Insights based on the data collected indicate that a multi-national company could increase its sales of a mature product by reducing its price by 20% which would result in increased revenues of 2% over a 6-month period. The team recommends this as an appropriate goal for its organization. This is considered a good goal because:

Insights based on the data collected indicate that a multi-national company could increase its sales of a mature product by reducing its price by 20% which would result in increased revenues of 2% over a 6-month period. The team recommends this as an appropriate goal for its organization. This is considered a good goal because:
A . It meets all the criteria for a well-defined objective
B . The organization can derive additional revenue from the product
C . It indicates that the company does not have to incur costs associated with retiring this product
D . Management will be pleased that the mature product can still contribute to revenue

View Answer

Answer: A

Explanation:

A well-defined objective is one that is specific, measurable, achievable, relevant, and time-bound (SMART)1. The goal of increasing sales of a mature product by reducing its price by 20% which would result in increased revenues of 2% over a 6-month period meets all these criteria, as it clearly states what the desired outcome is, how it will be measured, whether it is realistic and attainable, how it aligns with the organization’s strategy, and when it will be achieved2.

Reference: 1: Guide to Business Data Analytics, IIBA, 2020, p. 192: SMART Goals: How to Make Your Goals Achievable, MindTools, 2021, 1.