Long Term Objectives Formulation
Reviewed by Hammad Naziron Apr 01 2013
Rating:
Formulating Long Term Objective.Reviewed by Hammad Naziron Apr 01 2013
Rating:
Introduction Of Long term Objective.
Long term objectives means end results which a company wants to achieve over a long period of time.
Formulation of a long term objectives:
Formulating long term objectives is basically deciding that where we want to see our company in next 5 - years or 7 years or 10 - years.
Achievement of a Long term Objectives:
To achieve long term objective strategic planners commonly establish long term objectives in seven areas.
1) Profitability:
The ability of any firm to operate in the long run depends on attaining an acceptable level of profit.
2) Productivity:
Strategic managers constantly try to increase the productivity of their systems. firms that can improve their input and output relationship normally increase profitability.
3) Competitive position:
one measure of corporate success in relative dominance in the market place. large firms commonly establish Long term objectives in terms of competitive position often using total sales or market shares as measures of their competitive position.
4) Employees Development:
Employees value education and training in part because they lead to increase compensation and job security. providing such opportunities often increase productivity and decrease turnover. Therefore strategic decision makers frequently include employees development objectives in their run plans.
5) Employee relation:
Whether or not they are bound by union contract, firms activity seek good employee relationship. in fact proactive steps in anticipation of employee need and expectations are characteristic of strategic managers.
6) Technological Leadership:
Firms must decide whether to lead or follow in the market place. Either approach can be successful but each can requires a different strategic posture. Therefore many firms state objective with regard to technological leadership.
7) Public Responsibility:
Managers recognize their responsibilities to their customers and to society at large. Many firms seek to exceed government requirements.
