department will increase our reliance on the PNDs which
are currently falling in sales due to lack of interest. Further product diversification will
be necessary to stabilize the company.
Year BeginningBalance Payment Interest Total
1 554,000,000.00$ 350,128,828.35$ 13,447,867.73$ 217,319,039.38$
2 217,319,039.38$ 112,128,828.35$ 6,938,617.33$ 112,128,828.35$
3 112,128,828.35$ 112,128,828.35$ (0.00)$

41
 Extremely large amounts of debt are unhealthy for company and may be a signal to
investors that the company is in financial distress. This may cause investors to stop
providing financing even in the case of an emergency.
 Extensive borrowings have increased the rate of interest expected from investors and
financial institutions as the company has become a default risk.

42
ProjectedOutcomes
Qualitative Outcomes
The implementation of the five year strategic plan will make extraordinarily positive changes to
the quality of the organization companywide.
Decreasing debt by no less than 60%
 The decrease in debt will allow TomTom to reallocate resources to areas that lack
adequate funding or that need improvement. Debt reduction will also allow us to begin
to build shareholder wealth and payout dividends. Actual value will be added to the
company and to our brand image.
Increased consumer sector revenue by 5%
 The consumer rewards program along with targeting emerging markets and diversifying
products will increase consumer sales by no less than 5%. The quality of customer
relations, marketing, and service will be remarkably improved.
Increased licensing revenue by7% with the addition of two partnerships
 The addition of new long term sustainable partnerships will assist in diversifying our
products, reaching market segments, and increasing licensing revenue. The five year
strategic plan works to alleviate partner’s concerns regarding the company’s overall
health. Adding two new partnerships increases the brand quality and sustainability of
the organization.
Decrease probability of bankruptcy by 10%
 Decreasing the probability of bankruptcy will hedge against a potential takeover by
Apple. It will also increase consumer and investor confidence. Company culture,
consumer relations, and investor interest will be restored as the company is no longer a
risky investment.
Increase business revenue by 3%
 The business sector has been steadily increasing by 9% each year. We expect to see
another 3% increase with the new programs, restructure, marketing, and relations.
With more department funding the business sector quality will increase which will lead
to better service, positive experiences, and more business specific services.

43
Increased revenue from emerging markets by 9%
 Targeting emerging markets will strengthen our corporate image, brand, and future
opportunities of our company. TomTom’s quality will be globally geared to satisfy the
demands of consumers worldwide.
Decrease operating expenses by 15%
 The increase in employee training and skills will allow for greater efficiency and
effectiveness. The company will be able to decrease operating expenses to provide
better quality affordable goods to all sectors. The decrease will also allow for
reallocation of saved costs to shareholder’s wealth, incentives, revenue, rewards, and
overall company improvements.
Decrease supplier costs by 8%
 Partnerships with suppliers will form long term contracts which will be expected to
reduce overall supplier costs by 8%. The supplier relationships will ensure that materials
are delivered on time and in proper quantities. This will increase the quality and
timeliness of the distribution of our products and services.
Increase share price to $7.67
 The increase of share price will reflect growth of our core values. The climbing share
price will positively impact stakeholder’s perceptions, opinion, and confidence in our
company. A renewed sense of success will potentially further increase sales,
partnerships, and growth opportunities.

44
Quantitative Outcomes
TomTom, Inc. Pro Forma Consolidated Income Statement (In Thousands)
2013 2014 2015 2016 2017 2018
Revenue 1,057,134 1,173,419 1,302,495 1,445,769 1,604,804 1,781,332
Cost of Sales 502,398 527,518 553,894 581,588 610,668 641,201
Gross Result 554,736 645,901 748,601 864,181 994,136 1,140,131
Operating Expense:
Research and Development 166,315 177,957 190,414 203,743 218,005 233,265
Amortization of technology
and databases 84,011 86,111 88,264 90,471 92,732 95,051
Marketing 57,305 61,889 66,841 72,188 77,963 84,200
Selling, general,
administrative expenses 169,716 176,505 183,565 190,907 198,544 206,485
Impairment charge 0 0 0 0 0 0
Stock compensation 7,140 7,211 7,284 7,356 7,430 7,504
Total operating expense 484,487 509,674 536,367 564,665 594,674 626,506
Income before taxes 60,533 136,227 212,234 299,515 399,462 513,625
Provisions for income tax 68,660 68,722 68,784 68,846 68,908 68,970
Net Income 129,193 204,949 281,018 368,361 468,370 582,595
Earnings per Share:
Basic 0.58 0.62 0.66 0.70 0.75 0.79
Diluted 0.58 0.62 0.66 0.70 0.75 0.79

