Business Objectives

What are business objectives?

• Specific intended outcomes of business strategy and activity

• Targets which a business sets to help it achieve its aims

What are the main functions of business objectives?

• State what needs to be achieved

• A focus for all activity

• Targets for individual and group achievement

• A way to measure performance

Typical corporate objectives

• Sales revenue

• Profit

• Return on investment

• Growth

• Market share

• Cash flow

• Value of the business

• Corporate image and reputation

Smart business objectives

• S:Specific

• M:Measurable

• A:Achievable

• R:Relevant

• T:Time-Bound

What are the hierarchy of objectives?

1. Mission

2. Corporate

3. Functional

4. Unit/Team

5. Individual

What are the examples of functional objectives?

• Increase market share: Successfully launch five new products in existing markets over the next two years (Marketing)

• Reduce unit costs: Increase factory productivity by 10% within 2 years (Operations)

• Increase cash flow: Reduce the average time taken by customers to pay invoices from 70 to 60 days (Finance)

• Improve customer satisfaction: Achieve a 95% level of high customer service (HR)