BUSINESS

OBJECTIVES
 ACTIVITY

Write 3 objectives for yourself:

Life, career and relationships

 What is an objective?
 Something we seek to achieve

 BUSINESS OBJECTIVES perform the role of a

compass or guideline in keeping the business on
track
 The nature, role and importance of business objectives

Objectives serve as a guide for:

 Evaluating performance: measure success in achieving goals

over time
 Decision making: Sense of purpose and direction
 Efficiency: employees work in the interest of organisation and
use resources properly. Functions of business co-ordinated
 Consistency: employees work towards common purpose
HIERARCHY OF OBJECTIVES

Mission statement

Strategic objectives

Tactical objectives

Operational objectives
 A hierarchy exists: one leads to the fulfillment
of the other.
 Strategic objectives are at the core.
 Tactical objectives must be achieved if the
strategic objectives are to be reached
 Operational objectives must be met in order for
tactical objectives to be obtained
 Mission Statement

 Captures attitudes and expectations of employees

 Focus of activities for people to identify with
 Overtime, provides framework for strategies in the
business
APPLE’s MISSION
STATEMENT
Short and long term objectives
Objectives Target groups Time period Examples
Strategic Top management Long term To create 2 new
(3-5 years), even products in the
10 years next 5 years
Tactical Middle Medium term (1-3 To increase
management years) production by
10% in 2 years
Operational Lower level Short term To meet weekly
management (1 day to 1 year) production quotas
of 5000 items
SMART OBJECTIVES
 ACTIVITY

Write 3 SMART objectives

TYPES OF BUSINESS
OBJECTIVES
 Profit
 Growth
 Survival
 Sales
 Market share (Market leadership)
 Non profit objectives