2. Objectives Important ends towards which organizational and individual activities are directed Objectives are desired outcomes for entire organizations or groups (as well as individuals)
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4. THE PROCESS OF SETTING OBJECTIVES Mission: : Board Of Directors Strategic Objectives : Top Level Management Tactical Objectives : Middle level Management Operational Objectives : Supervisory or Low Level Management
5. BOARD OF DIRECTORS ---------------------------------- MISSION STRATEGIC OBJECTIVES ---------------------------------- 12% return on investment 5% Growth No employee layoffs Excellent Service to customers PRESIDENT / MD TACTICAL VP PRODUCTION Manufacture 1,20,000 units @ 35 Wastage is kept below 3%, Increase productivity 5%. Keep Inventory for 7 days. Resolve employee related problems in 3 days VP FINANCE Keep borrowing below 10 million Keep outstanding account below 2.5 million Provide monthly budget statements for department of assets. Keep delinquent accounts no more than 2% of total VP MARKETING Sell 1,20,000 units @ 47 Introduce 1 new product line Increase sales by 5% in new market areas. Open 2 new sales office. Attain market share of 19% Cont…..
6. OPERATIONAL Production Manager Produce 2350 units daily with 5% reject @ 29. Keep machines downtime less than 7% Keep scrape below 3% Response to employee grievance within 24 hrs Accounts Manager Issue invoice with in 5 days of sale Check new customers credit within 1 working day. Allow no account to be over due more than 3 months. Update receivable/ payments daily Sales Manager Response to customer inquiries within 2hrs. Meet sale quota 1,20,000 Sales people to visit 1 new customer/day. Call on each major customer every 4 week . Call each small customer every 8 weeks
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36. TOWS MATRIX ANALYSIS OF ENVIRONMENT WT MINI-MINI ST MAXI-MINI T H R E T A T WO MINI-MAXI SO MAXI-MAXI O P P R T U O N I T E S W E A K N E S S W S T R E N G T H S
37. THE TOWS MATRIX FOR STRATEGY FORMULATIONS WT Strategy: Mini-Mani e.g., retrenchment, liquidation, or joint venture ST Strategy: Maxi-Mini E.g., use of strengths to cope with threats or to avoid threats External threats (T): E.g., lack of energy, competition, and areas similar to those shown in the “opportunities” box above WO Strategy: Mini-Maxi e.g., developmental strategy to overcome weaknesses in order to take advantage of opportunities SO Strategy: Maxi-Maxi Potentially the most successful strategy, utilizing the organization’s strengths to take advantage of opportunities External opportunities (O) (Consider risks also) e.g., current and future economic conditions, political and social changes, new products, services, and technology Internal weaknesses (W) e.g., weaknesses in areas shown in the box of “strengths” Internal strengths (S) e.g., strengths in management, operations, finance, Marketing, R&D, Engineering Internal Factors External Factors
