Final answer:
Establishing and achieving strategic objectives merits high priority on management's agenda for several reasons: they provide benefits to shareholders, enable a shrewd strategic vision, and serve as leading indicators of future performance.
Step-by-step explanation:
Establishing and achieving strategic objectives is given high priority on management's agenda for several reasons:
- Strategic outcomes provide better benefits to shareholders in both the short run and the long run. For example, a company that sets a strategic objective to increase market share may attract more customers and generate higher profits, resulting in increased shareholder value.
- A company cannot have a shrewd strategic vision without having aggressive and competitively astute strategic objectives. Setting clear and ambitious objectives allows the company to align its actions with its long-term vision and compete effectively against competitors.
- Strategic outcomes serve as leading indicators of a company's future financial performance and business prospects. By setting and achieving strategic objectives, company managers can assess their progress towards achieving their long-term goals and make necessary adjustments to improve performance.
In summary, well-chosen strategic objectives help managers craft a good strategy, provide better benefits to shareholders, enable the company to compete effectively, and serve as indicators of future performance.