For an MBO System (Manage by Objectives) to Work, the Business

question 34

Essay

For an MBO system (manage by objectives) to work, the business unit attempting to implement the process must meet four criteria. What are those criteria?

---

Definitions:

Overall Profits

The total financial gains made by a company after all expenses and costs have been subtracted from total revenues.

Single Product

Refers to a business or production strategy focusing on the manufacture or sale of only one type of product.

Majority of Demand

Typically refers to the largest portion of demand for a product or service, usually indicating the most common or frequent customer request or need.

Tailored Postponement

A supply chain strategy that delays the final production or distribution of a product until customer requirements are fully understood.