CASE STUDY WITH THE THEORY OF MBO
The overall organizational goal for the company is to sell Caterpillar excavators in east China. To achieve this goal better, the company established specific goals for departments in different period: At the beginning, LSHM paid more attention to building the brand image, which was the first step in the whole plan. In this period, marketing division played the essential role and implemented the plan very well. After reviewed the progress and appraised the performance, the senior management decided the sequential step: Expand the customer group and increase sales volume. In this period, sales division played the essential role, and to implement this plan a few branches were set up and more salespersons were recruited. However, when the company reviewed the performance, the bad debts were found as an important factor to reduce the sales performance. With this feedback, the senior management revised the machine release procedure. All of these show the benefits of MBO: Senior management aided co-ordination of company's and divisions' goals and plans and all the divisions were very clear about their targets and plans in different period, and they communicated and c0o-operated with each other.…
