UNIT-I

Strategy is the determination of the long-term goals and objectives of an

enterprise and the adoption of the courses of action and the allocation of
resources necessary for carrying out these goals. Strategy is managements
game plan for strengthening the organizations position, pleasing customers,
and achieving performance targets.
Concept of strategy: The term strategy is derived from a Greek word
strategos which means generalship. A plan or course of action or a set of
decision rules making a pattern or creating a common thread.
Features of Strategy
1. Strategy is Significant because it is not possible to foresee the future.
Without a perfect foresight, the firms must be ready to deal with the
uncertain events which constitute the business environment.
2. Strategy deals with long term developments rather than routine
operations, i.e. it deals with probability of innovations or new products, new
methods of productions, or new markets to be developed in future.
3. Strategy is created to take into account the probable behavior of
customers and competitors. Strategies dealing with employees will predict
the employee behavior.
Strategy is a well defined roadmap or a goal post to be achieved of
an organization. It defines the overall mission, vision and direction of an
organization.
The objective of a strategy is to maximize an organizations strengths and to
minimize the strengths of the competitors.
Strategy, in short, bridges the gap between where we are and where we
want to be.
Types of strategy
Strategy can be formulated on three different levels:
corporate level
business unit level
Functional or departmental level.

Corporate Level Strategy

Corporate level strategy fundamentally is concerned with the selection of
businesses in which the company should compete and with the development
and coordination of that portfolio of businesses.
Corporate level strategy is concerned with:

Reach - defining the issues that are corporate responsibilities; these

might include identifying the overall goals of the corporation, the types of
businesses in which the corporation should be involved, and the way in
which businesses will be integrated and managed.

Competitive Contact - defining where in the corporation competition is

to be localized. Take the case of insurance: In the mid-1990's, Aetna as a
corporation was clearly identified with its commercial and property casualty
insurance products. The conglomerate Textron was not. For Textron,
competition in the insurance markets took place specifically at the business
unit level, through its subsidiary, Paul Revere. (Textron divested itself of The
Paul Revere Corporation in 1997.)

Managing Activities and Business Interrelationships - Corporate

strategy seeks to develop synergies by sharing and coordinating staff and
other resources across business units, investing financial resources across
business units, and using business units to complement other corporate
business activities. Igor Ansoff introduced the concept of synergy to
corporate strategy.

Management Practices - Corporations decide how business units are to

be governed: through direct corporate intervention (centralization) or
through more or less autonomous government (decentralization) that relies
on persuasion and rewards.
Corporations are responsible for creating value through their businesses.
They do so by managing their portfolio of businesses, ensuring that the
businesses are successful over the long-term, developing business units, and
sometimes ensuring that each business is compatible with others in the
portfolio.

Business Unit Level Strategy

A strategic business unit may be a division, product line, or other profit
center that can be planned independently from the other business units of
the firm.
At the business unit level, the strategic issues are less about the coordination
of operating units and more about developing and sustaining a competitive
advantage for the goods and services that are produced. At the business
level, the strategy formulation phase deals with:
positioning the business against rivals
anticipating changes in demand and technologies and adjusting the
strategy to accommodate them
Influencing the nature of competition through strategic actions such as
vertical integration and through political actions such as lobbying.
Michael Porter identified three generic strategies (cost leadership,
differentiation, and focus) that can be implemented at the business unit level
to create a competitive advantage and defend against the adverse effects of
the five forces.
Functional Level Strategy
The functional level of the organization is the level of the operating divisions
and departments. The strategic issues at the functional level are related to
business processes and the value chain. Functional level strategies in
marketing, finance, operations, human resources, and R&D involve the
development and coordination of resources through which business unit level
strategies can be executed efficiently and effectively.
Functional units of an organization are involved in higher level strategies by
providing input into the business unit level and corporate level strategy, such
as providing information on resources and capabilities on which the higher
level strategies can be based. Once the higher-level strategy is developed,
the functional units translate it into discrete action-plans that each
department or division must accomplish for the strategy to succeed.

