Business planning. Goals of the organization (enterprise) (most important)

Lecture notes, cheat sheets
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Business planning. Goals of the organization (enterprise) (most important)

Lecture notes, cheat sheets

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14. OBJECTIVES OF THE ORGANIZATION (ENTERPRISE)

At the stage of setting goals, the mission of the business is transformed into specific results and outcomes that the organization aspires to. Setting goals and monitoring their achievement help track the progress of the organization.

Goals - results and consequences desired for the organization, criteria for evaluating the activities of the organization and its development. All managers of the company should be involved in goal setting. Each division of the company needs specific, measurable goals, the achievement of each of which contributes to the achievement of the company's global goals. In the company it is necessary to create an atmosphere of universal orientation to the result. To do this, the general goals of the organization are specified for each individual unit, and a clear concept of achieving the goal and a motivation system aimed at managing by goals are established.

The following can be distinguished main objectives of the average typical enterprise:

▪ increasing the company's value in the long term;

▪ maximizing profits in the short term;

▪ cost reduction;

▪ expansion of the range;

▪ increase in market share;

▪ introduction of modern technologies;

▪ ensuring stability of salary payments. Some goals may be in conflict with each other, in which case it is necessary to look for compromise solutions.

The factors influencing the achievement of the goal can be represented in the form of a causal chain. For example, this may look like a set of factors influencing the goal of increasing the value of the company.

COMPANY VALUE (aggregate of items 1-3)

1. Gross profit = gross profit per trade + number of trades

2. Storage costs = number of stores per warehouse + costs per warehouse

3. Shipping costs = number of trips per transaction + cost per trip + number of transactions

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