"Statements of specific outcomes that are to be achieved"
These are set throughout the business - corporate and functional.
Mission - The overall purpose of the business
Vision - The overall aspiration of the business
Aims/goals - General statements of what the business intends to achieve
Objectives - More precise and detailed statements of the aims/goals
"The long-term quantifiable targets or goals to be achieved by a business within a given time frame"
These relate to the business as a whole. They're usually set by the top management of teh organisation and provide focus for setting more detailed functional objectives.
Tend to focus on the desire performance and results of the business. They need to focus on a range of key areas rather than having a single objective.
Corporate Objectives Purpose
The purpose of corporate objectives is:
- To inform decision making
- To provide strategic direction
- To form the overall guiding principles of the business
- To guide functional objectives
Functional objectives traditionally include areas such as:
- Finance & administration
- Marketing & sales
- Production & operations
- HR management
"Functional objectives are set for each major business function and are designed to ensure that the corporate objectives are achieved"
- Specific - The objective should state exactly what is to be achieved
- Measurable - An objective should be capable of measurement so that it is possible to determine whether it has been achieved
- Achievable - The objective should be realistic given the circumstances in which it is set and the resources available to the business
- Relevant - Objectives should be relevant to the people responsible for achieving them
- Time Bound - Objectives should be set with a time-frame in mind. These deadlines need to be realistic
- Where the business is trying to get in the long-term
- The markets a business should compete in and the activities in these markets
- How the business can perform better than the competition
- The resources that are required in order to compete
- The external, environmental factors that affect the ability to compete
- Corporate - The overall purpose and scope of the business to meet stakeholder expectations. This is heavily influenced by investors and acts as a guide to strategic decision-making
- Business unit strategy - How a business competes successfully in a market. Concerns decisions about products, meeting customer needs, gaining an advantage etc.
- Operational strategy - How each part of the business is organised to deliver corporate and unit-level direction