Question

It has been said that you will never know when you have arrived if you don’t know where you are going. Goals provide direction
for a business. A goal is a specific statement of a result the
business expects to achieve. All types and sizes of businesses
and all parts of a business need to develop goals.
Goals keep the business focused on where it wants to be in the
future and the results it expects to accomplish. Managers and
employees may overreact to short-term problems or the actions of competitors if goals are not clearly stated and communicated. Managers in large companies may take actions that conflict with those of other managers if they are not aware of goals. Here are
several characteristics of effective goals:
1. Goals must be specific and meaningful . The goal “make a
2. Goals must be achievable . It is important that goals move
the company forward, but they must also be realistic. It is
profit” is vague. However, the goal “increase sales to new customers by $25,000 in the next six months” is much more specific. Goals should relate to the activities and operations of the business so that employees see how their work relates to the goals. Managers must be careful in setting goals and must consider such factors as
(1) the general economic conditions facing the
business,
(2) past sales and profits,
(3) the demand for products and services,
(4) the reactions of current and prospective customers,
(5) the resources of the business,
(6) the actions of competitors, and
(7) any other factors that can influence the
achievement of the goals.
not useful to set a goal “to increase unit sales by 5 percent” if the company does not have the capability of manufacturing that many more units. If telemarketing salespeople are already completing many more calls each day than the industry average, it may not be realistic to set a higher goal for completing calls without increasing the number of salespeople.
3. Goals should be clearly communicated . Company and
Activity — Create and Analyze Goals (20 minutes)
departmental goals should be communicated to all
employees, because they will be responsible for
accomplishing those goals. Communicating the company’s goals will help employees understand that they are part of a team effort working together for a common purpose.
Usually, they will work harder to achieve goals they
understand.
4. Goals should be consistent with each other and with overall
company goals. Each department within a business has its own specific goals, but the goals must be coordinated with those of other departments. Assume, for example, that the sales manager sets a goal of increasing sales in a specific area of the country. The advertising manager, however, sets a goal of reducing expenditures in the same area to use the money for a new product introduction that will occur in another part of the country. If advertising is needed to support the sales efforts, the managers have conflicting goals. Department managers must work together so that their goals will complement each other and support the overall company goals.
The company sells hiking and camping products and wants to grow next year. Write Two Business Goals Use the information from the reading to write two business goals for Adventure Peak:
1. One sales-related goal
Goal Type Your Goal Why It’s Effective (use characteristics from reading) Sales Goal Operations Goal
Task 3: Goal Conflicts
2. One employee or operations goal Each goal must be:
 Specific
 Measurable
 Achievable
 Relevant
 Time-bound
Identify Factors Affecting Goal Achievement List three factors from the reading that could influence whether your goals are achieved (e.g., economy, competition, customer reactions).
Factors Affecting Goals Explanation 1. 2. 3.

Answer 1

Here are two SMART goals for Adventure Peak, with why each is effective (using the characteristics from the reading), plus three factors that could affect achievement.

1) Sales goal
- Goal type: Sales
- Goal (SMART): Increase Adventure Peak’s revenue from new customers by $50,000 between January 12, 2026 and December 31, 2026 by launching a targeted regional digital ad campaign and a “first-purchase” in-store discount.
- Why it’s effective:
- Specific & meaningful: Names the revenue target ($50,000), the customer segment (new customers), and the tactics (regional digital ads + in-store discount).
- Measurable & time‑bound: Dollar amount and deadline (Dec 31, 2026) let management track progress.
- Achievable: The target is set with a concrete plan (marketing campaign + discount) and can be checked against past new-customer revenue and available marketing budget.
- Relevant & aligned: Directly advances the company’s growth objective for next year and links sales activity to measurable results.
- Communicable & coordinated: Can be shared with marketing, sales, and store teams so everyone knows their role.

2) Employee / operations goal
- Goal type: Operations / Employee
- Goal (SMART): Reduce average online order fulfillment time from 4 business days to 2 business days within six months (by July 12, 2026) by implementing an inventory management system, reorganizing the warehouse layout, and hiring one full‑time fulfillment associate; train all fulfillment staff on the new process.
- Why it’s effective:
- Specific & meaningful: Targets a clear operational metric (order fulfillment time) and specifies the changes to be made.
- Measurable & time‑bound: Average days-to-fulfill is easy to measure; deadline is six months.
- Achievable: The actions listed (system, layout changes, one hire, training) are concrete steps that address capacity and process bottlenecks.
- Relevant & aligned: Faster fulfillment supports sales growth, improves customer reactions, and reduces returns—so it complements the sales goal.
- Communicable & consistent: Tasks and responsibilities can be assigned across operations and HR so departments don’t work at cross-purposes.

Factors affecting goal achievement (from the reading)
1. General economic conditions
- Explanation: A downturn or weaker consumer spending could reduce demand for camping gear and make the sales target harder to reach; a strong economy would help sales growth.

2. Resources of the business
- Explanation: Available budget for marketing, ability to hire an additional fulfillment associate, and capital to buy an inventory system will determine whether the plans to hit both goals are realistic.

3. Actions of competitors (and customer reactions)
- Explanation: Competitor promotions, new product launches, or pricing moves can reduce Adventure Peak’s market share or force higher marketing spend; customer reactions to price, promotions, or new processes (e.g., satisfaction with faster fulfillment) will also influence success.

If you want, I can:
- Suggest specific KPIs and a simple monthly tracking table for these goals.
- Draft a short internal memo to communicate both goals to staff.