Business objectives

Vision statement

A philosophy, vision or set of principles which steers the direction and behaviour of an organisation

Mission statement

States companies’ purpose and explains why the business exists. A mission statement generally includes the business aims and whether expressly stated or implied indicates most important values.

Business objectives

Articulated, measurable targets that a business must meet to achieve the aims or long-term goals of the business. It is critical that objectives are specific and measurable.

Strategic objectives

The long-term goals of a business that indicate how the business intends to fulfil its mission. Strategic objectives usually include performance goals, such as increasing market share or improving profitability.

Tactical objectives

Short- to medium term targets that, if consistently met, will help a business reach its strategic goals. Whereas strategic objectives are typically set by the board of directors with top executive management, tactical objectives are usually set by executive management working with middle level management.

Operational objectives

Day to day objectives set by floor managers so that the company can reach its tactical objectives.

The need for organization to change objectives

Internal: Leadership change, HR, organization like merger or acquisition, Product performance in the marketplace, Finance, Operations changes like production methods. Changes in the external environment “STEEPLE”: Social, Technological, Economic, Ethical, Political, Legal, Ecological.

Corporate social responsibility (CSR)

CSR is the view that businesses, rather than focusing solely on increasing shareholder value, should contribute to the economic, social and environmental well-being of society.

Why businesses set ethical objectives

Building up customer loyalty, Creating positive image, Developing positive work environment, Reducing risk of legal problems(even if they win in court it costs money), Increasing profits (more opportunities for loans and customers may be more inclined to purchase)