Business objectives
Mission, aims and objectives
- A mission statement says why the business exists and what it wants to be.
- From it come aims (broad, long-term goals), then objectives (specific targets).
- A strategy is the long-term plan; tactics are the short-term actions.
Practice
A strategy is the long-term plan; the short-term actions that carry it out are:
Tactics are the short-term actions; strategy is the long-term plan to meet objectives.
SMART objectives
Good objectives are SMART:
- Specific — clear and exact,
- Measurable — checkable with numbers,
- Achievable — possible to reach,
- Realistic — sensible for the resources,
- Time-bound — has a deadline.
Practice
What does the "M" in SMART objectives stand for?
SMART = Specific, Measurable, Achievable, Realistic, Time-bound.
Types of objective & CSR
- profit maximisation, growth, survival (vital for new firms), market share, social/ethical objectives.
- Corporate social responsibility (CSR) — acting in the interest of society and the environment, not just profit.
- Objectives change over time: a new firm aims to survive, then to grow.
Practice
Corporate social responsibility (CSR) means a business should:
CSR is acting responsibly towards society and the environment — fair pay, less pollution, helping the community.
You've got it
Key idea
- mission → aims → objectives; strategy (long-term plan) vs tactics (short-term actions)
- objectives should be SMART
- types: profit, growth, survival, market share, ethical; CSR = caring for society/environment