MGTA01H3 Chapter Notes - Chapter 6-10: The Foundations, Cost Leadership, Visible Minority
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MGTA01H3 Full Course Notes
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=> goals: objectives that a business hopes and plans to achieve. An organization functions systematically because it sets goals and plans accordingly. An organization functions as such because it commits its resources on all levels to achieving its goals. Four main purposes can be identified in organizational goal setting. => goal setting provides direction, guidance, and motivation for all managers. If managers know precisely where the company is headed, there is less potential for error in the different units of the company. Areas that are expected to grow will get first priority. The company allocates more resources to new projects with large sales potential than it allocates to mature products with established but stagnant sales potential. => goal setting helps to define corporate culture. Electric, which strives to push its divisions to number one or two in its industry. As a result, it encourages and maintains a competitive, often stressful environment that rewards success and has little tolerance for failure.
