BUSINESS OBJECTIVES

DEFINITIONS

 “The specific intended outcomes of business

strategy”
• “The anticipated end results of a programme of
activities”
• “Targets which the business adopts in order to
achieve its primary aims”
 ROLE OF BUSINESS OBJECTIVES

• Serves as a guide to decision-making

 • Serves as a guide for efficiency
 Serves as a guide for consistency
 Serves as a guide for evaluating
performance
Objectives play a key part in a successful business.
 Objectives exist and operate at different levels in a
business –
 The objectives cascade down from the mission getting
progressively more specific. As you move down the
hierarchy, overall objectives are translated into more
specific objectives for different parts of the business.
 How are objectives used in business?

 • Implement the mission

• Provide a clear focus for decision making
• Provide a target
• Motivate employees (assuming the objective is
achievable)
• Facilitate control of actual performance
• Provide criteria for evaluating performance
• Reduce uncertainty
• Provide a sense of unity
HIERARCHY OF BUSINESS OBJECTIVES

 MISSION STATEMENT
 STRATEGIC OBJECTIVES
 TACTICAL OBJECTIVES
 OPERATIONAL OBJECTIVES
 WHAT IS A MISSION STATEMENT?

A written declaration of an
organization's core purpose and focus
that normally remains unchanged over
time.
 WHAT IS A VISION STATEMENT?

 An aspirational description of what an

organization would like to achieve or accomplish
in the mid-term or long-term future. It is intended
to serve as a clear guide for choosing current and
future courses of action. See also mission
statement.
DIFFERENCE BETWEEN A MISSION AND A
VISION STATEMENT
 A mission is different from a vision in that the former is
the cause and the latter is the effect; a mission is
something to be accomplished whereas a vision is
something to be pursued for that accomplishment. Also
called company mission, corporate mission, or corporate
purpose.
 STRATEGIC OBJECTIVES

 Top management
 Longterm
Examples:
 To create two new products in five years
 To increase exports by 3% in four years
 TACTICAL OBJECTIVES

 Middle Management
 Medium term
Examples:
- To increase production levels by 2% in six months
- To keep advertising costs at 3% of sales over the next
eight months
 OPERATIONAL OBJECTIVES

 Lower level management

 Short-term

Examples:
- To meet weekly sales quota of 1,000 items
 To prepare reports within two days of requests