Goal-Setting Process and Typologies

Abstract

The corporate goal-setting process is examined to determine the extent of causal interrelationships among five widely used performance targets: market share, ROI profit, corporate image, and sales volume. By making use of the professional services sector as a testing ground, different company typologies were developed on the basis of regression coefficients which determined the causal associations among corporate objectives. Some of the findings revealed that sales volume and corporate image influenced market share. The direct impact of corporate impact of the sales volume and market share on ROI is also found, as well as the impact of the sales volume obiective on the pursuit of overall profitability. It is suggested that each corporate objective serves a special purpose and that managers should incorporate the most suitable performance measures into their strategic plans.