business objectives and strategies - different stakeholder and business objectives

Question 1

what are the sections in the hierarchy of objectives?

Answer 1

aim
mission
corporate objectives
functional objectives
business unit/individual targets

Question 2

what is meant by ‘aim’ in the hierarchy of objectives?

Answer 2

• overall target
• broader than objectives
• Long term plan of the business - survival, growth, market share, profit (not SMART)

Question 3

what is meant by ‘mission’ in the hierarchy of objectives?

Answer 3

• the overriding goal of the business
• reason for its existence
• provides a strategic perspective for the business and a vision for the future
• Often written in a statement to the stakeholders

Question 4

what is meant by ‘corporate objectives’ in the hierarchy of objectives?

Answer 4

• objectives of the business as a whole
• cover a range of key areas in the business
• set at a corporate level
• for each business function and each other stakeholder.

Question 5

what is meant by ‘functional objective’ in the hierarchy of objectives?

Answer 5

relate to specific functions of a business such as marketing or finance

Question 6

what is meant by ‘business unit/individual target’ in the hierarchy of objectives?

Answer 6

similar to functional objectives but are more focused on individuals

Question 7

why do you set objectives?

Answer 7

in order to meet aims
SMART objectives

Question 8

what does the SMART acronym stand for?

Answer 8

Specific
Measurable
Achievable
Realistic
Time-bound

Question 9

what does ‘specific’ mean in the SMART acronym?

Answer 9

this means that objectives must be clear

Question 10

what does ‘measurable’ mean in the SMART acronym?

Answer 10

a business must be able to measure whether they have met an objective - they need to specify the amount

Question 11

what does ‘achievable’ mean in the SMART acronym?

Answer 11

the objective should be realistic given the circumstances in which it is set and the resources available

Question 12

what does ‘realistic’ mean in the SMART acronym?

Answer 12

objectives must be realistic for the size and scale of the business

Question 13

what does ‘time-bound’ mean in the SMART acronym?

Answer 13

objectives must have a time limit

Question 14

how do objectives differ for organisations in private sector?

Answer 14

• become more efficient and cut costs
• increase profit and market share

Question 15

how do objectives differ for organisations in public sector?

Answer 15

provide the best service possible to community
strive to create employment

Question 16

how do objectives differ for organisations in third sector?

Answer 16

non-profit making and want to invest in social, environmental and cultural objectives

Question 17

what are influences and constraints on objectives?

Answer 17

• finance
• communication
• conflicts
• industrial dispute
• legislation
• economy
• competition
• other stakeholders and conflicts
• corporate objectives
• social objectives
• changing objectives