Using Objectives and Strategies
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- Created by: Lucia Incerti
- Created on: 05-12-14 10:11
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- Using Objectives and Strategies
- Business Objectives
- Corporate Objectives
- The goals or targets of the whole organisation
- Usually based on its mission or aims
- Designed to enable a business to achieve its aims
- Set in order to coordinate business activity
- Give a sense of direction to the business as a whole
- They govern the setting of fuctional objectives
- Thus provide a mechanism for ensuring that authority can be delegated without loss of coordination
- The goals or targets of the whole organisation
- Objectives
- Goals or targets that must be achieved in order to realize the stated aims of an organisation
- Tend to be medium to long term
- Functional Objectives
- The goals or targets of each functional areas of a business
- Usually based on its corporate objectves
- Are set for each division of a business
- Are designed to ensure that the business achieves its corporate objectives
- And thus achieves its overall aims
- Are designed to ensure that the business achieves its corporate objectives
- Are set in order to coordinate the activities of the department
- The goals or targets of each functional areas of a business
- Relationship between Corporate and Functional Objectives
- Survival
- Minimum level of sales and sales revenue
- Appropriate levels of stock
- Well trained and experienced staff
- Profit Maximisation
- Effective marketing
- Increase sales
- Improving profit margins
- Minimizing costs
- Reducing staff turnover
- Effective marketing
- Growth Maximisation
- Increasing market share
- Retaining profit
- Finance growth
- Increase capacity
- Expanding the number of sites
- Recruiting staff
- Diversification
- Development of niche markets
- Raising additional finanace
- Via appropriate cost effective sources
- Survival
- SMART Objectives
- Specific
- Clearly and easily defined
- Measurable
- Quantifiable
- Agreed
- Managers and subordinates are involved in setting targets
- Realistic
- Achievable and not in conflict with other objectives
- Time Bound
- Based on an explicit timescale
- Specific
- Corporate Objectives
- Business Strategies
- Strategy
- Medium to long term plan
- Organisation aims to attain its objectives
- Should not be considered until the company's corporate and functional objectives have been agreed
- Relationship between Functional Objectives and Strategies
- Marketing Division
- Gain market share
- Contribute to increasing the rate of growth
- Lower price
- Gain market share
- Finance Division
- Minimise Costs
- Maximize Profits
- Introducing zero budgeting
- Minimise Costs
- Operations Division
- Improve economies of scale
- Centralised buying in bulk
- HR Division
- Improve labour turnover
- Improve motivational techniques
- Marketing Division
- Strategy
- Business Objectives
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