45
TomTom, Inc. Pro Forma Consolidated Balance Sheet (In Thousands)
Assets 2013 2014 2015 2016 2017 2018
Current Assets:
Cash andEquivalents 164,459 180,905 198,995 218,895 240,784 264,863
Accounts Receivable 35,294 36,353 37,443 38,567 39,724 40,915
Inventories 44,383 45,524 46,694 47,894 49,124 50,387
Deferred Taxes 82,968 87,116 91,472 96,046 100,848 105,891
Trade Receivables 149,834 162,855 177,007 192,389 209,107 227,278
Other Current 444 448 453 457 462 467
Total Current Assets 477,382 513,201 552,064 594,247 640,050 689,801
Long Term Marketable Securities 3,880 3,948 4,017 4,087 4,159 4,232
Property, Plant, Equipment 26,770 27,185 27,606 28,034 28,469 28,910
Goodwill 381,569 410,187 440,951 474,022 509,574 547,792
AcquiredIntangible Assets 821,233 870,507 922,737 978,102 1,036,788 1,098,995
Other non current Assets 13,610 13,718 13,826 13,935 14,045 14,156
Total Assets 1,724,444 1,838,745 1,961,201 2,092,427 2,233,084 2,383,885
Liabilities and Shareholder's Equity
Current Liabilities:
Accounts Payable 84,162 74,876 69,620 67,056 54,387 32,299
Accrued Expenses 250,963 232,969 219,256 205,433 203,348 198,063
Income Taxes 23,933 24,340 24,754 24,761 25,182 25,610
Other Taxes and Social Security 9,330 9,335 9,340 9,340 9,345 9,350
Borrowings 73,703 51,953 45,869 39,652 25,231 15,527
Provisions 33,192 33,541 33,893 33,896 34,252 34,612
Total Current Liabilities 475,283 427,013 402,731 380,138 351,745 315,460
Other non current 410,744 464,141 524,479 592,661 669,707 756,769
Total Liabilities 886,027 891,154 927,210 972,799 1,021,453 1,072,229
Shareholder's Equity:
Share Capital 44,379 44,951 45,531 46,119 46,714 47,316
Share Premium 975,260 994,765 1,014,661 1,034,954 1,055,653 1,076,766
Other Reserves 159,011 150,027 151,528 153,043 154,573 156,119
Accumulatedother income/lost -342,875 -244,796 -180,371 -117,131 -47,953 28,810
Interest 2,642 2,643 2,643 2,644 2,645 2,645
Total Shareholder's Equity 838,417 947,591 1,033,991 1,119,628 1,211,631 1,311,656
Total Liabilities andShareholder's Equity 1,724,444 1,838,745 1,961,201 2,092,427 2,233,084 2,383,885

46
Corporate Functional Areas Impacted
Financial Resources
 Sale of the fitness department will result in $738M in revenue to reallocate throughout
the company.
 The stock repurchase of $244M will increase shareholder wealth and improve the
company’s financial ratios.
 The company’s standing debt of $544M will be paid in the first three years of the
strategic plan which will allow for more free capital from not having loan payments and
interest.
Marketing
 The marketing department will be provided with increased funding to survey, monitor,
assess, and study emerging markets.
 TomTom marketing specialists will be sent abroad to analyze the data collected from
surveys and the focus group.
Production
 TomTom plans to have new technology released in the fourth year of the strategic plan
that will increase materials from suppliers and in-house production.
 Consumer goods are expected to increase by 5% from stimulated sales in emerging
markets. TomTom production facilities will adjust accordingly to accommodate for the
increased production.
Distribution
 As a part of the restructuring plan TomTom’s distribution centers will be adequately
staffed to handle the increased volume of goods produced.
Human Resources
 The human resource department will head the employee retention program and
disperse the exit packages of lost employees from the sale of the fitness department.

47
 Human resources will lead the employee training programs, schedule dates, inform
employees, and facilitate the necessary supplies for training purposes.
 The human resource department will assess the skills of current employees and be
responsible for proper job placement of retained employees.
Finance and Accounting
 The finance department will produce feasible quarterly and annual budgets to
correspond with the five year strategic plan.
 The finance department will assist in monitoring projected outcomes to actual
outcomes of each objective, quarter, and year of the strategic plan.
 The finance department will ensure that all payments are made as specified in the
strategic plan and ensure that dispersed funds are properly reallocated to the
designated departments.
Legal Department
 The legal department will work with the temporary legal team hired during year one to
review and write contracts, provide legal advice, and provide support for executives.
 The legal department specialists will be present for all meetings and transactions with
Nike and TomTom executives.
Information Technology
 The IT department will create the TomTom Thought Spot and TomTom Think Tank as
part of the employee incentives and customer reward programs.
 The IT department will create and monitor the training modules for the mandatory
training sessions throughout the five year strategic plan.
 The IT department will update the company website to provide press releases, news
releases, and consumer information.

