Business Objectives

Question 1

What are Objectives?

Answer 1

Specific targets of performance should contain the action to be performed, condition under which it should be performed and time which it should be performed

Question 2

SMART Objectives

Answer 2

Specific
Measurable
Agreed/Attainable
Realistic / Relevant
Timely

Question 3

Importance of Objectives

Answer 3

Act as a guide for employees and the employer to follow
Gives employees a sense of direction
Used as a tool to analyse performance of business
Important in decision making
Facilitates Evaluation

Question 4

Types of Objectives

Answer 4

Short Term - specific objectives (12-18 months)
Medium Term - 1-4 Years
Long Term - General Objectives

Question 5

Mission Statement

Answer 5

Outlines the main aim of the business and gives clear outline of business’ aspirations and values. Should give a clear indication of purpose, outline the legitimacy, describe values/objectives/ tactics/ reasons for existence, be consumer oriented and answer employee/stakeholder needs.

Question 6

Co-operate Objectives

Answer 6

Helps narrow focus of how a business plans to achieve its vision/mission. Often set by senior management

Question 7

Strategic Objectives

Answer 7

Medium/Long Term - refer to organizations aims or responses to address major change and outline how firm plans to achieve corp objectives

Question 8

Operational Objectives

Answer 8

Short Term organizational objectives necessary to achieve long term objectives. Managed by lower level management (supervisors)

Question 9

Divisional Objectives

Answer 9

The divisions in the business and are set by senior managers

Question 10

Departmental Objectives

Answer 10

Set by various departments

Question 11

Directors Main Objectives

Answer 11

Direct stratergy and major decision making, retain control,

Question 12

Shareholders Main Objectives

Answer 12

Receive dividends, share in profitability of business

Question 13

Workforce Main Objectives

Answer 13

Receive a fair wage,ensure good working conditions,secure jobs through expansion

Question 14

Customers Main Objectives

Answer 14

obtain good value for money, receiver high levels of customer service

Question 15

Suppliers Main Objectives

Answer 15

Continue to sell profitability to business, to be paid promptly

Question 16

Bank/Lenders

Answer 16

to be paid bank in full, receive interest

Question 17

Community

Answer 17

benefit from employment, be free from environmental disadvantages the firm can create

Question 18

Government

Answer 18

Receive tax revenue, control business opertaions to ensure it stays within laws,

Question 19

Competitors

Answer 19

To compete by all lawful means, comparre and contrasts performance