3.

Corporate Objective

Our previously proposed strategic management model started with defining the mission and vision. Next,
we looked at the opportunities and threats from the outside, the competition, and the market. Finally, we
looked inside the company to figure out its strengths and weaknesses and its resources, capabilities, core
competencies, and distinctive competencies. Finally, we decided what the long-term goals of the company
were and what benefits they would get from them.

Strategic goals must be established by every business. In the broadest sense, strategic objectives (SOs) are
objectives that you want to accomplish outside of the organization. A strategic operating plan for the
upcoming year is built on the foundation of strategic objectives.

The next step in the strategy process is to establish strategic objectives following the completion of a
strategic analysis. At this point, we settled on the company's purpose and strategy for pursuing its mission.
It is now time to begin planning for success after strategic analysis has revealed information about
customer preferences, competitors, and the company's resources and capabilities. The company's
overarching objectives are known as strategic objectives. Most of the time, they are some kind of
performance objective, like launching a new product, increasing profitability or market share for the
product the company sells, expanding, diversifying, etc.

Peter Drucker believed that when managers focused solely on the profit goal, the company's survival was
in jeopardy because this focus encouraged managers to take actions that would make money today
without considering how profits would be made tomorrow, he suggested that corporate objectives should
cover eight key areas:

Area Description
Management should set goals that show where it wants to be in relation to its rivals.
Market standing
The commitment of management to the development of novel operating
Innovation
procedures ought to be outlined in the form of goals.
Productivity Management ought to establish goals that specify the desired levels of
production.
Physical & financial
Capital and monetary resources should be used, acquired, and maintained in
resources
accordance with goals set by management.
Profitability The company's profit target should be spelt out in the goals set by
management.
Management The goals that management should set should be specific about worker
productivity rates and the kinds of attitudes that workers should have.
Employees The company's responsibilities to its customers and society, as well as the
extent to which the company intends to fulfil those responsibilities, should be
reflected in the objectives set by management.
Public responsibility Compliance with laws; social and ethical behavior
Furthermore, objectives have got to follow the mnemonic S.M.A.R.T, SMART objectives are:

 Specific, targeting a specific area for improvement.

Our main goal now is to assign a corporate objective for the organization and specify what will be
the benefits for the organization from that objective. After specifying the vision & mission,
specifying the threats and opportunities and internal processes of the organization, we’d say
that the long-term
Objective of the organization as the leader in its industry in the Middle East is to expand globally into
international markets and increase their market share.

Expansion into foreign markets will really benefit the organization with various benefits including but
not limited to:
 Dramatic Revenue Growth & Developing new Revenue Stream
A core general goal during business expansion is to experience dramatic revenue growth. According
to a recent report, 45% of middle market companies make more than half of their revenue
overseas. Since business is doing well domestically, they are already a step ahead to succeed
globally. With a new customer base, they can identify and create unique opportunities in local
markets for the business to fill in the gaps.
 Gaining a Competitive Advantage
Thinking globally is becoming less of an option and more of a requirement when it comes to
outpacing the competition. In fact, taking the business international presents growth opportunities
by expanding options for talent, customers, and creating cost-savings for imports and
manufacturing.
 New Global Customers
Orascom has been in the local market for a while, it is tough to find new customers. They are used
to the products that they’re offering and the competitors, and new sales can be a battle hard-
fought. An international expansion opens new doors and gives access to a whole new set of
customers who have never seen their product or service before.
 Regional Centers
There’s no denial that Orascom sometimes operates outside of the Middle East, although it’s a rare
sight but it happens. However, they are not that competitive when it comes to pricing which
wouldn’t it be the case if they expand globally. One of the reasons why they should expand globally
is to be able to provide a reliable service to their international clients. By setting up in a new
country, they will be able to lower the operational costs. In addition, by hiring local workers who
know the local language and local customs, they can serve their clients within the same time zone
without any complications. This enables them to reach a wider international audience.
 Expansion allows the company to Diversify
Keeping business in the home market is limiting their potential for profit. One of the downsides of
operating only in one country is the exposure to market changes. Taking business international
gives the opportunity to diversify markets, so revenue is more stable. If the domestic market is
slowing down, having the advantage of a global market will help cushion the company during
slower economic times.
 Improve the Company’s Reputation
One of the reasons why our objective is to expand globally is to be able to provide a reliable service
to the international clients. A good global reputation will attract new customers. Expanding abroad
allows to build name brand recognition and establish credibility internationally.
 Greater access to Talent
Taking business globally will enable them to get access to a much greater pool of
talent. Hiring international talent can bring many advantages including advanced
language skills and diverse educational backgrounds. In addition, expanding
globally as stated above allows them to employ local workers who have the
expertise to communicate and serve the clients (within the same time zone)
without any complications.