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Strategy Evaluation
To continue diversifying products, reducing debt, and expanding into emerging markets, our
restructuring program must be continuously evaluated. Evaluations will be conducted monthly,
quarterly, and at each year’s end. We are reducing debt to free up capital that will be utilized in
reaching emerging markets, increasing internal strength, and providing adequate funding to
research and development to create new technologies. Partnerships are being explored to
increase licensing revenue, decrease debt leverage, alleviate ailing stock prices, and financial
ratios. Consumer research will be increased to further advance into new diverse markets. To
ensure the success of our strategy, we are employing the following measures:
 Decrease debt by no less than 60%
 Increase consumer sector revenue by 5%
 Increase licensing by 7% by adding two long term sustainable partnerships
 Decrease probability of bankruptcy by 10%
 Increase business revenue by 3%
 Increase revenue from emerging markets by 9%
 Decrease operating expenses by 15%
 Decrease supplier costs by 8%
 Increase share price to$7.67
The measurement timeline will be utilized to characterize the following:
1. Monthly Reviews
 The TomTom leaders of each objective will use continual monitoring to analyze the
progress of each designated objective. The specialists heading each department of the
objectives will report to their appointed TomTom leader as specified in their training.
Prompt monthly reporting will provide sufficient time for TomTom leaders to detect
deficiencies in the program that may require corrective measures to safeguard the
success of the objective.
2. Quarterly Reviews
 The TomTom leaders of each objective with meet with the CEO, CFO, and the pertinent
Vice President of either marketing or research and development each quarter. The
TomTom leaders will provide viable data to represent the progress of each objective.
Increases in consumer, business, licensing, and emerging markets will be compared to
the actual quarterly and annual results. The quarterly meetings will allow the CEO, CFO,

49
and Vice Presidents to offer feedback, suggest modifications, and determine necessary
changes. The TomTom specialists assigned to each objective may be required to be
present as requested by the CEO, CFO, and Vice Presidents to provide further insight to
the progress of each objective.
3. Annual meetings
 The annual year end meeting will include the CEO, CFO, Vice President of Marketing,
and Vice President of Research and Development. The annual report will be reviewed
to ensure that the objectives reflect satisfactory outcomes. Actual results of the
objectives will be evaluated to determine any necessary changes including cutbacks and
improvements for all objectives. Adequate capital, funding, and budgeting will be
reviewed to compare projected outcomes with actual outcomes.
 The annual supplier relations meeting will include the CEO, CFO, the supplier’s CEO, and
CFO. The meeting will cover the projected increase or decrease of costs to TomTom,
product quality, and delivery schedule. TomTom and the supplier will provide
documentation to indicate their satisfaction or dissatisfaction with the current supplier
relationship. If there are any areas are of concern or dissatisfaction the executives will
make their best effort to resolve the issues during the meeting. If a resolution is not
reached new rounds of negotiations will be scheduled.
Strategy Target Measurement Timeline
 Projected Budget: $1,326,887,226
 Projected Increase in Consumer Revenue: $31,955,300
 Projected Increase in Business Revenue: $2,190,390
 Projected Increase in Licensing Revenue: $9,314,410
 Projected Increase in Emerging Market Sales: $25,588,440
FY1: Start Quarter 1 Quarter 2 Quarter 3 Quarter 4
Budget $0 $979070 $1,456,770 $1,456,770 $1,956,770
Consumer $0 $500,000 $1,100,000 $1,600,000 $2,100,000
Business $0 $20,000 $22,950 $85,896 $128,846
Licensing $0 $0 $0 $0 $0
Emerging $0 $30,000 $65,000 $105,000 $150,000

50
FY 2: Start Quarter 1 Quarter 2 Quarter 3 Quarter 4
Budget $1,956,770 $481,181,407 $481,931,717 $726,338,691 $726,453,886
Consumer $2,100,000 $3,600,000 $5,490,353 $7,380,706 $9,271,059
Business $128,846 $257,692 $386,538 $515,384 $644,230
Licensing $0 $0 $0 $0 $0
Emerging $150,000 $200,000 $255,000 $310,000 $360,000
Budget $726,453,886 $963,586,081 $963,701,276 $963,816,471 $963,931,666
Consumer $9,271,059 $11,161,412 $13,051,765 $14,942,118 $16,832,471
Business $644,230 $773,076 $901,922 $1,030,768 $1,159,614
Licensing $1,164,301 $0 $0 $0 $0
Emerging $360,000 $2,462,370 $4,564,740 $6,667,110 $8,769,480
Budget $963,931,666 $1,201,063,861 $1,201,179,056 $1,201,294,251 $1,201,409,446
Consumer $16,832,471 $18,722,824 $20,613,177 $22,503,530 $24,393,883
Business $1,159,614 $1,288,460 $1,417,306 $1,546,152 $1,674,998
Licensing $0 $1,164,301 $2,328,602 $3,492,903 $4,657,204
Emerging $8,769,480 $10,871,850 $12,974,220 $15,076,590 $17,178,960
FY5: Start Quarter 1 Quarter 2 Quarter 3 Quarter 4
Budget $1,201,409,446 $1,326,541,641 $1,326,656,836 $1,326,772,031 $1,326,887,226
Consumer $24,393,883 $26,284,236 $28,174,589 $30,064,942 $31,955,300
Business $1,674,998 $1,803,844 $1,932,690 $2,061,536 $2,190,390
Licensing $4,657,204 $5,821,505 $6,985,806 $8,150,107 $9,314,410
Emerging $17,178,960 $19,281,330 $21,383,700 $23,486,070 $25,588,440

