Business objectives

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  • Business objectives
    • effective objectives:
      • A-achievable
        • R-realistic and relevant
          • T-time specific
            • 'SMART'
      • M-measurable
        • A-achievable
          • R-realistic and relevant
            • T-time specific
              • 'SMART'
      • S-specific
        • M-measurable
        • Hierarchy of objectives:
    • objectives should focus on what the business does and should apply directly to that business
      • S-specific
      • objectives that have a quantitative value are likely to prove to be more effective targets for directors and staff workers to work towards
        • setting objectives that are almost impossible to achieve in the time frame are pointless and demotivating to those ho have to work to achieve the targets,hence objectives should be achievable
          • objectives should be realistic and relevant  when compared with resources of the company and should be expressed in terms relevant to the people who have to carry it
            • a time limit should be set when an objectives is established-without a time limit it would be impossible to assess whether the objective has actually been met
              • AIM
                • Hierarchy of objectives:
              • MISSION
              • CORPORATE OBJECTIVES
              • DIVISIONAL OBJECTIVES
              • DEPARTMENTAL OBJECTIVE
              • INDIVIDUAL TARGETS
              • to maximize shareholder value
                • AIM
                • to increase profits of all division by 10% per year
                  • CORPORATE OBJECTIVES
                • to increase market share by 10% and cut overheads by 15% in one region
                  • DIVISIONAL OBJECTIVES
                • marketing:increase profit margin by 7%, finance: reduce long term borrowing by 5%
                  • DEPARTMENTAL OBJECTIVE
                • marketing department: increase sales bu an average of 5% per client
                  • INDIVIDUAL TARGETS
                • EXAMPLES:

                Comments

                samadhi

                really helpful :) thank you

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