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[FUNCTIONAL OBJECTIVES AND STRATEGIES] BUSS3 - AQA
Functional Objectives and Strategies
Objectives set out what the business is trying to achieve.
Objectives can be set at two levels:
a) Corporate level
These are objectives that concern the business or organisation as a whole
Examples of corporate objectives:
· For a return on investment of at least 15%
· To achieve an operating profit of over £10 million on sales of at least £100 million
· To increase earnings per share by at least 10% every year for the foreseeable future
b) Functional level
A functional objective is an objective set for an area/department of a business which
contributes to the overall corporate objectives.
Examples of functional marketing objectives might include:
· To build customer database of at least 250,000 households within the next 12 months
· To achieve a market share of 10%
· To achieve 75% customer awareness of our brand in our target markets
Both corporate and functional objectives need to conform to the commonly
used SMART criteria.
Business Strategy: the medium-to-long term plans through which an organization aims to
attain its objectives
Objectives form the basis for decisions on strategy. Such plans include details about what is
to be done and the financial, production and personnel resources required to implement the