Role of Strategists
Strategists are individuals or groups who are primarily involved in the
formulation,
implementation, and evaluation of strategy. In a limited sense, all managers
are strategists.
There are persons outside the organization who are also involved in various
aspects of strategic
management. They too are referred to as strategists. We can identify nine
strategists who, as
individuals or in groups, are concerned with and play a role in strategic
management.
1. Consultants
2. Entrepreneurs
3. Board of Directors
4. Chief Executive Officer
5. Senior management
6. Corporate planning staff
7. Strategic business unit (SBU) level executives
8. Middle level managers

9. Executive Assistant
Definition of Business Policy
Business Policy defines the scope or spheres within which decisions can be
taken by the subordinates in an organization. It permits the lower level
management to deal with the problems and issues without consulting top
level management every time for decisions. Business policies are the
guidelines developed by an organization to govern its actions. They define
the limits within which decisions must be made. Business policy also deals
with acquisition of resources with which organizational goals can be
achieved. Business policy is the study of the roles and responsibilities of top
level management, the significant issues affecting organizational success
and the decisions affecting organization in long-run.
Features of Business Policy
An effective business policy must have following features1.
Specific- Policy should be specific/definite. If it is uncertain, then the
implementation will become difficult.
2.
Clear- Policy must be unambiguous. It should avoid use of jargons and
connotations. There should be no misunderstandings in following the policy.
3.
Reliable/Uniform- Policy must be uniform enough so that it can be
efficiently followed by the subordinates.
4.
Appropriate- Policy should be appropriate to the present organizational
goal.
5.
Simple- A policy should be simple and easily understood by all in the
organization.
6.
Inclusive/Comprehensive- In order to have a wide scope, a policy must
be comprehensive.
7.
Flexible- Policy should be flexible in operation/application. This does
not imply that a policy should be altered always, but it should be wide in
scope so as to ensure that the line managers use them in repetitive/routine
scenarios.
8.
Stable- Policy should be stable else it will lead to indecisiveness and
uncertainty in minds of those who look into it for guidance.
Difference between Policy and Strategy
The term policy should not be considered as synonymous to the term
strategy. The difference between policy and strategy can be summarized
as follows1.
Policy is a blueprint of the organizational activities which are
repetitive/routine in nature. While strategy is concerned with those
organizational decisions which have not been dealt/faced before in same
form.
2.
Policy formulation is responsibility of top level management. While
strategy formulation is basically done by middle level management.

3.
Policy deals with routine/daily activities essential for effective and
efficient running of an organization. While strategy deals with strategic
decisions.
4.
Policy is concerned with both thought and actions. While strategy is
concerned mostly with action.
5.
A policy is what is, or what is not done. While a strategy is the
methodology used to achieve a target as prescribed by a policy.
STRATEGIC MANAGEMENT
Strategic management is defined as the art and science of formulating,
implementing, and evaluating cross-functional decisions that enable the
organization to achieve its objectives." Generally, strategic management is
not only related to a single specialization but covers cross-functional or
overall organization.
Strategic management is a comprehensive area that covers almost all the
functional areas of the organization. It is an umbrella concept of
management that comprises all such functional areas as marketing, finance
& account, human resource, and production & operation into a top level
management discipline. Therefore, strategic management has an importance
in the organizational success and failure than any specific functional areas.
Strategic management deals with organizational level and top level issues
whereas functional or operational level management deals with the specific
areas of the business.
Top-level managers such as Chairman, Managing Director, and corporate
level planners involve more in strategic management process.
Strategic management relates to setting vision, mission, objectives, and
strategies that can be the guideline to design functional strategies in other
functional areas
Therefore, it is top-level management that paves the way for other
functional or operational management in an organization
Definition:
The determination of the basic long-term goals & objectives of an enterprise
and the adoption of the course of action and the allocation of resources
necessary for carrying out these goals.
-Chandler
Strategic Management Concepts
Although the term strategic management is bantered around a lot in the
businesses world, it is not understood very well by most people. Essentially
strategic management answers the questions of where do you want your
business to go (goals), how is your business going to get there (strategy)
and how will you know when you get there (evaluation). A strategic
management analogy is taking a trip during your vacation. First you decide
where you want to go the natural beauty of Yellowstone or the bright lights

