Strategic management /
Pages: 6 (1483 words) /
Published: Jan 22nd, 2015
OBJECTIVES: the end sought after by the organization and to be achieved by its operation and existence. An objective helps to justify the existence of the company, be it to the public, government or itself. With a clearly described objective the whole workforce can drive towards it in a unified manner and also attract customers or other organizations that identify with it. It also helps to judge the success of the co.
FACTORS SHAPING THE OBJECTIVE:
Resources available depending on the firm’s finances/capability.
Value system of the management theoretical An orientation towards truth and knowledge economical An orientation towards what is useful aesthetic An orientation towards form and harmony social An orientation towards people political An orientation towards power religious An orientation towards unity
External forces in the business environment (social, political, economic, technology) and other bodies such as the suppliers, creditors, customers, share holders and competitors.
HIERARCHY OF OBJECTIVES
MISSION: it establishes the scope of the business, the main concentration of the co’s effort in terms of consumer, product and business sphere. It provides a systematic overview of the company’s position in the competitive field. Elements of a mission statement:
Clear and easy to understand
Current; needs to keep up with the times and changing environment scenario.
BUSINESS POLICY: a business policy is a well developed statement of directions and goals . goals involve definitions of precisely what the business is or should be. directions forms the framework clearly guiding the workforce on selecting the appropriate tactics or programs. Framed by the top-management, its meant for the managers to take decisions that will be in the favour of the co.s objective.
With a clear cut policy, the management can effectively handle the functions of an organization, i.e.
Form of organization