Week 6A-C.4

INTRODUCTION TO
BUSINESS AND MANAGEMENT

(MM0IBM)
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MA 2020/21
Week 06
Chapter 4
Copyright University of Reading

CHAPTER 4:
BUSINESS OBJECTIVES
 Aims
 Mission statements
 Objectives
 Strategies
 SMART
2
BUSINESS OBJECTIVES
Business objectives are the stated,

measurable targets of how to achieve
A business needs some sort of target or
business aims. For instance, business
sense of what it wants to achieve.
want to achieve sales of €10 million in
European markets in 2004
Business objectives can:

Without objectives, employees do not
(i) Motivate employees by providing a
know the priorities and do not know how
target
success will be measured. This could lead
(ii) Provide a measure of control as to a loss of focus and a wasteful use of
progress can be reviewed against the resources.
target
3
DIFFERENT SCOPES OF
BUSINESS OBJECTIVES
 Top-down approach to plan and organise business

activity within an organisation
 From the vague “big picture” to the broken-down,
more specific objectives
 Alignment of departmental objectives
4
HIERARCHY OF OBJECTIVES
A
I
M
MISSION
CORPORATE
OBJECTIVES
DIVISIONAL
OBJECTIVES
DEPARTMENTAL OBJECTIVES
INDIVIDUAL TARGETS
5
HIERARCHY OF BY BUSINESS
OBJECTIVES
MISSION CORPORATE
AIMS
OBJECTIVES
• Describe the big • Describe a general

picture of what statement of how • Strategic direction
the company the aim will be that connects
wants to achieve
mission to the aims.
accomplish or • It is goal oriented
• For example,
achieve
Google – ‘To
• For example,
organize the
‘becoming the world’s information
world leader’ and make it
universally
accessible and
useful’
6
MISSION STATEMENT
• “To prepare and sell quick service food • "To bring inspiration and innovation to
to fulfil our guest's needs more every athlete in the world. If you have a
accurately, quickly, courteously, and in body, you are an athlete.“ [2016]
a cleaner environment than our
competitors.” [2016]
Burger King Nike
• "To enable people and businesses • "To organize the world’s information and
throughout the world to realize their full make it universally accessible and
potential.” [2015] useful.” [2015]
Microsoft Google
CORPORATE OBJECTIVES
 Companies seek to fulfil their mission statement by setting
more specific objectives.
 Setting objectives provides:
A greater sense of direction for the

business
A possible motivational force for all

employees
An aid to controlling existing and future

operations in the business
CORPORATE OBJECTIVES
Compete with the
existing competitors Social, environment
and ethical issue
Benefits managers Survival (stakeholders’
and employees Maximise Corporate interest)
(bonus) short-term social
sales responsibility
revenue (CSR)
dividend
Business ‘size’
Maximise COMMON
shareholder CORPORATE Growth
value OBJECTIVES
Longer-term Profit at satisfactory

goal than level
survival. Profit dominate the market Profit
- The amount of maximization satisficing
profit which the Increase Market
business aims Share
to achieve 9
SETTING OBJECTIVES
• Useful set of criteria for setting objectives is
SMART.
TIME-
BOUND/
RELEVANT
TIME
&
AGREED/ SPECIFIC
REALISTIC
MEASURABLE ACHIEVABLE • The
• The target is
• The desired • All staff are target
SPECIFIC possible
outcome is a involved in will be
number value given the
• Clearly state discussing met
that can be market
what is to be and agreeing within a
achieved, e.g. measured, e.g. conditions
an aim given
Hotel – 75% To increase and the staff
sales in the period of
bed occupancy and financial
south-east time, e.g.
over the winter resources
period. region by 15% 12
available
this year. months.
10
REFERENCES
Daft, R. L. (2010). Management. (9th ed.). South-Western: Cengage Learning
Laurie, T. (n.d.). Examples of SMART goals and objectives. Retrieved from

http://business.lovetoknow.com/wiki/Examples_of_SMART_Goals_and_Obje
ctives
Marcouse, I., Miles, B., Surridge, M., & Gillespie, A. (2008). OCR Business studies for
AS. (1st ed.). London, England: Hodder Education.
Mottershead, A., Challoner, S., & Grant, A. (2008). AS Business Studies. (2nd ed.).
Oxfordshire, England: Philip Allan Updates.
Mottershead, A., Grant, A., & Kelt, J. (2009). OCR Business studies for A2. London,
England: Hodder Education.
Mottershead, A., Grant, A., & Kelt, J. (2015). Business for A Level includes AS Level.
(1st ed.). London, England: Hodder Education.
Stimpson, P. & Farquharson, A. (2015). Cambridge international AS and A level

business course book. (3rd ed.). Cambridge, England: Cambridge University Press.
11

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INTRODUCTION TO

BUSINESS AND MANAGEMENT

Copyright University of Reading

Business objectives are the stated,

Business objectives can:

 Top-down approach to plan and organise business

• Describe the big • Describe a general

Burger King Nike

A greater sense of direction for the

A possible motivational force for all

An aid to controlling existing and future

Longer-term Profit at satisfactory

Laurie, T. (n.d.). Examples of SMART goals and objectives. Retrieved from

Stimpson, P. & Farquharson, A. (2015). Cambridge international AS and A level

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