Business Objectives Flashcards
What is a business objective
It is a goal that a business wants to achieve
What is a finance objective
It is linked to money
What is a non financial objective
It is linked to anything but money
What are examples of financial objectives
To survive
To make a profit
To increase sales
To increase market share
To achieve financial security
What are examples of non financial objectives
To challenge oneself
To gain independence and control (decision making)
Social objectives
To achieve personal satisfaction
What are social objectives
Morally correct things for example:
Being environmentally friendly or sustainable
Using renewable energy
Using energy in a more efficient way
What is the purpose of setting business objectives
To motivate and give them something to work towards
To provide purpose and direction
To inform decision making
To assess the success/ performance of the business
How do you set good business objectives
Specific
Measurable
Achievable
Relevant
Time
Specific
The objective should state exactly what is to be achieved
Measurable
An objective should be capable of measurable so that it is possible to determine whether (or hoe far) it has been achievable
Achievable
The objective should be realistic given the circumstances in which is it set and the resources available to the business
Relevant
Objectives should be relevant to the people responsible for achieving them
Timed
Objectives should be set with a time frame in mind, these deadlines also need to be realistic
Why objectives differ between businesses
Size of a business
Level of competition
Type of business
What are the factors that lead to changing business objectives
Leguslation
Internal factors
Technology
Market conditions
Performance
