What is the definition of objectives?
A quantifiable target which helps to coordinate activities
What is a mission statement?
A statement about the organisations aims that are designed to motivate the workforce
What are cooperate objectives?
These are goals for the whole organisation and are usually based on the mission statement
What are functional objectives?
These are goals based on each functional area of the business and are usually based on the mission statement
Objectives should be SMART, what does SMART stand for?
S - specific - easily designed
M - measurable - quantifiable
A - agreed or acheiveable - they should be agreed with stakeholders and they must be able to achieve them
R - realistic - not in conflict with other objectives and staff should feel they can achieve this objective
T- time bound - must be based on a time frame
Why is it important to set objectives?
Mission objectives will help to guide and motivate employees in the direction the business wants
Corporate objectives gives a more detailed sense of direction
Functional objectives allows for greater co ordination of resources
What is important to achieve good operational objectives?
They should be broad - in order to incorporate any operational sides of the business in order to meet general goals
They need to be general in order for departments to understand what needs to be done in order for operational objectives to be met
Different lengths of time - the objectives need to be long term and medium term in order for the company to carry on being successful.
What can operational objectives be based on?
Costs Quality Speed of response and flexibility Dependability Environmental objectives Added value
How do you improve profit?
Increase sales or reduce costs
How do you reduce costs?
Reduce fixed costs-
Reduce unit costs
Reducing variable costs per unit
How do you define quality?
Features of a service of product that allow it to satisfy or delight customers
How do you measure quality?
Customer satisfaction ratings - can be both quantitive or qualitative data
Customer complaints - shows whether a business has problems it needs to address
What would you look at to see the quality of a business?
Scrap rate - how much scrap is being wasted -increases unit costs of goods
Punctuality - measures how fast a business delivers its products or services
How would you work out punctuality?
Punctuality % = deliveries on time
————————- x 100
Speed of response and flexibility - what is meant by this term?
How fast and business can respond to consumers and customers to fulfil their needs without lacking quality
What is meant by the dependability of a business?
The statements they make to customers or consumers, how they work to remain to these
What are environmental objectives of a business?
Ensuring a businesses operational side does not harm the environment is important, such as M&S aim to reduce the amount of plastic bags given at tills and they have sloped delivery vans in order to reduce fuel consumption
What is added value?
Added value is an operational objective because it allows a business to develop their USP on a product or service
What are the four external influences on operational objectives?
Market factors - whether the market is growing or declining
Competitors actions and performance - what competitors are doing, whether it will affect sales and whether there is a more efficient way of operating
Give examples of environmental objectives?
Reduce waste Reduce carbon footprint Minimising waste products or materials Increasing recycling Achieving self sufficiency in energy use
What are the internal influences on operational objectives?
Corporate objectives - the aims of the company such as Ryanair has corporate objectives to have low fares, therefore their objectives need to centre around low fares
Finance -objectives can rely on steady and profitable finances
Human Resources - ensuring that skills and training are done correctly in order to motivate staff to meet objectives
The nature of the product/service - way in which the product is made or the service is carried out can depend on the objectives that are created