Strategic Management: Formulation and Implementation

Developing Appropriate Organizational Objectives

After the organizational mission has been developed, appropriate organizational objectives must be formulated.

Peter Drucker stated, that the basic requirements for successfully objective are:

  1. Objectives must be derived from "what our business is, what it will be, and what it should be."
  2. Objectives are the fundamental strategy of a business.
  3. Objectives must be operational. They must be capable of being converted into specific targets and specific assignments.
  4. Objectives must make possible concentration of resources and efforts.
  5. There must be multiple rather than a single objective.
  6. Objectives are needed in all areas on which the survival of the business depends.

Objectives should be established at least in eight key areas: