Functional Objecives and Strategies
- Objectives - Things that the business wants to achieve.
- Corporate - General and refer to the business as a whole.
- Functional - The objectives of each department.
Corporate Objectives Functional Objectives
1) Increase Profits - Minimise costs
- Increase sales
2)Increase customer satisfaction - Reduce faulty products
- Reduce customer complaints
3)Improve staff motivation - Reduce the staff turnover
- Increase wage or salary rates
Objectives and strategies
- Strategy - A plan of action developed to achieve an objective.
- Strategic Gap - When the results from the strategy that has been devloped aren't expected to achieve that stated objective.
Objectives should be...
- Financial objectives - Financial goals that a business wants to achieve.
Influences on financial objectives
- The overall objective - The avaiablity of finance
- The status of the business - Competitors
- Employees - The economy
The operating cycle
Factors affecting how much cash needed.
High sales volumes, More credit, Inflation, expanding.