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.
Examples of Beam of objectives theory
- Developing an effective customer service system: Companies can prioritize creating an effective customer service system to guarantee the satisfaction of their customers. This can include having highly trained staff, 24-hour availability, and a variety of customer support channels.
- Increasing profitability: Companies should always strive to maximize their profit margins by minimizing costs and maximizing revenue. This can be done through implementing cost-cutting measures, expanding into new markets, and finding innovative ways to increase customer loyalty.
- Developing a strong organizational culture: Companies need to ensure that their employees are motivated and productive. This can be done by creating a strong organizational culture that encourages innovation, collaboration, and communication.
- Establishing a presence in new markets: Companies should always be on the lookout for new opportunities to increase their market share. This can include expanding into new geographic areas or launching new products or services.
- Becoming a leader in the industry: Companies should strive to become a leader in their industry by setting the standards for innovation, customer service, and quality. This can be done by investing in research and development, partnering with other businesses, and staying ahead of the competition.
Advantages of Beam of objectives theory
The Beam of Objectives theory is a strategic planning tool that can help companies to identify their objectives, prioritize them, and develop strategies to reach them. This theory has many advantages, including:
- It enables companies to set and prioritize realistic goals based on their resources and capabilities.
- It encourages companies to focus on both short-term and long-term objectives.
- It allows companies to consider both internal and external factors when setting goals.
- It provides a structure for monitoring progress and making adjustments to the objectives as needed.
- It encourages collaboration and communication between departments and encourages stakeholders to work together to achieve the company's goals.
Limitations of Beam of objectives theory
Beam of objectives theory is a useful tool for developing corporate strategies, but it has a few limitations. These include:
- The theory allows for general objectives to be set, but does not provide a detailed plan for how to achieve them. This can lead to companies failing to reach their goals due to lack of a clear plan of action.
- The theory does not take into account the needs of stakeholders, such as customers and employees, and ignores their input in developing strategies.
- The theory does not consider the impact of external factors, such as economic and political conditions, which can affect a company's strategy.
- The theory does not acknowledge the importance of innovation and creativity, which are essential for companies to stay competitive.
- The theory assumes that all goals are achievable, which may not always be the case.
- The theory is based on traditional business models and may not be suitable for companies operating in different contexts.
- The Balanced Scorecard: This is a performance measurement system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.
- Theory of Constraints (TOC): This is a management philosophy that encourages enterprises to focus on their weakest link, or constraint, in order to increase overall throughput.
- Strategic Planning: This is the process of defining an organization's objectives and determining the best means of achieving them.
- Business Process Reengineering (BPR): This is a process of redesigning an organization's core business processes to improve efficiency and effectiveness.
In summary, other approaches related to Beam of objectives theory are The Balanced Scorecard, Theory of Constraints, Strategic Planning, and Business Process Reengineering. These approaches are used to align business activities to the vision and strategy of an organization, improve internal and external communications, and monitor organization performance against strategic goals.
|Beam of objectives theory — recommended articles
|Strategy — Objectives of the organization — Goal intensity matrix — Strategic direction — Corporate objective — Nature of strategic management — Strategic management — Strategic goal — Balanced scorecard perspectives