1.3 Business objectives

a) Vision statement and mission statement AO2

b) Common business objectives including growth, profit, protecting shareholder value and ethical objectives AO2

c) Strategic and tactical objectives AO3

d) Corporate social responsibility (CSR) AO3

Corporate social responsibility (CSR)

This is an organization’s decisions and actions that impact society in a positive way.

Ethical code of practice

The formal documented philosophies and values of a business, so that stakeholders know what is considered acceptable or not acceptable within the organization.

Ethical objectives

Organizational goals based on moral guidelines that determine decision-making.

Ethics

These are moral guidelines or codes of practice which govern good organizational behaviour.

Mission statement

A succinct and motivating declaration of an organization’s purpose of existence, who they are, and what they do.

Objectives

These are the clearly defined targets of a business in order to achieve its aims. They are often based on the SMART acronym – specific, measurable, agreed, realistic and time specific.

SMART objectives

Peter Drucker’s framework for setting organization objectives, which should be specific, measurable, agreed (or achievable), realistic (or relevant), and time bound.

Strategic objectives

The long-term goals of a business, which could include profit maximization, growth, and increased market share.

Strategies

The various long-term plans of action and approaches used by a business to achieve its goals.

Tactic

The short-term methods, often on a daily basis, used to implement business strategy.

Tactical objectives

The relatively short-term and specific goals of a business. These targets are used to guide the daily functioning of the organization.

Vision statement

An inspiring declaration of what an organization ultimately strives to be, or to achieve, in the distant future.

Tactical Objectives and Strategic Objectives:

Tactical Objectives:

Definition: Tactical objectives are short-term, specific, and measurable goals that contribute to achieving overall strategic objectives.Tactical objectives are usually associated with shorter time frames, often within a year.They are concerned with day-to-day operations and are more detailed and specific.

Strategic Objectives:

Definition: Strategic objectives are long-term, high-level goals aligned with an organisation's mission and vision. Strategic objectives often span multiple years and guide the organisation's overall direction.They are broad, overarching goals that guide decision-making at the organisational level.

Comparison:

• Both types of objectives contribute to achieving the organisation's goals.

• Tactical objectives are the means to achieve strategic objectives.

Contrast:

• Tactical objectives are more detailed and specific, focusing on immediate actions.

• Strategic objectives are broader, emphasising the overall direction and purpose of the organisation.

Business Objectives of Growth and Profit

Growth Objectives:

Definition: Growth objectives involve increasing the size, scale, or scope of the business. This can include expanding market share, entering new markets, or introducing new products/services Growth objectives emphasise expansion and development.

Profit Objectives:

Definition: Profit objectives focus on achieving financial success and profitability. This involves optimising revenue, managing costs, and maximising profits. Profit objectives prioritise financial performance and stability.

Comparison:

• Both growth and profit objectives are fundamental to a business's success.

• Achieving growth often contributes to increased profitability.

Contrast:

• Growth objectives focus on expansion and development, which may involve accepting lower profits initially.

• Profit objectives prioritise immediate financial gains and may involve maintaining or optimising current operations.