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Setting Objectives Read the overview below and complete the activities that follow. The managerial purpose of setting objectives is to convert the vision and mission into specific performance targets. Objectives reflect management's aspirations for company performance in light of the industry's prevailing economic and competitive conditions and the company's internal capabilities. Well-stated objectives must be specific, as well as quantifiable or measurable. Concrete, measurable objectives are managerially valuable for three reasons: (i) they focus organizational attention and align actions throughout the organization; (2) they serve as yardsticks for tracking a company's performance and progress; and (3) they motlvate employees to expend greater effort and perform at a high level. For company objectives to serve their purpose well, they must also meet three other criteria: they must contain a deadine for achievement, and they must be challenging, yet they must be achievable. The goal of this exercise is for you to understand the importance of setting both strategic and financial objectives. Before completing this exercise, be sure to review Ch, 2, "Charting a Company's Direction," specifically, the section entitled "Stage 2: Setting Objectives." Sources "Piect under Fire," The Economist, December 8. 2005, Chis Beyont and Richard Mine, "Boardroom Polltics at Heant of Vw scondal." Financial Times, October 4, 2015, Andrens Cremer and Jan Schwort, "Volkswagen Mired in Crisis as Boord Members Critize Plech," Reuters, Apri, 24, 2015; Richard Mine. 'Volaswogen Syptem Fature' Financial T times, November 4, 2015 3b. Companies set strategic objectives... 3b. Companies set strategic objectives... Companies set strategic objectives Multiple Choice to achieve a company's strotegic vision. because they are more difficult to achieve and harder to measure than financial objectives. to target outcomes that indicate a company is strengthening its market standing. competitive position, and future business prospects to help managees track on orgonization's true progress better than financial objectives. to indicate to employees that strategic objectives always take precedence over financial objectives