Read following passage and answer the question:

Star Ltd has recently entered the segment of manufacturing Electronic vehicles (EV) in India. It has set up a target volume of sales as 20% of total EV market. It has formulated a comprehensive plan taking into consideration the increasing levels of environment pollution and the new legal policies related to it. The company has set up broad parameters within which a manager may function. Apart from this, the company has prepared detailed statements about the EV project which outlines the other types of plans along with the human and physical resources required. The Finance Manager of the company has also prepared a plan which quantifies future facts and figure.

"It has set up a target volume of sales as 20% of total EV market".

Identify the type of plan highlighted from this statement.

Objective

The correct answer is option 4 i.e. Objective.

In this context, the target volume of sales (20% of the total EV market) represents a specific objective that the company aims to achieve.

The first step in planning is setting objectives. Objectives, therefore, can be said to be the desired future position that the management would like to reach. Objectives are very basic to the organisation and they are defined as ends which the management seeks to achieve by its operations. Therefore, an objective simply stated is what you would like to achieve, i.e., the end result of activities. For example, an organisation may have an objective of increasing sales by 10% or earning a reasonable rate of return on investment, earn a 20% profit from business. They represent the end point of planning. All other managerial activities are also directed towards achieving these objectives. They are usually set by top management of the organisation and focus on broad, general issues. They define the future state of affairs which the organisation strives to realise. They serve as a guide for overall business planning. Different departments or units in the organisation may have their own objectives. Objectives need to be expressed in specific terms i.e., they should be measurable in quantitative terms, in the form of a written statement of desired results to be achieved within a given time period.