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Chapter 6

MGTA03 Chapter 6

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University of Toronto Scarborough
Management (MGT)
Chris Bovaird

Chapter 6 Business Strategy The starting point in effective management is setting goals objectives that a business hopes and plans to achieve Setting Goals Goals are performance targets and organizations and their managers use them to measure their successes and failures The Purposes of Setting a Goal An organization will commit its resources to achieving its goals, there are four main purposes of setting a goal 1) Goal setting provides direction, guidance and motivation for managers A company needs to know where it is headed and what they want to achieve. If they know that, there will be less error 2) Goal setting helps firms allocate their resources Companies will allocate their resources better to areas of their business that are expected to grow, they will allocate more and start new projects there 3) Goal setting helps to define corporate culture Setting goals help to determine the environment of the corporation, for example if you want to be top in your industry, it will define a competitive and stressful environment for your company that is big on success and harsh on failure. 4) Goal setting helps managers assess their performance If a company is able to meet the goals that it has set, then it is doing well and can reward themselves, there will be compensations for failures. Kinds of Goals Companies have difference goals depending on their purpose and mission, every enterprise has a purpose a reason of being Most enterprises have a mission statement a statement of how it will achieve its purpose in the environment in which it conducts its business Mission statements include the companys core values and a commitment to ethical behaviour Businesses can have same purpose but different mission Every business has long term, intermediate and short term goals Long Term Goals: Goals that relate to extended period of time typically five years or more into the future www.notesolution.com
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