Question

Why is it important for companies to have a balanced approached of setting both strategic and financial objectives?

Business Ethics

Answer 1

It is important for companies to have a balanced approached of setting both strategic and financial objectives because

Company need to have fulfill their both financial and non financial objectives , they need to have focus on both . For the owners or lenders they need to have achieve their financial objectives but for the society or we say effective operations of the management they need to fulfill their strategic objectives.

Means if a company is not achieving its strategic objectives then it can not acheive it's financial objectives for the long term . Therefore Company need to maintain balance their both objectives.

A Balance score card theory is also given by David Norton and Robert Kaplan, in which they said a company need to focus not on financial objectives but also on the non financial objectives that are learning and growth objectives , customer objectives, financial objectives and internal business objectives.

If there is any other doubt please ask in comments.

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