1.3 Organizational Objectives Day 1Presentation Transcript
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 business
To motivate and inspire employees to reach a goal
To direct and provide focus
Why do businesses set aims and objectives?
Give the business a sense of direction
Form the foundation for business decision-making
Help to encourage strategic thinking
Basis for measuring performance
What are the levels of business objectives?
What is the difference between a vision and a mission?
Outlines a business’ aspirations
Visualization of what success would look like
Focused on the very long term
Do not have to have actual targets
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?
Long-term goals of an organization
Serve to give a purpose to the general direction of an organization
Often expressed in a mission statement
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?
Day-to-day methods to improve efficiency
Aimed at trying to achieve the tactical objectives
Affect the business as a whole
Aimed at the long-term objectives
Used to achieve the strategic objectives
What are typical strategic objectives?
Image and reputation
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
Survival (in cases of a recession or takeover bid from a rival)