BUSINESS OBJECTIVES

Write 3 objectives for yourself: ACTIVITY Write 3 objectives for yourself: Life, career and relationships

What is an objective? Something we seek to achieve BUSINESS OBJECTIVES perform the role of a compass or guideline in keeping the business on track

The nature, role and importance of business objectives Objectives serve as a guide for: Evaluating performance: measure success in achieving goals over time Decision making: Sense of purpose and direction Efficiency: employees work in the interest of organisation and use resources properly. Functions of business co-ordinated Consistency: employees work towards common purpose

HIERARCHY OF OBJECTIVES Mission statement Strategic objectives Tactical objectives Operational objectives

A hierarchy exists: one leads to the fulfillment of the other. Strategic objectives are at the core. Tactical objectives must be achieved if the strategic objectives are to be reached Operational objectives must be met in order for tactical objectives to be obtained

Mission Statement Captures attitudes and expectations of employees Focus of activities for people to identify with Overtime, provides framework for strategies in the business

APPLE’s MISSION STATEMENT

Short and long term objectives Target groups Time period Examples Strategic Top management Long term (3-5 years), even 10 years To create 2 new products in the next 5 years Tactical Middle management Medium term (1-3 years) To increase production by 10% in 2 years Operational Lower level management Short term (1 day to 1 year) To meet weekly production quotas of 5000 items

SMART OBJECTIVES

Write 3 SMART objectives ACTIVITY Write 3 SMART objectives

TYPES OF BUSINESS OBJECTIVES Profit Growth Survival Sales Market share (Market leadership) Non profit objectives