Describes the process of formulation of objectives of Modern Bakeries, a public enterprise. Provides a good basis for evaluating the objectives and for discussing the accomplishments of the company with respect to its objectives. The objectives were formulated after the government accepted a recommendation by the Administrative Reforms Commission that financial and nonfinancial objectives must be formulated in each public enterprise. Helps raise the issues of the role of various agencies in formulation of agencies, and the extent to which the objectives reflect the enterprises operations.