Business Objectives Flashcards
1
Q
Define business objectives
A
time-assigned targets which are set in advance of strategy and must be achieved to reach the stated aim.
2
Q
Define business aims
A
a long term plan from which business objectives are derived.
3
Q
What are business objectives?
A
- the specific intended outcomes of business strategy.
- the anticipated end results of a programme of activities.
- targets that the business adopts in order to achieve its primary aims.
4
Q
What are the main functions of objectives?
A
- clear statement of what needs to be achieved.
- a focus for all activity.
- targets for individual and group achievements.
- a means of measuring performance.
5
Q
What are the purposes of business objectives?
A
- provides a target.
- motivates employees.
- provides a clear focus for decision making.
- reduces uncertainty.
- provides a sense of unity.
- provides a criteria for evaluating performance.
- facilitates control of actual performance.
- implements the mission.
6
Q
What are some corporate objectives?
A
- increase sales.
- reduce costs.
- increase cash flow.
- increase customer satisfaction.
7
Q
What are the features of strategic objectives?
A
- focused on long term.
- set by the board.
- involve higher risk and uncertainty.
- likely to involve significant investment.
- difficult to change short term.
- stretching and challenging.
8
Q
What are the features of tactical objectives?
A
- focused on short term.
- set by line management.
- relatively easy to change at minor financial cost.
- realistic and achievable.
- relatively low risk.
- limited resources invested.
9
Q
What are SMART objectives?
A
Specific
Measurable
Achievable
Relevant
Time-based
10
Q
What factors can influence business objectives?
A
- age of a business.
- size/legal status.
- ownership.
- market conditions.
- views of owners/managers.
- legislation.
- state of the economy.
- competition.
- risk/attitude to risk.
- corporate culture.
- political factors.
- social attitudes.
