Business Objectives

Question 1

Why do business need objectives?

Answer 1

-Employees need something to work towards.
-Without objectives, owners will not have Ethel motivation to keep working
-Objectives help owners decide where to take the business

Question 2

SMART

Answer 2

Objectives should be SMART

• Specific - stating clearly what is trying to be achieved
• Measurable - can be measured quantitatively
• Agreed - have the approval of everyone involved
• Realistic - able to be achieved given the resources available
• Time specific - have astated time by which they should be achieved.

Question 3

Some business objectives

Answer 3

-Survival, when the business is starting or in times of recession survival is the most important objective.
-Profit maximization: make as much profit as possible.
-Sales maximization: reflects how business goes.
-Market share: Dominate the market, higher profile.
-Cost efficiency: reduce costs
-Employee welfare: having happy employees increases efficiency