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Evaluate the Possible Consequences of Michelin Failing to Meet Its Aims and Objectives Essay

Objectives – markets and customers, employees, economic performances, environmental policy and product/manufacturing. These provide guidance for management actions. Most organisations have general or overall aims which they can break down into specific objectives and aims. If aims and objectives fail to be successful there is a change the business will no longer work out. Michelin will have many consequences if the business fails to meet aims and objectives. Meeting stakeholder’s needs: Michelin looks to combine high levels of all stakeholder groupings.

The company recognises that its long-term development depends on maintaining a balance between the needs of customers, employees, shareholders and the environment. This involves not only considering the `individual benefit` of a particular stakeholder grouping, but also the `collective benefit` of all the groups. Michelins policy on products and services reflect this approach. Michelin recognises that its long term success and development depends on maintaining a balance between all of its stakeholders needs.

If there is an Impact on the stakeholders – Employees will not have a safe, secure job and may have to take a pay cut or reduce hours they work, this may lead employees to look into finding a different job where they know the business is successful. They may not get the level of training they have been used to. Customers may no longer be able to buy the same quality of goods and services if they fail to meet their aims and objectives this will be a big downfall in the business, they could lose customers which will make the business very unsuccessful.

Shareholders may not receive the same return on investment that they once did or are looking for. Shareholders want a healthy dividend. Suppliers may not benefit from regular orders and prompt management from Michelin. If Michelin are meeting their objectives they will struggle financially this will cause many problems. Public authorities such as the local business community may no longer give Michelin the support and co-operation it once did this is because the business is not working as it used to.

Communities may be affected by Michelin not meeting its aims and bjectives as it may put local people out of jobs as it has 125,000 employees. Environment may be affected by Michelin not meeting its aims and objectives as their products may become not very environmentally friendly. This will lose the business respect and potentially customers as well. Michelins current policy on products and services reflects this collective approach and will help them to meet targets of the business, without aims and objectives the business will have hardly any chance of being successful in the near future.

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