of Las Vegas. Then you develop a strategy of how to get there take an
airplane (which flights), drive your car (which highways), etc.
This will be influenced by the amount of money, time and Other resources
you have available. Then you monitor your trip to see if your strategy takes
you to your destination and how your strategy worked (missed Flights, poor
road conditions, etc.). Below are concepts to help expand your understand of
strategic management for a business. These will help sharpen your focus for
using Strategic Management for a Value-added Farm Business.
1) Strategic management involves deciding what is important for the longrange success of your business and focusing on it.
2) Strategic management asks, How should I position my business to meet
management and business goals?
3) A business strategy is a series of business decisions that lead to achieving
a business goal.
4) Strategic management involves the big picture of your business.
5) Strategic management involves planning, analyzing and implementing a
business strategy.
6) Strategic management is most effective if you can step back far enough
and say all things are possible.
7) The essence of strategic management is matching business resources to
market opportunities.
8) Strategic management involves seeking and identifying opportunities and
threats in the market and industry and the outside world in general.
9) Strategic management is based on the premise that all businesses are
not the same.
10) Strategic management involves assessing the strengths and weaknesses
of your business.
11) When assessing strengths and weaknesses, personal skills and abilities
are likely to be more important than business assets.
12) Strategic management involves looking into the future rather than
dwelling on the past.
13) Strategic management is proactive rather than reactive.
14) Strategic management involves anticipating change and taking
advantage of it.
15) Strategic thinking involves assessing how decisions made today will
affect my business in the future.
16) Strategic management is more of a state-of mind than a rigid process.
17) A military connotation of strategic management is it hasnt won every
war, but it has avoided a lot of ambushes.
18) Strategic management is most useful for businesses with unique or
differentiated products for niche, specialty or differentiated product Markets.
19) Strategic planning comes before business planning. Strategic planning is
used to identify and assess alternative business strategies. Business
planning is used to implement a business strategy.
20) Strategic planning is more words and less numbers than business
planning.

21) A strategic plan is a living document that changes as your goals and
resources evolve.

Evolution of strategic management or why strategic planning

Strategic planning is needed if (1) the corporation becomes large, (2) the
layers of management increase, or (3) the environment changes in its
complexity (4). Globalization
Phase 1 During 1980s Basic financial planning was given utmost
importance: operational control by trying meeting budgets based on financial
data.
Phase 2 Early 1990s saw this trend and there is need for ensuring
sustainability of organizations. Many organizations in Forbes list were lost
disappeared after a decade due to lack of future orientation. This lead to
Fore-cast based planning: Trying more effective planning for growth by trying
to predict the future for two to three years.
Phase 3. Externally oriented planning: Seeking increasing responsiveness to
markets and competition by trying to think strategically. The focus is on what
is happening in the external environment and building those key factors in to
the planning.
Phase 4. Strategic management: Seeking a competitive advantage and a
successful future by managing all resources.
Phase 4 in the evolution of the strategic management includes a
consideration of strategy implementation and evaluation and control, in
addition to the emphasis on the strategic planning in Phase 3.
Need of Strategic Management:1. Due to change
2. To provide guide lines
3. Research and development

4. Probability for business performance

5. Systemized decision
6. Improves Communication
7. Allocation of resource
8. Improves Coordination
9. Helps the managers to have holistic approach
Importance of Strategic Management:1. To the shape the Future of business
2. Effective strategic idea
3. Mangers and employer are innovative and creative
4. Its decentralized the Management
5. Its helps to increase the productivity
6. To Makes discipline
7. To Make control
8. To makes forward s thinking

STRATEGIC MANAGEMENT MODEL / STRATEGIC PLANNING PROCESS

In today's highly competitive business environment, budget-oriented
planning or forecast-based planning methods are insufficient for a large
corporation to survive and prosper. The firm must engage in strategic
planning that clearly defines objectives and assesses both the internal and
external situation to formulate strategy, implement the strategy, evaluate
the progress, and make adjustments as necessary to stay on track.
A simplified view of the strategic planning process is shown by the following
diagram:

a) STRATEGIC INTENT
Strategic intent takes the form of a number of corporate challenges and
opportunities, specified as short term projects. The strategic intent must

convey a significant stretch for the company, a sense of direction, which can
be communicated to all employees.
It should not focus so much on today's problems, but rather on tomorrow's
opportunities. Strategic intent should specify the competitive factors, the
factors critical to success in the future.
Strategic intent gives a picture about what an organization must get into
immediately in order to use the opportunity. Strategic intent helps
management to emphasize and concentrate on the priorities. Strategic intent
is, nothing but, the influencing of an organizations resource potential and
core competencies to achieve what at first may seem to be unachievable
goals in the competitive environment.
b) Environmental Scan
The environmental scan includes the following components:
Analysis of the firm (Internal environment)
Analysis of the firm's industry (micro or task environment)
Analysis of the External macro environment (PEST analysis)
The internal analysis can identify the firm's strengths and weaknesses and
the external analysis reveals opportunities and threats. A profile of the
strengths, weaknesses, opportunities, and threats is generated by means of
a SWOT analysis
An industry analysis can be performed using a framework developed by
Michael Porter known as Porter's five forces. This framework evaluates entry
barriers, suppliers, customers, substitute products, and industry rivalry.
c) Strategy Formulation
Strategy Formulation is the development of long-range plans for the effective
management of environmental opportunities and threats, in light of
corporate strengths & weakness. It includes defining the corporate mission,
specifying achievable objectives, developing strategy & setting policy
guidelines.
i) Mission
Mission is the purpose or reason for the organizations existence. It tells what
the company is providing to society, either a service like housekeeping or a
product like automobiles.
ii) Objectives
Objectives are the end results of planned activity. They state what is to be
accomplished by when and should be quantified, if possible. The
achievement of corporate objectives should result in the fulfillment of a
corporations mission.
iii) Strategies
Strategy is the complex plan for bringing the organization from a given
posture to a desired position in a future period of time.
d) Policies

