Management and Organizational Studies 4410A/B Chapter Notes - Chapter 5: Horizontal Integration, Chrome Os, Folgers

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: Maria Ferraro

Document Summary

Long term objectives represent the results expected from pursuing certain strategies. Objectives should be quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable, and congruent among organizational units. A lot of the us industry"s competitive decline can be attributed to managers looking only at short term objectives. Arthur d. little argues that bonuses or merit pay for managers today must be based to a greater extent on long-term objectives and strategies. Financial objectives include those associated with growth in revenues and earnings, higher dividends, larger profit margins, etc. Strategic goals focus on larger market share, lower cost, higher product quality est. Often times a tradeoff between financial and strategic objectives. Often times long term strategic goals are not accomplished due to the need to accomplish short term financial goals. Best way to sustain competitive advantage over the long run is to relentlessly pursue objectives that strengthen a firm"s business position and align financial goals within that.