Business 1.3

Vision statement

A statement describing what an organization wants to become or achieve in the future.

Mission statement

A statement describing an organization's fundamental purpose and what it does.

Aim

A general statement of what an organization wants to achieve.

Objective

A specific and measurable target that an organization aims to achieve.

Strategy

A long-term plan of action designed to achieve organizational objectives.

Tactic

A specific short-term action used to implement a strategy.

Strategic objective

A long-term objective that determines the overall direction of an organization.

Tactical objective

A medium-term objective that helps achieve strategic objectives.

Operational objective

A short-term objective concerned with the day-to-day activities of an organization.

Profit

The amount remaining after total costs are subtracted from total revenue.

Profit maximization

The objective of achieving the highest possible level of profit.

Profit satisficing

The objective of achieving a satisfactory level of profit rather than the maximum possible profit.

Survival

The objective of continuing to operate and avoiding business failure.

Growth

The objective of increasing the size or scale of a business.

Market share

The percentage of total market sales accounted for by a particular business.

Market leadership

The position of having the largest market share in a particular market.

Social objective

An objective aimed at achieving a positive social outcome.

Environmental objective

An objective aimed at reducing environmental harm or improving environmental sustainability.

Ethical objective

An objective based on moral principles and responsible business behaviour.

Corporate social responsibility (CSR)

The responsibility of a business to consider the social, environmental and ethical effects of its decisions and actions.

SMART objectives

Objectives that are specific, measurable, achievable, relevant and time-bound.