Business objectives
- Created by: abdul waheed shaikh
- Created on: 18-02-13 07:05
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- Business objectives
- effective objectives:
- A-achievable
- R-realistic and relevant
- T-time specific
- 'SMART'
- T-time specific
- R-realistic and relevant
- M-measurable
- A-achievable
- R-realistic and relevant
- T-time specific
- 'SMART'
- T-time specific
- R-realistic and relevant
- A-achievable
- S-specific
- M-measurable
- M-measurable
- Hierarchy of objectives:
- A-achievable
- effective objectives:
- objectives should focus on what the business does and should apply directly to that business
- S-specific
- S-specific
- objectives that have a quantitative value are likely to prove to be more effective targets for directors and staff workers to work towards
- setting objectives that are almost impossible to achieve in the time frame are pointless and demotivating to those ho have to work to achieve the targets,hence objectives should be achievable
- objectives should be realistic and relevant when compared with resources of the company and should be expressed in terms relevant to the people who have to carry it
- a time limit should be set when an objectives is established-without a time limit it would be impossible to assess whether the objective has actually been met
- AIM
- Hierarchy of objectives:
- MISSION
- CORPORATE OBJECTIVES
- DIVISIONAL OBJECTIVES
- DEPARTMENTAL OBJECTIVE
- INDIVIDUAL TARGETS
- to maximize shareholder value
- AIM
- AIM
- to increase profits of all division by 10% per year
- CORPORATE OBJECTIVES
- to increase market share by 10% and cut overheads by 15% in one region
- DIVISIONAL OBJECTIVES
- marketing:increase profit margin by 7%, finance: reduce long term borrowing by 5%
- DEPARTMENTAL OBJECTIVE
- marketing department: increase sales bu an average of 5% per client
- INDIVIDUAL TARGETS
- EXAMPLES:
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