Objectives Examples

The Gindal Group: “To become a globally competitive player with a burning desire to

become number one in the steel industry”. Unit Trust of India: “To keep the common man in sharper focus; to encourage saving and investment habits among them”. Ranbaxy: “To become a $1 billion research based global pharmaceutical company”. Unilever: “To make cleanliness common place, to lessen work for women, to foster health and to contribute to personal attractiveness that life may be more enjoyable for the people who use our products”. ONGC: “To be a world class oil and gas company integrated in energy business with dominant Indian leadership and global business”. Nirma: “Nirma is a customer focused company committed to consistently offer better quality products and services that maximize value to the customer”. SBI: “With you, all the way”. Asian Paints: “Leadership through excellence”. Bajaj Auto: “Value for Money, for years”. Objectives and goals are used interchangeably in management literature but the recent strategic management literature shows a subtle distinction between these two terms. Objective is the end, which the organization tries to achieve through its operations. “Goal” is an open-ended statement, which does not quantify what needs to be achieved, and time frame for completion. So “growth” is a goal whereas an objective is to “increase growth” by 10% in terms of market share and sales over last year‟. Usually the long-term goals and short-term objectives are derived from mission. Objectives are formulated from mission statements. Objectives form the basis for all other functional decisions such as finance, manufacturing, marketing and human resource. Objectives are split into business wise objectives and functional targets and performance targets. Objectives Canara Bank: “The bank‟s stated objectives are growth, innovativeness, and high profits as a barometer of efficiency, highly involved employees distinctively charged with pride”. Maruti: “We don‟t just sell more car than No.2. We sell more cars than the entire competition put together”. Areas Where Objectives Are Set?

Organizations follow multiple objectives such as: Growth: Growth in sales, in profits and assets are indicators of a firm’s financial soundness and long-term welfare.

Profitability: With profitability objective, the firm examines the profit potential of present portfolio and reallocates resources accordingly in terms of Return on Investment (ROI), Net Worth, Assets, Revenue and Earnings per share (EPS). Market share: Colgate firmly believes that it should have always 50% market share. The policy of P&G is „Profit via market share‟ and it is prepared to accept short-term loss to win over the established leader HLL and be a market leader ultimately. Productivity: Technology: Product innovation is the key objective of Intel/Apple. R&D and Innovation: Corporate Social Responsibility: Social responsibility includes setting objectives in community welfare, public welfare and environmental protection. Tata Group has objectives relating to society. Image: Tata Group has set the objective of being viewed as a respectable business group. They maintain transparency with regard to donations to political parties for their election campaigns and created an electoral fund. They project as a role model in the matter of corporate governance. Employee Development: The software giant Infosys, set objective in human resource. Development of a cadre of software professional is set as a major corporate objective. “Human Capital” is shown in the balance sheet of Infosys as additional information. Employee Satisfaction:

The benefits of cooperation are seen in Japan, where large cooperative networks of businesses are known as Kieretsus. These are formed in order to enhance the abilities of individual member businesses to compete in their respective industries. In Kieretsu members remain independent companies in their own right: the only strategy they have in common is to prefer to do business with other kieretsu members, both when buying and when selling. Kieretsu members are peers and may own significant amounts of each other's stock and have many board members in common. They are different from conglomerates (Common in western countries and also found in India) wherein all members are lineated through ownership pattern. A kieretsu also differs from a consortium or an association, as the primary purpose of a kieretsu is to share purchasing, distribution or any other functions.