In a layered hierarchy with sub-objectives within each layer. Objectives at the top levels of the hierarchy are the broad, long term strategic obj focusing on bus. policy.
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What are some examples of private sector business objectives?
Survival, profit maximisation, market growth, improving market share and or gaining prestige.
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What are some examples of public sector business objectives?
Equitable wealth distribution, efficient provision of public services such as health and education.
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What objectives may suit and appeal towards shareholders?
Survival, growth and profit maximisation
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What objectives may suit and appeal towards owners?
Survival, growth, positive reputation and acclaimed prestige.
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What objectives may suit and appeal towards management?
Efficiency, Low labour turnover, Good industrial relations and status.
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What objectives may suit and appeal towards suppliers?
High sales, steady growth, good liquidity and positive reputations.
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What objectives may suit and appeal towards the government??
Growth, high turnover, high profits, increased tax revenue and environmental awareness
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What objectives may suit and appeal towards customers?
Low prices, quality products, green credentials, reliable services.
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What is profit maximisation?
It provides the finances necessary to purchase capital (e.g equipment, location etc) and/or invest in growth and expansion.
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What is meant by survival?
Businesses need a positive cash flow so they are able to pay their month to month bills and other expenses.
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What is sales maximisation?
This supports and is similar to profit maximisation. Since a business's profits are calculated by subtracting total costs from total revenue , they can achieve economies of scale by maximising the number of sales they generate.
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What is meant by market share?
This objective is one businesses set in order to be the most superior business/brand in their market. The more market share a business has the more presence and significance they have.
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What is the cost-efficient objective?
This helps bring costs down. This also supports profit maximisation as, with lower costs, businesses can earn more profits from their revenues.
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What is employee welfare?
This is important, as it maintains quality and efficiency within the business. Staff are the ones who do the work, so therefore they need to be happy.
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Why is customer satisfaction an important objective?
This links back to profit maximisation and survival. If a business wishes to make a profit, it must make sure it keeps customers satisfied. This can lead to a repeat in sales and word of mouth referrals.
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What are social objectives?
These can include charity work, donating money to charity, helping the local community. This can create to a positive reputation and possible sales.
Allows businesses to analyse objectives before committing to them. This would involve the business considering factors over which it has control, that is, does the business considering what its strengths and weaknesses are.
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What are tactical objectives?
They're short term objectives, narrow in focus and specific in terms of the day to day running of the business. Their aim is to facilitate the achievement of strategic objectives.
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What should be done once these objectives have been set?
They should be broken down into sub objectives or operational steps.
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What should the tactical objectives be in relation to?
They should be specific to long term goals/objectives. They should be measurable in terms of outcome, achievable with existing resources, and realistically implementable. They should have a time scale of around 1/2 years.
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Where are strategic objectives often found in hierarchical structures?
They're usually at the top of the layered hierarchy of a business's objectives.
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What are strategic operations often associated with?
Often associated with increasing a business's sales revenue, income, market share, profits, customer satisfaction, employee welfare and environmentally aware and commercially green.
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Why is it important for businesses to identify, define and agree SMART strategic objectives?
It will encourage a spirit of collective responsibility in achieving common long term goals.
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Other cards in this set
Card 2
Front
What are some examples of private sector business objectives?
Back
Survival, profit maximisation, market growth, improving market share and or gaining prestige.
Card 3
Front
What are some examples of public sector business objectives?
Back
Card 4
Front
What objectives may suit and appeal towards shareholders?
Back
Card 5
Front
What objectives may suit and appeal towards owners?
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