This article will go over the coperate aims and objectives of a business. For Business A2, it is crucial you know what is an objective, what is a strategy, what must an objective be with mentions of functional and coporate objectives.
What is an Objective? (long term)
An objective is an aim to the business over a period of time. For example, an objective for a start up bussiness is to break-even within the first three months.
Corporate objectives are the overall goals of the whole business. Corporate goals vary according to the size and history of the organistation, as well as the personal aims of the business’s senior managers.
Functional Objectives are goals that are pursued by particular functions within the business, such as human resources or marketing. A functional objective is likely to have a numerical element and a stated timescale. Thus, a business might set a finanacial objective which is a specific profit figure in relation to the capital available to the business. The objective will also set out the timescale within which this financial objective is to be attained.
What is a Strategy? (short/medium term)
A strategy is a way in which a business tries to do something in order to complete an objective. For example, cutting prices to be more competitive is a strategy.
Relationship Between Functional Objectives and Strategies
A functional objective is a goal that is pursued by a particular function of the business. A functional strategy is the medium to long term plan used to achieve the objective.
What Must an Objective Be?
An objective must be specific, measurable, achievable, realistic and time based or SMART (specific, measuravle, achievable, realistic, time-based) otherwise the objective may be too each easy to achieve or too optimistic. An objective must be SMART as it’s shared with the workers.
A Financial objective would relate to:
- Managing money
- Managing budgets
A Human Resource objective would relate to:
- Management of workers as a resource
- Customer satisfaction
An Operations Management objective would relate to:
- Running the legistics of running a product and distributing it.
- Efficiency and productivity.
- Production line.
An Marketing objective would relate to:
- Brand awareness to increase sales