Mission and objectives of the firm: definition, features of activities and implementation

In the process of work, the enterprise management makes various decisions. In particular, they relate to the range of products, markets to be reached with it, the strengthening of their positions in competition, the choice of optimal technology, materials, etc. Activities that address these problems are referred to as the business policy of the enterprise.

Company objectives system

As you know, any enterprise is created to make profit. However, this is not the only desire of the owner of the company. In addition to seeking income, there must be strategic goals of the firm. To them it is possible to carry:

1. Conquering or retaining the widest possible sales sector for your product.
2. Improving the quality of products.
3. Entering the leading positions in the field of technological support.
4. Maximum use of financial, raw materials and labor resources.
5. Increase of profitability of operations.
6. Achieving the maximum possible employment.

Plan for implementing tasks

The main objectives of the company are achieved in stages. The work plan of the enterprise includes the following stages:

1. Establishment of clear quantitative parameters, which the enterprise expects to achieve in the process of solving the set tasks.
2. Identify key areas and activities. At this stage it is necessary to establish the degree and nature of the influence of external factors on the work of the enterprise, to identify weaknesses and internal potential of the company.
3. Development of a flexible long-term planning system. It should be consistent with the structure of the company.

Formulation of the mission

The enterprise must clearly represent the tasks that will be solved in the course of the work. The objectives of the firm's activities should correspond to the goods (services) supplied to consumers, existing technologies. This takes into account the influence of external factors. The mission statement should contain a description of the company's culture, a characteristic of the working atmosphere.

The Importance of a Mission

Individual leaders are not worried about her choice and formulation. If you ask some of them what the objectives of the organization of the company are, the answer will be obvious - in obtaining the maximum income. Meanwhile, the choice of profit extraction as an enterprise mission is unsuccessful. Of course, revenue is important for any company. However, its receipt is solely the internal task of the enterprise. The firm is, in its essence, an open structure. It can survive only if it meets specific external needs. In order to profit the company, it is necessary to analyze the state of the environment in which it operates. That is why the company's goals are determined by external factors. To select a suitable mission, management should answer 2 questions: "Who are the clients of the company?" And "What are the needs of the customers the enterprise is able to satisfy?". As a consumer, any entity that uses the goods created by the firm will act.

Nuances

The need to formulate the objectives of the company was recognized long ago. G. Ford, creating the enterprise, as a mission chose the provision of cheap transport to people. Profit-taking is a fairly narrow objective of the firm. Its choice limits the manager's ability to consider feasible alternatives in the decision-making process. This, in turn, can lead to the fact that key factors can be ignored. Accordingly, subsequent decisions can help to reduce the effectiveness of the work.

Complexity of choice

Many non-profit structures have a fairly large customer base. In this regard, it is difficult for them to formulate their mission. In this case, you can pay attention to the institutions under the Government. Thus, it is considered that the Ministry of Trade assists the entities involved in the implementation sphere. In practice, in addition to meeting the challenges of supporting entrepreneurship, this institution must also meet the needs of the public and the Government itself. Despite the complexities, a non-profit structure needs to formulate an appropriate mission for themselves, taking into account the needs of clients. Heads of small companies should clearly represent the company's goals in the market. Here the danger lies in the choice of a mission that is too difficult. For example, a giant such as IBM can not only but also strive to meet the needs of a large information community. At the same time, a newcomer to this industry will be limited to providing software or equipment for processing a small amount of data.

Tasks

They correspond to the purpose of the firm. The tasks are to achieve the indicators that are planned for a specific period. Their volume will be determined taking into account the interests of the owner of the company, the amount of capital, external and internal factors. The owner of the enterprise has the right to set tasks for the personnel. It does not matter its status. He can be a private person, a shareholder or a government agency.

List of tasks

It can include various items, depending on the specifics of the work of the enterprise. The company's tasks include:

1. Extracting profits.
2. Providing consumers with products, according to the dispute and the terms of contracts.
3. Creation of jobs for citizens.
4. Providing employees at the enterprise with a salary, appropriate labor conditions, the opportunity to develop in the professional sphere.
5. Preventing downtime, malfunctioning, issuing a marriage, disrupting supplies, reducing production volumes, reducing profitability.
6. Providing protection of nature, water objects, air.

Apparently, the extraction of profits is included in the list of tasks of the enterprise, and not goals. This once again proves that earning income can not act as a key area of work.

Formation of the purpose of the firm

It is carried out in accordance with a number of principles. The objectives of the firm are:

1. To be real and achievable.
2. Be clear and unambiguously formulated.
3. Have specific deadlines for achieving.
4. Motivate the work in the right direction.
5. Are focused on a specific effect.
6. Be available for adjustment and verification.

Any enterprise in the development of its business policy performs an analysis of the environment of existence. In the course of it, critical elements that can affect the company's ability to accomplish tasks and achieve planned goals are identified.

External factors

They are consumers, suppliers, population and government agencies. The state of the external environment has a direct impact on the efficiency of the firm. For example, consumer demand will affect production volumes. The higher it is, the greater the number of products. The external environment includes the working and general areas. The first consists of the elements with which the enterprise has direct contact. For each company, the working environment may to some extent be the same depending on the general direction of business policy and industry. Consumers, competitors, suppliers form the nearest environment. All the rest is related to the general environment. It is formed from political, social, technological, economic factors. The general environment influences the company's strategy, the choice of directions of development. Together with this, the enterprise takes into account the impact of the working environment on its capabilities.

Internal factors

Personnel, production facilities, financial and information resources act as them. The result of the interaction of these factors is expressed in finished products (services provided, works performed). The internal environment includes departments, elements, services directly involved in production activities. The change in the composition of these components has an impact on the direction of the enterprise. In aggregate, internal and external factors form the organizational environment of the company.

Conclusion

To implement the objectives set, the company formulates a strategy. It includes various means or ways to achieve goals. The development of a set of alternative options is carried out based on the results of a comprehensive analysis of the work of the enterprise, competitors, customer needs. Strategic planning is an integral part of management activities. The development of tasks can be carried out for different periods. They can be short-term or long-range. The strategy should be flexible. This is especially true in modern conditions. When setting goals, an enterprise must soberly assess its resources and capabilities. Often, companies take on as much as they can not perform. As a result, not only the reputation of the enterprise suffers. Irrelevant steps that do not meet the specifics and capabilities of the company's goals often lead to a large debt to counterparties, bankruptcy. In order to avoid such problems, it is necessary to approach the selection of your mission with all responsibility.