1.3 Business objectives Flashcards
Mision statement
Communicates the purpose and values of the company
Vision statement
What the business would like to see itself as, summay of its aims
Business objectives
Measurable targets that a business must meet to achieve its long-term goals.
Strategic objectives
Long-term goals of a business that indicates how it wants to fulfil its mission, set by board of directors.
Tactical objectives
Short/medium-term goals that help achieve strategic objectives set by executive manager.
Business aim
Long-term goals, what it wants to achieve in the future.
Operational objectives
Day-to-day objectives set by floor managers to reach tactical objectives.
Hierarchy of objectives
- Aim
- Strategic objective
- Tactical objective
- Operational objective
SMART objective
Specific, Measurable, Achievable, Relevant, Time-specific
Business strategy
A plan to achieve a strategic objective to work towards the aim, medium to long-term.
Business tactic
A plan to achieve a tactical objective to work towards the strategies of the business. Short-tem.
Internal environment reasons to change objectives
Leadership, HR, organization change, product changes, finance, operations
External environment reasons to change objectives
Social, technological, economic, ethical, political, legal, ecological
Why organizations set ethical objectives
Customer loyalty, positive image and work environment, reducing risk of legal redress, increase profit
Corporate social responsibility
The view that a business rather than focusing solely on increasing value should contribute to the economic, social, and environmental well-being of society
SWOT analysis
Business tool that offers a business with a strategic planning process to identify its strenghts, weaknesses, opportunities and threats
Impact of implementing ethical objectives
The business short-term costs, competitors response, suppliers, customer trust, local community, government recognition
Strategies from SWOT analysis
Growth strategies
Re-orientation strategies
Defusing strategies
Defensive strategies
Growth strategies
Pairing opportunities and strenghts
Re orientation strategies
Pairing weaknesses and opportunities
Defusing strategies
Pairing strenghts and threats
Defensive strategies
Pairing weaknesses and threats
Ansoff matrix
Business tool to help businesses plan and set objectives. Features market penetration, product development, market development and diversification
Market penetration
Selling more of its existing products in an existing market, brand royalty
Product development
New products in an existing market
Market development
Existing product in a new market
Diversification
new products in a new market
