Business objectives - 1.5.3

Question 1

what are the 2 main business objectives

Answer 1

• survival
• profit maximisation

Question 2

what are 5 other smaller business objectives

Answer 2

• sales maximisation
• high market share
• employee welfare
• customer satisfaction
• social objectives

Question 3

what is the definition of business objectives

Answer 3

specific, intended outcomes as a result of a business strategy

Question 4

what are the main purposes of having business objectives

Answer 4

create a clear statement of what needs to be achieved which provides a focus for the company which can aid decision making and target setting

Question 5

what is the hierarchy of objectives in a business and how does strategy and detail differ as you go up and down the hierarchy

Answer 5

1. mission objectives (why the business exists)
2. corporate/strategic objectives
3. functional objectives
4. team objectives
5. individual objectives

objectives become increasingly strategic as you go up the hierarchy, but less detailed

Question 6

what does the acronym SMART stand for in regard to using business objectives efficiently

Answer 6

S - specific
M - measurable
A - achievable
R - relevant
T - time realistic

Question 7

what does an effective mission statement include

Answer 7

• a differentiation for competitors
• definition of the markets in which the business operates/wants to operate in
• goals to excite and motivate employees

Question 8

what are corporate objectives

Answer 8

what a business wants to achieve as a whole

Question 9

what are functional objectives

Answer 9

objectives set for individual sectors of the business to support corporate objectives

Question 10

what are key performance measures for a business

Answer 10

• profit
• investment return rate
• growth
• market share
• reputation