ABSTRACT
The firm's long-term objectives were concerned with its profitability and, to a smaller extent, its share of the market. This chapter discusses some of the general characteristics of business objectives in the firms. In a few firms, what seemed to be operational objectives were treated effectively as non-operational ones. If they are to achieve their targets, firms must have arrangements for stating at least their key objectives in operational terms and for comparing performance with these operational objectives. The chapter shows that pricing and marketing are inseparable. In operating so as to maximize sales, the sales department is sub-optimizing. Whether it will be allowed to sub-optimize will depend on the way the firm is run. Annual budgets were usually divided further into budgets for shorter time periods; monthly and quarterly periods were the most usual. As the firm's achievements were monitored and compared with its budget, managers were forced to analyse the variances between the two.