A policy is a broad guide line for decision-making that links the formulation of
strategy with its implementation. Companies use policies to make sure that
employees throughout the firm make decisions & take actions that support
the corporations mission, objectives & strategy.
d) Strategy Implementation
It is the process by which strategy & policies are put into actions through the
development of programs, budgets & procedures. This process might involve
changes within the overall culture, structure and/or management system of
the entire organization.
i) Programs:
It is a statement of the activities or steps needed to accomplish a single-use
plan.
It makes the strategy action oriented. It may involve restructuring the
corporation, changing the companys internal culture or beginning a new
research effort.
ii) Budgets:
A budget is a statement of a corporations program in terms of dollars. Used
in planning & control, a budget lists the detailed cost of each program. The
budget thus not only serves as a detailed plan of the new strategy in action,
but also specifies through Performa financial statements the expected impact
on the firms financial future
iii) Procedures:
Procedures, sometimes termed Standard Operating Procedures (SOP) are a
system of sequential steps or techniques that describe in detail how a
particular task or job is to be done. They typically detail the various activities
that must be carried out in order to complete
e) Evaluation & Control
After the strategy is implemented it is vital to continually measure and
evaluate progress so that changes can be made if needed to keep the overall
plan on track.
This is known as the control phase of the strategic planning process. While it
may be necessary to develop systems to allow for monitoring progress, it is
well worth the effort. This is also where performance standards should be set
so that performance may be measured and leadership can make
adjustments as needed to ensure success.
Evaluation and control consists of the following steps:
i) Define parameters to be measured
ii) Define target values for those parameters
iii) Perform measurements
iv) Compare measured results to the pre-defined standard
v) Make necessary changes
STAKEHOLDERS IN BUSINESS

A corporate stakeholder is a party that can affect or be affected by the

actions of the business as a whole. Stakeholder groups vary both in terms of
their interest in the business activities and also their power to influence
business decisions. Here is the summary:
The stake holders of a company are as follows

1.
Strategic Intent
An organizations strategic intent is the purpose that it exists and why it will
continue to exist, providing it maintains a competitive advantage. Strategic
intent gives a picture about what an organization must get into immediately
in order to achieve the companys vision. It motivates the people. It clarifies
the vision of the vision of the company. Strategic intent helps management
to emphasize and concentrate on the priorities. Strategic intent is, nothing
but, the influencing of an organizations resource potential and core
competencies to achieve what at first may seem to be unachievable goals in
the competitive environment. A well expressed strategic intent should
guide/steer the development of strategic intent or the setting of goals and
objectives that require that all of organizations competencies be controlled
to maximum value.
Strategic intent includes directing organizations attention on the need of
winning; inspiring people by telling them that the targets are valuable;
encouraging individual and team participation as well as contribution; and
utilizing intent to direct allocation of resources. Strategic intent differs from
strategic fit in a way that while strategic fit deals with harmonizing available
resources and potentials to the external environment, strategic intent
emphasizes on building new resources and potentials so as to create and
exploit future opportunities.

