Business Objectives
Usually yields the largest short-term profits and preferred by most business owners and shareholders
What are benefits of profit maximization?
What's the difference between a shareholder and a stakeholder?
A shareholder owns part of a company while a stakeholder can be anyone interested or affected by its operations
specific, measurable, achievable, realistic & relevant, time limited
What does SMART stand for?
A mission statement
Business culture, size and legal form of business, private sector or public sector, and number of years a business has been operating
Factors that Determine Business Objectives
customers, suppliers, employees, local community, government, shareholders are the...
operational effectiveness is more important than quality of service
What are the objectives of the public sector?
Objectives vs. Aims and Statements
Objectives are stated, measurable targets that a business plans to achieve
Aims are long-term goals hoped to be achieved
Statements are overall core values of the business which correlate with the aims and objectives
A business considers the interest of society by taking responsibility for their decisions and activities on stakeholders
What is Corporate Social Responsibility (CSR)?
Supplier's role
Supply goods and services to allow the business to offer its product to its own customers
We plan to increase our revenue by 200% within our first 6 months of opening
What's an unrealistic SMART goal?
Aim, Mission, Business Objectives, Dimensional Objects, Departmental Objectives, Individual Targets
Hierarchy of objectives
When profits are put toward benefitting society and achieving a positive social environment, rather than trying to increase shareholder value
What are the objectives of social enterprises?
Individuals who work within a business, or own it, and are affected by its operations, or those separate from it that are still affected
Internal vs. External stakeholders
business objectives, marketing objectives, strategies, tactics, and budgets need a clear sense of direction
How do SMART goals determine business objectives?
A document detailing a company's rules and guidelines on staff behavior that must be followed by all employees
How does ethical code influence business objectives?
With a high failure rate of new businesses, trading is an important aim for entrepreneurs, after two years, long term goals can be achieved
What is survival?
During horizontal integration (takeover) business is more secure and can guarantee more career promotion opportunities
How should employees be considered in horizontal integration?
If managers fail to communicate with employees about objectives or changes and objectives fear and uncertainty might spread, or performance may fail to meet standards
Why is it important to communicate objectives?
The competitive and economic market might change and goals could switch from growth to survival
Why do business need to adapt their objectives?