Chapter 3 Revision activity

1.) Yes, Peugeot Citroen's objectives fit the SMART criteria. The objectives are specific and not broad or unclear in any way. They are for example aiming for "becoming the most competitive car marketer in Europe by 2015". Their goals are also measurable because they have goals set in percentages like, "the profit margin of each car sold is targeted to increase from 2% to 7%". It is very easy to see if this goal is reached or not. Their goals also seem achievable since it feels realistic that they can launch 12 new models in the Chinese market. Their goals are also made to be relevant to all the employees so they have many smaller points that are assign to smaller groups. For example they said the "the human resource department must prepare for up to 8000 job losses" this is mostly relevant if you work in the human resource department. The company also has a time limit for when everything should be done and in this case that is in 2015.

2.) By establishing departmental objectives it becomes easier for the employees to know what is relevant for them to know or to work on. An overall big goal for the business is good because it clarifies what the business wants to accomplish. But a general goal does not tell the employees that much because they still don't know what they should do about it. By setting up goals for each department the employees working there know more specifically how they can contribute to reach the main goal of the business. Also departmental objectives does not seem as overwhelming as the main objective might. They are smaller and therefore they feel more doable.

3.)Yes, I think that  Peugeot Citroen's shareholders would be very pleased with the new objectives of the company because all the objectives are towards making greater profits. The new objectives are about expanding the company and making it bigger so that they can produce and sell more. Also all the objectives that try to cut down on cost in production will benefit the company profit wise. So when cutting the cost of production and selling more than before the profits will be very large. Bigger profits for the company means greater profits for the shareholders as well since they own parts of the company so they will probably not complain.