Revision Activity

Revision Activity

1. Analyze whether Peugeot Citroen's objectives fit the SMART criteria

 I think its objectives fit the SMART criteria.It has a not only specific but also measurable objectives.Even though its overall objective is to become the most competitive car market in Europe by 2015, it also has other objectives that aim to eventually fulfill the overall objective. Their objectives are to increase the profit margin of each car sold from 2% to 7% by 2015, and to increase sales by 4 millions cars a year by 2015. Therefore, these objectives are specific enough to apply directly to what Peugeot Citroen does and measurable enough to determine whether the objectives are reached or not. Also, they are achievable enough not to make the workers discouraged, provided they work hard to achieve their sub-objectives. They are also relevant and job-specific, so that all the workers have their own real meanings of the objectives. Its departmental operating targets have been established. For example, human resources department mush prepare for up to 8000 job losses. Lastly, they have an exact time, 2015, when they decided as a d-day to achieve the objectives. Therefore, I think Peugeot Citroen's objectives are all fitting the SMART criteria.


2. Analyze the importance of the chairman not only setting an overall aim for the company but also establishing departmental objectives.

By chairman's setting an overall aim for the company, chairman can give almost all workers motivations to make them work much more than before. In other words, workers might be encouraged and think about how serious and passionate this project is by looking chairman's effort, as watching chairman's seemingly huge effort for the company is not a common thing for the ordinary employees. Also, the other car companies might be encouraged to compete with Peugeot Citroen and might work hard as well. Thus, Peugeot Citroen might be also encouraged by them, and work much harder as well. Therefore, it might leads to a huge motivation for not only workers in its own company, Peugeot Citroen, but also other car companies which might also make Peugeot Citroen instigated again.
Furthermore, by establishing departmental objectives, the company can give specific jobs for the employees who are already motivated to achieve the overall objectives. If some workers are motivated, but can not find any way to contribute to the company's achievement of the objectives, they can follow the departmental objectives. Also, those departmental objectives might eventually lead to the achievement of the overall objective with all the employees' effort following the departmental objectives.


3. Do you think Peugeot Citroen's shareholders would be pleased by Mr. Streiff's new objectives for the company?

Of course, the shareholders might be pleased by Mr. Streiff's new objectives. This is because the shareholders might think that those new objectives means the company is going to work harder than before. They do not really care about the employees' losing jobs or the local government, but they care about how much profit the company make. Even if the company fails the objectives, the failure might not give any harm to the shareholders. The failure might make all the workers in the company discouraged, but not the shareholders. Also, by 2015, the company will make as much profit as possible by doing their own best, regardless of whether they have reached the objectives or not, and that might make the shareholders pleased a lot. And, the likelihood of the company's failure is not that high though. Therefore, I think the news that the Peugeot Citroen established new objectives might make the shareholders of Peugeot Citroen feel pleased.


4. To what extent might these objectives have to be changed before the 2015 target date is reached?

I think before the 2015 target date will be reached, Peugeot Citroen should have the other objective to progress interim check. If they check the interim, then they can figure out how far they have gotten or what they need or improve to reach the objectives. If their progress looks good, then they can continue what they are doing. However, provided their progress looks not good enough to achieve the goal, then they need to change the objectives or find the other way to achieve the objectives. Thereby, they might increase the likelihood of the achievement of the objectives.
Also, I think targeting the profit margin of each car sold should be changed before 2015 target is reached. In fact, that would not help to each the overall objective if Peugeot Citroen makes products with great quality but sells them with a cheap price to lead people to buy their cars. Peugeot Citroen's profit margin of each car sold might be less than before. However, they might sell much more cars then before. Thus, the profit margin of each car sold would be useless to achieve the overall objective. Only the objective of selling 4 million per a year should be unchanged.