Question

What is the difference between an objective and a "must/want" criteria? Please describe a real life example of a "Developing Strategy" (e.g., growth, stability, turnaround, combination...) that you have seen adopted by a company that you work for or that you have read about in the press. Was the strategy adequate and successful?

Answer 1

An objective is a measurable milestone, while 'must/want' criteria are mandatory and desirable attributes for outcomes. A successful example of a growth strategy is Microsoft’s shift to cloud computing, which turned it into a highly valuable company.

Step-by-step explanation:

An objective refers to a specific and measurable milestone to be achieved while pursuing a goal. In contrast, "must/want" criteria refer to mandatory requirements (must) and desirable specifications (want) that an outcome should satisfy, serving as guidelines for decision-making and strategy development. For example, in a company's strategy for growth, an objective might be to increase market share by 15% within the next year, which is measurable and specific. Must criteria could include remaining within budget, whereas want criteria might suggest a preference for utilizing existing distribution channels where possible.

Considering real life examples, a notable developing strategy is Microsoft's shift to cloud computing and subscription services under CEO Satya Nadella's leadership. The company pivoted from primarily selling software licenses to offering cloud services through Azure and subscription models with Office 365. This strategy not only sought growth but also stability by establishing recurrent revenue streams. The outcome has been successful, transforming Microsoft into one of the most valuable companies and demonstrating strong financial performance.