51
Outcomes If Strategy Fails
Quantitative
Reliance on PNDs
 Failure of the proposed strategy will cause an increased reliance on PNDs which will
cause our profits in the consumer sector to decrease 30% per year, totaling a loss of
$194M.
Decrease in Stock Price
 As profits decline fewer stockholders will be willing to invest in the company due to high
insolvency risk. An 8% decline in stock price will cause investors to sell their TomTom
shares and invest in major competitors. This will ultimately decrease the amount of
leverage TomTom has and will reduce the financing to the research and development
department.
Reduction of Market Share
 The failure of our objectives will impact TomTom’s market share in the United States by
declining from 30% to 22% as new entrants join the competition due to a lack of entry
barrier. The new entrants will offer the same product at a cheaper price and gain a cost
leadership advantage.
 European market share will decrease from 50% to 40% as one of our major competitors
such as Garmin capitalizes on the success of TomTom in other countries(Turpin, 2011).
Increased Debt
 If the strategy fails TomTom will be forced to acquire new long term financing at high
interest rates to fund new projects. If the company defaults on prior debt payments or
is unsuccessful in reallocating resources, stockholders may be unwilling to further invest
in TomTom.

52
Reduction of Raw Materials
 Failure of the strategy or inability to make payments to supplier will reduce the amount
of raw materials available to TomTom by as much as 15%. With limited suppliers the
company will have difficulty obtaining funding and necessary materials which will
ultimately reduce overall profits.
Workforce Reduction
 If the strategy fails there will be a decrease in raw materials and declining market share
will cause a reduction in workforce by 10%. This will cause employees to seek
employment at other organizations including our competitors. TomTom will lose a large
majority of their exceptional talent and competitors will gain a competitive advantage
with absorption of TomTom’s employees.
Qualitative
Workforce Discontent
 Employees who are downsizing survivors may have a difficult time staying motivated
and productive. Those that are retained will require reassurance that their job is not at
stake as well as clear explanations of their new responsibilities within the organization.
 If the strategy fails the remaining managers and executives will incur a salary reduction,
decreased benefits, and removal of corporate perks.
Customer Dissatisfaction
 A failed strategy will spur a decline in the quality of services and products which will
reduce customer satisfaction.
 The prices of products will increase as the company will require more profit from sales
to remain operating. A large price increase will create more customer dissatisfaction.
Corporate Culture
 If the strategy fails TomTom’s corporate culture will falter as objectives are not satisfied.
Currently, TomTom’s culture is one of its largest assets. The general public’s opinion can
negatively affect the attitudes, confidence, and security of company employees which
will all negatively impact the overall corporate culture.

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Regulation Compliance
 If TomTom's strategic plan fails the company may begin to disregard compliance and
standard regulations. Shifting compliance from priority to ignorance will result in fines
and possible lawsuits.
 Not complying with laws in our industry can lead to environmental damage and more
fines. This will also decrease our public image and will negatively highlight them in the
media spotlight.
Company Image
 TomTom’s company image will be sacrificed if the company strategy fails. We will no
longer be a major competitor in personal navigation devices and become associated
with sustained negativity within the global community.
TomTom is optimistic of the success of their five year strategic plan and these quantitative and
qualitative outcomes will only occur if the strategy fails. The analysis provided has identified
the predictions of TomTom in the future as the strategy moves through the implementation
process. The investment capital that will be received from the sale of one of our major
divisions will allow TomTom to reduce risk by diminishing debt and utilizing excess cash to fund
investments through research and development. TomTom will utilize the GE business screen to
identify long term industry attractiveness as well as determine a competitive position. Product
lines will be analyzed based on each other to identify sources of profit in winners versus those
who are losers and those who are questionable. In accordance with the results TomTom will
put resources into those who create profit and replace those that do not increase revenues
with other prospects.

Nicole Dobson Master's Program Final Financial Project Plan

Nicole Dobson Master's Program Final Financial Project Plan

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