Business Objectives

Question 1

SMART (S)

Answer 1

S- SPECIFIC: Objectives should focus on what the business does and should apply directly to that business. A hotel may set an objective of 75% bed occupancy over the winter period. This objective is specific to this business.

Question 2

SMART (M)

Answer 2

M - MEASURABLE: Objectives that have a quantitative value are likely to prove to bemore effective targets for directors and staff to work towards such as increase sales in the south - eats region by 15% this year.

Question 3

SMART (A)

Answer 3

A - ACHIEVABLE: Setting objectives that are almost impossible in the time frame given will be pointless. They will demotivate staff who have the task of trying to reach these targets.

Question 4

SMART (R)

Answer 4

R - REALISTIC AND RELEVANT: Objectives should be realistic when compared with the resources of the company and should be expressed in terms relevant to the people who have to carry them out.

Question 5

SMART (T)

Answer 5

T- TIME SPECIFIC: A time limit should be set when an objective is establish -by when does the business expect to increase profits by 5%?

Question 6

Corporate Aims

Answer 6

These are very long - term goals that a business hopes to achieve. The core central purpose of a business’s activity is expressed n its corporate aims.
Example: New car and truck designs are an important strategy to help Daimler (car manufacturer) achieve its long-term aim

Question 7

Mission Statement

Answer 7

A statement of the business’s core aims, phrased in a way to motivate employees and to stimulate interest by outside groups.
Example: GOOGLE: ‘To organize the world’s information and make it universally accessible and useful.’

Question 8

Corporate Objectives

Answer 8

Based on the central aim and mission of the business, but they are expressed in terms that provide much clearer guide for management action or strategy.
Example: Profit maximisation, profit satisficing, growth, increasing market share, survival and corporate social responsibility

Question 9

Corporate Social Responsibility (CSR)

Answer 9

This concept applies to those businesses that consider the interests of society by taking responsibilities for the impact of their decisions and activities on customers, employees, communities and the environment.
Example: Google Green is a corporate effort to use resources efficiently and support renewable power. But recycling and turning off the lights does more for Google than
lower costs

Question 10

Management by Objectives

Answer 10

A method of coordinating and motivating all staff in an organisation by dividing its overall aim into specific targets for each department, manager and employee.

Question 11

Ethical Code

Answer 11

A document detailing a company’s rules and guidelines of staff behaviour that must be followed by all employees.