1.3 Business Objectives

Vision Statement

Long-term goal describing what a business wants to become in the future.

Mission Statement

Defines a business’s core purpose and focus in the present.

Values Statement

Outlines the guiding principles and beliefs of a business.

Business Objective

A specific, measurable target a business aims to achieve.

Strategy

A long-term plan to achieve business objectives.

Tactic

A short-term action used to achieve specific strategies.

Corporate Objective

Broad goals that apply to the entire organization.

Departmental Objective

Goals set by individual departments to support corporate objectives.

Operational Objective

Day-to-day targets that support short-term efficiency and output.

SMART Objectives

Objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound.

Stakeholder

Any individual or group affected by or affecting a business’s activities.

Shareholder

An individual or organization that owns shares in a company.

Shareholder Value

The return shareholders receive through dividends and rising share prices.

Value Creation

The process of producing goods or services that generate benefit for stakeholders.

Value Extraction

When one group (e.g., shareholders) captures a disproportionate share of a business’s value.

Profit Maximization

The goal of increasing financial gain to the highest possible level.

Growth Objective

A goal focused on expanding size, sales, or market share.

Ethical Objectives

Targets that focus on doing what is morally right for society and the environment.

Corporate Social Responsibility (CSR)

A business’s commitment to behave ethically and contribute to sustainable development.

Triple Bottom Line (TBL)

Measuring performance across three dimensions: profit, people, and planet.

Sustainability

Meeting present needs without compromising future generations’ ability to meet theirs.

Strategic Objective

A long-term target aligned with a firm’s mission and vision.

Tactical Objective

Shorter-term, practical goals to implement strategies.

Circular Economy

An economic system aiming to eliminate waste and continually reuse resources.

Linear Economy

A traditional “take–make–dispose” production system.

Circular Business Model

A model that designs waste out of systems and keeps materials in use.

Circular Supply Model

Replaces new material inputs with recovered or bio-based materials.

Resource Recovery Model

Collects and processes waste into usable raw materials.

Product Life Extension Model

Extends product lifespan through repair, reuse, or remanufacturing.

Sharing Model

Allows multiple consumers to share access to a product or service.

Product Service System (PSS)

Sells access to a product’s service rather than the product itself.

Cradle-to-Cradle Design

Designing products so all materials can be reused or returned safely to nature.

Rebound Effect

When resource savings lead to increased consumption elsewhere.

Short-Termism

Focusing on immediate profits at the expense of long-term sustainability.

Bio-Based Material

Material derived from renewable biological sources (e.g., plants).

Premium Pricing

Charging higher prices for high-quality or durable products.

Co-Ownership Model

Consumers share physical goods collectively.

Co-Access Model

Consumers share access to activities or services (e.g., carpooling).

Stakeholder Conflict

Disagreement between different stakeholder interests or priorities.

Strategic Alignment

Ensuring objectives at all levels support the overall mission and vision.