Meaning of vision: A vision statement is sometimes called a picture of your

company in the future. Vision statement is your inspiration; it is the dream of
what you want your company to accomplish.
Features of a good vision statement:
Easy to read and understand.
Compact and crisp to leave something to peoples imagination.
Gives the destination and not the road-map.
Is meaningful and not too open ended and far-fetched.
Excite people and make them get goose-bumps.
Provides a motivating force, even in hard times.
Is perceived as achievable and at the same time is challenging and
compelling, stretching us beyond what is comfortable.
Vision is a dream/aspiration, fine-tuned to reality:
The Entire process starting from Vision down to the business objectives is
highly iterative. The question is from where we should start. We strongly
recommend that vision and mission statement should be made first without
being colored by constraints, capabilities and environment. This can said
akin to the vision of armed forces, thats 'Safe and Secure country from
external threats'. This vision is a nonnegotiable and it drives the organization
to find ways and means to achieve their vision, by overcoming constraints on
capabilities and resources. Vision should be a stake in the ground, a position,
a dream, which should be prudent, but should be nonnegotiable barring few
rare circumstances.
Meaning for mission: A mission statement is a brief description of a
company's fundamental purpose. The mission statement articulates the
company's purpose both for those in the organizations and for the public.
A good mission statement will be:
Clear and Crisp: While there are different views, we strongly
recommend that mission should only provide what, and not 'how and
when'. We would prefer the mission of 'Making People meet their career'
to 'making people meet their career through effective career counseling
and education'. A mission statement without 'how & when' element leaves
a creative space with the organization to enable them take-up wider
strategic choices.
Have to have a very visible linkage to the business goals and strategy:
For example you cannot have a mission (for a home furnishing company)
of
'Bringing Style to Peoples lives' while your strategy asks for mass product
and selling. Its better that either you start selling high-end products to
high value customers, OR change your mission statement to 'Help people
build homes'.

Should not be same as the mission of a competing organization. It

should touch upon how its purpose it unique.

Mission follows the Vision:

The Entire process starting from Vision down to the business objectives is
highly iterative. The question is from where should be start. I strongly
recommend that mission should follow the vision. This is because the
purpose of the organization could change to achieve their vision.
For example, to achieve the vision of an Insurance company 'To be the most
trusted Insurance Company', the mission could be first 'making people
financially secure' as their emphasis is on Traditional Insurance product. At a

later stage the company can make its mission as 'Making money work for the
people' when they also include the non-traditional unit linked investment
products.
TOYOTA
Vision
-Toyota aims to achieve long-term, stable growth economy, the local
communities it
serves, and its stakeholders.
Mission
-Toyota seeks to create a more prosperous society through automotive
manufacturing.
IBM
Vision
Solutions for a small planet
Mission
At IBM, we strive to lead in the invention, development and manufacture of
the
industry's most advanced information technologies, including computer
systems,
software, storage systems and microelectronics.
We translate these advanced technologies into value for our customers
through our
professional solutions, services and consulting businesses worldwide.

Definition for Business: A company should define its business in terms of

three dimensions: 1. Who is being satisfied (what customer groups) 2. What
is being satisfied (what customer needs) 3. How customer needs are being
satisfied (by what skills, knowledge or distinctive competencies)
Business model could be defined as a representation of a firm's
underlying core logic and strategic choices for creating and capturing
value within a value network.

Objectives
An organizations mission gives a framework or direction to a firm. The next
step in planning is focusing on establishing progressively more specific
organizational direction by setting objectives. An organizational objective is a
target toward which the organization directs its efforts. Objectives in
organizations, as shown in Figure exhibit a hierarchy.

The Board of Directors are more concerned with mission, purpose and overall
objectives. Middle managers are involved in key result areas (KRAs), division
and department objectives. At the lower level, group personal objectives are
set. The objectives can be top down or bottom up taking the initiative from
lower management.

Managers should develop organizational objectives that are

1. specific
2. require a desirable level of effort
3. flexible
4. measurable and operational
5. consistent in the long and short run
Peter Drucker, perhaps the most influential business writer of modern times,
has pointed out that it is a mistake to manage organizations by focusing
primarily on one and only one objective.
According to Drucker, organizations should aim at achieving several
objectives instead of just one. Enough objectives should be set so that all
areas important to the operation of the firm are covered. Eight key areas in
which organizational objectives should normally be set are:
1. Market standing: the position of an organization where it stands
relative to its competitors
2. Innovation: any change made to improve methods of conducting
organizational business.
3. Productivity: the level of goods or services produced by an organization
relative to the resources used in the production process. Organizations that
use fewer resources to produce a specified level of products are said to be
more productive than organizations that require more resources to produce
at the same level.
4. Resource levels: the relative amounts of various resources held by an
organization, such as inventory, equipment, and cash. Most organizations
should set objectives indicating the relative amount of each of these assets
that should be held.
5. Profitability: the ability of an organization to earn revenue dollars beyond
the expenses necessary to generate the revenue. Organizations commonly
have objectives indicating the level of profitability they seek.
6. Manager performance and development: the quality of managerial
performance and the rate at which managers are developing personally.
Because both of these areas are critical to the long term success of an
organization, emphasizing them by establishing and striving to reach related
organizational objectives is very important.
7. Worker performance and attitude: the quality of non-management
performance and such employees feelings about their work. These areas are
also crucial to long-term organizational success. The importance of these
considerations should be stressed through the establishment of
organizational objectives.
8. Social responsibility: the obligation of business to help improve the welfare
of society while it strives to reach organizational objectives
Objectives
Supports achievement of goals. Long sentences, more descriptive.
Specific and narrow scope
Covers shorter time period( 1 Year)

