Goal setting is one of the most important tools used by organizations to guide them towards achieving their plans. Organizations are guided by their mission statement as their overall purpose for being. Vision statements are planned after the mission statement is established to help guide the company towards the kind of company they want to become.
There are three types of goals an organization can use to start planning how they are going to execute their plan. Starting at the top with executive leadership, they have strategic goal for the company that includes their long term goals. The strategic plan is then set for up to a period of 5 years. From there, middle management sets the ...view middle of the document...
When planning out the company’s strategy, it is important to provide clear direction and momentum with policies, procedures and rules. With clear direction of the plan, managers and employees can work on the tasks at hand and are able to problem solve as they continue with their work. This keeps the momentum and the company headed in the right direction. Without a clear plan with clear directions, chaos happens and the company is inefficient.
Another plan that can be useful to companies are single-use plans that encompass special programs and projects. These programs and projects have a specific goal where the length of time differs depending on the program or project.
Although standing and single-use plans are different based on the intended amount of time, they are similar because they involve a certain risk and are closely watched by a manager (Jane, 2015).
Change in the organization can come from many sources: drops in sales, new competition or technological innovations (Christian-Liviu, 2013). In order to create an effective strategy for a company to address the new challenges, management needs to examine all the possible strategies in order to identify which will help achieve the company’s goals.
There are a few options a company can use to determine what kind of effective strategy will work for them. These options can then translate into how the goals will be achieved.
Starting with Porter’s four competitive strategies, a company needs to examine these strategies in order to identify which will help achieve the company’s goals. Following the Cost Leadership example means that the company is offering its products and services at a lower cost than its competitors. By doing so, they would have to minimize their operating costs company-wide. For example, Wal-Mart uses this strategy to source products from inexpensive suppliers at home and lower wage markets overseas (Scilly, 2015).
The Differentiation Strategy is one where the product that is sold comes with more attributes associated with it. The company can demand a high price for the product because while the product is similar to its competitors, there may a specific proprietary trait associated with it. Apple products are a good example of this strategy.
Using a Low-Cost Focus Strategy is great for a smaller business because the product could attract a specific target market and focus on that market’s needs. This is a better option for smaller businesses that do not have the capital and resources as a larger business. Southwest Airlines is a good example because of their policies on checked bags and change fee prices in comparison with other airlines. The change fee policy appeals to the business traveler who often times might have to reschedule flights for meetings (Bhaskara, 2014). This is something I deal with regularly in my company because of changing schedules and surprise opportunities for client meetings.
Offering products that are so unique and specific, such as...