business objectives

Question 1

The importance of objectives

Answer 1

Businesses of any size can benefit from having clear objectives or targets to work towards

• A business aim helps to direct, control and review the success of business activity.
• For any business aim to be successfully achieved, there has to be an appropriate strategy in place to ensure the resources are correctly directed towards the final goal
• A poor plan or strategy will lead to failure to reach the target

Question 2

SMART business objectives

Answer 2

SMART business objectives
Specific – Clearly and easily defined
Measurable – A Quantitative value is likely to prove to be more effective
Achievable – Managers and subordinates believe these can be achieved
Realistic and relevant – realistic when compared with the resources of the company
Time specific – a time limit should be set when an objective is established

Question 3

How to be effective when creating business objectives

Answer 3

To be effective, business objectives need to be used as clear targets to achieve.
Objectives need to be set in such a way as to ensure that each section of a business is working towards the same goals so that the overall corporate, aims and mission can be achieved.

Question 4

Hierarchy of objectives: aims

Answer 4

Aims – overall long-term goals of a business

Question 5

hirearchy of objectives:
Corporate objectives – provide management with the detail to decide on a strategy to achieve the overall aim
Divisional objectives – break down the corporate objectives into objectives for each division e.g. geographical or product division
Departmental objectives – break down the corporate & divisional objective into targets for each department i.e. finance, marketing, Human resources
Individual targets – what each employee can specifically do to contribute to overall aim

Answer 5

Mission statements – business aims phrased in a way to motivate/capture interest of outsiders

Question 6

hirearchy of objectives: Corporate objectives
Divisional objectives – break down the corporate objectives into objectives for each division e.g. geographical or product division
Departmental objectives – break down the corporate & divisional objective into targets for each department i.e. finance, marketing, Human resources
Individual targets – what each employee can specifically do to contribute to overall aim

Answer 6

Corporate objectives provide management with the detail to decide on a strategy to achieve the overall aim

Question 7

hirearchy of objectives:

Divisional objectives

Answer 7

Divisional objectives: break down the corporate objectives into objectives for each division e.g. geographical or product division

Question 8

hirearchy of objectives:

Departmental objectives

Answer 8

Departmental objectives: break down the corporate & divisional objective into targets for each department i.e. finance, marketing, Human resources

Question 9

Hierarchy of objectives: individual targets

Answer 9

Individual targets – what each employee can specifically do to contribute to overall aim Divisional objectives

Question 10

Corporate aims

Answer 10

Corporate aims are very long-term goals which a business hopes to achieve.
Corporate aims are directed at the whole organisation – not just a part of it.
They become the starting point for all other aims & objectives in the organisation
They help an organisation to decide its strategy – its plan to meet its aims

Question 11

Mission statement of the business

Answer 11

This is a statement of the business’s core aims, phrased in a way to motivate employees and to stimulate interest by outside groups