Business objectives

1.3 Oxford textbook

Mission statement

States the business' purpose and why it exists. Specific and tends to not be changed.

Vision statement

Forward looking and speaks to a long term aims and highest aspiration of a business. Tends to be broad and abstract.

Business objectives

clearly defined and measurable targets of an organisation. Essential to know what they are striving to achieve. Give employees a sense of direction.

Strategic objectives

Long-term. Targets the growth that the whole organisation is striving to achieve. Includes business survival, growth and profit maximisation.

Tactical objectives

Short term. Easier to change or reverse. Specific targets with definitive timelines.

Growth

Refers to an increase in the size of a business and its operations.

Economies of scale

Cost saving benefits for firms as they grow larger (buy bulk)

Internal growth

Organic growth. Organisation expands without the help of an external partner firm. Uses its own resources such as retained profits to invest in the production facilities.

External growth

Inorganic growth. Expansion and evolution of a business by using a third party resources.

Sales revenue

monetary value of the products that the business has sold

Sales volume

Number of the products that the business has sold.

Market share

firm's sales revenue as a proportion of the whole industry's sales revenue.

Profits

Financial surplus. Difference between a firm's sales revenues and its total cost of productions. Provides internal soruces of finance.

Protecting shareholder value

Company is owned by its shareholders. The responsibility of the company's CEO and board of directors, based on their strategic plans to earn a healthy return on the capital invested.

Stability

to continue to operate at an optimum level, management must have certain objectives

Ethical objective

Ethics is the academic discipline or study or moral philosophy. Business ethics are the guiding principles that provide moral guidelines for the conduct of business activities.

CSR (corporate social responsibility)

Establishes the business organisation as a part of society and must actively reduce the negative impacts on society and maximise positive impacts.