New Look at Corporate Goals

by Y. Shetty



Corporate goals are often considered the starting point of effective management. They are the foundation of strategies, plans, priorities and resource allocations, the focal point for managerial action. The formulation and achievement of realistic goals is the essence of good management. It would seem that well-defined goals should be a first concern of every company. During the past century profound changes have been occurring in the management of business enterprises. Among the more critical are the advent of big business, the development of professional management, the expanding influence of government, the growth of multinational businesses and the ever-increasing social pressure on corporations to get involved in societal problems. The purposes of this article are three. The first is to add to the emerging picture of corporate goals by describing the range and pattern of goals pursued by companies. The second is to examine the impact of two factors - the nature of the industry and the company size-on corporate goals. The third is to assess the general impact of changing environment on goals of corporate enterprise.

California Management Review

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Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

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