Conde, Raiza Jill M.

BSMA-4
BA 427

Strategic Objectives:

 Long-Term Strategic Objectives are long-term, broad, continuous statements that holistically
address all areas of your organization. What must we focus on to achieve our vision? What are
the “big rocks”?

Questions to ask:

 What are our shareholders or stakeholders expectations for our financial performance or social
outcomes?
 To reach our outcomes, what value must we provide to our customers?
 What is our value proposition?
 To provide value, what process must we excel at to deliver our products and services?
 To drive our processes, what skills, capabilities and organizational structure must we have?

Outcome:

 Keep in mind that the strategic objectives establish should connect your mission to your vision.
These objectives are long-term (think 3-5 years), continuous strategic areas that get you moving
from your mission to achieving your vision. Ask yourself what the key activities are that you
need to perform in order to achieve your vision. We encourage you to create strategic objectives
in four key areas – Financial/Mission, Customer, Internal/Operational, and People/Learning
 No more than 6 long-term objectives to be the framework for your plan.
Reflection:

 Connect the relationships between the performance measurements and the strategic objectives.
Discuss the value that is being created by the company (operational, financial, human resources,
and marketing) and how did they measure these and the what their primary goal is.

There exist a relationship between performance measures and strategic objectives. Strategic
objectives entail statements of specific outcomes that ought to be achieved. For these outcomes to be
achieved there are certain activities that need to be undertaken within the organization. The activities
need to be conducted in a certain way if the specific outcomes are to be achieved. The best way to
ensure that these activities are being conducted in the desired manner is by use of performance
measures. There exist qualitative and quantitative ways of measuring performance. All the resources
in the organization can be examined through this mechanism. If everything is operating as planned, it
means that the organization’s objective of attaining its mission and vision is feasible. If the
performance measures indicate otherwise, the organization might need to adjust its objectives or
identify other ways of attaining these objectives.

OPERATIONAL.The value created by operations and supply chain function can be estimated by
transfer pricing based on market prices for marketing and finance serves. Broadly speaking,
operations and supply chain management underlie all departments and functions in a business.
FINANCIAL. A key factor to bear in mind is that value is created when a firm generates a higher
return on investment than the initial cost of financing. More precisely, value can be created for the
shareholders and the firm, within the framework of merger and acquisitions, and within the
framework of investment projects. HUMAN RESOURCES. HR motivates workers to perform at the
highest level possible and maintain an organizational culture of high morale. A primary way HR
adds value to a company is by persuading company leaders to train and develop employees and
reward strong performance through increased compensation and regular promotions. MARKETING.
Marketing aims to meet human needs by creating value. The marketer chooses the product features
and services that will deliver value. The marketer chooses prices that will create value in exchange.
The marketer chooses channels of distribution that create accessibility and convenience value.

From a business perspective, value is created when a company earns a return on capital (Revenue)
that exceeds initial capital. However, most financial analysts insist on a broader value creation
definition that differs from traditional financial measures.Value creation in today’s world is
represented by intangible assets such as brands, ideas, people, and innovation. Therefore, when
broadly defined, value creation is seen as a better management tool than mere financial measures of
business performance. Value creation should be the motivation behind every business. It is believed
that if your business focuses on creating value for customers, it becomes easy to convince people to
patronize your products and services.

When developing and marketing new products or services, the first thing to keep at the top of your
mind is value. Consider what your target market cares about the most and focus on creating products
and services that deliver that to them. Implement value creation models in your business so you can
compel your prospects to become long-term and loyal customers. To gain your customers’ trust, love,
and loyalty, you should create a strong bond between your brand’s products and services with your
target market. This is achievable if you provide something more than just quality products and
services. For instance, you can create a good customer care system that makes it possible for
customers to communicate with you effectively.