ORGANIZATIONAL OBJECTIVES

Section 1.3 (Day 1)

Types of Organizational Objectives

To be the leading sports brand in the world

To make products that outperform competitors

Gain 40% market share in athletic shoes

Introduce three new athletic shoe products

To make athletic shoes that outperform competitors

What are the functions of organizational objectives?

To control or set boundaries for a businessTo motivate and inspire employees to reach a

goalTo direct and provide focus

Why do businesses set aims and objectives?

Give the business a sense of directionForm the foundation for business decision-

makingHelp to encourage strategic thinkingBasis for measuring performance

What are the levels of business objectives?

Corporate objectivesDepartmental objectivesIndividual objectives

What is the difference between a vision and a mission?

Vision Outlines a business’ aspirations Visualization of what success would look like Focused on the very long term Do not have to have actual targets

Mission Outlines how a vision statement will be achieved States the purpose of the business Can focus on medium or long term and must be

updated

What is the difference between aims and objectives?

Aims Long-term goals of an organization Usually unquantifiable Serve to give a purpose to the general direction of an

organization Often expressed in a mission statement

Objectives Short term and specific goals of an organization based

on aims More likely to be quantifiable or measurable

What is the difference between strategies and tactics?

Strategies are plans or schemes to achieve the long-term aims of a business

Tactics are short-term ways that firms use to achieve their aims and objectives

What are the levels of strategy?

Organizational strategies Day-to-day methods to improve efficiency Aimed at trying to achieve the tactical objectives

Generic strategies Affect the business as a whole

Corporate strategies Aimed at the long-term objectives Used to achieve the strategic objectives

What are typical strategic objectives?

Profit maximizationGrowthImage and reputationMarket standing

What are tactical objectives?

Short-term objectives that affect a segment of the organization, such as a department Goals that guide the daily functioning of certain

operations Short-term objectives are for 6-12 months

Examples Survival (in cases of a recession or takeover bid from

a rival) Sales revenue maximization