Easily measured
Tangible
Objectives must meet certain criteria to be worthwhile and useful. One
method for developing and selecting objectives is the SMART approach.
Specific
Measurable
Achievable
Relevant
Timely
Role of Objectives
Objective define the organizations relationship with its environment.
Objectives help an organization pursue its vision and mission.
Objective provide the basic for strategic decision making.
Objective provide the standard for performance appraisal.
Characteristics of Objectives
Objective should be concrete and specific.
Objectives should be understandable.
Objectives should be related to a time frame.
Objectives should be measurable and controllable.
Different objectives should correlate to each other.
Objectives should be set within constratints.
Issues in Objective setting
Specificity
Multiplicity
Periodicity
Verifiability
Reality
Quality
Objectives of IOC
To serve the national interests in oil and related sectors in accordance and
consistent with Government policies.
To ensure maintenance of continuous and smooth supplies of petroleum
products by way of crude oil refining, transportation and marketing activities
and to provide appropriate assistance to consumers to conserve and use
petroleum products efficiently.
To enhance the country's self-sufficiency in crude oil refining and build
expertise in laying of crude oil and petroleum product pipelines.
Objectives of TATA Motors
TATA said that the initial target production volume would be 250,000 cars per
annum on two shifts, expandable to 350,000 per annum on three shifts.
In earlier media interviews, Ratan Tata talked about a one million production
target by 2010

Consumer focus
reports that the car conforms with environmental protection, and will have
the lowest
emissions in India.
Product focus
Model versions
The basic Tata Nano Std priced at 123,000 Rupees has no extras;
The deluxe Tata Nano CX at 151,000 Rupees has air conditioning;
The luxury Tata Nano LX at 172,000 Rupees has air conditioning, power
windows, fabric seats and central locking
Tata Motors will offer a version of the Nano with these safety-features,
Including an airbag system in its electric version. The Nano has an all sheetmetal body made from
Japanese and Korean steel, with safety features such as crumple zones,
intrusion-resistant doors, seat-belts, strong seats and anchorages, and the
rear tailgate glass bonded to the body. Tires are tubeless
Introducing the car with an artificially low price through government
subsidies and tax-breaks
Critical Success Factors
Critical success factors (CSFs) have been used significantly to present or
identify a few key factors that organizations should focus on to be successful.
As a definition, critical success factors refer to "the limited number of areas
in which satisfactory results will ensure successful competitive performance
for the individual, department, or organization (Rockart and Bullen, 1981).
Goals should be:
Derived from the mission statement,
time sensitive goals should be set with a timeframe for achievement,
formulated to achieve the mission and vision,
broad in scope, but easily understood, clear and concise,
realistic and achievable based on the resources,
measurable, so they can be tracked and evaluated as to whether they have
been achieved,
goals should be outcomes focused.
Developing objectives to achieve goals is essential for several reasons:
provides the target at which to aim so that all activities and efforts will be
focused on achieving the objective,
gives participants direction to where theyre going,
provides a step-by-step guide to reaching the goal,
provides means to evaluate the progress of achieving a goal,
motivates leaders and teams to successfully complete an objective,
because it is measurable.

Goals Directly relates to the mission statement

Short Statements , few words
General and broad scope
Covers longer time period (3 5 years)
Difficult to measure.
Intangible.
The Difference between goals and objectives
Goals are broad; objectives are narrow.
Goals are general intentions; objectives are precise.
Goals are intangible; objectives are tangible.
Goals are abstract; objectives are concrete.
Goals can't be validated as is; objectives can be validated.
Goals and Objectives
Goals denote what an organization hopes to accomplish in a future period of
time.
Objectives are the ends that specifically how the goals shall be achieved.
Objectives are more concrete and specific as compared to goals.
Goals are qualitative whereas objectives are quantitative.