Unit 3

• 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

• 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...

Specific

Measurable

Agreed

Realistic

Timely

• Financial objectives - Financial goals that a business wants to achieve.
• 

Influences on financial objectives

Internal                                                    External

- The overall objective                             - The avaiablity of finance

- The status of the business                    - Competitors

- Employees                                            - The economy

                                                               - Shareholders

Factors affecting how much cash needed.

High sales volumes, More credit, Inflation, expanding.