BUSS 3 Strategies for Success

Corporate Objectives: A quantifiable statement of a business' goals which should include measurable targets.

Functional Objectives: A quantifiable statement of a department's goals which should enable it to contribute to the achievement of the business objective.

• Functional objectives should NOT conflict with each other!

Functional Strategy: The plan by which the department intends to achieve its functional objectives on a day-to-day basis.

• Should be realistic and clear.
• Should NOT conflict with any other functional strategies.

SMART Targets:

• Specific - No confusion about what is required.
• Measurable - A quantifiable goal is clear.
• Agreed - Agreed upon by all people involved.
• Realistic - Should be attainable.
• Time Specific - So progress can be measured.

Financial Objectives: The monetary goals a business sets itself to achieve in a given period of time, often a financial year.

 Possible Financial Objectives include:

• Cash Flow Targets: A financial objective focused on maintaining a healthy cash balance.
• Cost Minimisation: The process by which business' attempt to maximise profits by keeping costs low.
• ROCE Targets: The minimum percentage return a business strives to achieve from the capital employed in business activities.
• Shareholder's Returns: The financial rewards to shareholders in return for their investment; this can include dividends paid and increased share value.
• Satisficing: Aiming to achieve a satisfactory level of profit.

Internal Influences on Financial Objectives:

• Characteristics of the Firm (Size/Status/Age)
• Owners (Number of Owners or Directors/Their motives)
• Sector (Primary/Secondary/Tertiary)

External Influences on Financial Objectives:

• Competitor's Actions (Pricing Strategies, etc)
• Economic Conditions (Boom/Slump)

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