Coursework for Measuring Goals to set a strategic direction and target to organizations with well designed SMART Goals

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Measuring Goals


Whatever may be the circumstances, whether American Apparels wilfully did the scam with the identities of the workers or not, the year 2008 resulted in very serious complications to the company in terms of the profit losses and drastic fall out into debts? The subsequent efforts of the American Apparel contributed for slow recovery of the company. However still to set a strategic direction and target to the organization, there is need for more comprehensive strategic plan of action with well-designed SMART Goals. The following can be two of the most relevant SMART Goals for the organization.

GOAL1:  Increasing the Net Sales

AS there is fall in sales from 2008 to 2009 and further the same trend continued till 2010. However the sales increased from 2011 to 2012 and subsequently to 2013. In this connection, a specific reachable figure can be set as smart goal for the organization for sales achievement.

Achieving a sales of $700,000

Specific Sales = $700,000

Time period of achievement for the current financial year.

Comments: The goal is realistic considering the sales volume in the last year, further the sales figure is achievable, realistic and also specific time period is specified as well.

Rationale: The specific target of the sales will work for improving the organizational efforts towards selling the products and this will motivate the efforts by providing a vision and direction for marketing efforts.

GOAL2:  Moving the company towards profits

The company is making loss since 2009, the loss of the company in 2009 is $86,315 and it is reduced a little in 2010. Further marginal reduction in 2012, however there is huge rise in the loss of the company in the year in 2013 to about $106,298. Hence it is required to take up proper measures to curtail the loss and make the company move towards profits.


Hence the goal of the company is to make it profitable by atleast $10000 by the end of the current financial year.

Rationale: The profit target kept for the company at present may be too small, however considering the current situation of the company; it is worth to take up right measures to improve the profits from the current loss condition. The amount of the profits is made specific, the duration for achieving the same is also mentioned clearly and also it is realistic.

Measuring procedures:

Goal 1 is related with the marketing strategy of the company and the sales of the company can be measured based on the feedback the company receives from day to day as per the internal marketing MIS. Based on inputs from these data statistics, the current sales of the company across all its stores in the country can be computed by managers. Cumulative statistics will indicate the total sales of the apparel items in the company and also the sales can be computed from region by region, based on the statistics obtained (Haughey, 2013).

Goal 2 is related with the profits of the company. The measure of the profit for the company can be done from the financial statements. The financial statements of the company from time to time will indicate the net profit/loss for the company as on the date. Net profits will take into consideration all factors like gross profits as well as the expenses occurring to the company from time to time (Macleod, 2012).


Conclusion: The two goals are most appropriate for the strategic planning of the organization and also specific measurement of the same is provided. Further these two goals are interlinked and there is lot of strategic significance to these goals for the current operations of the organization.

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