Purpose: Setting Goals And Objectives Leads The Organization

Purpose Setting Goals And Objectives Leads The Organization In The Ri

Setting goals and objectives leads the organization in the right direction. Poor goal setting leads in a direction that is not targeted and wastes time, money, and the chance to survive. Using S.M.A.R.T. to Save GM Once the US auto industry led the world, but for the last 30-40 years, their dominance has steadily declined. One major factor in this decline is that foreign automakers have become very good at designing autos that appeal to the American consumer while providing excellent quality at comparable prices. Unfortunately, another important factor for the decline of the US auto industry is complacency and an ethnocentric attitude.

The company and all Americans never imagined that manufacturers other than GM, Ford, and Chrysler would become the automobiles of choice for the US market. Japan and Germany rebuilt their societies and manufacturing bases after World War II, and now Japan and Toyota are frequently mentioned as leading automobile suppliers in the US. Germany leads in the luxury car market. With support from their government, Korea has built itself into a major player with Hyundai and Kia leading the way. Other countries like Sweden, with Volvo and Saab, have also made inroads into the US market.

When the bottom fell out of the economy due to the financial crisis, the situation faced by some major US auto companies became grave. Fearing the loss of tens of thousands of autoworkers' jobs and the millions of jobs linked to suppliers and dealerships, the government stepped in and supported Chrysler and purchased a controlling interest in General Motors. Ford, however, had foreseen and/or planned for such an event a year earlier by refinancing the company. Ford declined the bailout money offered by the government, not wanting the control of the company to fall into government hands.

Historically, Japan’s recovery after WWII and its focus on automotive manufacturing, along with Germany’s industrial strength, posed significant challenges to American automakers. Competition from Japan, Germany, Korea, and other nations was a major factor in the decline of GM, Ford, and Chrysler. Many believe that much of this decline was self-inflicted due to ethnocentric views, which led American automakers to follow development and marketing models that were successful when they faced little real competition. Their foreign competitors, however, were able to innovate and adapt their products and services while US automakers were complacent and slow to recognize these changes.

This complacency extended to US auto unions, which believed automakers’ sales and profits were immune to decline. They pushed for wages and benefits that became unaffordable once foreign competition gained ground. Now, with government support, GM, Ford, and Chrysler have the chance to regain their leadership positions in both American and global auto markets. The key challenge lies in formulating a recovery plan based on the S.M.A.R.T. framework, as outlined in the course text, along with other strategic techniques covered in the module.

To begin, let us define a clear goal/objective for the 'S' in S.M.A.R.T.: What do we want to achieve, and what must be done to reach this goal? Several options are suggested for GM’s objectives:

• To become the largest and most profitable automaker in the US or globally
• To attain the largest market share in the US or worldwide
• To convince American consumers that GM produces vehicles that meet their needs

Rephrasing or refining these options, the key objective could be: "To position GM as the leading automotive brand in the US market by delivering innovative, high-quality vehicles that fulfill consumer needs and preferences while achieving sustained profitability."

Paper For Above instruction

Goal setting is a fundamental aspect of strategic planning that guides organizations toward their desired future states. For GM, the process of establishing clear, strategic goals is particularly critical given the company's recent history of decline, competitive pressures from global automakers, and internal complacency. Effective goal setting involves developing objectives that are specific, measurable, achievable, relevant, and time-bound—collectively known as the S.M.A.R.T. criteria. Applying this framework allows GM to formulate a focused strategy to reclaim its leadership position in the automotive industry.

In redefining GM's goals, the initial step is to articulate a clear and compelling 'S' or Specific objective. For GM, a suitable goal might be: "To become the leading auto manufacturer in the United States by 2030 by increasing market share through innovative vehicle offerings and enhanced customer satisfaction." This goal is specific because it clearly defines the desired leadership position and the timeframe. It also emphasizes key strategic areas such as innovation, market share growth, and customer satisfaction, all vital for revitalizing the company's brand and competitive edge.

Measurability is the next critical element, where GM would need to establish metrics to track progress. For example, increasing market share by 10% annually or achieving a customer satisfaction score of 90% within five years could serve as quantifiable benchmarks. Achievability involves assessing whether these targets are realistic given the company's resources, technological capacity, and market conditions. GM's history of innovation, coupled with investments in electric vehicles and autonomous driving technologies, can underpin a plausible path toward achieving these objectives.

Relevance is essential to ensure that the goals align with the company's broader strategic vision and market realities. Given the increasing global focus on sustainable transportation, GM's goal to lead in electric vehicle production aligns with industry trends and consumer preferences. This strategic focus not only enhances relevance but also positions GM for long-term growth and environmental compliance.

Time-bound specifications are crucial to instill urgency and facilitate monitoring. Setting deadlines, such as becoming the industry leader within eight years, provides a clear timeframe for evaluating success and making necessary adjustments. This timeline also encourages accountability across different divisions of GM and ensures sustained organizational effort.

Establishing a SMART goal for GM is just the beginning. The organization must then develop actionable strategies, allocate resources wisely, and implement performance measurement systems to track progress. For example, GM's strategic initiatives may include expanding electric vehicle manufacturing facilities, investing in research and development, and reinforcing marketing campaigns targeted at environmentally conscious consumers.

In addition to defining SMART goals, GM should adopt supporting techniques such as SWOT analysis to identify internal strengths and weaknesses, as well as external opportunities and threats. This comprehensive approach enables the company to capitalize on emerging trends, address vulnerabilities, and adapt swiftly to changing market dynamics.

Ultimately, effective goal setting provides the foundation for strategic success. By articulating a clear, measurable, achievable, relevant, and time-bound objective, GM can mobilize its resources, motivate its workforce, and steer the organization back toward industry leadership. Success depends not only on how well these goals are formulated but also on disciplined execution and continuous performance evaluation.

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