Beam of objectives theory
The main objective of a company is usually to maintain the equilibrium and its development. There are also specific objectives, which are adapted to the main objectives of the organization and to the external environment: law, market, human resources, location, etc. The strategic goals indicate areas of specific activities and projects and they are the results of the game of interests, capabilities and limitations of company.
Objectives may be defined as an object and functional. The first of these relates to the achievement of a desired state of affairs, for example, the economic and technological conditions. The second way is to conduct a particular activity, such as industrial, economic, administrative or other.
Main goals and specific objectives are often grouped together and classified using the tree or goals, which gives a graphic description of relation between them. On picture therefore relation between goals are obvious, as the specific objectives derive directly from the main goals (and are necessary to achieve them). The objectives are to each other in close relationships.They are complement to the strategy of entire enterprise. Objectives also need to be formulated for individual organizational units, so that their performance corresponded with the main objective and ensure the smooth functioning and development of whole company.
Beam of objectives
The company is a place where different interests focus. They are interest of:
The mutual coordination of these interests require creation of beam of objectives which depends on the specific operating conditions.
Companies realize in practice just a beam of interrelated goals, and the hierarchy of these goals changes in both the long and short term. The hierarchy of objectives is different in companies at different stages of development and on different market conditions.
An example of beam of objectives, may be the following system of corporate goals: increasing sales, gaining a high market share, providing an appropriate level of supply, maximize profits, high rate of return on capital, satisfactory liquidity.
- Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.