Goals and strategic planning are two essential elements of any successful business. Goals are the desired results that a person or company plans to achieve, while strategies are the methods used to reach those goals. Goals can be short-term or long-term, depending on the strategies that are developed and implemented. However, there are many factors that can reduce the effectiveness of a strategic plan, such as inadequate market research. For example, imagine a company that produces and broadcasts television commercials but does not determine beforehand which brand their target demographic will see.
The marketing strategy will not be successful in increasing their customer base if only uninterested viewers watch the ads. A strategy involves the direction in which the company is heading, the scope of the market, how it can compete with other companies, the expectations of those who run and control the company, and other factors that may affect the achievement of the company's goals. It is important to understand that a series of objectives must be achieved before the strategic plan can be realized. The following table also shows how several objectives (in this case four) are needed to reach a goal of 1000 members. For example, companies that do not incorporate internet advertising and social media into their overall marketing strategy may allow competitors to gain an advantage.
In this example, the suggested SOTs are some of the many that Intel could choose to achieve the goal of turning its PC microprocessors into class leaders. For example, the goal of a sports organization could be to have 50 qualified and active coaches. Strategies and objectives may not always be effective, so it is important to review plans periodically to ensure that your company adapts to changes in the economy, technology, and other factors that alter the competitive environment. An operational objective refers to proper management of resources for efficient operation of the company. While a goal is a description of a destination, an objective is a measure of progress needed to reach it.
The expected result guides any action taken by an individual or company to meet its objectives. Likewise, each goal of the strategic plan will require a series of objectives to be successfully achieved. The strategic plan would be the marketing approach they plan to adopt, while the goal would be to win customers. The number of goals needed for each goal can vary but usually ranges from one to six. It is important for businesses to understand how goals and strategies work together in order to achieve success. Market research should be conducted in order to determine which strategies will be most effective in reaching desired goals.
Additionally, businesses should review their plans periodically in order to ensure they are adapting to changes in technology and other factors that may affect their success.